The withdrawal only to source scam is a restrictive tactic used by fraudulent brokers to delay or deny withdrawal requests by insisting that all withdrawals must go back to the original deposit method—even when that method is no longer available or incapable of handling withdrawals. While legitimate brokers do uphold anti-money laundering rules that support source withdrawals, scammers abuse this rule as an excuse to trap funds, stall cashouts, and create a cycle of blocked access.

In this article, we reveal how the withdrawal only to source policy is twisted into a scam, how to spot the difference between compliance and control, and how to avoid brokers that use policy as a prison for your money.

What Is the Withdrawal Only to Source Tactic?

This tactic involves brokers claiming:

• All withdrawals must go to the original deposit method
• No exceptions can be made, even if that method can’t receive funds (e.g., prepaid card, expired wallet, one-way crypto address)
• You must re-verify or reactivate the original method to receive funds
• You must deposit again via the same method to “relink” it

What starts as a compliance statement becomes a roadblock designed to trap profits.

How the Scam Works

1. Trader Requests a Withdrawal

After trading successfully or requesting to withdraw unused capital, you select a new method—such as bank transfer or a different crypto wallet.

2. Broker Blocks the Request

You’re told:

• “Withdrawal must go to the original deposit method”
• “We can’t process alternative withdrawal methods due to AML restrictions”
• “Your new method is not verified or supported”

Even if the original method is:

• A prepaid card with no inbound capability
• A closed account or expired card
• A one-time-use crypto wallet

3. You’re Asked to Re-Deposit

To fix the “issue”, the broker tells you:

• “Please deposit again using the same method to verify it”
• “After this reactivation deposit, you’ll be eligible to withdraw”

Once you deposit again:

• The cycle restarts
• Your withdrawal is delayed again
• You may be told your account is under review

4. The Broker Disappears or Freezes the Account

Eventually:

• The withdrawal is never processed
• Support becomes non-responsive
• Or your account is frozen due to “security checks”

Why Scam Brokers Use This Excuse

• To delay or deny withdrawals
• To pressure re-deposits under false pretences
• To exploit anti-money laundering terminology as cover
• To manipulate access to funds without openly refusing
• To keep clients in a loop of broken promises

Red Flags of a Withdrawal Source Trap

• Original deposit method is clearly no longer valid
• Broker refuses to verify or allow any other method
• You’re asked to deposit more to unlock funds
• Excuses change with each request (e.g., “system error”, “compliance review”)
• No formal AML policy is shown or accessible
• The broker is unregulated or registered offshore

Real Consequences for Victims

• Inability to access legitimate profits or capital
• Forced re-deposits leading to more losses
• Frustration from endless verification cycles
• Emotional distress from financial uncertainty
• Zero recourse if the broker is offshore and unlicensed

How to Protect Yourself

1. Use Regulated Brokers Only

Regulated brokers under FCA, ASIC, or CySEC:

• Have clear, fair withdrawal policies
• Allow withdrawals to verified alternative methods (especially if the original is unavailable)
• Do not require re-deposits to unlock access

2. Clarify Withdrawal Terms Before Depositing

Before funding your account:

• Ask: “Can I withdraw via bank transfer or another card if needed?”
• Get written confirmation from support
• Save the chat or email for your records

3. Never Re-Deposit Just to Withdraw

This is a classic stalling tactic. If you’re asked to deposit more just to “reactivate” a method, you are being scammed.

4. Report the Broker and Initiate a Chargeback

If you’re denied access to your funds:

• Contact your card provider or bank and request a chargeback
• File a complaint with local financial authorities or fraud agencies
• Report the broker to scam warning lists and trading communities

Get the Knowledge to Avoid Withdrawal Traps

Understanding broker withdrawal policies—and how they’re abused—is key to safe trading. Traders MBA offers trading courses that teach how to read broker terms, identify scam structures, and protect your funds with strategic broker selection and compliance safeguards.

Conclusion

“Withdrawal only to source” should be a safeguard—not a scam. When brokers use compliance as a cover to keep your funds hostage, they reveal their real strategy: not trading, but trapping. Because in trading, rules should protect traders—not imprison them.