KYC verification — The identity check a firm runs before releasing payouts, typically requiring government ID and proof of address.
How KYC verification works in prop trading
Firms paying money out have to know who they are paying. KYC normally means a government-issued photo ID, a proof of address dated within the last few months, and sometimes a short liveness check. It is a condition of payout rather than of trading, so most traders meet it for the first time at the worst possible moment — when they want their money.
Two things routinely cause delays. The name and address on the trading account must match the documents exactly, so an account opened with a nickname or an old address fails automated checks. And the payment method usually has to belong to the verified person; third-party payment details are refused by most firms as a matter of policy.
Key points
- Required before the first payout, not before trading — so it is usually discovered late.
- Account name and address must match the submitted documents exactly.
- Payment details normally must belong to the verified account holder; third-party payouts are refused.
- Completing verification immediately after activation removes it from the critical path of your first withdrawal.
Also known as
- know your customer
- identity verification
- ID verification
- KYC
Frequently asked questions
What documents do prop firms need for KYC?
Typically a government photo ID (passport or driving licence) and a proof of address such as a utility bill or bank statement issued within the last three months. Some firms add a selfie or liveness check, and some require a tax form depending on your jurisdiction.
How long does prop firm KYC take?
Automated checks often clear within hours; manual review can take several business days. Mismatched names, expired documents, and addresses that differ from the account profile are the usual causes of a resubmission cycle.
KYC verification is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.