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SMART Glossary

KYC (Know Your Customer)

Beginner
ComplianceAlso known as: identity verification, customer verification

A process where traders provide personal identification and documents to verify their identity before accessing certain features, such as funded accounts or payouts, in a prop firm.

Why It Matters

  • 1KYC is required for compliance and security, ensuring that payouts are sent to verified individuals.
  • 2Without completing KYC, traders may not be able to withdraw profits or access full account features.

Example

A trader submits a government-issued ID and proof of address to complete KYC. Once verified, they become eligible to request payouts from their funded account.

Common Mistakes

  • Delaying KYC and facing payout restrictions
  • Submitting incorrect or incomplete documents
  • Assuming KYC is optional for funded accounts
  • Not matching account details with submitted identification

Related Terms