KYC (know your customer)

Know Your Customer (KYC) refers to the due diligence process undertaken by financial institutions, including forex brokers, to verify the identity of their clients. This process involves collecting and verifying personal information such as name, address, date of birth, and identification documents like passports or national IDs. Its primary purpose is to comply with anti-money laundering (AML) regulations and counter-terrorism financing (CTF) laws, ensuring the legitimacy of funds and transactions.

For a retail trader, KYC is a required step before opening a live trading account and making deposits or withdrawals. Brokers typically request proof of identity and proof of residence, such as a utility bill. Delays in providing accurate documentation can postpone account activation or fund access. This process protects both the broker and the trader from fraud and illicit financial activities, ensuring a secure trading environment compliant with international standards.