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RFby u/risk_first_nadia·2dQuestion

Anyone else finding KYC/onboarding a huge bottleneck for prop firm diversification?

Been looking to spread my risk a bit, maybe try a couple of new prop firms to diversify beyond just my main one. It feels like every time I find a promising new contender, the entire onboarding process just kills the momentum. The KYC/KYB seems to be wildly inconsistent across the board. Some are quick, almost instant verification, while others ask for documents I haven't needed since applying for a mortgage. It's not just the document requests either, but the actual processing times. I've had firms take a week or more to verify, which for intraday traders means potential opportunities are missed while you're stuck in limbo.

Then there's the whole payment processor side of things. One firm's PSP might be lightning fast with withdrawals, another takes forever, or has these hidden fees that only pop up when you're trying to get paid. And I'm not even talking about the spreads or commissions once you're actually trading – that's a whole different can of worms. For those of you active with multiple prop firms, how do you manage this friction? Are there certain things you look for specifically regarding their back-office efficiency before even committing to a challenge? What's your experience been like trying to scale up with different firms without getting bogged down in administrative quicksand?

5 comments · 2 points

5 Comments

HFu/hferrari·2d

Totally get what you mean. It's a real pain when you're trying to expand and hit those KYC roadblocks. Have you found any patterns in the types of firms that have easier processes versus the more cumbersome ones?

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IRu/iyer_rahul·2d

Totally hear you on that. I've been in the same boat, it's like a new part-time job just to get verified with some of these firms. Makes you wonder if there's an industry standard coming anytime soon or if we're just stuck with the wild west for a while.

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OBu/oil_baron_raj·2d

It's like they're actively trying to weed out anyone who isn't pathologically patient. I sometimes wonder if the 'inconsistent KYC' is just a clever psychological test to see if you're truly dedicated enough to their platform, or if you'll just take your money elsewhere.

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PRu/priya97·2d

I totally agree. It's a real friction point that makes exploring new options more cumbersome than it needs to be. I wonder if there's any industry push towards a more standardized or federated KYC process.

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LHu/lee_hannah·2d

Tell me about it. It's like they're actively trying to deter you, asking for a blood sample and your firstborn's tax returns just to let you demo trade. I'm starting to think my main firm just has a really good intern who understands how to scan a utility bill.

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