Lucid Trading has introduced a stricter Know Your Customer (KYC) process for certain new traders who meet criteria the firm associates with previous fraudulent actors. According to the firm, the changes are intended to reduce fraud and decrease the number of traders who experience KYC issues after purchasing accounts.

What Happened

Previously, Lucid Trading generally required KYC before a trader's first payout request or when trading activity was flagged by its systems.

Under the updated process, new traders who meet criteria associated with previous fraudulent actors may be asked to complete KYC during registration before purchasing an account. The firm states that being selected for this process does not mean a trader is being accused of fraud.

If a trader does not pass the initial KYC process, Lucid Trading states that the account will undergo a manual review and identity verification before the trader is able to purchase an account.

The firm also said it plans to introduce an option in the coming weeks that will allow all traders to complete KYC voluntarily at any time.

What's Changed

Under the updated process:

• Certain new traders may be asked to complete KYC during registration.
• Being selected for KYC does not indicate that the firm is accusing a trader of fraud.
• Traders who do not pass the initial KYC process will undergo a manual review and identity verification before they are able to purchase accounts.
• Lucid Trading plans to introduce an optional KYC process for all traders in the coming weeks.

Effective Date

• July 23, 2026

Who Is Affected

The update applies to new traders who meet the criteria that Lucid Trading has identified as being associated with previous fraudulent actors.

Impact on Traders

Traders who are asked to complete KYC should ensure their verification is completed correctly.

Those selected for registration-stage KYC may need to complete identity verification before they are able to purchase an account.

Why This Matters

According to Lucid Trading, the update responds to an increase in bad actors within the industry. The firm said the new process is intended to stop fraud more quickly, reduce the number of traders who experience KYC issues after purchasing accounts, and help avoid legitimate traders being incorrectly affected by its fraud detection systems.

The firm also described the update as its first step toward addressing fraud and toxicity within the industry.

Prop Firm Match Perspective

Lucid Trading's updated KYC process changes when identity verification may be required for certain new traders. Traders considering the firm should be prepared to complete KYC during registration if requested and review the firm's verification requirements before purchasing.