This article explains the factors that determine how much money you can withdraw from your trading account. It also explains where to find your withdrawable funds and the difference between "Available" funds in the Portfolio section and the actual funds available for withdrawal.
What factors influence the availability of funds for withdrawal?
The amount of available funds depends on several factors, such as:
Open positions: The margin required for open positions reduces the amount of available funds, as certain balances must remain to support leveraged positions.
Negative cash balances: If your account has a negative cash balance, this will reduce total available funds.
Pending Transactions: Withdrawals, deposits, or transfers that are still being processed may temporarily reduce your available funds until they are fully processed.
Margin for Orders: Funds may be reserved if there are pending buy or sell orders in your account, especially for limit or stop orders that have not yet been executed.
Where can I see the available funds for withdrawal?
Before submitting a withdrawal request, you can see the available funds for withdrawal in the "Amount" section of the Funds Transfer tab.
Do the "Available" funds in the Portfolio represent the funds available for withdrawal?
In most cases, yes, but there are a few exceptions to consider.
Does it matter which assets I hold in my portfolio?
Yes, if your portfolio contains bonds or funds, you must leave enough funds to cover three years' worth of overnight fees. If an asset matures in less than three years, you should keep enough funds to cover the fees until maturity.
Where can I find information about overnight fees?
As a general rule of thumb, bonds have a 0.3% annual custody fee, while funds have 0.5%, but there can be exceptions. Information about the specific fees for each instrument can be found in the Desktop Platform → right-click on the instrument → select “Instrument Info”.
Also, you can find information on the overnight rates can be found in the Client's area → Terms → Overnights, and in the article Overnight fees.
For example:
This bond has a standard custody fee of 0.3%. To determine the amount to leave in the account, multiply the value of the bond in your portfolio by 0.9% (three years' worth of fees). This is the required amount to be kept in the account.
Does it matter if I trade on margin?
This process is the same for clients that trade on margin, as well as for those that don’t. Clients that don’t trade on margin should leave the amount to cover overnight fees as cash, while clients that trade on margin can go into negative cash as long as their ‘Available’ is higher than the total overnight fee amount.
Does this apply to stocks and ETFs as well?
In most cases, it won’t apply, but it may be relevant for equities that we consider illiquid. You can check this in the same way as for bonds and funds. For equities, the rate can be found under Overnight Rate, Long.
In the example below, the instrument has a 0% rate, meaning no additional funds need to be left. This is how the instrument information appears on the mobile platform.
Are there any other factors that can impact my withdrawal capacity?
For clients who do not trade on margin, no.
For clients who trade on margin, one additional factor can impact withdrawal capacity. In addition to regular margin requirements, some instruments have a concentration margin rate. An example can be seen in the picture below, where the concentration rate is 130%, which is 30% higher than the regular margin requirement.
For more details on how the concentration margin works, refer to the article "What is Concentration Rate?"
Withdrawals can be approved as long as they do not trigger the concentration margin.