If you’ve spent any time reading forex trading forums, you’ve probably seen scary stories about brokers blocking accounts and freezing funds. As someone who’s been trading part-time for several years now, mostly with NordFX, I understand how nerve-wracking it sounds.
The truth is, while blocked accounts do happen, they’re often the result of specific mistakes or misunderstandings. In this article, I want to share the most common reasons why forex accounts get blocked — and more importantly, how you can avoid these problems entirely.
- Incomplete or Fake KYC Verification
Forex brokers, including NordFX, are legally required to verify your identity through a process called KYC (Know Your Customer). If you submit incomplete documents or fake information, it’s a major red flag.
Tip:
- Always upload clear, valid ID and proof of address.
- Make sure documents match the information you registered with.
- If something changes (like your address), update your documents promptly.
In my experience with NordFX, proper KYC upfront made every withdrawal smooth.
- Bonus Abuse or Violating Bonus Terms
Some traders are attracted to promotional bonuses but don’t read the fine print. Bonus abuse (like trying to withdraw bonus funds without meeting the trading volume requirements) is a major cause of account reviews and even blocks.
Tip:
- Read and understand all bonus conditions before accepting any promotions.
- Focus on real trading strategies rather than “beating” the bonus system.
At NordFX, I usually avoid bonuses altogether unless I’m sure I want to meet the trading requirements.
- Using Prohibited Trading Techniques
Certain strategies, like latency arbitrage (exploiting delays between price feeds), are considered unfair practices by many brokers.
Tip:
- Stick to normal strategies like scalping, swing trading, and position trading.
- If you’re unsure, check with the broker’s support team to confirm what’s allowed.
NordFX, for example, clearly states that scalping is allowed on most accounts, which gave me peace of mind.
- Multiple Accounts with Different Names or Emails
Opening multiple accounts under different identities is a violation of most broker agreements.
Tip:
- Manage all your trading activities under a single verified identity.
- If you want to try different account types (like Micro vs Standard), you can usually open multiple accounts under one login.
Personally, I’ve used multiple account types at NordFX without any issues — because everything was under my real, verified profile.
- Suspicious Withdrawal Patterns
Withdrawing small amounts repeatedly or suddenly making very large withdrawal requests (especially without much trading history) can trigger fraud alerts.
Tip:
- Build a trading history before withdrawing large amounts.
- Withdraw reasonable sums proportional to your account size and trading activity.
In my case, starting with modest withdrawals ($50, $100) helped establish a good pattern with NordFX.
Final Thoughts: How to Stay Safe
Most forex account blocks are preventable with a little bit of preparation and common sense. Based on my experience trading with NordFX:
- Always verify your account properly.
- Trade fairly within the platform’s rules.
- Avoid bonus traps if you’re unsure.
- Communicate openly with support if any issue arises.
NordFX, like any serious broker, has clear policies in place to protect both the company and traders. Follow those, and you should have a smooth trading journey.
Disclaimer: This article is based on personal experience and general best practices. Always review your broker’s terms and conditions carefully before trading.
