Why Do I Need to Verify My Trading Account? (2024)

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Are you planning to get yourself registered for a trading account, i.e., Forex, with a broker? Did they ask you to verify the account before receiving your withdrawal or bonus?

Many people are not completely aware of the process of verification. And this is especially common among newbie traders. But you do not know how important it is to verify the trading account for getting any bonus, making any deposit or requesting a withdrawal.

For any legit broker, it is mandatory to cross through the process of verification. Because it is one of the significant KYC processes to follow financial regulations. Right through this article, we will explain why it is essential to verify the trading account and how you can verify it in just a few minutes.

Why should you verify a trading account?

As a trader, it’s your wish to open an account and get your funds deposited right away. But this is not that simple as you take it! A regulated broker always operates according to the regulatory authority’s varied compliance-related issues and procedures. Moreover, this whole procedure involves a series of documentation from the clients regarding the KYC (Know Your Client).

If your account is not verified, you won’t be able to perform any activities of trading. We will discuss it later on but before that, let’s discuss the documents you need for the account verification.

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Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

What document do you need for verifying a trading account?

Well, the documents of verification for all the brokers are identical, but the difference might come up following your country of residence. First, you have to verify your trading profile by uploading a clear photo with few necessary documents mentioned below.

Proof of identity (POI)

You have to attach your passport, driving license, or national identity card, on which the proof of your correct residential address should also be present. If not, then you have to provide additional documentary proof of your address. All your details should be valid. Your documents should have your valid full name, date of birth, issue date, clear photograph, and expiration date.

Proof of address or residency (POA)

POA, which is the proof of address or residency, also needs to be submitted. You should not be submitting your utility bills or a bank statement no more than 6 months old. The logo and name of the issuer should be visible enough, along with your full name, issue date, and address. Scan your documents carefully so that all the corners of your information are visible.

All these pieces of documents are mandatory for confirming your identity along with the account on which you will perform trading. Apart from the account processing, you also have to follow the basic and strict orders which Financial Regulators instate.

Why are you not able to upload your documents for verification?

Sometimes you get an error when uploading your documents for the verification process. Make sure that:

The size of the document should not be more than 15 MB.
Document or file should be in the formats of gif, jpg, tiff, png, doc, docx, and pdf.

If still, the error message exists, you can directly send your documents to the broker through email support.

Every broker has its own rules and regulations to perform the trading account process you need to comply with. But, unfortunately, your single mistake can even block your account.

How long will it take to verify your trading account?

The total duration of verifying the trading account depends on the broker with whom you have opened the account. As soon as you upload all your documentation, the process will either take 10 minutes to end up or even 24 hours.

The majority of the brokers will notify their clients once the account has been verified. Visit the trader’s dashboard on the website of your broker to follow the verification status. Once your account is verified, a green tick will appear next to your username on your profile.

What will happen if your account is not verified?

Not verifying your trading account can put you into certain obstructions, disturbing your whole trading functionality. A few of the common issues which can arise are:

You will not be allowed to perform trading.
Any account which is not verified will be restricted by the broker. The activities of a trader cannot be performed for an extended period. They can continue once their account is verified.
Those clients who do not perform the account verification are considered to be risky clients within the brokerage. They can argue on the consent for getting the services provided with their credit card provider or the bank.
You will no longer be able to add any funds to your account. As the client has already been labelled as a risky client, they cannot manage or control their account until they are not verified. Verified accounts will put them at a lower risk.
If any client has deposited a higher amount, it is evident that they are at a greater risk. And if they want to charge it back through the bank or the credit card provider, this will result in processing fines and even termination.

Bottom line

We hope that you must have got enough information about verifying your trading account and letting it run legally with this whole guide. Verification of the account is essential to enable your trading activities to function smoothly and without any obstructions. So look for the right broker platform and get your account verified in just a few moments.

Categories: Traders Blog|Author: jason|Date: 8 January 2022

jason

Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.

Forex Content Writer | Market Analyst