Discuss Documents requested by a Forex broker ?

[Surepips]

OK, then this looks like to be the norm. But is there a reason why he asks for things like utility bills or bank statements as proof of residence when my passport already states my address ?

Same rules as in Real life when it comes to opening a bank account, applying for credit, etcetera. theyll want to see proof of residence as in a letter received or on a seperare document to your method of id, so a passport and driving licence or one of these and a, Bill, statement etc etc (bank statements are acceptable even if pdf from online due to the security measures in place on a banking account the assumption is only the holder has access) Personally I'd be more inclined to use a utility bill for proof of address, and then if they need a bank statement for source of funds, then the first thing I'd do is blur out my account number (at least the first 4 numbers) and maybe even the sort code. If your concerned for financial security could do what i do and maintain a separate bank account purely for funding/withdrawing brokers, crypto exchanges etc etc keeps things separate and a little more organised.i also have extra measures in place, no new outgoing payments/ recepients or direct debit can be added without my authorisation. The banks are pretty switched on here in the UK anyway, had several blocks over the years usually from buying crypto and them classing as suspiscious/fraudulent behaviour.

Glad you've noticed as you put it some the reviews from Heavily Regulated brokers potentially "scamming" customers, probably a topic for another thread but in case you are unaware ALL brokers (regulated and unregulated) will have mechanisms in place that for example can wipe out all positions within a given range (liquidate or stop out) and bare in mind the orderbooks shows your stop, Traders who get themselves into margin trouble alot may have experienced it first hand, and then moan how the broker appears to be trading against them, some cases some will actually be market making and taking the other side to your trade or matching orders against other traders without putting them to market at all but there is a chance they will target positions in margin trouble, others that are actually legit ecn or straight through processing brokers (can be hard to tell) should be putting your position directly to their liquidity providers. Wont go too deep into it but Market manipulation is very real at times, even with the best and most kosher broker going, just nornal market behaviour, ever seen price sneak above a resistance before sharply pulling back, or faking out fully, triggering limit orders and stop losses.... inducing the trader with a fear of missing out or someone desperate to open a trade....to open a late entry..... and bam straight back into the range... and ask yourself, why is it if everyone has the same idea that it doesn't just go straight there...... The basics, an order must be filled with its counter, for there to be a buyer someone has to be selling and for there to be a seller there needs to be a buyer. If everyone's short someone has to buy, the market maker..... liquidity providers... they'll take a short term loss as the return will be relaised at another point in the chart. however you want to look at it the most overlooked area of trading is the actual operation behind how it all works,. Stock markets a bit different running through a central hub and deffinately going off topic but my point is theres more to price action than just candlestick patterns. And going back to brokers sometimes one will have a much larger wick than another in that singukar candle on the 1minute..... allways good to have a second broker (even a demo) just to compare general price action. Reputation should be everything to a broker but it isn't allways as you'll no doubt find out for yourself sooner or later. Iv seen a floating spread gap from1-20pips in the blink of an eye and resume as normal. I just so happened to be at the right place at the right time and would never have even noticed that candle on broker a, wasn't the same as the candle on broker b (note different time zone operating brokers difference in candles doesn't count, although overall structure should still match up, zoom in a time frame to be sure) its obvious enough when it happens

 

[fawzy salah]

Crucially understand the difference between registered with a regulatory body and regulated by them. For example veracity were the latter and were "applying" for regulation and the FSCA didn't like something and shut them down. Either go fully regulated and accept that you will need to perform full KYC or go unregulated with a broker that doesn't require it but ensure you read up about them on as many sources as you can.

How can i know if a broker is just registered with a regulatory body or regulated by them? I usually check the broker's license number on the regulatory body's website and check the one on the broker's website , if they are matching , then this means that this broker is well regulated , right ?

 

[JimmyRozza]

Crucially understand the difference between registered with a regulatory body and regulated by them. For example veracity were the latter and were "applying" for regulation and the FSCA didn't like something and shut them down. Either go fully regulated and accept that you will need to perform full KYC or go unregulated with a broker that doesn't require it but ensure you read up about them on as many sources as you can.

The only way to avoid KYC is by using an off-shore company who accepts crypto such as BTC. I have found CedarFX to be a great alternative since the regs went sour in Australia..... Heaps of them out there though.

 

[RahmanSL]

If you mean anonymous to the broker, then i don't mind if i share my ID with the broker. But to give a somewhat unknown entity (even if regulated) my personal bank account statement showing my account number and balance, then this should keep me worried from hacking or cyberattacking my account especially if it is an online bank or crypto wallet . In addition, forex brokers are not illegal but are still not regulated where i live. Therefore, all brokers are considered offshore brokers from my point of view. However by viewing the replies here , it seems that this is the norm

Any broker will ask for and need your full name and permanent home address and will need proofs like picture Identification card/passport, and utility/phone/bank statement. If you are using bank statement for proof of address, convert your PDF bank statement into another format like "Paint", blank out all your banking and other private information/details, but make sure to leave your full name and home address clearly visible & readable, before sending that to the broker. Same for any other information./details on other documents.

 

[fxoday]

Yes, this is a common process carried out by brokers to comply with KYC rules and AML, maybe not all brokers do it, but most regulated brokers ask for the documents needed for the account verification process. I also sent an ID document and proof of address with a bank statement for verification at FXOpen.

 

[bigdolly]

I am currently looking to trade with a broker but the broker is asking for proof of residence documents such as utility bills , bank statements , tax certificates or any other documents which show an address and money transactions. So my question is : is this normal for a broker to ask for ? aren't these suppose to be personal info which should not be disclosed to any one ? are most of the brokers like that ?

The broker is also regulated by high-tier regulators such as FCA and CySEC

Well yes many brokers are obligated to ask those documents from a trader, so you shouldn't be surprised.