Compliance Question

[ThatsDeepDe]

Hey,

I'm new to trading,and I think I'm baffled by some of the legalities of one brokerage. Is it normal to be asked for copies of ID, proof of residence,etc for compliance? I'm just thinking you deposit,and start trading. Just looking to know what's legitimate in the world of trading.

Thanks!

 

[Rhody Trader]

Money laundering regulations introduced a lot more paperwork requirements.

 

[highbury fx]

Hey,

I'm new to trading,and I think I'm baffled by some of the legalities of one brokerage. Is it normal to be asked for copies of ID, proof of residence,etc for compliance? I'm just thinking you deposit,and start trading. Just looking to know what's legitimate in the world of trading.

Thanks!

Being a resident of the US will make it difficult for you to get an account at a UK brokerage. Certain exceptions apply such as if you can prove you have a net worth over $10m but more often than not someone in the US will not be able to open an account in the UK. UK brokerages should not even accept trade instructions from their existing clients who are in the US on a visit!

All brokerages are required to 'Know Your Client' often referred to as KYC, this is a set of procedures that enable the brokerage to know who they're dealing with, where they live and where they bank.

Brokerages will be able to auto check their applicants during the application stage and pass them automatically but some Countries (and clients that fail the online checks) are asked to provide more evidence. Being in the US you shouldn't ever be asked for more than 2 proofs of ID and one proof of address.

Its designed to stop money laundering and the layering of money laundering. It makes good sense, it isn't usually an obstruction to open an account. For example most brokerages with good KYC procedures will be able to convert >95% of all pending applications to live accounts.

There are some brokerages that will enable you to automatically open an account and fund it and then begin trading with no checks. This may seem amazingly efficient but wait until you try and withdraw money. That's when all of the checks will kick in and you will notice a big delay in getting any money back.

 

[gerryg]

Hey,

I'm new to trading,and I think I'm baffled by some of the legalities of one brokerage. Is it normal to be asked for copies of ID, proof of residence,etc for compliance? I'm just thinking you deposit,and start trading. Just looking to know what's legitimate in the world of trading.

Thanks!

Keep clear from broker that doesn't require those stuff. Their effortlessness in account registration may be obvious sign of scam!

 

[NVP]

Hey,

I'm new to trading,and I think I'm baffled by some of the legalities of one brokerage. Is it normal to be asked for copies of ID, proof of residence,etc for compliance? I'm just thinking you deposit,and start trading. Just looking to know what's legitimate in the world of trading.

Thanks!

if they don't then start worrying ...........your money will never be seen again dude

N