Forex KYC & IDV Solutions for Brokers & Brokerage Firms

0.78%

False acceptance rate in forex

38%

Increase in conversion rate

47%

Percentage decrease in manual review

Top challenges of IDV and KYC in forex

Nearly $2 trillion is laundered annually through Forex markets, making brokerage platforms prime targets for illicit flows without strong KYC safeguards. Additionally, Forex scams cost investors $1 billion in 2023, often driven by fake accounts, stolen cards, and manipulated withdrawals. Here are the top challenges of IDV and KYC in forex today.

Multi-Jurisdictional KYC tradeoffs

Retail forex brokerage verifications face a patchwork of global regulations. Onboarding must be fast enough to capture traders during market volatility but robust enough to meet varying rules from regulators like the FCA, CySEC, and ASIC, a difficult balance to achieve.

Sanctions & payment screening difficulty

Every deposit, withdrawal, and Introducing Broker (IB) commission is a potential compliance risk. Screening is not often continuous, accurate, and configurable to the brokerage's risk appetite.

Geo-fencing & bonus abuse by traders

Traders using VPNs and proxies can bypass license restrictions to access leverage or promotions not permitted in their region, creating significant regulatory and financial risk.

Finding balance between speed and compliance in Forex with Shufti

Shufti is the all-in-one platform for forex identity verification and AML. Now, you can automate KYC/KYB, block financial crime, and accelerate global growth while satisfying regulators in every jurisdiction.

Trader identity verification that quickly onboards forex traders

Fake profiles and offshore fraudsters plague Forex. Shufti ensures only verified traders get access, preventing reputational and financial damage.

5 methods to verify identity holistically including real-time ID & biometric verification.
Diverse document validation across 240+ countries and jurisdictions

AML screening for global trading security for brokers compliance

Forex brokers must monitor both traders and transaction flows across borders. Shufti screens applicants and trading activity against hundreds of local and international AML watchlists.

Global sanctions, PEP, and adverse media checks.
Ongoing AML monitoring across multiple jurisdictions.

Chargeback & payment fraud prevention

Forex platforms lose heavily to stolen cards and chargeback fraud. Shufti reduces exposure by validating payment-linked identities upfront.

Matches cardholder details with verified ID in a split second.
Flags anomalies in deposit & withdrawal behavior.

User friendly workflows to enhance onboarding speed

Brokers need fast onboarding without losing compliance rigor. Shufti’s mobile-first flows speed up signup while meeting global FX standards.

One-click KYC optimized for trading apps.
OCR auto-fills reduce drop-offs during signup.

Cross-Border compliance adaptation increasing growth

Licensing differs across Europe, Asia, and offshore hubs. Shufti adapts KYC flows to each region’s rules, keeping brokers legally aligned everywhere.

Configurable verification per regulator (FCA, CySEC, MAS, etc.).
Automatic updates when Forex regulations change.

Unify real-user verification, youth protection, and abuse prevention without slowing growth of your platform.

Explore Shufti’s Global Trust Platform

Built for your entire team, API & no-code

For the builders: Shufti offers a powerful, flexible API

One unified API connects eIDV, biometrics, document checks and AML, letting engineers ship region-specific journeys fast and maintain one integration as markets evolve.

For the Strategists: The No-Code Journey Builder

Design age gates, risk rules and step-ups by product and jurisdiction, then adjust without releases. Launch targeted controls for promos, jackpots and new markets in minutes.

How It Works

Demo account creation & lead generation

Live trading account application (KYC/CDD)

Account funding & first deposit

High-volume activity & withdrawals (EDD)

Institutional trader onboarding (KYB)

Ongoing account management & security

Secure the critical first deposit by ensuring funds are from the verified, legitimate trader. Add a crucial layer of security to prevent funding fraud and account takeover at a high-risk moment.

Capture and authenticate a trader's passport or national ID card with Document Verification. Verify a trader's country of residence with a Proof of Residence document.
Automatically extract and verify the trader's date of birth to ensure they meet the legal age for trading with Shufti’s age estimation & verification.

Capture high-quality leads with a low-friction demo sign-up that performs initial risk filtering. Start the relationship on a compliant footing without sacrificing lead generation speed.

Capture a user's agreement to your terms of service and marketing communications with Consent Verification.
Invisibly screen a user's IP address to block sign-ups from sanctioned or unlicensed regions with User Risk Assessment.

When a trader is ready to go live, perform robust, multi-layered KYC to meet strict global AML standards. This is the mandatory, core verification process.

Capture and authenticate a trader's passport or national ID card with Document Verification. Verify a trader's country of residence with a Proof of Residence document.
Automatically extract and verify the trader's date of birth to ensure they meet the legal age for trading with Shufti’s age estimation & verification.

Secure the critical first deposit by ensuring funds are from the verified, legitimate trader. Add a crucial layer of security to prevent funding fraud and account takeover at a high-risk moment.

Prevent Funding Fraud by requiring a quick selfie re-verification before a large first deposit to link the person funding the account to the verified identity.
A reusable ID or FastID helps saves time and energy thus ensuring user retention on your platform.

For high-volume traders or suspicious activity, automatically trigger enhanced due diligence to prove the legitimacy of their funds.

Securely collect and document a trader's source of wealth (SoW) and Source of Funds (SoF) with due diligence forms.
Escalate to a live Video KYC Verification for high-net-worth clients to provide the ultimate level of assurance.

Onboard high-value corporate accounts, money managers, and introducing brokers with an automated and compliant KYB workflow.

Confirm a business's registration details and legal status against official government registries with business verification.
Identify and verify the ultimate beneficial owners (UBOs) and directors of a company with Shufti’s investor verification.

Protect trader accounts and ensure continuous compliance throughout the entire client lifecycle. Move from a one-time check at onboarding to a state of perpetual compliance.

Allow traders to log in to their platform with a quick, phish-resistant selfie, replacing insecure passwords with FastID.
Continuously re-screen all traders against updated Sanctions and PEP lists to catch changes in risk status with Ongoing Monitoring.

Completing the trust seal with Shufti

Bot & automation detection

Liveness detection and device fingerprinting stop automated signups at the door so your forex growth is not continuously hindered by fraud attempts.

Verified badge issuance

Platforms can issue verification badges tied to Shufti IDV, increasing trust in user content. Now you do not have to worry about going through a tireless process again and again.

Advertiser & influencer verification

Ensures ad spend comes from legitimate, verified sources, protecting both user trust and revenue streams, so your efforts are spent on managing leads and not fighting fraud.

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Frequently Asked Questions

How do you handle KYC for traders in different jurisdictions?

Our Journey Builder allows you to design unique flows for each country. You can start with passive eIDV Pro in supported regions and automatically escalate to Document Verification and Address Verification based on the rules of regulators like the FCA or CySEC.

Our traders use names in Arabic, Cyrillic, etc. Can you handle that?

Yes. Our AML Screening engine uses smart, multilingual matching and phonetic normalization. This allows it to find true matches across different languages and character scripts while significantly reducing the number of false-positive alerts for your compliance team.

How do you verify a trader's Proof of Residence?

Our Address Verification product can automatically verify utility bills and bank statements. It extracts the name and address and checks them against the details provided during onboarding, creating a fast and auditable proof of residence.

How do you help us with due diligence on IBs and corporate partners?

Our end-to-end KYB solution automates the entire process. It verifies the business against government registries, identifies the Ultimate Beneficial Owners (UBOs), and runs Business AML Screening on both the entity and its owners.

How do you prevent traders from using VPNs to bypass our license restrictions?

Our User Risk Assessment technology analyzes a user's IP address and network data. It can detect the use of VPNs, proxies, or TOR networks, allowing you to block or flag these sessions to enforce your geo-fencing rules.

How current is your sanctions and PEP data?

Our global sanctions and watchlists refresh approximately every 15 minutes. This ensures you are screening traders, deposits, and withdrawals against the most up-to-date lists from OFAC, the EU, HMT, and other global bodies.

Global trader onboarding, built for forex compliance