Why Forex profits shouldn’t stay virtual long…




Return to Forex scams

If you make profits trading Forex, make withdrawals.
Don’t allow your account get too heavy.

Some traders avoid withdrawing profits for too long. On one hand, there is an obvious benefit of that: as account balance grows they are able to trade larger funds and invest more on each trade and thus make higher profits. On the other hand, there is a hidden danger of such tactics, which I’m going to talk about now. Oh, yes, I’ll be telling you scary stories today so that you’ll hardly sleep at night worrying about your Forex investments. Mvooohha… haha..

The scary story is called “Why overgrown Forex accounts could be on a shaky ground?”

I see this topic as a message of precaution, and will never guarantee that the situation I’m about to tell here is going to happen to you. Don’t even ask for it… :)

Those who are 100% sure they are trading with a reputable and reliable Forex broker, may stop reading here and sleep well at night. Others, welcome to reality!

Let’s take you, a cool trader with a mega Forex strategy, and mega trading skills; describing it in regular words: you know how to make profits quick and make account grow big.
You put $1000 into a Forex account and 6 months later your account confidently grows into a staggering $500 000. Wow! You claim them back by filling out a withdrawal request. Right.

But wait… You put $1000 in and want to take back 500 times more after just 6 months!? That’s insane! Do you think your broker is going to agree and pay you those money? Are you sure?
I hope they pay, but what may happen, and what has already happened to Forex traders before you – they never saw their money… What happened?

Unfair brokers in such extreme cases such as your fast made $500000, would rather MAKE YOU LOSE this money in one or another way than pay you. How? Oh, my friend, there are many ways to dump traders, since, remember: “Forex is a high risk investment. There are many factors involved when a broker won’t guarantee to traders prices quoted… or how about a failure of hardware, software and Internet connection, other communication failure, distortions or delays arising from trading Forex via Internet… etc”. Just read carefully an agreement you signed with your Forex broker to realize that almost no guarantees were given…

With such power in their hands, brokers can easily “fix the problem” and make your money disappear. It can be done by placing trading orders from your name against the market while you are away or closing some running and currently losing trades for you :), or by creating other stories, myths according to which the money you earned earlier were not actually right and happen as a result of some system mistake that had been giving you wrong price quotes, etc etc. Brokers who are not willing to pay may tell many different stories at their choice (really, don’t doubt their creativity) just to make sure you won’t get the earnings you claim.

Most popular accusation nowadays is that you’re, in one or another way, convicted in scalping and taking advantage of broker prices, and therefore, you have to pay a penalty, which will be equal to the amount a broker never wants to pay you.

So, why keep your account growing without control. A simple measure of taking planned withdrawals can save you from troubles.

It’s not going to be the case for traders who trade with reputable Forex brokers. The brokers which are registered with appropriate local authorities and, even better, those that have a well-known trademark name in the financial world and run additional businesses beside Forex. A good example are banks – they will never put their name and entire business in danger by playing dirty games with their Forex clients.

Compare it now with companies, who run only Forex businesses and are not registered with any local authorities that would control their Forex related activities. Traders suddenly have no protection of their investments in case of a dispute. Even if such brokers seize to exist due to bad reputation gained with unfair practices, they lose nothing besides their old company names and some clients (while still taking your money wit them :)). For such brokers restarting an old scam business under a new name is a simple task, for their clients it is a loss of time and money.

I hope you got the message and won’t shock your broker one day with the amount requested for withdrawal… ;)

** Forex Dark Lord **

35 Comments to this post

  1. hi i just this part of ur site,scary it is actually,i am registered with fxcm,i initially wanted to do wat u just said but am going to cut down on it.thaks,pls wat do u think pls reply

  2. Alex, I have nothing against the broker you trade with, but I think that you’ve made the right decision about controlling your virtual profits.

  3. Is there a list of Brokers to not use? Im using forex.com and doing well. Will I have problems wih them when I do a withdraw?

  4. These brokers are known as scam brokers. The lists should be easy to find on the Internet.
    You should have absolutely no problems with your broker. It is reputable.

  5. Thanks for your lessons. They are great. I’m thinking to open a trading account with FxPro. Do you think it’s a reliable and reputable broker?

  6. It is a broker which seems to care about their reputation and status. They are pretty competitive among market makers.

  7. What do you think of Interbank FX? Thanks in advance

  8. IBFX is a market maker - a broker for beginners, but not for pros.

  9. HOW IS FIGFX.COM IS IT A SCAM OR GOOD COMPANY?

  10. It is a new kid on the block. I don’t have any experience with them, nor did I hear anything + or - about them.

  11. I veen reading about forex and all for the last two months i just opened a demo account and after reading around in the net i would like to ask the lord is FXCM a good choice to begin trading seriously once i get out of being n00b?, i mean they are big? are they serious?

  12. ForexPlace?

  13. FXCM, they are big. Are they serious? I should say yes, because if you’re not it is hard to grow big.
    ForexPlace - these guys are smaller.
    Uber, once you get out if being a noob, you’ll know which broker is right for you. It could be FXCM, but also could be another one as well, like true ECN broker.

  14. Hi Lord,
    I’m a new entry in the Forex, but I opened a real account (a very small one for the moment, for very small trades; I dont’t use the whole leverage…) with Oanda. What about? I mean, when next week my profits will grow up to 1.0000.0000 €, what could happen? Do you know people having troubles in withdrawing? Thank you for all!

  15. Examples when traders had troubles withdrawing their profits are not rare. Just imagine for a moment: you’re a broker and a trader who yesterday put $100, tomorrow (or in few weeks) is asking to withdraw $10 000… Will your business survive such payouts on a constant basis? Nope. Besides, you’d be interested to know how on earth a trader has managed to earn so much in such a short time? Was there any policy violation involved etc etc? As a broker, you would be more inclined to return an initial deposit to such a “troublesome” client and say “thank you and good bye” rather than gifting him a $10 000 reward.
    So, as I said, make money, withdraw them regularly, and don’t “shock” your broker with your next withdrawal amount.

  16. OK, but what could reasonnably happen, if I let grow my account for at least one yer having, suppose, a balance constantly growing by 30 % monthly; and after that begin to withdraw monthly 10% of the profit, letting the remaining to increase (hypotetically, of course) by 20% monthly the balance as well as the margn, the trades and (theorically) the profits? I wonder if it could be a little dumm to let a constantly growing sum in the hand of a unique broker?

  17. Then you should be fine. Make sure you’re opening an account with a regulated broker + it is ideally shouldn’t be a market maker, although on the first stages a regulated market maker is fine.
    An ideal solution would be to earn income with a broker who allows small deposits, but as you start to make serious money, switch to a large reputable ECN broker, where you need at least $20k to $50k to open a trading account. This way you won’t need to worry anymore about being able to withdraw your profits.

  18. Thank you veeeeery muuuuch for your immediate replies. Let me please abuse your availability once more with some more issues:
    1) What is briefly a market maker? An opponent of your trades that has something to loose if you proft?
    2) And a ECN? A broker who really does not care if you profit ot loose?
    3) May both (MM and ECN) be regulated / non regulated?
    4) I read the best and the worst about Oanda. In your opinion, can I trust them?
    5) According to your experience, would it be preferable to trade with several brokers or would that be too complicated or difficult?
    6) Have a good day

  19. No problem.
    1) Market maker - a broker that always takes the opposite side of your trades and profits when you lose. When you win, a broker loses. Market makers feed on small novice trades and play the odds that novice traders in their general mass lose in Forex.
    2) An ECN broker doesn’t take the opposite side of your trades and therefore doesn’t care if you win or lose. You pay a commission to your ECN broker, that’s how they make money.
    3) Yes, both MM and ECN may be regulated as well as non-regulated.
    4) Oanda is one of the oldest market makers in the industry. In my opinion, they are among few market makers a novice trader can trust.
    5) Trading with several brokers is not a problem if your trading system is not too complicated.
    6) Thank you, actually there is no sun in my Kingdom… mwuhaha :)

  20. I have account with iForex. It is reputed company or not.

  21. If you already deposited money…wait, how did you choose a broker without checking its background?
    I don’t know about iForex, never traded or read any reviews about this broker.

  22. Dear Lord,
    I just deposited $3,000 with a relatively new ECN Broker (FXCBS/Fienex Group) who recently moved the main office to Dubai from BVI. They charge $8 per 1.0 lot trade and have the lowest spreads I’ve seen. They used to only accept Institutional clients, but now take individuals too. They have been very easy to work with in support and I had a great 1st week of trading where I grossed $1,100 in 3 1/2 days of trading netting $670 profit in 65 trades. I think that’s pretty good for a noob. Anyway, I had planned to hopefully grow my account so I can trade bigger and make bigger profits. FXCBS banks with Standard Chartered Bank of Dubai and they have branches all over the world including New York. FXCBS Since FXCBS is an ECN Broker, and IF I continue to profit, is there an amount I should not let my account grow more than? Should I level it off at $10k and open accounts with other brokers just to be safe? Or should I continue to trade one bigger account? I don’t think I can succesfully trade 2 separate accounts as I don’t set stops until I’m ready to close the trade. Please advise. Thanks!

  23. Your first goal should be to withdraw the amount equal to your deposit, which is $3000.
    When you reach $6000 request the first withdrawal.
    After that you can grow your account to $10 000 and take out another 3K and so on. Making moderate withdrawals frequently, instead of large sums, wouldn’t spook out your broker and you can continue trading onh the same account while ensure you’re getting a reward - converting virtual profits in real cash.

  24. My Broker is FXCM - UK branch… are they market maker? Are they going to take the opposite side of my positions? They said that they have NO DD…. Please reply to me … I don’t know if I’m going to face any problems with money withdrawal…..

  25. FXCM and FXCM UK are ndd brokers, so, in theory, you shouldn’t be worried about manipulations on their side as they will not trade against you. It is also highly unlikely you get any withdrawal issues with this broker.

  26. thanks a lot for your Wonderful site … i worked for more than 6 months on demo account , read too much about different strategies , and i was planning to start a real account because i thought that i now know almost every thing… but when i started reading your articles , I new that i still have poor information about trading forex !!! please keep on going …. i’m so excited and waiting for your completeness of your subject about the 2 ways that you know for making profit in forex , especilay scalping … good luck and i hope it will not take a long time to wait .

  27. Thanks again, as usual. Good stuff here.

  28. thanks for your site. it is great and real. i am a complete newbie, andi just opened a demo account. i almost signed up for this 4 week class, that would have cost me 2G’s. anyway thanks and let me know if u yake donations

  29. Dark Lord Please let me know what do you think about FXPRO Broker (ECN account)

  30. sorry I mean to say FXOPEN broker typo there

  31. You said that interbank was for small traders and not the pros. and you really didnt say anything negative about them. But let me tell you, they are the number one , “stop” hunters and balloning your trade & stops for loses to you, and not letting you get your money. If you make $10k, take all the $10k out at once, and leave maybe $250.00 in the account, so that they think you are coming back, so they can stick it to you, they pull all kinds of tricks, and are not trustworthy, so please, please, please, dont refer them, to anybody, not a good choice. What do you think of FXDD brokers?

  32. Hi,
    Do you know anything about instaforex broker?
    i’m wondering how come everytime i get lots of money in it i’ll lose it all in a matter of days.

  33. hello LORD,

    could you plz tell me whether Hotforex.com broker is good or not..
    I am thinkin’ of depositing $1000 and this is my first deposit.. I am in need of a PRO’s advice… plz reply..

  34. Hi,
    Some info on the bad/good brokers is here:
    http://www.forexpeacearmy.com/public/forex_broker_reviews#
    http://www.forexpeacearmy.com/public/forex_scams

    Just to help somebody out there…

    Drugelis

  35. Hotforex is a trap, stay away. I deposited 1000 which i turn into 150 000 and they didn’t want to give it to me and they made up all the excuses in the book as to why they couldnt give me MY money….they went as far as placing orders against the market without my knowledge and hardware softwear sabatage

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