# What is KYC?

> KYC (know your customer) is the identity verification a prop firm runs on traders, usually ID document, liveness and address checks, most often before the first payout.

- Source: https://pipvalley.com/glossary/kyc
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

In a prop firm, KYC confirms that the person requesting a performance reward is who they say they are, is not in a restricted country and does not already hold accounts under another identity. Most firms verify at the funded stage or first payout rather than at checkout, to keep purchase friction low.

KYC is usually done through a specialist provider integrated with the CRM: document scan, selfie or liveness check, and sometimes proof of address. The result feeds multi-accounting checks and sanctions screening.

Whether a firm has a legal KYC obligation, and how strict it must be, depends on its jurisdiction and structure. Payment providers often require it contractually regardless.

## Why it matters

Traders who fail KYC after passing a paid evaluation feel cheated, so say on the site and at checkout when KYC happens, what documents are needed and which countries are excluded. Verifying before the first payout, consistently, is also your strongest defense against coordinated multi-accounting.