Why do brokers have all this verification process, copy of id, copy of utility bill etc. Is all that really necessary? Could not verification be done some other way than sending your documents to someone you've never seen?
As mentioned before, it is to prevent money laundering and fraud. This is one reason you should pick your broker carefully and if you have nothing to hide and the broker is legit you should not worry too much about it. I have actually met my broker in person when I did my due diligence and then opened my account.