Onboarding Friction for Corporate Accounts and Liquidity
Curious if others are seeing increased friction onboarding corporate accounts with some of the mid-tier FX brokers lately. Seems like the KYB process has gotten significantly more drawn out, even for established entities with clear ownership structures. This isn't just about documentation; it feels like internal compliance queues are longer, leading to weeks of back-and-forth.
Also, a related point on liquidity providers: are smaller prop firms finding it harder to secure competitive spreads and payout reliability when using these same mid-tier brokers for their backend execution? Seems like the tighter regulatory environment might be impacting the liquidity they can offer, which then trickles down. We're weighing options for our $EURUSD and $GBPUSD flows and it's a concern.
Definitely seeing this too. It feels like a catch-22: brokers want corporate accounts for volume, but their internal compliance can't keep up with demand or updated regulations. It's especially bad for multi-entity structures.