The process of identifying and verifying the identity of clients before and during the business relationship. Under KYC rules, brokers must collect documents (ID, proof of address, etc.) and perform checks to confirm each client is who they claim to be. KYC is a legal requirement in forex (and all financial services) to prevent fraud, identity theft, and money laundering. It is often combined with credit and background screening. Automated trading platforms must integrate KYC flows into account opening, even if trading is algorithmic.

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