Why is the verification needed in broker - Gerchik & Co

Why is the verification needed

02-11-2018

A trader undergoes the verification to withdraw funds. This fact is not a single and obligatory condition of this process. However, when the broker client faces the verification he is doubtful of its necessity.

Why is the verification needed?

The first reason is the client’s accounts are subject to the verification in accordance with the regulator’s decision. The second one – a tendency of organization development preventing and disclosing the money laundering transactions and trader’s involving in that process. It helps to make the work in the market transparent and safe.

Conflict resolution

Conflicts arise in different spheres of entrepreneurial business, where two parties cooperate. Trading is not an exception.

Misconceptions arise at any stage of cooperation. The company client’s work will be stopped if it doesn’t comply with the regulator’s requirements. A trader will receive a professional consultation in any case, but would be able to start working upon verification only.

No right – no trading

The verification prevents a market activity of the persons having no right to trade due to legal terms. The broker doesn’t allow the minors to trade referring to current statutory requirements. Adults are permitted to further activity.

Place of residence may be a reason for activity prohibition. The Americans couldn’t perform buy and sell transactions on the broker’s platforms from Europe. The US regulator doesn’t allow the European brokers work in the USA.

The verification plays a great role in the market. First, it prevents an access of undesirable persons to trading. Secondly, it allows the broker to avoid problems and comply with the current legislation requirements.

COMMENT