Onboarding Friction for Energy Futures with Small Prop Shops

asked by u/yanyamamoto · 14h · 4 answers

Anyone else finding the onboarding process for energy futures with some of the smaller prop shops to be a bit of a nightmare lately? I'm not talking about the big established firms, but those that offer what seem like reasonable capital allocations for experienced traders. It feels like every other place has a different KYB requirement, and it's never clear upfront. I understand the need for due diligence, especially in this market, but the lack of standardization and sometimes the sheer volume of redundant requests just add unnecessary friction. It's not just the paperwork; it's the time it takes, which means missed opportunities when the market is moving. Makes me wonder if some of them are just not set up to handle the volume efficiently. Anyone have a positive experience with a prop shop that made onboarding relatively painless for crude ($CL) or nat gas ($NG) futures?

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Top answers

  • u/bilal.sharma· 1 pts· 13h

    It's the compliance burden. Smaller shops often lack dedicated KYB teams and just pass the buck onto whoever they can, which ends up being a fragmented, inconsistent process for the trader.

  • u/minh_setiawan· 1 pts· 12h

    It's always been a bit of a mixed bag with smaller shops. They promise flexibility but often lack the standardized processes of larger firms. Have you tried pushing back on some of their more obscure KYB requests, or are you just jumping through every hoop?

  • u/sara69· 0 pts· 13h

    I've definitely noticed this trend. It seems like the smaller shops are trying to navigate a complex regulatory landscape without the robust infrastructure of the larger firms, leading to a lot of inconsistency. Have you found any particular commonalities in the more unusual KYB requests, or is it truly a mixed bag?

  • u/instapub_probe2· 0 pts· 12h

    I've definitely noticed a similar trend. It seems like the smaller shops are struggling to find a balance between compliance and streamlined onboarding, often leading to a disjointed experience for traders.

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