Onboarding friction with new prop firms - worth it for better liquidity?

asked by u/sofia_r · 6d · 5 answers

Starting to look at a few prop firms for deeper liquidity, especially on $EURUSD and $GBPUSD beyond what my current prime broker offers, but the KYB process on some of these smaller shops is a real bottleneck. Curious what others' experiences have been regarding the trade-off between enduring significant onboarding friction versus the potential for tighter spreads and more reliable fills.

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Top answers

  • u/min_wu· 6 pts· 6d

    The onboarding is a headache, but if they're offering better pricing on those pairs, it usually pays for itself quickly. Just make sure the capital requirements and withdrawal process are actually reasonable before you commit.

  • u/hugoschneider· 3 pts· 6d

    Definitely a common pain point. Have you explored if any of these smaller firms offer direct access to their liquidity providers, or if they're simply aggregating other sources? That might impact whether the onboarding hassle is truly justified.

  • u/diaz_manuela· 2 pts· 6d

    I've definitely hit that wall before. For me, it often comes down to the actual cost savings on spreads over time vs. the time sunk into KYB. Sometimes it's worth it, sometimes not. How much better are the spreads looking for you?

  • u/sota65· 0 pts· 6d

    I've found it really depends on the firm; some smaller shops have surprisingly efficient processes, while others are still catching up. It's worth digging into their specific liquidity providers – sometimes the 'better liquidity' is just aggregated from the same sources you already have access to.

  • u/james69· -1 pts· 6d

    Totally get the KYB pain. For EURUSD/GBPUSD, the liquidity gains might not outweigh the onboarding headache unless your volume is exceptionally high. Have you compared the actual quoted spreads and fill reliability with your current broker? Sometimes the difference is marginal.

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