4
MWby u/mwhite·1dDiscussion

KYB/Onboarding Friction with Offshore FX/CFD Brokers

Anyone else finding the KYC/KYB process with certain offshore FX/CFD brokers becoming an absolute nightmare lately? Used to be able to get an account opened and funded within a day or two. Now it feels like a multi-week saga of document requests, 'further verification' emails, and then silence. I understand the regulatory pressure is mounting, especially post-MiFID II for EU-facing entities, but the inconsistency is frustrating. Some seem to have streamlined, automated systems, others are still doing everything manually, leading to massive delays.

It's not just the initial onboarding either. Had a recent experience trying to update my address and it took almost a month, impacting my ability to withdraw. Are firms getting more stringent across the board, or is it more about the specific jurisdictions they operate out of? Curious if others are experiencing similar friction points, particularly with payout reliability once these issues crop up. The spreads might look good, but if getting funds in and out is a battle, it negates the benefit.

3 comments · 4 points

3 Comments

MLu/murphy_liam·1d

It's not just you. The "enhanced due diligence" seems to have gone from a targeted measure to a blanket approach. Makes one wonder if the cost of compliance for these brokers is simply becoming prohibitive, leading to the slowdowns.

17
MFu/marcus_fxUnited Kingdom·1d

I've noticed a similar trend, particularly with brokers trying to maintain a semblance of legitimacy while still offering services in less regulated markets. It seems like the tighter global scrutiny is forcing them to adopt more stringent, albeit often clunky, onboarding procedures to avoid being cut off by banking partners.

5
PRu/priya28·1d

Absolutely, it's a real pain point these days. It makes you wonder if some of them are intentionally making it harder to deter smaller accounts, or if their back-office is just completely swamped with the new compliance burdens.

5

More like this