A recent post from our colleagues at Finance Feeds raised some interesting points with respect to the process of withdrawing funds from trading or investment funds. It turns out, we in the Forex industry have it good as compared to some similar industries where customers hold their savings, retirement or investment funds with a broker, custodian or authorized firm. Indeed, over the years, the speed of processing deposits and withdrawals at retail Forex shops has been highly scrutinized by traders and regulators alike.
This has led the industry to self-establish a standard, by which customers can and should expect a lightning fast deposit speed, if using bank cards or funds transfers, such as ACH and 24-48 hours for the processing of any withdrawals, often times expecting such funds back in the customer’s bank or payment provider account within the same 2 business day time period.
To customers and investors of pension funds, investment firms and other financial organizations, which are often times regulated by the same agency as Forex firms, this type of speed and flexibility is just non-existent. Indeed in the UK, an analysis of financial transactions since 2016 showed that some firms took as long as 6 months to return customer funds, while the average transfer time was 12 days.
Given this disparity we should be thankful for what the Forex industry has achieved with respect to efficiency in moving customer funds, but we must not forget that much more is to be done – especially with educating new, beginner traders on the standards of conduct regarding deposits and withdrawals to stamp out unreasonable T&Cs that prevent customers from returning their funds from illegitimate firms and scams.