A new trick for withdrawal rejection: Why do many brokers ask clients to pay tax before withdrawal?

Nasty Excuse of Withdrawal Rejection

Recently, many Traders have reported to WikiFX that they are experiencing problems with brokers not allowing withdrawal. These brokers always use various reasons to delay withdrawal, even refusing traders withdrawal requests. The most common reason used by many of these traders is that traders have to pay a 20 percent tax before they can withdraw. However, we found that many brokers would not allow users to withdraw money even if they paid the extra “tax”. Instead, they make up other excuses to delay withdrawal and even ask users to keep paying extra fees. Even more, these brokers threatened to freeze traders' accounts by demanding that they pay their taxes by a specified date.

While we're at this point, you may ask us such a question: Why don't these brokers simply deduct existing deposits from the accounts as tax, instead of asking traders to pay extra tax？ WikiFX considers these traders scammers, and they will never return the assets in their accounts to investors because the scammers will never return the money once traders funds are in their pockets. Therefore, asking investors to pay extra taxes is just an excuse to cheat them out of more money.

None of your taxing business

Asking customers to pay extra taxes but prohibiting traders from withdrawing is a typical scam.

Some brokers reject the clients withdrawal requests and put forward unacceptable demands in the forex markets. WikiFX lists 5 of these brokers as the typical cases so that you have a comprehensive understanding of the trick for withdrawal rejection.

Case 1

Winter snow Limited

Winter Snow Limited is an online forex broker offering clients CFDs products of several trading instruments, including forex, stock, spot index, futures, precious metals, and commodities. However, as we know so far, this broker is not regulated and it is getting involved in a Ponzi Scheme. WikiFX did a thorough review of Winter Snow Limited and failed to find any information about this brokers contact number and business registered address. Additionally, Wintersnow no longer allows using the MT5 platform. WikiFX has given this broker a low rating of 1.02/10 and it has been listed in WikiFX's Scam Brokers list.

One investor from Japan told WikiFX that Winter Snow Limited does not allow him to withdraw if he does not deposit more money in his trading account.

If you want to know more about this case, you can check this article by clicking the link below.

https://www.wikifx.com/en/newsdetail/202208128814565184.html

Another victim contacted the representative of Wintersnow Ltd for withdrawing all of his funds. The representative of this broker told the victim that he has to buy 30K USDT and top up to the taxable chain address before he can withdraw.

Read the article for more information by clicking the link below.

https://www.wikifx.com/en/newsdetail/202209025414799215.html

The greed of the scammers has no limits. Some of them do not only ask you for tax but keep defrauding investors money until the victims lose everything to the last penny.

Helius Capital is one of these brokers.

Case 2

Helius Capital

Helius Capital is an online forex broker getting involved in a Ponzi Scheme. The reason why we are paying attention to this broker is that one client was defrauded by Helius Capital. This broker told the victim to pay an extra risk fee if he insists to withdraw. After the victim paid the fee, this broker asked him to pay a 22% personal income tax. After the payment is finished again, Helius Capital, in turn, requires the victim to pay $21 million for authentication because it cannot recognize the user's information. At this point, the victim realizes that he has been cheated. So far, Helius Capital's website is inaccessible and its customer service cannot be reached. Thus, WikiFX has given this broker a low score of 1.37/10.

WikiFX is gathering evidence from the victim. Please stay tuned for more information.

Case 3

FRTC.NET LIMITED

one trader from Taiwan whose net name is called Mr. CONSCIOUSNESS told WikiFX that. In mid-May 2022, the trader was recommended to invest in gold and futures by this broker. In mid-July, Mr. CONSCIOUSNESS tried to withdraw, but FRTC.NET LIMITED refused the request. Even worse, FRTC.NET LIMITED asked for a so-called “risk fee” if Mr. CONSCIOUSNESS insist on withdrawal.

FRTC accuses the victim of illegal operations.

If you want to know more about this case, you can check this article by clicking the link below.

https://www.wikifx.com/en/newsdetail/202208114794923008.html

Case 4

PregTrade

The victim told WikiFX that she has invested the money in PregTrade. After that, when she want to withdraw, this broker rejected her request and told the victim that if she wants her withdrawal, she must pay some amount (R 200,000).

If you want to know about this case, you can check this article by clicking the link below.

https://www.wikifx.com/en/newsdetail/202208184074914775.html

Case 5

YABO MARKET LIMITED

Tax scams are one of the common tactics used by unreliable forex brokers. WikiFX has witnessed many cases wherein a fraudulent forex broker scared their trading clients about having tax payments in arrears and urged them to pay quickly before being punished by the authorities. However, it is rare to see a forex broker that uses this as an ultimatum, or rather “threat” towards its clients. YABO MARKET LIMITED is this kind of broker.

YABO MARKET LIMITED demanded that the victims pay the tax within two days or freeze the victims accounts.

If you want to know about this case, you can check this article by clicking the link below.

https://www.wikifx.com/en/newsdetail/202209027634428058.html

Summary:

1. None of the brokers mentioned above that demanded taxes from their clients to withdraw kept their promises and none of the victims eventually got their hard-earned money back. Therefore, we believe that these brokers are no doubt scammers.

2. All of these brokers are irresponsible. They blame clients for being unable to withdraw. The reason they use is that the clients are in violation of the law or have an illegal operation while trading.

More thoughts

When you ask for a withdrawal, but your broker rejects and asks you to pay extra tax, please do not give what it wants. We advise you to contact WikiFX for assistance as soon as possible. Protecting the legitimate rights and interests of forex traders are always the primary concern of WikiFX. WikiFX exposed this case to the public to remind all traders of the potential risks. After all, what happened to the victims mentioned above could happen to any of us. All traders should be vigilant when investing in a broker.

WikiFX keeps track of developments, providing instant updates on individual traders and helping investors avoid unscrupulous brokers. If you want to know whether a broker is safe or not, be sure to open WikiFXs official website (https://www.WikiFX.com/en) or download the WikiFX APP through this link (https://www.wikifx.com/en/download.html) to evaluate the safety and reliability of this broker!

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