Withdrawing money from a brokerage account: what you pay for and what else is deducted

Most Russian brokers do not charge a separate fee specifically for withdrawing roubles, especially when the money goes to an account at a bank in the same group. Yet the amount that arrives in your account is almost never exactly the amount stated in the withdrawal order. The reason is usually not a transfer fee but tax, which the broker, acting as a tax agent, withholds at the very moment of withdrawal. These are different things that work in different ways, and they should not be confused: one can be avoided by choosing the right route, the other cannot.

What exactly reduces the amount withdrawn

The amount you see in the order can be reduced by payments of different kinds. The first is the broker's tariff fee for executing a withdrawal order. Not every broker charges one, but where it exists it is often tied to the route: a transfer to a card at a third-party bank, a transfer to a legal entity's bank details, or an urgent withdrawal outside the standard settlement cycle. The second is a fee charged by the receiving or sending bank for the transfer itself. The broker does not collect it and does not show it in its tariff, so the gap between the amount debited and the amount credited is easily mistaken for a hidden commission. The third is tax. It is not a commission at all, but it is deducted at the same moment and looks exactly the same.

A separate item is the custody fee: it is charged for holding securities and has nothing to do with moving money, but it is debited from the same account and can reduce the free balance precisely when you are about to withdraw. The same applies to the minimum monthly payment under the tariff; how it works is explained in detail in the article on the broker's minimum fee.

Tax is withheld on withdrawal, and it is not a service charge

The main reason you receive less than expected is set out in Article 226.1 of the Tax Code. The broker is a tax agent. When paying out money from a brokerage account, it does not wait until the end of the year: it calculates the financial result on closed positions as of the payment date and withholds personal income tax on it straight away. If the calculated tax exceeds the amount being withdrawn, the broker withholds not the full tax but only what fits within the payout; the remainder is carried over to subsequent payouts or to the end of the tax period.

This leads to the practical consequence that surprises people most often: a withdrawal can "cost" noticeably more than any tariff if realised profit has built up in the account. Conversely, if loss-making positions are closed before the withdrawal, the tax base shrinks and there may be nothing to withhold. The mechanics are explained in more detail in the glossary entry tax withholding on withdrawal. Note that closing a position at a loss to reduce the tax base is a real sale with a real result, not an accounting trick.

When a withdrawal fee really does apply

Tariff charges usually kick in on non-standard routes. Withdrawing foreign currency is almost always a separate line in the tariff, often with a minimum threshold and restrictions on correspondent banks. A transfer to an account at another bank, rather than the broker's own bank, is also a typical paid route. Urgent withdrawals executed before the standard settlement time are charged by those brokers that offer such an option at all. Finally, transferring securities to another broker is not a cash withdrawal but a custody operation with its own price list, usually charged per security issue.

Another cause of delay that is mistaken for a fee: after you sell securities, the money does not become free instantly. Settlement of the trade is completed under the exchange's trading rules, and until it is completed the amount is visible in the portfolio but cannot be withdrawn.

Withdrawing from an IIA is a special case

As a general rule, a partial withdrawal of money from an individual investment account means terminating the agreement, with all the consequences for deductions already received. This is neither a commission nor a penalty imposed by the broker, but a condition of the tax regime. Exceptions exist, but they are narrow and tied to specific grounds; before submitting an order, check the type of account and the year it was opened.

How to check your case in advance

The procedure is simple. Step one: find the section on withdrawals in your broker's tariff and see whether it distinguishes between roubles and foreign currency, and between the broker's own bank and third-party banks. Step two: look in the broker's report for tax that has been calculated but not yet withheld — this is what will determine the difference between the order and the amount credited. Step three: check whether the withdrawal falls on the date when the monthly minimum or the custody fee is debited.

The site does not maintain a consolidated register of brokers' tariffs, so check the specific rates in your broker's current tariff document. General terminology is collected in the glossary; how trading fees work is covered in the article broker's commission, and the fee for holding securities in the article custody fee. If you are planning a withdrawal around incoming payouts, consult the dividend calendar: dividend money is credited with a delay relative to the record date.