How to Withdraw Money from Your Trading Account to Your Bank Account
Sam Reid Staff Writer
02nd Dec 2024
Withdrawing money from your trading account is one of the fundamental parts of trading. No matter if it’s the result of a profitable trade or to cash out for your personal use, understanding how to transfer money from your trading account to your bank account is something you need to know.
This manual will clarify each step for traders, and also include suggestions of brokers known to have a straightforward withdrawal experience.
Understanding Trading Accounts: What Are They and How Do They Work?
A trading account is an account every trader gets when they sign up to trade with a specific broker, allowing them to buy and sell financial instruments, including equities, bonds and other financial securities. This account is commonly associated with the trader’s bank account for deposits and withdrawals due to ease and convenience.
Here’s a simplified breakdown of how your trading account is linked to your bank account:
Before you can open a trading position, you will first need to deposit funds (usually done from your bank account) to your trading account.
If your trade results in profit, you will see this reflected in your trading account balance once you close the trade.
Now, in order to take those gains and spend that money from your trading account in the real world, it’s necessary to transfer it back to your bank account. This guide will show you how accomplish that smoothly.
Withdrawing money from your trading account to your bank account can be simple with these steps:
Step 1: Log into Your Trading Account
Access your broker’s website or mobile application by logging in with your respective details (username, password if required). Once inside, navigate to the dashboard.
Step 2: Look for the Fund Withdrawal Option
In the dashboard, locate the withdrawal option. It could be displayed as ‘Withdraw’ or ‘Withdraw Funds’. Click there to initiate the withdrawal procedure.
Step 3: Select Your Preferred Method of Withdrawal
Choose how you want to transfer the money. Direct bank transfers are the best way round for the vast majority of brokers. Some also support withdrawals to e-wallets such as Neteller, Skrill, Perfect Money or Whish. Pick the method that works best for you.
Step 4: Enter the Amount You Wish to Withdraw
Decide how much money to withdraw. It is also feasible to transfer the full balance (and/or even part of it). Enter the amount carefully.
Step 5: Review the Details
Check all the details before proceeding:
- Withdrawal amount
- Bank account information
- Preferred withdrawal method
This step ensures everything is accurate to avoid mistakes and delays.
Step 6: Verify and Confirm
Some brokers might employ an addition security step with an OTP. Verify the transaction using OTP or a security question. Once confirmed, your request should be ready to be processed.
Step 7: Receive the Funds in Your Bank Account
Brokers with the Best Withdrawal Processes
Ease of withdrawal should be one of the most important factors in every trader’s broker selection. Here are some brokers that are popular for their fast, simple withdrawal procedure.
AvaTrade
AvaTrade is our top choice trading platform for both beginner and professional traders, with excellent customer support and quick money withdrawal.
Equiti
Equiti offers fast money withdrawals and provides numerous ways to make deposits and withdrawals including bank wire and e-wallet.
XM
XM is well known for its open and clear fund withdrawal rules. Fund transfers are both very fast and secure with almost no fees.
Exness
Exness provides real-time withdrawals with a variety of flexible payment methods for UAE traders to choose from.
All of these brokers are licensed by top-tier regulatory bodies, while AvaTrade, Equiti and XM are also regulated locally in the UAE as an added bonus.
Why is this important? Because traders that choose risky and unregulated brokers often face issues when it comes to withdrawing their capital, due to such brokers sometimes locking their account and refusing the request altogether.
The brokers mentioned above focus on ease of access and transparency when it comes to the withdrawal process, making them a stress-free choice for traders.
Keep in Mind…
It can be tempting to fully withdraw your capital after a winning trade, but maintaining an appropriate balance level in your trading account is crucial. Why? You’ll be prepped for the next set of trades
Remember, it is possible to not receive cash into your bank account or chosen withdrawal method on the same day.
Plan your withdrawals smart in order to keep your account active and capitalize on your returns.
Aligning Your Trading Strategy and Your Goals
Your withdrawal strategy should be a function of your trading style and your financial goals:
Short-term traders: These traders will usually want highly frequent, repeated withdrawals, in order to obtain profits as soon as possible.
Long-term investors: With this style your withdrawal requests will probably be less frequent, consistent with long term investment expectation.
Estimating withdrawals based on your trading goals will enable you to be disciplined to achieve your short- and long-term financial goals.
Read More: Choosing a Broker for Day Trading: Tips and Tricks for Success
FAQs on Trading Withdrawals
How can I withdraw money from my trading account to my bank account?
Not all brokers will have an idential withdrawal process. But usually, you’ll need to login to your trading account, click on withdrawals, select the withdrawal method and key in the desired amount. Check everything and confirm.
Can money be transferred from a trading account to a savings account?
Yes, most brokers offer debit to your bank account. Ensure that account is linked to your trading platform.
How long does it take to transfer funds between a trading account and a bank account?
It depends on the broker. Transfers may range from hours to 1-3 business days.
When you are trading, can you transfer the money to your bank account?
Yes, but only available funds can be withdrawn. Amount of transactions related to open positions or undrawn positions are not transferable.
How much money do you need in your trading account to day trade?
There’s no such thing as a ‘magic’ amount of money that is required to day trade.
In the UAE, some brokers don’t even have a minimum deposit or withdrawal amount. However the ones that do usually set a minimum deposit amount of around $50-$250. For effective day trading with sufficient capital and the potential to make consistent returns, we reccomend starting with anywhere from $250 to $500.
Do brokers have a minimum withdrawal amount?
Most brokers don’t put in place a specific minimum withdrawal amount but be sure to check the T&Cs of your broker first.
Do brokers charge fees for withdrawals?
Most of the top brokers in the UAE don’t charge fees for deposits or withdrawals. However, you may face fees from your bank for a bank transfer, or from your chosen e-wallet provider if you select this as your withdrawal method. While it is usually a small amount, still be sure to check their fees.
Read More: Which Broker is Best for Trading in the UAE?
Conclusion
Withdrawing funds from your trading account doesn’t need to be complicated. By following the protocol it is very easy to carry out a transfer through your chosen method. Choosing the right broker, like AvaTrade, Equiti, XM, or Exness, helps make the process even lighter.
