Onboarding Friction with Offshore FX Brokers and PSD2 Implications
Curious to hear about others' recent experiences navigating onboarding with offshore FX brokers, especially post-PSD2. I'm finding a noticeable increase in KYB friction, even with entities I've used for years. The move to stronger AML/CTF frameworks, while understandable, seems to have created a bottleneck where previously streamlined processes for funding via wire or crypto are now facing additional layers of scrutiny, sometimes resulting in delays that impact trading schedules.
Specifically, what kind of documentation requests are you seeing for proof of funds originating from less conventional sources (e.g., crypto gains) when trying to deposit with these brokers? Are you finding the PSPs they use are the main choke point, or is it more at the broker's compliance desk? And how are these delays impacting your ability to capitalize on short-term market movements in pairs like $EURUSD or $GBPUSD when liquidity is critical?