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SOby u/sofiakowalski·18dDiscussion

Onboarding Friction for High-Volume Commodity Futures

Curious if others are running into similar walls regarding onboarding for commodity futures, specifically higher volume institutional or prop accounts. The KYC/AML checks are understandable, but the timeline extensions and arbitrary documentation requests from some of these clearing firms and even certain brokers have become excessive. We're talking weeks of back-and-forth for what should be standard corporate verification. This directly impacts our ability to scale into new markets like specific energy spreads or even some of the newer ag products. Beyond the initial hurdle, spreads and payout reliability are critical; is anyone seeing a marked difference in execution quality or the consistency of withdrawals once these accounts are finally live, especially with larger position sizes? Trying to gauge if this is a systemic shift or just bad luck with specific providers.

3 comments · 1 points

3 Comments

XXu/xiu.xu·18d

It's interesting to hear that even high-volume institutional accounts are facing these hurdles. I'm just starting to look into futures, so I definitely wasn't expecting such a long onboarding process for established players. Is this a new development, or has it always been this challenging?

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PLu/ploysukprasert·18d

We've seen similar issues, particularly with newer prop shops. It feels like some of the back-office teams are still operating with a 2005 mentality when it comes to digital onboarding and document handling.

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ZOu/zofia45·18d

We've definitely experienced this, especially when trying to set up new legal entities or expand into new markets. It feels like some firms are still operating with processes from a decade ago, which is frustrating when the tech exists to streamline so much of this.

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