When should a prop firm run KYC on a trader?

Question

Accepted Answer

Most firms run KYC before the first payout, not at purchase, because most buyers never reach a payout and checks cost money. Some run it when a trader passes, so payouts are not delayed. High-risk jurisdictions or large accounts may justify earlier checks.
Timing options:
At purchase: strongest control, highest cost and friction.
On passing: verified before the funded account is issued.
Before first payout: the most common balance of cost and control.
Points to include in your terms:
That KYC is required before any payout.
That payouts go only to the verified person.
That restricted-country residents cannot be paid.
PropExecutor does not run KYC. Its trader record holds a name and email, which you match to the verified identity from your KYC provider. This is general information, not legal advice.
### Communicate it early
Mention the KYC requirement at purchase and in the welcome email, with the documents needed. Traders who are surprised by identity checks at payout time are more likely to complain or abandon the payout request, and some will have documents that do not match their account name.
List accepted documents on your payout page.

When should a prop firm run KYC on a trader?

Detailed answer

Communicate it early

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