If you've been trading for a while, your broker has most likely approached you and requested that you comply with KYC (Know Your Customer) regulations. These regulations are part of the enhanced regulations and rules to keep moneylaundering to a minimum.
By carrying out KYC authentication, institutions can prevent individuals from transferring large amounts. To follow these rules, brokers ask customers for detailed documents that can be used to prove who they are. By doing so, an investor has the assurance that their data is kept safe from unregistered brokers.
Regardless of the trading method you use, traders must complete their KYC. All regions worldwide have an established and legal trading system, and keeping a consistent record of the individuals who trade is essential to ensuring the economy runs smoothly. However, when trading within the binary options world, numerous investors favor avoiding KYC. Below, we look at how an individual can make transactions in binary options without going through the KYC process.
Why Should You Trade Without KYC?
Although the strict enforcement of Know Your Customer regulations helps eradicate the occurrence of fraud and scammers from the binary options markets and helps ensure that safety comes first, numerous traders tend to have legitimate reasons for binary options trading without KYC.
A few traders need help gathering the documents required to pass these authentication checks. For instance, many brokers require users to submit a photocopy of their passports. If a user has never traveled outside of the boundaries of their country and does not have a passport, it would be impossible for them to complete the authentication process.
Additionally, verifying your identity using KYC can be lengthy and tiring. At times, this process may even take hours or days to complete. Therefore, many traders prefer to avoid the hassle of the KYC process and resort to trading through other means. Numerous investors prefer to grab an opportunity they see in a market instantly rather than spend hours trying to pass a KYC authentication regulation.
Lastly, cyber threats have been on the rise. Many traders would prefer to provide intimate and private details to brokers online. With the rise in identity fraud, investors have displayed immense concern with privacy. Therefore, it is understandable why some traders choose to avoid KYC.
How Can You Trade Without KYC Regulations?
Since we have listed a few reasons why a trader may avoid KYC regulations, it brings us to the ultimate question. Is it possible to trade without undergoing KYC regulations? Before a user blindly trusts a broker that requires no KYC, they must remember that security should be their top priority. Mainstream binary brokers often require KYC checks.
However, a few safe brokers allow individuals to trade without providing documents. To help you understand how totrade without KYC, we have divided the types of brokers into two categories.
Brokers That Require No KYC
They are likely not regulated if a broker doesn't ask a user to go through a "Know Your Customer" process. Brokers that do not require an authentication process fall into the high-risk category, and there is a high proportionality of fraud. It is best to proceed with caution if you choose to avail yourself of the services of a broker that does not require a KYC procedure.
The best way to do this is by abstaining from depositing hefty sums of moneyupfront and withdrawing the profits you earn regularly. Even if the broker was real and let you take out your profits regularly, it would be smart to move slowly. When the government cracks down, many businesses that don't follow AMI rules are forced to close. If that happens, recovering the money you invested would be nearly impossible.
Brokers That Allow Trading with Partial or Demo Accounts
Numerous brokers allow limited trading on accounts with no KYC procedures. Such brokers include Pocket Option and Quotex. Users may sign up on these platforms using their email and password and create a demo account. Users must take the time to understand the terms and conditions before they sign up.
Most of these platforms allow unverified traders to create demo accounts and provide them with access to a practice account, but to get these funds back, a user must go through KYC. Users are provided with a certain amount of paper funds. They may utilize these funds to make paper trades. A few platforms permit traders to make transactions with real funds. But to get these funds back, a user must go through KYC.
Conclusion
As per statistics, the global online trading platform is estimated to reach 18.4 billion dollars by 2031. Ultimately, this means that investing in online trading is a shocking decision. There is no denying that trading binary options without having to undergo the hassle of providing documents for KYC checks is something that appeals to numerous users.
The primary reasons are increased fraud and identity theft and a hassle-free, quick sign-up procedure. Even though the benefits may sound good, brokers who don't need you to prove yourself tend to be very risky.