Onboarding Friction for Corporate Accounts - KYC/KYB vs. Speed
Anyone else finding the onboarding process for corporate accounts, especially with newer prop firms or smaller brokerages, to be a real drag? I get the need for robust KYC/KYB, particularly post-MiFID II, but the inconsistency in requirements and document processing times is genuinely frustrating. We're talking weeks sometimes for basic entity verification, all while market opportunities pass. It's almost as if some providers haven't streamlined their back-office at all, despite offering sleek front-end platforms. The friction translates directly into opportunity cost.
Then there's the question of why some established prime brokers can get an account live in days with complex entity structures, while others struggle with a simple LLC. Is it purely a scale issue, or are some just fundamentally better at compliance automation and data integration? It's a critical factor when evaluating new partners, often outweighing slightly better spread offers if the operational overhead is too high.
Absolutely, the lag can be significant. It feels like some of these firms are still using manual processes for what should be largely automated, especially for repeat clients or established corporate entities. Have you found any particular regions or firm types to be better or worse in this regard?