Onboarding Friction for EM Prop Firms – KYC/AML Nightmares?
Been looking at a few prop firms recently that deal specifically with emerging market instruments – thinking particularly about some of the lesser-traded LatAm or African currency pairs, or even specific local equities not typically found on mainstream platforms. The challenge isn't so much the trading strategy, but the onboarding process. Anyone else run into significant friction with KYC/AML when trying to get set up with these types of firms, particularly those domiciled in less conventional jurisdictions? The amount of documentation requested and the follow-up delays have been a real bottleneck. It makes me wonder if the operational overhead for these smaller firms to comply with global standards outweighs the benefits of offering access to these markets, or if I'm just unlucky with the particular firms I've been reviewing. Curious to hear others' experiences regarding the initial setup and verification hurdles.