This might seem like an odd tutorial, but stick with me because it might not be what you think. A common question that I’ve been getting is how to withdraw money from MT5. I thought that the answer was straightforward, so I would always respond with something like the following.
To withdraw money from MT5 contact your broker and request a withdrawal. Your broker will usually send you your money back via the method you sent it to them.
But I found another answer to this question that might surprise you.
How to Deposit Money to Trade
Since this is a tutorial for beginners, let’s start with the basics.
In order to start trading Forex, or any other market, you’ll need to work with a broker.
The broker gives you the ability to trade the market you want to trade. They do this by establishing connections to trading exchanges or liquidity providers, and setting up software that will allow you to execute trades via those providers.
MetaTrader 5 is one example of software that a broker could provide their customers. Other examples are:
If you’re looking for a broker, be sure to see our list of favorite brokers.
Brokers can accept money in several forms:
- Money wire
- Money order
- Credit card
- And more
The method of payment that a broker accepts will be determined by their company policy and the laws of the countries they operate in.
What Usually Happens With Your Money
When you send money to a legit broker, they will put your money into their bank account and give you access to trade that money on their chosen trading platform (MT5, MT4, TradingView, etc.).
If you want to withdraw money from your account, you simply contact the broker and request a withdrawal.
They will usually send your money back via the payment method that you used to send it to them. In some countries, they are required to send your money back using the original funding method.
What People are REALLY Asking
Alright, that’s straightforward.
So I was wondering why so many people were asking me this question and why so many of them have never heard of a broker before.
Well, it turns out that there is more to that question than I realized. Here’s what some of those people were really asking…
Some shady groups out there tell people that they will manage their money by putting the money into MetaTrader 5.
Now since you already know that you need a broker to trade, and that MT5 is nothing more than trading software, then obviously money cannot be deposited directly into MT5.
What these groups do is they put the money into their own personal bank accounts, but tell the investors that the money is “in MT5.”
Since the money isn’t deposited with a known bank or regulated broker, the investor has nobody to complain to and the money is gone.
Something similar appears to be happening in this scam. There was another scam back in the day that gave real bank information and they got caught. So saying that the money “gets deposited to MT5,” looks like a way to get around providing any kind of identifying details.
How to Research a Broker or Money Manager
So before you hand your money over to any money manager or broker, do some basic homework:
- What results have others had with them in the past?
- Is that group regulated in the country they operate in?
- Does their social media look legit?
- Check out their website, did they use Google Translate to write it?
- Are there any YouTube videos about the broker or money manager?
Be sure to watch the video above for more tips.
If there isn’t any information on the broker or money manager, steer clear.
Remember that there will always be negative reviews about organizations/individuals in the trading space because many customers have unrealistic expectations of how much money they can make in trading. Then they blame their broker or money manager when things don’t work out like they thought it would.
But that aside, does it seem like the organization operates with integrity…or not?
Test Them Out First
Even after you’ve done a lot of research, never put all of your money in at once. Put in a small amount, then try to withdraw some of it.
This is the best way to test to see how easy the withdrawal process is and if you can actually get your money back.
So those are some things to think about when you first start out in trading.
Withdrawing money from a broker is usually a very straightforward process. But if shady individuals tell you that they will deposit your money directly into MetaTrader 5, always be sure to get clarification.