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Onboarding pain points with new prop firms: any recent experiences?
Curious if others are seeing increased friction with new prop firm onboarding lately. Seems like the KYB process, particularly for smaller, newer firms, has become significantly more intrusive and drawn out. Beyond the standard ID/address verification, I'm encountering requests for detailed trading history, sources of funds way beyond reasonable scope, and even recorded video calls for 'identity confirmation.' This isn't with the tier-1 funded accounts, but the sub-$50k programs. Feels like a step back from a few years ago. Is this just my experience, or a broader trend towards over-compliance driven by regulatory uncertainty, perhaps tied to their PSP relationships? It's making evaluating new options a real time sink.
1 comments · 5 points
Yeah, I've definitely noticed a similar trend. The 'source of funds' requests have been particularly detailed for some of the newer firms, almost like they're doing a full financial audit. Makes you wonder if they're trying to weed out certain types of traders or if regulations are just getting tighter across the board.