In a fair trading environment, traders should be free to withdraw their profits and capital at any time, regardless of how successful they are. However, an unethical and dangerous tactic appears when a broker restricts withdrawals above a certain ROI percentage. This means that if you achieve high returns on your investment, the broker limits or blocks your ability to withdraw funds, using arbitrary thresholds as an excuse. Recognising this scam is crucial for protecting your profits and financial freedom.

Why Would a Broker Restrict Withdrawals Based on ROI?

No legitimate broker penalises clients for being successful. When a broker restricts withdrawals above a certain ROI %, it usually happens because:

• Punishing profitable traders: Brokers operating B-book models (where client losses are broker profits) lose money when clients consistently win.
• Preserving broker liquidity: If many clients make large gains, brokers may face cash flow problems and try to stall payouts.
• Reducing large withdrawals: Brokers want to keep as much client money as possible on their platform to stay afloat.
• Avoiding regulatory scrutiny temporarily: By selectively delaying withdrawals from profitable clients, brokers hope to avoid massive outflows that could draw attention.
• Forcing clients to keep trading: Restricting withdrawals pressures traders into continuing to trade, increasing the risk of eventual losses.

Properly regulated brokers must allow free access to funds regardless of performance.

The Risks of Withdrawal Restrictions Based on ROI

Loss of access to your rightful profits:
You could be blocked from withdrawing large portions of your trading gains.

Forced retention of funds:
Your money remains trapped with a broker who might eventually collapse or go bankrupt.

Increased trading pressure:
You may feel compelled to continue trading under risky conditions, potentially losing your profits.

Violation of client rights:
A broker restricting withdrawals above a certain ROI % breaches the basic principles of fair client treatment.

Potential regulatory breaches:
Regulators like the Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) require brokers to honour withdrawal requests promptly and fairly.

Signs That a Broker Is Limiting Withdrawals Based on ROI

New restrictions appear only after big gains:
You make significant profits, and suddenly new “rules” about withdrawal limits are introduced.

Vague or changing payout policies:
The broker cannot explain why withdrawals are blocked and gives inconsistent reasons.

No mention of ROI-based limits in the original agreement:
Withdrawal restrictions are applied without any prior disclosure in the client terms.

Support staff cite “risk management” reasons:
Brokers excuse withdrawal blocks by claiming they need to “protect the platform” against high-performing clients.

Only profitable traders are affected:
Clients with high ROI face restrictions, while others can withdraw normally.

What to Do If Your Broker Blocks Withdrawals After High ROI

Request written confirmation of the restriction:
Demand a formal explanation showing where in the terms and conditions this rule is mentioned.

Document everything:
Save emails, chat logs, screenshots, and account statements showing your ROI and the withdrawal block.

Submit a formal complaint internally:
Challenge the restriction through the broker’s official complaint process.

Report the broker to the regulator:
If your broker is regulated like Intertrader, AvaTrade, TiBiGlobe, Vantage, or Markets.com, file a complaint with their financial authority.

Withdraw available funds immediately:
If any portion of your balance can be withdrawn, do it without delay.

Warn other traders:
Post fact-based warnings in trading communities to protect others from similar traps.

How to Avoid Brokers That Penalise Success

Trade with brokers regulated by top-tier authorities:
Strictly regulated brokers cannot legally discriminate against profitable clients.

Test withdrawals early and often:
After making some profits, request a withdrawal to verify that the broker processes payouts without issue.

Read client agreements carefully:
Ensure there are no clauses about “performance-based” withdrawal restrictions.

Monitor broker behaviour after profits:
Stay alert for sudden changes in withdrawal processing times or conditions once you start winning.

Stay informed about fair trading practices:
Knowing your rights empowers you to resist unfair treatment and take appropriate action quickly.

Conclusion

When a broker restricts withdrawals above a certain ROI %, it is a blatant attack on the principle of fair and transparent trading. Traders must act swiftly to document such practices, escalate complaints to regulators, and move their funds to reputable brokers that respect client success without penalties.

Learn how to protect your trading profits, recognise broker scams early, and build a secure, profitable trading career by joining our Trading Courses. Stay empowered, stay informed, and ensure your hard-earned gains remain fully within your control.