In the trading world, verifying a trader’s identity is a standard part of regulatory compliance. However, concerns arise when a broker requests notarised documents without legal basis. This demand can seem excessive, costly, and unnecessary — especially when there is no legal requirement for notarisation under the broker’s licensing authority. Understanding why this happens and what you can do about it is essential for protecting your trading rights.

Why Would a Broker Request Notarised Documents?

Under normal conditions, brokers ask for documents such as proof of identity and proof of address to meet Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations. This usually involves providing:

• A passport or driving licence
• A recent utility bill or bank statement
• A selfie holding your ID (in some cases)

However, when a broker requests notarised documents without legal basis, it often suggests other motives:

• Delay tactics: Notarisation requirements can create unnecessary delays in withdrawals or account closures.
• Deterrence: Traders may abandon claims if the process becomes too burdensome.
• Misinterpretation of regulations: Some brokers wrongly believe or pretend that regulations require notarisation.
• Control over funds: Stalling withdrawals by creating extra hurdles is a common tactic of unreliable brokers.

Legitimate regulatory authorities, like the Financial Conduct Authority (FCA) or the Australian Securities and Investments Commission (ASIC), do not mandate notarisation for standard account verification.

The Risks of Providing Notarised Documents Unnecessarily

Time and cost:
Getting documents notarised can be expensive and time-consuming, especially if you live in a remote area or a different country.

Exposure to personal data risks:
Notarised copies add an extra layer of risk if mishandled, making it easier for your sensitive information to be misused.

Encouraging bad practices:
Complying with unjustified demands reinforces poor behaviour from brokers who use the broker requests notarised documents without legal basis tactic to control clients.

Potential scams:
In rare cases, scam brokers demand notarised documents as part of identity theft operations. Always verify the broker’s regulatory status before sending any sensitive data.

What to Do If a Broker Requests Notarised Documents Without Legal Justification

Ask for the regulation:
Request the broker to provide the exact legal or regulatory rule that requires notarisation. If they cannot point to a specific regulation, it is a clear red flag.

Check the broker’s regulator:
Contact the broker’s licensing authority directly. Regulators like the FCA or ASIC will confirm whether notarisation is required.

Escalate internally:
Ask to speak to a compliance manager or the legal department. They should explain the request and its necessity in clear terms.

Refuse if unjustified:
If the request has no legal foundation and the broker cannot explain it properly, refuse to comply. Inform them that you are willing to submit standard KYC documents only.

File a complaint:
If the broker persists, file a complaint with their regulator. Trusted brokers like Intertrader, AvaTrade, TiBiGlobe, Vantage, and Markets.com rarely, if ever, make unjustified demands of this kind.

How to Avoid Such Brokers in the Future

Choose regulated brokers:
Always open accounts with brokers licensed by tier-one regulators. They must follow clear, transparent KYC policies that do not impose unnecessary burdens.

Read user reviews carefully:
Look for signs of unreasonable document requests or withdrawal issues in trader reviews before committing to a broker.

Stay informed:
Follow trading news and forums to keep up with new scams and poor broker practices. Traders who spot early signs of brokers requesting notarised documents without legal basis can move to safer options quickly.

Use trusted platforms:
Brokers with strong reputations and compliance records prioritise client convenience without cutting corners on security.

Conclusion

When a broker requests notarised documents without legal basis, it is a clear warning to proceed with caution. Such demands often signal delays, hidden issues, or even more serious misconduct. Always protect yourself by insisting on transparency, verifying regulatory standards, and moving your funds to reputable brokers when necessary.

Learn how to spot unreliable brokers and protect your investments with expert strategies in our Trading Courses. Build your trading skills today!