Money Back

Global payment systems (Visa, Mastercard) require all financial institutions using their services to offer chargebacks. It’s important to understand that a chargeback will work only if the transaction was made using a bank card. For bank transfers between accounts, there is a separate procedure called transaction dispute. Both this procedure and the chargeback service work on similar principles.

Although Russian legislation only partially regulates chargebacks, the procedure works effectively. All financial institutions using the global payment systems, including “Mir,” carry out chargebacks.

The chargeback process and when to initiate it

It’s not always possible to initiate a refund. A chargeback will be successful in four scenarios:

• Unrecognized payment. Money has been deducted from a person’s card, but they haven’t made any purchases or payments. In this case, it needs to be proven that the cardholder didn’t make the payment.
• Full payment was made for a product or service, but the person didn’t receive anything. The seller or service provider didn’t fulfill their obligations.
• The received product or service is of poor quality. This refers to discrepancies with the description or defects.
• The product was received but doesn’t match expectations. For example, the size is incorrect.

Fraudsters in the “Forex” market send traders into a frenzy. The only course of action thereafter is to attempt to retrieve money from the broker. These scammers are well aware of this and put up resistance.

Broker doesn’t facilitate withdrawals. Why does this happen?  

According to the law of any country, including the Russian Federation, trader’s funds in a broker’s account are the trader’s property. 

It’s important to understand: the intermediary merely provides an account. They do not have rights to the capital. Therefore, the return of money from the broker must take place, even if the trader violated trading rules. 

An exception is a court order or other lawful decisions requiring specific client funds to be frozen during investigation or other procedural actions. 

If the response to a request for a refund from the broker is a denial without explanation, it’s a scam. Let’s provide an example. A trader opened an account with a “kitchen” broker, established solely to steal money as soon as the deposit is replenished. Demanding a refund from such a fraudulent broker is futile. 

Traders choose brokers and open specialized accounts for various asset types, like futures, stocks, or currencies. 

To withdraw from a Forex broker, follow specific steps based on the destination for funds and assets.

Withdraw Money from a Brokerage Account to a Bank

Submit a withdrawal request by phone or trading terminal. Specify the destination: broker-associated bank or another entity. Note: 

• Not all brokers support unaffiliated transfers. 
• Transactions may incur fees. 

How to Transfer Money from a Brokerage Account to a Card? Direct withdrawal through a broker is impossible. Use a card linked to a bank account for processing. 

Rating Forex Tip: Ensure withdrawals go to your account, not third parties. 

To refund, timing depends on request submission. Business hours yield 15-60 minute transfers. Non-business hours require waiting until the broker’s office opens. Weekend withdrawals aren’t practical. 

Closing a brokerage account may not return the full amount. If profit earned, a 13-15% income tax (NDFL) is deducted; brokers handle it. They can refund excess. 

When a broker deceives, a trader must do everything possible to recover the money. The course of action depends on the situation. There are 3 cases when it’s necessary to file a police report: 

• The intermediary is not registered as a legal entity.  
• Money was sent to the broker not from a bank account or card.  
• More than 540 days have passed since the funds were transferred to the intermediary (if they were sent from a card).  

What to do when a fraudulent broker is registered as a legal entity (in any country), the trader sends funds to them through a bank transfer or card, and less than 1.5 years have passed since the transaction? In such a case, the chances of resolving the situation without involving the police or court and recovering the capital through banking mechanisms and chargebacks are very high.

Deceived by a broker — how to recover money  

You want to make a withdrawal, but the intermediary rejects each request and demands you to gather a package of documents to confirm your identity every time? This is a scam scheme. 

How to make a withdrawal from a fraudulent broker? The first step is preparation. The trader’s tasks include: 

• Installing software to record conversations and video calls.  
• Taking screenshots of all conversations, balances, withdrawal request sections, service agreements, and user agreements. Has the broker scam blocked the “Personal Cabinet”? Take a screenshot of that too.  
• Removing any fraudulently installed programs from your computer that give the scammer remote access. Otherwise, they might remotely delete conversations, screenshots, and other evidence of the scam.