Key documents needed to open a UK trading account

Olivier De Vitton28/11/24 (updated 6 months, 2 weeks ago)trading, KYC, bank statement, trading account, required documents

Comments

💎 Unlock exclusive access to XTB VIP benefits with the code: TOPVIP
🧑‍💻 Premium webinars & training + 🤝 One-to-one sessions with experts + 📅 Priority access to events
Use the code TOPVIP to unlock the offer »

When opening a trading account, you might be surprised by the number and detail of documents the broker requestes. To enter the world of trading you'll have to jump through certain administrative hoops that comply with regulatory requirements. Before accepting you as a client, online brokers have to adhere to various legal obligations in order to establish your risk profile and protect your account.

Brokers' obligations: KYC

Brokers must verify clients' identities in accordance with the KYC ("Know Your Customer") regulations established by financial authorities. KYC is an identity verification procedure for businesses that is crucial, since it assesses client risk. It is primarily applied in finance to comply with anti-money laundering (AML) and fraud prevention standards. This process involves collecting proof of identity and residency from the client. With digitisation, many companies use AI solutions to make these checks efficient, reducing risks associated with suspicious clients while complying with regulations (AML, GDPR). KYC solutions for brokers enable compliance and rapid acquisition of online clients.

Required documents

Generally, brokers request the following documents:

#1 - Proof of Identity (Passport or National ID Card)

A government-issued photo identification document is mandatory. This can include a passport, a national identity card or a valid driving licence. This document allows the broker to verify the applicant's identity and confirm their age, as there is a general minimum age requirement to open a trading account (usually the legal age majority).

#2 - Proof of Address

A proof of residence is also required to confirm the applicant's address. Accepted documents include a utility bill (electricity, water, gas) dated within the last three months, a bank statement or a tax statement. These documents are also used for regulatory compliance purposes, ensuring that the address is indeed that of the user.

#3 - Bank Statement and Financial Information

Depending on the platform, financial information may be requested, such as employment details, income and sources of funding. This type of verification allows the company to better assess the user's risk profile and ensure compliance with international financial regulations.

#4 - Trading History (for certain accounts)

Some brokers may request additional information regarding the user's trading experience, especially if the user has previously invested in similar assets or possesses specific knowledge in the financial sector. This helps the platform tailor its services to the user and provide adequate support.

Our selection of verified and recommended brokers:

Here are the brokers that our experts have rigorously hand-picked and verified to help guide you towards your financial goals with confidence and peace of mind.

🥈 4.3% interest on cash