Under what circumstances will refund？

If there is substantial evidence that the forex broker is at fault, such as a server failure, they may offer refunds in individual cases。They usually have different refund policies, so the trader must know the specific refund policy of the selected broker。

In general, brokers only offer refunds in three cases:

• Technical problems when the broker is at fault, such as server failure, unrecorded deposits, etc.。
• Although brokers are not actively involved, legal issues that are considered liable, such as accounts being hacked, funds being transferred to someone other than the account owner, etc.。
• Corporate actions such as bankruptcy, mergers and acquisitions。

The Forex broker will not return your funds if:

• Losses incurred in your own trading activities。
• Transaction costs。
• Your own network problems or power outages。
• Price slippage and / or re-quotation。
• Forced or delayed execution due to market volatility。
• Account was hacked due to an insecure gadget or your password was not stored securely。

In other cases, the broker may not be liable for the loss because the loss is not covered by the broker's refund policy。In other words, forex brokers do not refund money for trading losses, slippage and other conditions that are classified as normal market conditions.。

How to get a refund from a broker？

First, you should determine whether the broker of your choice really needs to take responsibility and repay your funds。In cases involving technical and legal issues, you must provide the following conclusive evidence:

• You suffered a loss。
• The loss is caused by the lack of professional competence of the broker。
• The broker's refund policy should cover such losses。

Send your refund request and all evidence to your broker。An investigation will then be launched to review the allegations。Without the involvement of a higher authority (such as a financial regulator), the approval of the refund will depend entirely on the self-blame of your broker。Usually reply within 1-7 working days。

If you have not received the appropriate refund after more than 7 working days, you can complain to the relevant regulatory authorities and / or trader forums。Unfortunately, you may need outside help to solve some problems。

Real Cases of Forex Broker Refunds

Here are a few examples of traders successfully getting their money back:

Jang Soo Young deposited a wrong amount of money with OctaFX and the funds did not show up on their account。Refunds delayed by more than two weeks。They eventually got their money back after filing a lawsuit against Forex Peace Army。

Another member of Forex Peace Army lost funds due to HotForex webtrader and terminal freeze for more than an hour。They subsequently received refunds for open trades that were not closed in time due to a broker server failure。

Importance of regulation

Refunds from Forex brokers due to certain corporate actions are only valid for companies that are both regulated and insured, and it will take effect immediately。

When your broker goes out of business, someone will contact you via email or phone for a refund。When your broker makes an M & A, you will be asked whether you want to continue trading under the new entity or return all the funds in your account。

They will ask you to fill out an application form and several documents, and then transfer the funds to your bank account after processing (it may take weeks or months)。

A prominent example of this emerged after the bankruptcy of Alpari in the UK in 2015。The company is properly insured, so the customer's refund is made through the special administrator。About a year later, the Financial Services Compensation Scheme (FSCS) returned a total of $51.3 million to 11,751 customers.。The claim includes the customer's account balance and negative balance repayment.。

From this incident, many have learned that the refund policies of regulated forex brokers are often more favorable to traders.。If your choice of forex broker is not regulated, your chances of getting your money back are almost nil for whatever reason。