Learn Trading for Free and Without Registration

An Online Glossary to Study Trading Independently

Withdrawal Fees: A Common Scam That Traps Thousands of Investors

In the world of financial fraud, there are countless ways to deceive unsuspecting users. One of the most widespread scams is the "withdrawal fee" scam, where victims, attempting to withdraw their funds, are suddenly required to pay an additional fee. However, once the payment is made, the funds never arrive.

Let’s break down how this scam works, why it is so popular among fraudsters, and how you can protect yourself from financial losses.

🔹 How the "Withdrawal Fee" Scam Works

The scheme is simple but operates in stages, drawing the victim deeper into the deception.

1️⃣ Stage One – Attracting the Client

At this stage, scammers lure victims through various advertising channels:

📌 Fake investment platforms.
📌 Unlicensed fraudulent brokers.
📌 Scam cryptocurrency exchanges.
📌 Fake automated trading projects.
📌 Get-rich-quick schemes promising high returns with no risk.

This scheme is most commonly found on "investment" websites offering Forex, CFD, cryptocurrency, or binary options trading.

2️⃣ Stage Two – Creating an Illusion of Profit

Once the victim deposits funds, the scammers create the illusion of quick profits. In the user's account, they see:

✅ A growing balance.
✅ Fake successful trades.
✅ "Profitability" statistics.

The victim starts to believe in the success of their "investment" and is encouraged to deposit even more money, especially when offered "bonuses" or "exclusive deals" for increasing their balance.

🔥 The main goal is to keep the client engaged long enough to invest as much money as possible!

3️⃣ Stage Three – The Withdrawal Request

Sooner or later, the client will want to withdraw their profits or at least part of their funds.

This is where the real scam begins.

📌 Step 1: The client requests a withdrawal.
📌 Step 2: "Support" informs them that a fee must be paid before the transaction can be processed.
📌 Step 3: The victim agrees and transfers the requested fee to the scammers.
📌 Step 4: "Support" invents another excuse why the money cannot be withdrawn.
📌 Step 5: The victim either pays again or realizes they’ve been scammed.

🔹 Types of Fake Withdrawal Fees Used in Scams

Scammers use different tricks to extract as much money as possible from victims.

📌 1. "Processing Fee for Withdrawal"

The victim is told that their transaction cannot be completed without a processing fee, usually 5-15% of the withdrawal amount.

💬 Scammer’s explanation:
"This is a standard requirement by international financial regulators. The withdrawal cannot be processed without this fee."

🔴 Reality: There are no international laws that require a fee to be paid before withdrawing funds.

📌 2. "Profit Tax"

After requesting a withdrawal, the "financial consultant" informs the victim that they must pay taxes before receiving their funds.

💬 Scammer’s explanation:
"According to the laws of our country, all investment profits are taxed at 20-30%. You must pay this tax before we can release your money."

🔴 Reality:
✅ Taxes on investments are paid after receiving the money and only to the tax authority in the investor’s country of residence.
✅ Legitimate brokers do not collect taxes directly from clients!

📌 3. "Insurance Fee"

Scammers convince the victim that a security deposit is required to protect their funds before processing the withdrawal.

💬 Scammer’s explanation:
"To ensure the safety of your funds, you need to pay an insurance deposit of 10%."

🔴 Reality:
There are no laws or legitimate regulations that require clients to pay an insurance fee before withdrawing funds.

📌 4. "Bank Transfer Fee"

The victim is informed that due to an "international bank transfer," they need to cover banking expenses.

💬 Scammer’s explanation:
"To complete international transactions, the bank requires a commission of $500-$2000."

🔴 Reality:
✅ Banking fees are always deducted from the transfer amount – the client should never have to pay them in advance.

🔹 Why Do People Fall for This Scam?

📌 1. The victim has already invested money
When someone has already deposited funds, they are desperate to recover at least some of their money. Scammers exploit this desperation.

📌 2. Pressure from "analysts"
Victims receive persistent calls from fake "managers" who aggressively pressure them into paying the fee to avoid losing their money.

📌 3. The "Final Payment" Trick
Fraudsters claim that this is the last payment required and that the funds will be released immediately afterward. Of course, this never happens.

📌 4. Lack of Knowledge
Many people simply don’t know how legitimate withdrawals work – they don’t realize that all real transaction fees are deducted automatically from the final amount.

🔹 How to Protect Yourself from the Withdrawal Fee Scam?

✅ Legitimate brokers NEVER require pre-paid withdrawal fees.
✅ Always read the withdrawal terms before making a deposit.
✅ Verify if the broker is licensed (FCA, ASIC, SEC, CySEC).
✅ Be skeptical of promises of high returns with no risks.
✅ If someone asks you to send money before withdrawing funds – it’s a scam!
✅ Remember: If your money is in your account, you shouldn’t have to pay anything extra to access it!

🔹 Conclusion: Withdrawal Fees Are a 100% Scam

If a broker asks for any payment before allowing you to withdraw funds, it is a fraudulent operation. Legitimate brokers never require upfront fees, taxes, or insurance payments before processing a withdrawal.

🔥 Ronin Academy warns:
❌ Do not pay "withdrawal fees" – it’s a scam!
❌ Do not believe promises of getting your money back after a final payment – it’s a lie!
❌ Always verify broker licenses and reputations!

📌 If you have been targeted by this scam, report the fraudulent company in our scam broker section and share your experience to warn others!

🚀 Stay updated with our articles – we expose financial scams and teach you how to protect your money!