Worse than blocking a Forex trading account at the most inopportune moment may be that the “drain” of the deposit. Most often, the broker blocks the trading account due to the violation of the rules of the Agreement by the trader. Brokers do not particularly advertise the points of their agreements, and traders are not particularly eager to go deeper into them (and often are completely overlooked). Worst of all, beginner traders make mistakes due to their own carelessness, and then immediately label them in various forums.
Reasons for blocking a Forex trading account by a broker
- Violation of the terms of the contract and the rules for working with a broker:
- You cannot open multiple accounts with one broker, that is, open from one IP or VPN server on behalf of several people. The broker perceives this as an attempt at fraud, for example, with the aim of using several bonus programs at once or with the aim of influencing the market;
- Invalid trader data at the time of registration. The fact emerges at the time of the withdrawal of money;
- fraud. One of the most common reasons. And the most unpleasant moment when a broker calls fraud that which, according to the trader, is not. This is followed by correspondence with the Support Service, situation analysis, etc. It makes no sense to specifically speculate a broker to a broker – reputation is more important (with the exception of “kitchens”).
- Attempt to use strategies that are prohibited by the broker:
- hedging (locking). This strategy is legally prohibited by the NFA (rule 2-43 (b)). Some brokers (especially with the jurisdiction of the United States) are guided by this rule, because the simultaneous opening of positions in different directions will be a violation;
- scalping. Scalping strategies can be cut short to block an account. Most often this is due to server load or the fact that weak liquidity providers do not have time to process bids;
- algorithmic trading. Brokers prohibit the use of trading advisors in two cases: either these are “kitchens” or frequent unsystematic requests from the robot drive down server traffic. The robot is detected by the Magic parameter. Most often, the broker simply remotely disables the robot, but sometimes blocks the account.
- Not using the account for a specific period of time. Forex account blocking is removed by the Support Service at the request of the trader.
- Unreasonably high profits. At best, the account may be blocked for the duration of the check, at worst – the results of the transactions may be canceled. Possible reasons for exchanging transactions: profit limit for 1 transaction and limitation on the minimum position holding time.
- The entire deposit participates in one transaction (the norm is 1-5% of the deposit per transaction) and the profit received is 100% or more. This technique is used by those who monetize bonuses (deposit overflow) from different brokers, transferring money from one account to another.
What to do if the account is already blocked
- Immediately contact the Broker Support Service (most often, it should work at least 24 hours 5 days a week). You state the problem clearly, try to avoid excessive emotionality and be sure to record as many facts as possible in the letter. For example: “Today, 03/10/2017 at 9.00 I found that my account No. 101 was blocked for an unknown reason. Please resolve this issue as soon as possible and explain the reason for what happened. Thank you in advance. Sincerely, Ivan Ivanov. “It is important! Be sure to make screenshots of all correspondence with the broker, up to the screenshots of each deposit or withdrawal requests. In the future, every detail can be decisive. Try in correspondence and conversation with representatives of the broker to get as much specific information as possible. For example, the number of the contract clause, which was violated at the time of blocking the Forex account, the date of the solution, etc. All this will be a good reason to appeal to the regulator.
Support usually responds quickly, but not always in favor of the trader. Well, if the account will be unlocked. If not, then the next step.
- We are preparing a complaint to the regulator.
- In case of serious problems (for example, a broker’s bankruptcy), we initiate a chargeback procedure. In 50% of cases, chargeback allowed you to return 50-70% of the deposit balance.
Conclusion. If all these methods have not brought results, then you can try to file an application to the court, but due to the lack of Forex legislation, the probability of success is negligible. Therefore tips:
- before making a deposit, read the Agreement. If it is not on the site, ask the support service;
- pass verification before making a deposit;
- Leave on deposit only the amount you don’t want to leave.