Some brokers of the forex market offer their clients a withdrawal card. The latter is directly connected to your trading account and allows you to use your earnings from trading to withdraw money from atms or to pay in a store as is done with a credit card. The procedure is simple, just make a transfer of funds between his / her trading account and its atm card. Usually this is done very quickly.
The fact that the forex brokers offer atm cards to their customers is a practice that is completely legal. Therefore, it is not because a broker offers this type of service he is a scammer. Note that if some traders use these in order to hide some of the gains in trading at the tax administration, it is their responsibility, not that of the broker.
If the brokers offer this type of service, let’s be honest, it is, above all, to attract new individuals to the trading. With this system, individuals can attempt to escape taxation. In fact, with a withdrawal card, there is no trace, except the one related to the accounting records of the broker, often located abroad. As we stated earlier, this type of practice is a deviant behaviour, and it will fully assume the consequences. This being said, every trader has a withdrawal card are not fraudsters. They are just fans of the flexibility day-to-day it offers.
Another reason to provide this service to the brokers in the forex market, get additional revenue. Indeed, if the withdrawal card is usually offered by brokers, these apply charges on the transactions that you will spend with. These costs may be fixed or variable and range between 1% and 2.5%.
You will have understood, the atm cards that are found in some brokers are not necessarily a bad thing. If you need, please do not hesitate to ask your broker and use it with caution.