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Why is it mandatory to provide Address and Phone while opening an Account?


yogeshwartyagi

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The brokers would also want to make sure they know who their customers are. Frankly, there are countries that frown at such things like Forex and when the brokers do not have a record of their customers, the clients might use that advantage over them to go against the country's policy on finances.

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Every forex trader need to verify their account if they actually want to succeed in forex so the need for a trader to have good trading knowledge is for him to try his own possible best and sent the broker which he is using an adress for his account validation.

Forex is full of risk so if you take precaution you will succeed within a short period of time and note your broker will never use your identity for anything

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  • 7 months later...

With many forex brokers while opening new account we are asked to provide address and phone number.

I cannot understand why they made it mandatory, as we usually deposit funds using e-currency (often LR) and make withdrawal using same.

Also there are few brokers who want us to verify using phone and utility bill.

Just for verification purpose, at least they can confirm who are you. It is just like your utility bill and also not all traders invest their money through liberty reserve but also through wire deposit, also they can send you a new offers or even confirm you about some changes or asking something just directly from your phone.

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  • 3 weeks later...

I think it depends on which company we are trading with since my broker OctaFX does not have such difficulties for verification. We just need to verify or ID card and Address that’s all. We don’t have to verify our phones as it is difficult for many people. The best part is their customer service is available 24/7 for any help so even if we are facing any issue we can simply contact them with any option that suits us like call back or live chat system.

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I think that this is because a lot of money is involved in forex trading and brokers cannot afford to have anonymous people trading through them so that is why they have verification to verify who the trader is really and where he belongs from.

At least if someone who verifiy their account is a truly fraud, brokers can report to authority and also let them to know your address and capturing you. This is for their safety and your safety too.  Overall this is all about verification if you check it that most of the countries accept this kind of verification.

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  • 6 months later...

TO PREVENT scamming or someone who want to money laundering, at least if govt or authority suspected you they can share your data to them and then trying to look at you. This is their way to counter someone who want to do that, i think it is fine since i am really CLEAN and does not have problem with such issue.

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  • 3 weeks later...

It is important and also right that the broker knows whom she is dealing with. Forex is though a risky business but there are still so many people who make some huge money out of it and that is the more reason there is the need for the person to look at it as some business which offers you great opportunity of doing it your own way.

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  • 1 month later...

Also since that is a big business some huge money that people make there come from the source that we don't know, maybe money from corruption like what yakuza did in japan. In fact that is just for the sake of security and also a regulation with government.

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Honestly I have not heard about Phone verification. I am working with Nova FX where I had to verify myself and address which is okay because it’s for our own security and betterment. I am happy with it till the process is quick and without any difficulties. This is where this broker is awesome, as they do verification within 24 hours, so I am extremely happy to verify just once to get full control while they also have 24/5 support active to help in anything further.

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Address verification is verification type most often used by a broker upul Tharanga, sometimes also used phone verification to further tighten oversight of fraudulent things as I have mentioned above. Basically it is just for security. I don't find much problem with this way and even support it as the part to fight against money laundering.

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Address verification is verification type most often used by a broker upul Tharanga, sometimes also used phone verification to further tighten oversight of fraudulent things as I have mentioned above. Basically it is just for security. I don't find much problem with this way and even support it as the part to fight against money laundering.

 

You are absolutely right mate, it is done to remove the risk of any sort of Fraudulent activities while now days if we do Phone verification (optional) in my broker Nova FX, it gives us better conditions since they have separate managers to deal with each of the clients which means we can be so much comfortable regularly keeping in touch with them and they too are very friendly to guide us through everything, so it’s great option to have.

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That will even go a long way in telling you how legit Forex is. I mean, the brokers want to be sure enough that they are dealing with real humans who have verifyable facts and they are not stucked with some kinda anyhow individual who just wants to create account with them and bear the name of a Forex trader.

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@upul: And if somoene does not want to do that then maybe something happened with them, also if someone doesn't want to be like that then don't trade in forex. Phone verification is good at least if someone want to play with the broker by providing fake numbers.

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  • 2 months later...

@upul: And if somoene does not want to do that then maybe something happened with them, also if someone doesn't want to be like that then don't trade in forex. Phone verification is good at least if someone want to play with the broker by providing fake numbers.

Adress verification i think is a must especially for someone who want to really do forex trading, If someone is scammer then they don't have to do that because it will only reveal their important document. Phone verification is fine and also you need ID verification by submitting your ID card.

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  • 1 month later...

It is always be mandatory, address verification is good so somebody doesn't take his/her own account easily. We created an account for the sake of earn not for the sake of terrorism or any evil act. If you do things right i think there is nothing wrong with provide some essential informations.

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  • 4 weeks later...

Always be like that since i think it is about broker's safety and other people's safety. We think about terrorism or money laundry. It is exist and also it needed if someone trying to do something like that through forex, so at least people can check and get that man/woman if something happened.

I don't know if that is also for broker's safety, but my perspective still see this should be mandatory especially for someone who are serious, but remember you are about to handling your privacy or some of your privacy to 3rd party. The best solution for this privacy thingy is by invest in reputable or AAA brokers. They are very good at handle someone's privacy data, including this address or phone number.

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Yes, it is for broker's safety so government won't think them as someone who hide corruptor's money or for the place to do money laundering for example. Address is crucial even not so crucial but phone i think is depend on its broker, because people can easily change their phone number now.

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It is up to your trader what type of verification he requires from you .Almost all of them verify  your identification and address .For this purpose they require phone No and address . It is quite safe to avoid scam traders so you have to provide these documents.

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It is up to your trader what type of verification he requires from you .Almost all of them verify  your identification and address .For this purpose they require phone No and address . It is quite safe to avoid scam traders so you have to provide these documents.

Phone is less make sense to me but address gives better security for broker if in this case you are someone who love to do money laundering. Address is hard to change and easy to track, also if someone want to do bad things like i said before, it would easy to track them and take them to judges.

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