• Case Study
Identity Verification Strikes
the Balance Between
Security and Convenience
Expediting
International
Onboarding for
Foreign Exchange
Brokers
Trulioo — Case Study
58%
The
Challenge
With clients around the world,
foreign exchange (forex) brokers
must securely onboard customers
in accordance with a patchwork
of strict Anti-Money Laundering
(AML) laws and Know Your
Customer (KYC) processes.
Forex fraud is a constant risk. The U.S. Commodity
Futures Trading Commission has a standing advisory
that offers tips and guidance for spotting forex fraud.
While forex brokers must comply with regulations
safeguarding against fraud, they also know customers
expect streamlined and convenient onboarding
experiences. In the fast-paced world of forex,
cumbersome account creation creates the risk of
trader abandonment.
But security also rates high with consumers, who are
more willing to accept some friction during online
onboarding as a sign that companies value safety.
A 2022 study commissioned by Trulioo found that 58%
of consumers are more tolerant of identity verification
than they were two to three years previously, and 78%
are more comfortable with the process taking longer
or involving more steps.
As the rapidly expanding digital economy brings new
entrants — often those with less-established identities
— into the forex market, brokers will continue to face
the challenge of striking the right balance between
security and the optimal user experience.
58% of consumers are more tolerant
of identity verification than they were
two to three years previously.
Trulioo — Case Study
The
Solution
• 2022 consumer and business research
from Trulioo and Insight Avenue
“
74% of
consumers are
more likely to
trust a brand or
company that
uses identity
verification.”
Efficient Due Diligence in a Volatile Global Market
Ensuring new users are who they say they are and
present acceptable levels of risk is a top priority for
forex brokers and other financial services companies.
But the risk varies among traders, depending on
identity profile, transactions, location and other factors.
Yet speed and convenience are crucial in a quickly
fluctuating currency market. Forex is a massive, high-
volume trading market, so brokers face the challenge
of accurately verifying identities globally and in near
real time.
Fast, Secure Onboarding Across Borders
With Trulioo
Trulioo orchestrates hundreds of identity services
and independent data sources worldwide to verify
and authenticate users, enabling forex brokers to
create international onboarding that satisfies their risk
requirements while minimizing friction.
By dynamically corroborating the information
collected down to the risk profile or transaction
level, Trulioo can improve match rates and reduce
false positives, creating a higher level of assurance
throughout the customer life cycle.
For example, a broker may opt for basic due diligence
with standard identity checks for low-risk users but
add document verification or other identity proofing
for people, accounts or transactions that cross a
certain risk threshold. That risk-based approach to
identity verification enables forex brokers to smoothly
onboard traders and still meet stringent AML and KYC
requirements, reducing the likelihood of fraud and
other bad behavior.
The world’s
identity
platform.
Contact Us
Trulioo is a registered trademark of Trulioo Information Services Inc. in the United States, the European Union,
Canada and other countries.
Trulioo is the world’s identity platform, trusted
by leading companies for their verification
needs. The Trulioo integrated, automated
platform provides unparalleled global coverage
for business and person verification and a
comprehensive suite of in-house capabilities.
Combining its state-of-the-art technology with expert verification
knowledge across diverse markets, Trulioo enables the highest
verification assurance levels, optimizing onboarding costs and
fostering trust and security in the global digital economy.
About Forex Brokers
The foreign exchange market involves buying and
selling foreign currencies. With an average $6.6
trillion traded daily, it’s the world’s largest financial
market. Foreign exchange brokers — platforms that
enable foreign exchange transactions — operate
24 hours a day and serve a global customer base.
While the UK and U.S. dominate the market, online
platforms have expanded accessibility to traders in
emerging economies.
While the UK and U.S. dominate
the market, online platforms have
expanded accessibility to traders
in emerging economies.
Consumers notice when companies take security
seriously. The 2022 research from Trulioo found 74% of
consumers are more likely to trust a brand or company
that uses identity verification when people create an
account or make a transaction.
Dynamic identity verification and a risk-based approach
help forex brokers build that trust, quickly adapt to
changing business models and scale to meet increased
demand at peak trading times. Trulioo constantly
expands its network of traditional and nontraditional
data sources and identity services, enabling forex
brokers to confidently enter new markets and improve
accessibility to the currency trading marketplace.