Discuss Broker creating bank account in customer name, normal?

[Onlinepips]

Hi,

I have a broker not accepting my deposit, despite previous deposits being fine, I can make a separate thread for that if not solved.

On to this thread, is it normal for a forex broker, if I'm reading it correctly, to have made a bank account in your name, ie in the customers name, and you deposit money to that account, and then they put it into mt4 etc?

 

[AsstModerator]

Better brokers use a segregated account to store client funds separately from funds used in business operations. This means that clients have a far better chance of recovering most of their money in the event of bankruptcy. Typically, this is a single account or a small set of accounts dedicated to holding funds for all of their clients.

I haven't heard of a broker requiring a bank account. It's possible that some brokers directly under some jurisdictions might require this. Suddenly requiring a bank account for an existing client seems extremely unusual.

If this happened to me, I'd be much more concerned about withdrawing my existing balance than putting more money in. If I successfully got my balance out, then I'd consider checking with the broker's regulator about this new requirement. If I couldn't get my balance out, I'd be talking to their regulator.

 

[Onlinepips]

I haven't heard of a broker requiring a bank account. It's possible that some brokers directly under some jurisdictions might require this. Suddenly requiring a bank account for an existing client seems extremely unusual.

Maybe a miscommunication. The broker is not requiring a bank account in my name for recent deposit.
When I joined this broker last year, they made a bank account in my personal name eg first, middle, last name. Told me to deposit there, which I did last year and it then went into mt4 like normal. So they, the broker, made a bank account in my name from the start. I wondered if that was normal?

If this happened to me, I'd be much more concerned about withdrawing my existing balance than putting more money in.

The reason for a deposit last week was to have more funds, but since that didn't happen, account balance zero. Very cheap margin so could easily do the deposit and go from there that's fine. Except they still say the deposit didn't go in.

So I'm going to put a request to my bank in to cancel this International Money Transfer even though my bank has told me its gone in. But the bank wants a reason eg "mistake" or "fraud" and I'm deciding which one to choose. If fraud I'd have to call them, if mistake I can just quickly submit online and see if the IMT gets sent back to me.

ie does this count as fraud, if I have not attempted to get the money back first through my bank before saying its fraud?

 

[Onlinepips]

UPDATE

The broker did credit the money into the account, this was a while ago.

But still wanted to discuss.... @AsstModerator and others.

When I signed up to this broker last year, and then give ID etc, then go into web portal for deposit, the broker had setup a bank account in the brokers country in my name. I didn't think anything of it at the time but no other broker I'm with did this. Is it normal or a problem at all?

 

[AsstModerator]

What's normal in one country can be abnormal in another.

Contact the regulators in the country where the bank account is located and ask them if this is required, an option for the broker, or something the regulators can't explain. Please come back and let everyone know what they say.

 

[Onlinepips]

UPDATE

The accounting team says "Please note that this is a virtual bank account that is generated in your name and you can only use it to make a deposit to your fx broker account".

In the portal, I click "Get virtual wallet details" and then shows the virtual account which my first, middle, last name.

So looks like I had made a mistake not knowing there's a difference between normal bank account and virtual account?

 

[AsstModerator]

If my broker suddenly decided new deposits go to a "virtual bank account," I would want to test the ability to withdraw real money from this "virtual bank account" before making any new deposits into it.

 

[Onlinepips]

Hi again,

It wasn't suddenly; it was like that from the beginning with this broker when I started deposit last year. Always been the same virtual bank account to deposit into.

Sorry for the original confusion.

With all of this in mind, is that a red flag or normal?