Glossary · Prop Firms
KYC Verification
KYC (Know Your Customer) verification is the identity-checking process prop firms use to confirm a trader's real identity before activating a funded account or releasing a payout. It typically requires a government-issued ID, sometimes a selfie, and occasionally proof of address, reviewed by the firm or a third-party compliance provider.
Why it matters
Firms run KYC to meet anti-money-laundering (AML) obligations and to block fraud, duplicate accounts, and identity misuse. A trader who ignores or fails verification can be stuck at the finish line: the trading results stand, but the funded account activation or the payout itself gets held until documents clear.
Live data
Example
A trader clears an evaluation and gets a dashboard prompt to submit a passport or national ID plus a live selfie through a third-party provider. Review often finishes quickly, but manual checks can take a day or two. Once approved, the dashboard shows a confirmation and the account moves to its next stage, whether that's activation or clearance for a payout request.
Common misconception
Traders often assume KYC happens once, at signup. In practice, timing varies: some firms verify identity right after a passed challenge, others wait until a funded account is issued, and a few only trigger it at the first payout request, meaning a trader can trade for a while before ever uploading an ID. Another common error is assuming any photo ID works. Expired documents, screenshots instead of the physical card, cropped or blurry images, a name mismatch with the account, or a driver's license from an unsupported country are frequent rejection reasons. Some firms also treat having someone else complete your KYC, or using a VPN/VPS during the process, as a compliance breach that can end in account termination.
Related terms
See also
Check the FTMO firm profile to see how one major firm sequences identity verification alongside its challenge and payout process.
Sources
The broader mechanic, verifying identity before funding or payout, is described in similar terms across most prop firms.
Risk disclaimer: Trading carries a substantial risk of loss and is not suitable for everyone. Prop-firm evaluations charge fees and most traders do not pass. Nothing here is financial advice; figures can change, so verify current terms with the firm before purchasing.
Next step
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