How to Close a FOREX Account
As investors in the foreign market exchange know, FOREX accounts can be tricky to maintain and risky for any investor, especially beginning ones, according to the Wall Street Journal. Regardless of your reasons, closing a FOREX account should generally be a simple process. It might take some research to obtain and fill out the proper paperwork and some time to halt account activity, but any investor has the right and ability to terminate an account.
Evaluate your account's balance. Review your contract for any fees or requirements and make sure your account has enough funding to cover any outstanding obligations. You might need to verify correct account information with your investment service to establish how to refund your balance, such as through direct deposit or by issuing a personal check.Step 2
Close all open positions and stop any pending trade orders. FOREX account activity must end before your firm can close the account. Some accounts might require a few days notice before closing, which will be described in the contract with your financial service company.Step 3
Call or write the professional who manages your FOREX account and request an account termination form. Your representative will have all of the information needed to close your account. Your representative might ask about why you are closing your account and urge you to keep your account open. If your account is in good standing and you owe no fees or have other obligations, your representative must close it for you.Step 4
Scan the firm's website or trading application to find an account termination form, for online FOREX accounts. The application termination form might be available in the help, account information or customer service sections. This form might require you to print it out and return it by mail or fax. Firms don't like to lose accounts, so while some websites might guide customers to termination forms, others might require a phone call or e-mail to customer service to obtain the form, according to CNNMoney.Step 5
Monitor the account to verify it has closed and your assets were returned to you. If you are having issues closing your account, send an e-mail, letter or fax to the firm demanding immediate attention be paid to your action to close the account. If you still don't receive a prompt reply, contact either your state financial regulatory agency or the U.S. Commodity Futures Trading Commission, which oversees federal regulations of the foreign exchange market and addresses consumer complaints.
- Closing your account could create tax obligations, especially if you have been investing successfully. Financial services don't generally collect or submit taxes, which leaves the investor responsible for reporting it to the IRS. Review federal and state tax requirements on capital gains and other investment income and include this information with your tax filings.
Terry Lane has been a journalist and writer since 1997. He has both covered, and worked for, members of Congress and has helped legislators and executives publish op-eds in the “Wall Street Journal,” “National Journal” and “Politico." He earned a Bachelor of Science in journalism from the University of Florida.