After a while, you will want to withdraw cash from your options broker. Isn’t the whole point of trading to make money? And if you are making money, it’s not doing you any good if it’s just sitting in an online account. So, when it’s time to make a withdrawal, knowing what to do is important. We’ll walk you through the process in a simple manner, and help you make sure that there are no big bumps along the way.
Most options brokers require that you make a withdrawal in the same method that you made your deposit. If you used a credit card to initially fund your account, your withdrawal will be put back on that same credit card. If you used a wire transfer, a wire transfer is how you will get your funds put back in your bank account. For most people, this isn’t a problem at all. For others, it is something that should warrant you to pause a bit and think about what’s best for you before you ever open your account. If you have questions about this process, be sure to speak to the customer service department of the options brokers you might be considering first.
Security is Very Important
For security measures, brokers need to make sure that they are sending withdrawal requests to the right place. One of the simplest ways to ensure that this happens is to have each client verify his or her identity. Currently, the industry standard for doing so is to have clients scan and submit a copy of your passport or another government issued identification card along with a copy of a utility bill that shows your address on it. Many other brokers also ask you to submit an e-signature in order to make sure that the signature matches whatever is on your ID card. If you used a credit card to fund your account, you might be required to send a scanned copy of the front and back of your card in, too.
This might seem like a lot of hoops, and it can take over a week sometimes to get all of the materials submitted and verified by your broker. In this light, it is a hassle. However, looking at it from a security point of view completely justifies the wait. It is a legitimate attempt on the broker’s behalf to make sure that the money you earned is going back to you, and not to someone else. It also has been shown to help prevent money laundering and black market money flow. In this respect, it’s a really good thing.
Easy Trick to Verification
Overcoming this small trial is actually pretty simple. The secret is to get started on the verification process right away. As soon as you create your account and fund it, get the ball rolling. Find out from customer service what you need to have full access to withdrawing your cash. Whatever you need to submit, do it long before you ever make a withdrawal request so that the process can flow as quickly as possible.
Charges You Can Expect?
Some brokers might charge for withdrawals. Be sure you know the rules about this before you create an account. Typically, you can have one free withdrawal per month if you use a credit card or e-wallet. Wire transfers almost always have a cost associated with them, so they are really only a good idea to use if you are depositing and withdrawing large amounts of money. If you plan ahead, the nominal charge that you might see isn’t a big deal at all. Just don’t trade with money you might need in the near future.