Why does the broker block the account? The most common reasons for blocking an account with a Forex broker

01, May - BLOG

Blocking a trading account is one of the most unpleasant situations a Forex trader can face. Such a decision on the part of a broker often causes confusion and stress, especially if the trader is sure that he is right. However, there are specific reasons why brokers may block an account. In this article, we will look at the most common factors that lead to account blocking, and also explain how to avoid them.

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Violation of trading rules

One of the main reasons for blocking an account is a violation of the terms of the user agreement or trading rules broker.

What is considered a violation?

• Using prohibited strategies: For example, scalping, hedging or arbitrage.
• Opening too large positions: If you use excessive leverage or open trades that significantly exceed your deposit.
• Trading against the broker: An account can be blocked if they see that a trader is systematically making a profit at the expense of the company's losses.

How to avoid it?

Before you start trading, carefully study the broker's rules. Make sure your strategy does not contradict these conditions.

Problems with documents

The second common reason for blocking an account is the lack of necessary documents or errors in account verification.

Main cases:

• Incomplete verification: You have not provided all the required documents (passport, utility bills).
• Suspicious data: The broker may suspect fraud if the documents you provide seem fake or do not correspond to real data.
• Change of data: If you change personal information (for example, address or bank details) without notifying the broker.

How to avoid?

• Immediately after registration, send all the necessary documents for verification.
• If your personal data changes, notify the broker immediately.
• Use only genuine documents.

Suspected fraud

Brokers may block an account if they suspect that a trader is using unfair methods to make a profit.

Common examples:

• Multiple accounts from one IP address: This may be perceived as an attempt to manipulate the market.
• Questionable methods of replenishing an account: For example, using other people's cards or suspicious payment systems.
• Unnatural activity: Sharp changes in trading volume or frequent use of bonuses for withdrawal.

How to avoid?

• Do not create multiple accounts from one IP address.
• Replenish the account only through verified payment systems.
• Avoid using bonuses to withdraw money.

Inconsistency with the terms of the bonus program

Bonuses are a popular tool for attracting new customers, but they often come with complex wagering requirements. If these conditions are not met, the broker may block the account.

The main reasons for blocking:

• Insufficient number of trades: The bonus may be provided on the condition that a certain number of trades are made.
• Violation of volume restrictions: Opening trades with a volume smaller or larger than the allowed one.
• Withdrawal of funds before wagering the bonus: Many brokers prohibit withdrawal of funds until the bonus is fully wagered.

How to avoid?

• Carefully study the terms of the bonus program before using it.
• Do not rush to withdraw funds if you have not yet met all the requirements of the broker.
• Consider refusing bonuses if they seem too difficult to wager.

Technical issues

Sometimes an account block is due to technical errors or failures in the broker's system.

Common cases:

• Duplicate transactions: If the system has recorded two identical payments, the broker may temporarily block the account for verification.
• Platform failures: For example, incorrect order execution or delays.
• Suspicious activity: Automatic security systems may block the account due to unusual activity (for example, too many entries/exits).

How to solve?

• Contact the broker's support service and request an unblocking.
• Provide evidence that the problem is due to a technical failure.
• Be patient: technical blocks are usually temporary.

Violation of withdrawal rules

Account blocking may be due to non-compliance of the trader's actions with the withdrawal rules.

Main reasons:

• Insufficient balance: You are trying to withdraw an amount greater than the available balance.
• Using different withdrawal methods: For example, replenishment via a bank card and a withdrawal request to an e-wallet.
• Unprocessed documents: The broker has not completed the verification of your account.

How to avoid?

• Always use the same method of deposit and withdrawal.
• Request verification immediately after registration.
• Before withdrawing funds, make sure that all the broker's terms are met.

Conflict interests

Some brokers may block an account if they see that a trader is "too successful" or that his actions are contrary to the interests of the company.

Common examples:

• Working against the broker: Brokers may block an account if a trader systematically makes a profit at the expense of the company's losses.
• High profitability: If your profit significantly exceeds the market average, the broker may initiate an investigation.

How to avoid?

• Choose ECN or STP brokers where there is no conflict of interest.
• Do not abuse strategies that can be considered risky.

Random mistakes of a trader

Sometimes an account is blocked due to mistakes of the trader himself, which the broker interprets as a violation rules.

Common mistakes:

• Incorrect data during registration: For example, typos in the name or address.
• Opening trades in prohibited regions: Some brokers do not work with certain countries.
• Incorrect capital management: Excessive risks or too small spreads.

How to avoid?

• Carefully check the data during registration.
• Make sure your country is on the list of permitted regions.
• Follow the principles of capital management and risk management.

Regulation issues

If a broker is subject to regulatory inspection or changes its operating rules, it may block the account to prevent possible problems.

Common cases:

Changes in legislation: For example, new requirements for client verification.

Risk reassessment: A broker may block an account if it believes that a trader is a high risk.

How to solve?

• Follow the broker's news and changes in the terms of work.
• In case of blocking, contact the regulatory organization (for example, FCA, CySEC).

Fraudulent actions of the broker

Unfortunately, some brokers may block an account intentionally in order to deprive the trader of his profit. This is especially true for unregulated companies.

Common schemes:

• False accusations of breaking the rules.
• Delay in withdrawal: The broker artificially delays the process.
• Opaque conditions: For example, hidden commissions or spreads.

How to protect yourself?

• Choose only regulated brokers.
• Use reliable payment systems (Visa/Mastercard, PayPal).
• Document all actions: correspondence, transactions, account history.

Tips for preventing account blocking

Follow the rules strictly

Carefully read the broker's user agreement before starting trading. Make sure your strategy does not contradict these terms.

Save documents

Keep all documents related to your account: copies of your passport, payment receipts, transaction history. This will help you in case of a dispute.

Do not use prohibited strategies

For example, if a broker prohibits scalping, it is better to refrain from using it, even if you are sure that you are right.

Contact support regularly

If you have questions about working with a broker, contact support. This will help to avoid misunderstandings.

Start with minimal amounts

Do not invest large amounts immediately after registration. Test the broker's work on small deposits.

What to do if your account is blocked?

If your account has been blocked, it is important to act quickly and methodically.

Step 1: Determine the reason

Contact the broker's support service and request an official explanation for the blocking.

Step 2: Collect evidence

Save all documents related to your account: correspondence, transaction history, platform screenshots.

Step 3: Contact the regulator

If the broker is regulated by a reputable organization (for example, FCA or CySEC), file a complaint on the regulator's official website.

Step 4: Use chargeback

If you transferred money via a bank card or e-wallet, try to return it through the mechanism chargeback.

Step 5: Contact a lawyer

If other methods fail, contact a legal specialist who handles financial disputes.

Conclusion

A forex broker account can be blocked for many reasons, from technical failures to deliberate fraud. To minimize risks, it is important to:

• Choose a reliable regulated broker.
• Follow the rules of trading and capital management.
• Document all actions and keep copies of documents.

If your account is blocked, do not panic. Follow the above steps and try to resolve the problem peacefully. Remember that many situations can be resolved through dialogue with the broker or contacting the regulatory authorities.

Successful Forex trading requires not only knowledge of the market, but also an understanding of the terms of working with the broker. Be careful, and your chances of success will increase significantly!