January 2023

Identity verification for CFD and Forex Brokers

Forex brokers must verify and protect against fraud not only for the benefit of customers but also to to comply with regulatory requirements. Furthermore, they need to make sure they can verify their customers’ identities under the Know Your Customer (KYC) regulations. Financial regulations like KYC are essential for building customer trust, protecting the brand from reputational damage, and complying with Anti-Money Laundering (AML). In addition, successful forex brokers must optimize their customer experience by reducing friction during the signup process to attract new clients.


Forex brokers challenges

These are the challenges forex brokers face in today’s financial marketplace.
  • The need to meet strict regulations for identity verification, anti-money laundering (AML), and know your customer (KYC) compliance. 
  • The need to protect against fraud and reputational damage. 
  • The need to improve the customer experience to acquire a greater number of customers more efficiently and to scale business successfully.

Stop financial crime

Forex industry businesses need to follow Know Your Customer (KYC) procedures and Anti-Money Laundering (AML) policies. Doing so is crucial for guarding against fraud and maintaining compliance with local regulations.

Even a single instance of financial crime can decimate profits and tarnish your reputation. 

Ensure compliance

Forex brokers face two key challenges: they must meet the conditions outlined in the regulations while balancing that commitment with business objectives such as customer acquisition and retention or market growth.

The industry is struggling with compliance because there are multiple regulations that entities need to comply with, which makes doing so even harder. And since forex trading involves both cross-border transactions and large sums of money, the implications of non-compliance can be severe. 

Penalties for non-compliance can include:
  • fines imposed by financial regulators;
  • damaged reputation due to negative publicity around cases involving fraud or identity theft;
  • loss of customers due to increased security measures that slow down the account opening process;
  • being shut down by regulators or forced out of business.

Protect your business from reputation threats

KYC (Know Your Customer) is an integral part of the identity verification process for forex brokers. It’s the first step in protecting your business from threats to its reputation.

Discover the KYC platform
for global customer onboarding

Eliminate identity fraud

Onboard users fast

Stay compliant

Know who you are dealing with

It’s important to know whether your customers are who they say they are. Automated KYC tools allow you to reduce friction for your customers, as well as effectively verify the identity of your customers. Additionally you get access to AML watchlists and sanctions lists. There’s no need for a manual check. The CDD process is also much easier, thanks to verification automation. 

Build trust and reduce costs

Identity verifications which are compliant with the latest KYC and AML standards both help you assess the risk and demonstrate to your customers that they can trust you. As the compliance costs for money services are rising, innovative, automated KYC software may turn out to be a cost-effective solution that reduces manual compliance efforts.

Real-time user authentication

With Fully-Verified, you can achieve a competitive advantage with real-time user authentication. This allows your business to eliminate fraud. 

How does it work? By using biometric authentication, identity verification, liveness detection, and facial recognition, we can create a secure environment for your users.

Using the latest technology in real-time user authentication helps you enhance customer experience while ensuring that everyone on your platform is who they say they are.

Our solutions include:
  • Live-Verify video ID verification that provides a full-proof way for conducting all the KYC compliance necessities.
  • Auto-Verify automatic solution for quick verification.
  • Self-Verify, an easy-to-use, intuitive tool that makes your Forex onboarding quick, simple, and fully secure.
Proof of address check, which ties the user to a specific location and confirms that the address stated for the verification is the actual residence address.

Stay compliant

Identity verification solutions for forex brokers help protect against fraud, remain compliant, and improve customer experience.

Even in such a complicated industry as Forex trading, you don’t have to struggle with regulatory complications. Operating in multiple jurisdictions doesn’t have to be a nightmare if you have trusted and reliable partners. Such an ally might be a professional tool that will make your onboarding processes easier for you and your customers.

For the forex industry, third-party identity verification solutions can help you to:
  • Prevent fraud.
  • Meet regulatory compliance requirements.
  • Improve customer experience.

Protect against fraud

In today’s digital world, there are numerous ways for scammers and cybercriminals to commit identity fraud and for money launderers to try and get past existing anti-money laundering (AML) measures. Identity verification as a service from Fully-Verified allows forex brokers to protect their business against such threats while also meeting mandatory AML compliance requirements in the countries where they operate.

Discover the KYC platform for global customer onboarding

Streamline your onboarding processes. Experience unparalleled automation.

Fully-Verified was created as answer to its founders collectively losing over $150 000 to various types of fraud in their eCommerce businesses.