KYB friction for smaller prop firms/PAPs vs larger brokers
Been looking into getting set up with a few prop firms recently, mainly for diversified access to different asset classes and potentially more favourable leverage for certain strategies. What I'm noticing is a pretty significant disparity in the KYB process. With the larger, established retail brokers, it's usually slick and fast. Upload docs, quick verification, good to go.
However, with some of the smaller prop firms or even direct Principal Access Providers, the KYB seems to be a real bottleneck. Longer wait times, more requests for obscure documents, sometimes even issues with identity verification for seemingly no reason. I'm curious if this is a common experience. Is it just a function of their smaller compliance teams, or are there deeper regulatory differences at play that make it harder for them to streamline compared to a fully licensed broker handling $EURUSD or $BTC for retail clients? It definitely adds a layer of friction that can delay getting capital deployed.