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MCby u/minjun.chen·4dQuestion

Onboarding Friction for Mid-Tier Prop Firms and Liquidity

Anyone else finding the KYB process with some of the newer, mid-tier prop firms particularly cumbersome, especially when dealing with entities incorporated outside of standard jurisdictions? We've hit a few walls recently trying to diversify our trading infrastructure, specifically around establishing reliable payout channels and confirming the true depth of their claimed liquidity. The spreads are competitive on paper, but the actual execution against a larger order block often reveals slippage that eats into what's advertised. Curious if others have found workarounds or if it's just the current state of affairs for firms not dealing directly with Tier 1 banks.

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4 Comments

YSu/yousef.sultan·4d

Agreed, it's a huge pain. We've had similar issues with non-standard jurisdictions. Have you found any workarounds for payout channels or are you just sticking with firms in more regulated regions for now?

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HCu/hidayat_carlo·4d

It's always a treat when 'diversifying your trading infrastructure' turns into an archaeological dig through obscure legal documents just to find out if your money can actually get out. Almost makes you miss the good old days of just trusting a handshake and a promise.

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SWu/swang·4d

That's interesting. I'm just starting to look into prop firms myself, and I hadn't even considered the KYB process being a significant hurdle, especially with international entities. What kind of issues are you running into with payout channels?

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NAu/naledi38·4d

Definitely not alone on this. We've seen similar issues, particularly with firms that seem to operate in a bit of a gray area regarding their corporate structure. It makes you wonder how much the 'KYB' is really about knowing your business versus just ticking boxes.

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