Over the past few years, the landscape of retail trading has changed dramatically — and prop trading is right at the heart of that transformation. As CFDs face growing regulatory scrutiny, and listed futures and options gain popularity among a younger, tech-savvy audience, a fundamental shift is underway.
But what does this mean for prop traders, and where does the industry go from here?
For a long time, CFDs have been the go-to product for European retail traders, while US traders were pushed toward listed securities like stocks, futures, and options due to strict regulatory limitations on CFDs. This split created two different trading cultures — one leverage-focused and speculative, the other more traditional and regulated.
Prop trading firms filled the gap, especially in the US, offering CFD-like trading experiences through funded account challenges, often hosted on demo environments. This allowed thousands of aspiring traders to test their skills and gain access to capital.
Since the 2020 retail trading boom, driven in part by the WallStreetBets phenomenon, US-listed derivatives — especially Zero Days to Expiry (0DTE) options — have seen explosive growth. Futures, once considered too complex for most retail traders, are becoming mainstream.
This trend is now spilling over into Europe, as retail traders increasingly explore listed markets. A recent survey by Acuiti showed that 69% of European brokers expect stricter CFD regulations in the future, and more than half are considering a shift toward listed products.
The tech barrier is no longer what it used to be. According to Devexperts, modern third-party platforms now offer flexible, fast-to-market solutions for listed trading — including fractional shares, market data integrations, and risk management tools.
This means that prop firms have a unique opportunity: expand into futures and listed markets without reinventing the wheel. With retail interest growing and technology becoming more accessible, the transition has never been more achievable.
For prop traders, this could mean more diverse product offerings, more stable regulatory environments, and potentially, a shift in skillsets from CFD-style scalping to more structured futures strategies.
One thing is clear: the future of prop trading won’t look like its past. As retail preferences evolve and regulations tighten, prop firms that adapt early will lead the next chapter of retail finance.
