A no-KYC forex broker refers to a forex (Foreign Exchange) brokerage firm that doesn’t conduct the standard Know Your Customer (KYC) process.
KYC is a term used by businesses to describe the process of verifying the identity, suitability, and risks involved with maintaining a business relationship. It’s a process that helps to prevent financial fraud, money laundering, and terrorist financing.
If you choose to trade with a forex broker without KYC, you are at risk of being scammed.
In fact, even though they act properly towards clients, it is dangerous because these brokers could run away with the money at any given moment, and clients have no protection whatsoever in case of fraud.
For this reason, we don’t suggest you to open an account with brokers without KYC, but we give you the best alternatives.
What are the best alternatives to No-KYC forex brokers?
Below our curated list of the alternative to forex brokers without KYC, with details of features and characteristics.
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
eToro
no KYC for deposits below 2250 USD
eToro does not require KYC for deposits under $2250 but mandates it for withdrawals and higher deposits. Demo accounts do not need KYC.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
- eToro does not require a KYC for first deposits below $2250.
- eToro will require KYC for deposits above $2250, or if you request a withdrawal.
- The eToro demo account does not require a KYC.
- The minimum deposit at eToro starts from $50, however it can be higher depending on the country of residence of the trader.
- eToro deposits are processed in 5 days.
- Forex spreads start from 1 pip.
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
Pepperstone
for high-frequency traders
Pepperstone complies with AML laws and offers demo accounts without ID verification. The KYC process is fast, completing within one business day.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone is a highly regulated broker compliant with AML laws.
- You can try the Pepperstone demo accounts without ID verification on MT4, MT5 and cTrader.
- Pepperstone has a fast KYC verification process that takes less than 1 business day.
- The minimum deposit is $200 and the processing time depends on the method chosen, with international bank wires taking up to 2-5 days.
- You will find spreads from 0 pips with a $7 round turn commission depending on the account type.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
IC Markets
for automated trading
IC Markets requires KYC verification for live accounts, completed within two business days. Demo accounts do not need KYC.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
- IC Markets live accounts need to be verified according to the KYC process.
- IC Markets verifies your account for up to 2 business days.
- The IC Markets demo account is available for cTrader, MT4 and MT5, and does not require the KYC.
- $200 is the deposit in order to start and it may take up to 5 business days for international bank wires.
- Competitive spreads from 0 pips are charged depending on the account.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
Admirals
for MT4 traders
Admirals is KYC-compliant and verifies accounts within one business day. Demo accounts do not require ID verification.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Admirals
Admirals, formerly Admiral Markets, is a global forex and CFD broker founded in 2001. Admirals offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader platforms. Admirals is regulated by multiple authorities including CySEC and FCA. Admirals is known for competitive spreads and extensive educational resources. Admirals recently halted onboarding of new EU clients to comply with regulatory standards. The co-founder of Admirals and CEO of Admirals Group is Alexander Tsikhilov.
Admirals Features
The features of Admirals are listed below.
- Admirals is KYC-compliant.
- Admirals is able to verify your account within 1 business day, however they do not require the ID Verification from MT4 and MT5 demo accounts.
- $100 is the deposit in order to start and it may take up to 5 business days for international bank wires to be completed.
- Competitive spreads from 0 pips are charged depending on the account.
Admirals Pros and Cons
Advantages of Admirals
The advantages of Admirals are listed below.
- Extensive Forex Options
- Strong Regulatory Framework
- Advanced Educational Resources
Disadvantages of Admirals
The disadvantages of Admirals are listed below.
- Charges Inactivity Fee
- Mobile App Limitations
- Higher Average Spreads for Some Assets
AvaTrade
for fixed spreads
AvaTrade is KYC-compliant but does not require KYC for demo MT4 accounts. Account processing completes within one business day.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade is another broker which is KYC-compliant, but they do not require KYC for demo MT4 accounts.
- AvaTrade team will process your account within 1 business day.
- AvaTrade requires a $100 minimum deposit to start and it may take up to 10 business days for international bank wires to be completed.
- Fixed spreads from 0.8 pips on forex will be provided.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
No KYC forex brokers: here’s why it’s risky to use them
The main reason why many traders want a forex broker without KYC is to trade anonymously and to trade under more “permissive” trading conditions.
However, forex brokers that do not require KYC are not regulated by any entity, and this means that your funds and your data won’t be protected.
No KYC forex brokers do not guarantee:
- Negative Balance Protection
- Protection in case of fraud
- Money insurance
- Transparency
- Data protection
Negative balance protection is important because it ensures your balance never goes below 0, so you will never owe money to the brokers.
If the broker you are using commits a crime, for example using the trader’s money as their own, you can’t be protected.
Transparency is key when choosing a forex broker, and no-KYC brokers can potentially manipulate their prices to make you lose money.
Money Insurance is also important because if you are damaged by the broker, you cannot ask for a refund.
Even though no-KYC forex brokers don’t ask for your documents, they can still sell your data to third parties. This is called front running, where the brokers sell the data of their clients’ orders to big corporations, liquidity providers, or other forex market counterparties. This practice is illegal in most countries.
How to verify your trading account
To verify your trading account, you must provide the following information to the forex broker:
- Proof of identity
- Proof of address
- Answer some questions about your market knowledge
- Answer some questions about your occupation and personal finances
- Answer some questions about investment and trading strategies
Completing the KYC is not a hard process, and we encourage traders to trade with regulated brokers only.
If you want to know more about ID verification, read this article about KYC.
Why do most forex brokers require KYC?
Forex brokers require ID verification to comply with international AML laws. Some brokers also use KYC information to get to know customers better and understand their level of knowledge about the assets on the platform.
Forex brokers might prohibit inexperienced users from depositing money and/or giving them access to high-risk products.
This doesn’t happen with forex brokers without KYC. The most famous are:
- XBTFX
- CedarFX
- Longhorn
- SimpleFX
- EagleFX
- PrimeXBT
- Evolve Markets
- Turnkey Forex
DISCLAIMER: This list was made for educational purposes. We do not suggest you open an account with any of these brokers. It would be more appropriate for you to choose the best forex brokers around.
What use do forex brokers make of clients’ details?
Regulated brokers use the information provided by their customers to ensure that deposits and withdrawals are regular, to understand how skilled the trader is (if required by local regulation), and to manage their own internal risk.
If the broker is regulated, this information will never be sold or disclosed to third parties except when requested by law enforcement or IRS-related entities.
When the trader closes his or her trading account, this information will typically be kept for 5 years and then be destroyed. For more information on account closing you can read this article.
Forex brokers typically hold four types of information about their traders:
- Tax information
- Private information
- Trader profitability information
- Information about the trader’s activity
Tax information: this includes the amount of money in the traders’ account, as well as deposit and withdrawal activity related to the account.
Private information: this involves traders’ personal details, along with phone numbers and/or registration email. This is the data that is most commonly sold to third parties.
Trader profitability: this is used internally to manage risk from counterparty activity. In fact, most forex brokers may decide to delegate risk to their liquidity providers, without this decision impacting the trader.
Trader’s activity: Information about trader activity is used internally to better manage business risk and to potentially prevent a lack of liquidity. This information is highly coveted by other forex market players because it allows them to predict the market and perform arbitrage actions. Although it is illegal to provide this information to third parties, unregulated brokers may do so.
Why do traders look for fx brokers without KYC?
Most forex traders will look for no KYC forex brokers for the following reasons:
- Privacy concerns
- Fast registration
- Permissive regulatory environments
- Tax evasion
- Money laundering
Privacy Concerns: when you register with KYC forex brokers, you have to provide a number of documents to the broker. Some traders are afraid that their information will be misused, or stolen by potential data breaches.
Fast registration: KYC verification requires more or less a week to be completed. Some traders just want to start trading quickly, and that’s the reason why they prefer brokers without verification.
Permissive regulatory environments: forex brokers that do require ID verification, are often regulated and overseen by financial watchdogs that require them to abide by strict laws. For instance, UK forex traders are limited to 1:30 leverage. If a UK trader wants higher leverage they have to register with a forex broker regulated outside the UK but these offshore brokers won’t necessarily accept him as a client. No-KYC brokers, on the other hand, would accept him without problems and give him high leverage to trade with.
Tax evasion & money laundering: if some traders want to trade with unregulated brokers for privacy reasons or for personal preference, others might want to use them for illegal reasons. One of them is tax evasion. These forex brokers are often located in tax havens, where international authorities might have a hard time checking the financial information of the trader.