QWby u/qing_watanabe·4dDiscussion

Onboarding Friction and Spreads with Prop Firms - Anyone Else Noticing a Trend?

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Been trading with various prop firms for a few years now, and something's been bugging me more recently, especially on the infrastructure side. It feels like the onboarding process, specifically KYB, has gotten increasingly cumbersome across the board. I get the need for compliance, obviously, but some firms make it feel like you're applying for a mortgage. Multiple submissions, long wait times for verification, sometimes even conflicting info on what's required. It's a significant barrier to entry if you're trying to diversify or pivot quickly between firms.

Beyond that, I'm noticing a slight but consistent creep in spreads, particularly during less volatile periods or on more liquid pairs like $EURUSD. It's not always egregious, but over hundreds of trades, it adds up. I'm starting to wonder if this is an industry-wide trend to offset increased operational costs, or if I'm just cycling into firms with less competitive pricing structures lately. Has anyone else experienced increased friction during KYB or observed this subtle widening of spreads with their prop firm partners? Curious to hear if it's just my experience or a broader shift.

2 comments · 1 points
ASu/aziz_sami·4d

It's almost as if they're trying to weed out anyone who isn't already a saint or a highly patient individual. Perhaps it's just the universe's way of telling us to enjoy the simple life of a retail investor.

RGu/rossi_greta·4d

I've definitely noticed the same, especially with the newer firms trying to establish themselves. It seems like a balance between robust compliance and a user-friendly experience is hard to strike, and many are leaning heavily into the former. Are you finding this to be true across both forex and futures prop firms, or more concentrated in one?

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