The volume of requested data depends on the broker's operational model. Our editorial explains why some require passports while others only ask for email.
Minimum for registration
Absolute minimum (offshore brokers):
- Password
- Sometimes — phone for 2FA
Standard KYC verification
Regulated brokers request:
- Passport or ID
- Address proof (utility bill)
- Source of income
- Trading experience
- Tax ID (US — FATCA)
Why do brokers request data?
| Data | Reason |
|---|---|
| Passport | KYC/AML regulator requirements |
| Address | Residence confirmation |
| Income | Client suitability assessment |
| Trading experience | Product complexity assessment |
Minimization principle
Offshore brokers differ in minimizing data collection where possible. Instead of lengthy KYC, they use automated verification processes and simplified verification. This doesn't mean complete absence of checks but rather their optimization.