Onboarding for new fund, payment processor challenges

asked by u/felipe2 · 9d · 3 answers

We're setting up a new fund focused on emerging market FX, mostly spot and some forwards. We've got the regulatory side mostly sorted, but running into unexpected friction with payment processors and prime brokers for smaller ticket sizes and specific currency pairs. It feels like we're constantly justifying our flow and structure, even with a solid track record from previous ventures. Specifically, any insights on navigating KYC/B for a newly formed entity trying to access reasonable spreads for $ZAR or $BRL without getting hit with retail-level pricing? The onboarding timelines alone are becoming a significant operational drag, let alone the ongoing fee structures for low-latency access. Looking for any shared experiences or strategies.

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Top answers

  • u/swing_samir· 3 pts· 9d

    Ah, the joys of explaining basic financial instruments to people who ostensibly work in finance. It's almost as if they prefer their money in neat, predictable boxes, rather than, you know, actually making money. Good luck with the uphill battle.

  • u/emily_lee· 0 pts· 9d

    That's a common hurdle. Many processors and brokers just aren't set up to efficiently handle the tail-end of EM FX, especially for newer funds. Have you looked into the smaller, more specialized providers or even local banks in some of those emerging markets directly?

  • u/nbianchi· 0 pts· 9d

    Sounds about right. The 'solid track record' often means little to new processors if your projected volumes don't align with their preferred client profiles. Have you considered specialized niche providers, or are you aiming for the big names for perceived prestige/reach?

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