The process of verification represents confirmation of the client identity of the Forex broker. The procedure consists of documents transfer in electronic form to the representative of the organization where you plan to trade or are already trading.
Today we will discover how to protect documents copies from inappropriate use, what are the peculiarities of verification and whether it is always necessary.
At first we will specify, which documents are required for Forex verification. The document package can vary depending on internal rules of the company or requirements of the regulator interacting with the organization. As a rule, the following documents are required from the client:
- passport main page
- proof of residence (the page of the passport with a registration, the receipt of payment of utilities and so on);
- identification paper, but not being the national passport (the driver's license, the international passport and so on, it must be with photo).
This procedure is necessary to identify the client. Such demands are made by various regulators of the financial markets, and also laws of some countries which "fight against money laundering". That is why don't think that every time when you face verification on Forex is an initiative of the company.
How to protect documents copies at verification
Fears that the document copies provided to the company can get "not into the right hands" are reasonable. Even if the broker doesn't transfer your copies to the third parties at all, it is necessary to remember that in each organization's work not robots, but people who can decide to use documents of the client to suit the own ends.
It isn't prohibited to write largely on the copy of documents for whom exactly they intend. However, it is necessary to do it so that the inscription didn't close important data, the press, a photo, the signature of the owner.
Nobody will want to use such copy because on it is accurately specified, for what organization it intended. If the bad history with your documents suddenly emerges, at the appeal to the Ministry of Internal Affairs at once, it will become clear, from where malefactors got these copies.
Ins and outs of Forex brokers verification
It is possible to divide all Forex brokers on several types:
- obligatory verification of account registration;
- obligatory verification at money withdrawal;
- desirable verification.
The large companies regulated by the American NFA treat the first category, as a rule. Besides copies of your documents, they will ask to fill in the questionnaire about the income, to sign acquaintance with risks, etc. In principle, to the trader can even not allow to begin trading before granting all packages of documents.
The second option is the most widespread when it is possible to register and recharge without providing documents but to withdraw money is possible only after verification procedure. The same situation with majority binary options brokers.
The companies which don't demand verification becomes less. They offer various bonuses for identification procedure, but without fail don't demand any documents. Most likely, such organizations will begin to pass over time into the second group where it is necessary to confirm data at money withdrawal.
Disappear companies which offer bonuses without verification. Companies don't want to give money just like that, after all, the main aim of a bonus is to attract new clients, but not to provide to the same person numerous bonuses.
Verification needed for the security of trader and company.
Good luck at trading!