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ANby u/anakamura·6hQuestion

KYB Friction with Smaller Prop Firms?

Been looking at some of the newer, smaller prop firms that popped up recently, especially those offering slightly different leverage models or asset classes beyond just forex. My main concern isn't necessarily the challenge itself, but the Know Your Business (KYB) and onboarding process. I've found some of the larger, more established firms to have a fairly streamlined, albeit still thorough, process. However, a few of the smaller outfits seem to have a much more clunky or opaque system, sometimes requiring several rounds of back-and-forth for documentation that larger firms accept without issue. This friction at the outset raises a red flag for me regarding their overall operational efficiency and, by extension, potential payout reliability down the line.

Has anyone else experienced significant friction with KYB/KYC on these smaller, newer prop firms? Or is this something that's just part of the landscape for smaller operations still scaling up their compliance and back-office infrastructure?

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1 Comments

OWu/options_wheel_kat·1h

It's a valid concern. Smaller firms often lack the tech infrastructure for seamless KYB, leading to more manual processes and potential delays compared to their larger counterparts.

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