KYC Verification

The identity check required before your first payout — government ID plus proof of address. A common source of payout delays.

Definition

KYC (Know Your Customer) verification is the identity-and-address check that prop firms run before releasing the first payout. The standard documents are a government-issued photo ID (passport or driver's license) and a proof of address (utility bill, bank statement, or government document dated within the last 3 months). Some firms also require a selfie match, tax documentation (W-9 or W-8BEN for US residents), or source-of-funds documentation for large payouts. KYC is usually triggered at the first payout request, not at challenge purchase — which means a trader may not discover a problem with their documents until they are trying to get paid.

Example

A trader passes an FTMO challenge, accumulates $8,000 in funded profit, and requests a payout. FTMO's KYC system flags the proof-of-address because the utility bill is 4 months old. The trader must provide a newer bill before the payout processes. The delay adds 3-5 business days to what should have been a 2-day payout — a frustrating but normal first-time KYC friction.

Why It Matters

KYC delays are the single most common cause of extended payout times on the first withdrawal. Traders should complete KYC as soon as they pass the evaluation — not wait until the first payout request — and should have a current (within 90 days) proof of address ready before starting the challenge. Firms that process KYC at challenge purchase instead of at payout reduce this friction meaningfully. Every active firm in this dataset requires KYC before the first payout, so expect it as a standard step regardless of the firm chosen.

Related Terms

← All termsLast updated 2026-04-21