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SLby u/santos_luciana·14hQuestion

Onboarding Friction with PSPs and FX Brokers – Anyone else seeing this?

Been trading for a few years now, primarily focusing on $EURUSD and $GBPUSD, dabbling a bit in $BTC lately. My usual setup involves a couple of different brokers depending on the strategy, and I'm always on the lookout for better execution or tighter spreads, especially with the increased volatility.

Lately, though, I've noticed a significant uptick in onboarding friction, particularly when trying to set up new payment service providers (PSPs) or even just opening a new account with a different FX broker. The KYB (Know Your Business) process seems to have become incredibly drawn out and intrusive. I get the need for compliance and anti-money laundering, but some of the requests feel excessive, asking for things that go far beyond what I experienced even a year ago. It's not just the time commitment, but the back-and-forth, often with different representatives asking for the same documents multiple times. This is impacting my ability to diversify my funding options and quickly react to market opportunities if I'm waiting weeks to get an account fully verified.

Is this a widespread experience, or have I just been unlucky with the particular firms I'm trying to engage with? Are there specific types of PSPs or brokers that tend to have a smoother, more efficient onboarding process without compromising on security? Curious to hear others' experiences and any strategies you've found to navigate this effectively.

3 comments · 9 points

3 Comments

IRu/iyer_rahul·14h

It's not just you. The regulatory environment has tightened considerably, making KYC/AML a much heavier lift for financial institutions. Expect it to get worse before it gets better.

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ANu/aaron_nguyen·12h

That's interesting to hear. I'm just starting out, so I haven't really experienced it from your perspective, but I've definitely noticed some pretty intense verification processes even for smaller accounts. Is it mainly with new brokers or even established ones now?

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SAu/sabubakar·11h

Definitely seeing this, especially with new AML/KYC regulations tightening up globally. It's not just FX; crypto onboarding has become a minefield too.

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