How to get verified with your Forex broker?
What is verification?
Verification is the procedure intended to confirm the accuracy of the client's personal data specified during profile registration by providing certain documents to the company. The amount and type of documents required for verification may differ depending on the rules established by a certain Forex broker.
Why do you need verification?
Contrary to popular belief, the verification process was not invented by brokers to waste your time. Verification is a mandatory part of a client's interaction with a Forex broker for several reasons:
- anti-money laundering
Anti-money laundering policy is one of the main conditions for being registered with a financial regulator. The broker requests the necessary documents in order to combat illegal money laundering activities. Without successful registration with the regulator, the broker is not allowed to conduct financial activities. In other words, the Forex broker has a reasonable right to insist on full client verification if necessary.
- deposit and withdrawal rules
Forex brokers cooperate with a large number of payment systems, which can also request documents to process a client's financial transactions in accordance with the KYC (know your customer) procedure. According to its rules, any company that conducts financial transactions with third parties' funds must establish the identity of the client before they start making transactions.
- confirmation of the client's identity
In addition to rules from regulatory organizations, each broker also has its own regulatory documents containing the rules that must be followed by each registered client of this company. For example, for various reasons many brokers refuse access to their services to residents of certain countries. The broker requests documents in order to verify that the data provided by the client is accurate and up to date and to prevent attempts to use someone else's lost or stolen documents.
Brokers also request verification in order to identify clients who are not allowed to trade on financial markets, including minors.
How does the broker store the client's personal data?
The processing of client data is carried out exclusively by the company's employees using a work computer and office software.
How does verification help the client?
The very fact that the broker has verification requirements should be encouraging to the client. As mentioned above, verification is required by the financial regulator. Failure to comply with the requirements of the regulator may result in serious fines or even revocation of the broker's right to conduct financial activities.
Remember, like any other organization, brokers value their reputation. If a broker does not require verification from their clients, they probably don't have a license and the right to provide their services. In other words, verification is one of the early signs that this broker is not engaged in fraudulent activity.
In addition, successful verification ensures timely withdrawal of funds. Imagine a situation: the client needed to withdraw their funds urgently, but their profile has not been verified. Since most payment systems require verification, the broker will most likely ask the client to provide the required package of documents. While the client collects documents and waits for the confirmation of verification, the withdrawal will not be available. The waiting time will increase, which can be critical for the client.
Verification is also needed as additional protection of your funds and personal account from intruders. In the event that your profile is hacked, it will be much easier for you to prove to the broker that you are the owner of the profile if this profile is verified.
Types of verification
One of the two main types of verification is identity verification to verify the name of a registered client. Identity verification is necessary to confirm the accuracy of the information provided during registration in order to weed out profiles registered in someone else's name.
In most cases, brokers will accept any identification document with a photograph issued by the relevant government authority to verify identity. The accepted options include the first page of internal or foreign passport, ID card, or a driver's license.
The document must be valid at the time of registration and remain valid for a certain period after the application is submitted, depending on the rules of your broker. Brokers often only accept documents with a specified expiration date. However, this rule may depend on the client's country of residence, as in some countries identification documents have no expiration date.
In some cases, brokers may require you to provide a photo of you holding your passport or ID card for additional confirmation of your identity. This is necessary when the company suspects that the client may use other people's documents.
Another main type of verification is confirmation of the client's place of residence. Address verification is necessary to identify customers who are not eligible to trade with the company, for example, residents of certain countries.
The document confirming the address can be a passport page with a residence permit, provided that the first page of the internal passport has been uploaded to confirm the identity of the client. Both pages must contain a series and a number. You can also confirm the address with a utility bill. It can also be an invoice from an internationally recognized organization for the services provided or a bank statement. The document must be issued in the name specified in the profile. Documents issued in someone else's name, including relatives, are usually not accepted.
Brokers usually accept documents no older than three months at the time of application, containing the client's full name and actual address. It should also be borne in mind that some brokers do not accept electronic copies of documents. Pay attention to the language requirements. Many brokers only accept documents in English.
Many brokers accept photos. The image must be clear and legible. Supported document formats and their sizes depend on your broker. All verification requirements are described in the Client Agreement and/or in the FAQ section.
In order to fully verify the client's profile, you need to confirm the email address. You need email verification to receive the broker's newsletter. It can contain news from financial markets, notifications about planned maintenance, confirmation codes and automatic statements for open trades and accounts. Clients can usually select the data they want to receive in the newsletter.
Phone number verification
For full verification of the client's profile, you need to confirm the phone number. A verified phone number is required to enable two-factor authentication, as well as to communicate with the client. Company employees may need to contact the client: for example, to verify electronic wallets or confirm withdrawals.
To verify electronic wallets, one successful deposit from this wallet is usually enough. However, in some cases, to process the withdrawal, the broker may request a screenshot of the client cabinet with the wallet number and client name visible. Keep in mind that when you make a deposit from a specific wallet, withdrawals will be available only to the same wallet.
Bank card verification
If the client plans to use bank cards to conduct transactions, the verification process is mandatory. This is due to the fact that banks have stringent requirements for counterparty identification. Therefore, if you use a plastic card or bank account for withdrawal, the broker has the right to request its details for verification.
To verify the card, the broker may request:
- a photo or a scanned image of the front of the card, where the expiration date and card number are indicated. Usually the broker allows clients to partially cover the card number with the exception of the last four numbers;
- a photo or a scanned image of the reverse side of the card. Please note that the three-digit CVV or CVC code must be covered as the broker is not authorized to request such information.
You can paint over these parts in a graphic editor or cover them with a piece of paper, a coin or any other small object and take a picture. All images must be in color, of good quality, and cropped edges.
Also, the following additional conditions may be imposed on the cards:
- the card must not be virtual. If the broker accepts virtual cards, you will be asked to upload a screenshot of your personal banking account that shows the client's name and card number;
- the card must have the client's name on it. Some brokers do not accept plastic cards that do not have the client's name on them. Cards marked CARD HOLDER may also not be accepted. In this case, you may be asked to upload a screenshot of your personal account or a bank statement with the card number and client's name;
- the card must be signed. If the reverse side of the card says “Not Valid Unless Signed”, the broker may require the client to sign the card.
Document upload process
This detailed example of the process of uploading documents for verification is for the Geratsu broker.
- The first step for verification is to create your own client profile with Geratsu. To do this, on the website www.geratsu.com click on the LOGIN button and then Register. Then follow the instructions for registration and fill in all the required fields.
If you already have a profile, you need to log into your personal account. Then select the “Profile” tab from the menu at the top of the page. On the page that opens, select the "Verification" tab.
To confirm the information, click on the "Edit" button next to the required information. The verified data will be highlighted with the “Verified” status. If the information is not confirmed, the active status will be “Not verified”.
- To confirm your e-mail, click on the "Edit" button next to your e-mail. After that, you need to enter your e-mail in the window that appears and click the "Continue" button. A letter with an activation code will be sent to your email, which must be entered in the relevant field. If you have not received the activation code, please contact the client support using LIVE CHAT or other means of communication.
- To confirm your phone number, click on the "Edit" button next to your phone. After that, you need to enter your phone number in the window that appears and click the "Continue" button. If your phone number has been identified as a mobile number, you will get a text message with a code, which you will need to enter in the field to verify the phone number.
To change/edit your email or mobile phone number in the "Profile/Verification" section, click the "Edit" button in the line with your phone number or email. Enter the new information in the window that appears.
To change the confirmed phone number specified during the registration of the Client Cabinet, you need to provide a document confirming the right to own the new number (an agreement with the mobile communication provider) and a high-quality color photo of the client holding the ID next to their face. The client's personal data in both documents must match. To change the mail, it is enough to provide a high-quality color photo of the identity document that the client holds next to his face. Documents can be uploaded in the same window where new data is entered, or sent to email@example.com.
- To verify your identity, click on the "Edit" button next to your identity verification. After that, you need to fill in your personal data in the window that appears and click the "Continue" button. To upload documents, click on the "Add File" button.
Please pay attention to the company's requirements for the uploaded documents. The document verifying the name can be the first page of the internal or foreign passport or the driver's license. The document must be valid for at least 6 months from the date of verification. Each document must have an expiration date. The information in the document must correspond to the data specified in the client's personal profile.The uploaded documents must be of high quality, in color, legible, and must be uploaded in _.jpg, _.png or *.pdf format. The file size must not exceed 5 MB.
To confirm the address, click on the "Edit" button next to the address verification. After that you need to fill in your address information in the window that appears and click the "Continue" button. To upload documents, click on the "Add File" button.
- Your address can be verified with a utility bill, a bank statement, or your passport page with your address of residence (in case the first page of your passport was used to verify your identity, both pages must have serial numbers). Utility bills and bank statements must be issued to the owner of the client profile and must be no older than three months. Documents issued to third parties (including relatives) are not accepted. The information in the document must correspond to the data specified in the client's personal profile.
- To change the address of residence in the "Address verification" line, click on the "Change" link and indicate the new address of residence. Please note that the new address must be verified again.
All documents must be uploaded without cropped edges.
The documents that do not meet the requirements will have the status “Rejected”. The documents that have not yet been verified will have the status "Pending". If at least one of the documents is approved, the status will change to “Approved”.
After all the data is confirmed, the profile will be fully verified.
You should not ignore and postpone the process of profile verification in order to avoid becoming a victim of fraud. Verification is necessary to confirm the identity of the client and simplifies the interactions between the broker and clients in the future. Before opening an account and making a deposit, you need to review all of the company's verification requirements to ensure that you are able to provide all the necessary documents.
What if I don't have a utility bill to verify my address?
Brokers often accept several types of documents to verify the address. If you are unable to provide a utility bill, you can download an invoice from an internationally recognized organization for the services provided or a bank statement. The document must be issued in your name.
My passport/ID expires in a few months, will it be accepted for verification?
No, most brokers require that a passport or ID card must remain valid for 6 months from the date the document is uploaded.
How long does the verification process take?
The time it takes to check the uploaded documents for compliance with the established rules may vary from broker to broker. This process usually takes 1 to 3 business days, depending on the number of documents that need to be checked.
Why does the broker not accept electronic documents?
With the current software, it is now possible to create forged documents that are virtually indistinguishable from the original. In order to protect themselves and their clients from fraud, some brokers do not accept electronic copies of documents as they are easily forged.
What if I do not have the required documents to confirm the address?
Client verification is one of the main measures to combat money laundering. Therefore, all responsible brokers only accept documents that strictly comply with the established rules. If you are unable to provide the required documents, the profile will not be fully verified.
What documents are required to verify a corporate account (company registration)?
To verify a corporate profile (profile registered for a company), the client must provide a certificate of registration of a legal entity, as well as a personal ID or passport of a company representative.
Article last updated: 2022-10-28