KYC, Taxes, and Compliance
22 answered questions
KYC, Taxes, and Compliance
KYC is required before your first payout to verify identity and prevent fraud. US traders submit a W-9; non-US traders submit a W-8BEN. Tax reporting is based on payouts you actually receive.
KYC
Why do I need to complete KYC before a payout?
To verify your identity and prevent fraud. It is required before we send funds.
When do I need to complete KYC?
Before your first payout. In some cases, it may also be required before certain purchases or account changes.
What do I need for KYC?
A valid government issued photo ID and a camera.
How long does KYC take?
Usually a few minutes. Some checks require manual review and can take longer.
Can I keep trading if my KYC is not completed yet?
Yes. Trading can continue, but payouts and some actions can be blocked until KYC is completed.
Why am I being asked to verify again?
We may ask you to reverify if the first attempt is unclear or details changed.
My identity verification failed. What should I do?
Use good lighting, a clear camera, and an unexpired ID. If it still fails, contact support.
Taxes and forms
What tax form do I need to complete?
US taxpayers usually submit a W-9. Non US taxpayers usually submit a W-8BEN or equivalent.
Will I receive a 1099?
If you are a US taxpayer and receive $600 or more in payouts in a calendar year, you may receive Form 1099-NEC. Forms are typically issued by Jan 31 for the prior year.
I am not a US taxpayer. Will I get a 1099?
Usually, no. Non US taxpayers typically do not receive US 1099 forms.
Will the 1099 show my gross payout or my net payout?
If payout fees apply, your 1099 may reflect a gross amount. If you are unsure how to file, talk to a tax professional.
I think I should have received a 1099 but I did not. What should I do?
Check your spam folder. If you meet the threshold, contact support.
Will I get tax forms for funded payouts too?
Yes. Tax reporting is based on payouts you receive, regardless of phase.
Am I an employee of Options Funding?
No. Traders are not employees.
How should I report my earnings?
Generally, report payouts received as income. Options Funding does not provide tax advice.
Do you withhold taxes from payouts?
We generally do not withhold taxes. If required by law, we may withhold.
Where are KYC and tax requirements defined?
See the Terms page for KYC and tax requirements.
AML and compliance
What is your AML and CTF policy?
We operate an AML and Counter-Terrorism Financing program with KYC, ongoing transaction review, PEP and sanctions screening, and recordkeeping. See the Privacy Policy for related vendor and data details.
Do you screen against sanctions lists?
Yes. We screen against major sanctions lists and politically exposed persons databases. Hits are reviewed before payouts.
Are there countries you do not accept traders from?
Yes. We do not accept traders located in jurisdictions subject to comprehensive US sanctions. KYC verification will flag restricted locations.
Can I trade through a business entity rather than as an individual?
Currently the program is designed for individual traders. Entity-based participation is not standard. Contact support if you have a specific structural question.
Can multiple traders share one payment method?
Each trader account must use a unique identity for KYC and payout. Sharing payment cards across distinct trader accounts is flagged by our payment risk controls.