Prop trading industry-focused publication Prop Insider marks its first anniversary, and founders and trading veterans reflect on a period defined by explosive growth, regulatory scrutiny and technological arms races and predict what’s next for the evolving world of proprietary capital.
Prop Insider just hit its first birthday! In 12 months, it has published hundreds of articles, grown a community and chronicled an industry in the throes of an identity crisis, or a revolution, depending on whom you ask.
Let’s rewind. Prop trading used to be a secretive club for banks and elite firms, the kind of place that gambled its own massive capital behind closed doors. But that world has been flipped entirely on its head. A new model has blown the doors off, exploding into the mainstream by promising anyone with a laptop and enough discipline a shot at trading millions of dollars.
This rapid growth, however, has also led to increased regulatory scrutiny, intensified competition and presented the industry with a new set of critical challenges.
So, we went straight to the source. We asked the founders and CEOs living this shakeup every day to break down the last wild year and tell us where we go from here.
Antreas Pilavakis, Head of Operations at FunderPro: “The industry feels more stable than it did last year, but likely less stable than it will be in the years ahead. We’ve reached a point where there’s now a clearer benchmark for how a prop firm should be launched and operated, compared to the past two years when it was more of a trend driven by influencer-entrepreneurs rather than sustainable business models.
Risk management has become normalized. We’re now at a healthier stage where, when a firm removes an abusive trader from their program, there is usually a clear and justifiable reason. The broader audience also has a better understanding that these individuals weren’t truly trading, but instead were trying to ‘game’ the prop model.
Although we’re seeing some good initiatives from third parties offering cross-firm risk management solutions to spot hedging strategies and other abuses, the industry is still far from where it needs to be. Greater collaboration is required to create a more reliable safety net for firms.
I believe it’s inevitable that we’ll see the development of a centralized risk management system where firms can share (within legal limits) details of abusive traders. The reality is that the model has increasingly shifted from rewarding profitable and consistent traders to dealing with individuals who exploit loopholes. If such a system isn’t established quickly enough, we’re likely to see more smaller firms collapse under the strain.”
Michael Nichols, CEO at Hantec Prime: “Prop trading in the last year has seen its ups and downs. The cost-effective and ease of technology to market have enabled hundreds of props to open up in the last year. The industry itself has seen massive changes over the year. Despite the number of prop firms that opened up, we also saw the downfall of many. I believe this can be attributed to lack of risk management and competition. Prop firms have become more and more competitive to attract clients.
Few firms understood the balance between risk and undercutting challenges in order to attract clients, which, in turn, led to their downfalls and ultimately defeated the reason prop was created — to help educate people in a safe environment. I believe now the industry has learned and predict more sustainable growth for companies. Ultimately, what I believe is missing or could use improvement is almost a form of regulation. By regulation, I mean that firms are held accountable for risk controls and proper funding in case of emergencies to protect their clients.”
Brian Griffin, CEO at kubera Markets: “Clients never read the instructions! I never read the instructions! Prop providers would do well to sit down and harmonize some of their general rules, especially in regards to CFD based challenges.
In a recent conversation with prop customers, some of them said a simpler rule set or the perception of a simpler rule set was why they were looking at futures based prop challenges! Interesting.”
Roman Permyakov, Chief Commercial Officer, Executive Director at MGX Brokers: “The fintech high-risk industry is experiencing growth, compared to 2024. However, we are also seeing an increase in online marketing restrictions. Only companies with a strong track record and several years of experience are able to successfully adapt by entering new markets and offering innovative products.
Over the past year, we’ve seen stricter regulations introduced by A+ and B+ financial regulatory authorities, along with tighter marketing restrictions across major platforms such as YouTube, Google, Facebook and TikTok.
The industry needs to focus on developing new products to attract a broader client base. At the same time, businesses must maintain flexible operational setups to adapt quickly to future risks and regulatory changes.
We predict that the industry will continue to grow in both trading and revenue volumes throughout 2025 compared to 2024. Larger companies are likely to dominate the market by acquiring or outperforming smaller ones. Additionally, we expect Bitcoin to reach $150,000 by the end of 2025.”
Nart Gërdovci Founder & CEO at The Prop Shop: “Right now, the prop firm industry seems like it’s in a phase of transition. The opportunities are still endless, but the pressure to professionalize is also rising. Firms that adapt with stronger compliance, clearer rules and reliable payouts are standing out, while those chasing quick growth are struggling.
Overall, it’s an exciting space that is slowly maturing through self-regulation, with sustainability and trader trust becoming real differentiators.”
Christian Görgen, Marketing Consultant at FYI.LTD: “From a trader’s perspective, I think we are seeing a clear trend toward one-step challenges and instant funding. The real question is how healthy and sustainable this growth is overall, and I wouldn’t be surprised to see some consolidation in 2026.
The firms that will stand out are those investing in brand building, community and localization, rather than trying to appeal only to short-term discount and coupon hunters.”
Marcus Fetherston, General Manager at Blueberry Funded: “The prop trading space has continued to expand over the past year, with more firms entering and an increasing number of brokers moving into the model. At the same time, traders are more cautious than ever, wary of scam firms and illegitimate players.
What the industry needs is a shift in narrative. Traders often want simple, easy challenges, but also long-term sustainable firms, and those goals can conflict.
Looking ahead, I expect competition between firms to intensify, especially around discounts and challenge parameters. While that may appeal in the short term, it will likely lead to some surprising firm closures as weaker models struggle to survive.”
Andrew Mreana, Head of Growth at Xoala: “The prop trading industry today is increasingly global, sophisticated and technology-driven. Traders and firms are no longer confined to traditional hubs; instead, they’re leveraging advanced platforms, data analytics and integrated fintech solutions to operate seamlessly across regions and asset classes.
The rise of Discord, Telegram and other community channels shows that prop trading is not just about capital and execution anymore; it’s increasingly social, collaborative and knowledge driven. These communities allow traders to share strategies, insights and mentorship in real time, which can accelerate skill development and help newer traders enter the space faster.
At the same time, it also raises questions about information quality, compliance and risk management — not every tip or strategy shared in these channels is vetted, so firms and traders need to balance community engagement with professional standards.
Over the past year, one of the most notable shifts has been the migration of prop firms to Dubai and the explosive growth of trading activity across the Middle East and Southeast Asia. This movement reflects a search for regulatory clarity, access to growing trader communities and strategic positioning in emerging markets.
Looking ahead, I expect firms to focus on creating robust, scalable infrastructure that integrates seamlessly with fintech innovations. The future will be defined by enhanced compliance, improved risk frameworks and global ecosystems that enable prop traders to operate efficiently and confidently anywhere in the world.
Also, gamification is already starting to make waves in prop trading, and it could be a big part of the future. Features like leaderboards, performance challenges, simulation modes and rewards systems, they not only make trading more engaging but also accelerate learning, incentivize discipline, and foster healthy competition among traders.”
Justin Hertzberg, CEO at FPFX Tech and PropAccount: “The industry is continuing to grow in awareness and adoption by traders globally, across all asset classes.
Major changes in the industry are related to the viability of new prop firm operators to achieve success. Competition and toxic trading make it very difficult to achieve the critical mass needed to overcome upfront and operating costs.
Regulation is missing from the industry. Until that is in place, less than ethical prop firm operators will continue to deny payouts to deserving traders and operate with inadequate capital.
In the future, I expect more brokers to enter the space and smaller operators to wind down or consolidate their businesses.”
Giorgos Piskopianos, CEO & Co-Founder at PropXP: “Prop trading is becoming increasingly popular. It provides traders with a much easier entry point compared to traditional brokers, which is why many people are turning to it. At the same time, there’s still insecurity because the industry lacks regulation. Transparency is also an issue. Too many firms put rules in place that make it very difficult for traders actually to succeed.
Regulation will come, but it will take a few years to implement. In the meantime, the industry is moving toward more personalization, with tailor-made challenges for different types of traders. Firms directly tied to brokers will eventually face issues as traders become aware of the risks.
This past year, we have started to see honest conversations about regulation, which indicates that the industry is maturing. There has also been a clear shift toward futures trading, which attracts more experienced traders. And crypto has really picked up. More people now expect prop firms to offer crypto as part of their products.
What’s really missing is proper regulation. Traders need to feel safe working with a firm. Education also needs improvement because many traders are given capital without the necessary support to manage it effectively. And transparency is a big one. Many firms are tied to brokers, which creates doubt about how profits are handled.”
Prop firms are now building full-stack, AI-powered ecosystems that watch everything. We’re talking about software that analyzes every single trade, every pause, every moment of hesitation. That data isn’t just sitting there — it’s being used to constantly de-risk the firm’s capital and push out hyper-personalized coaching tips in real time.
Naturally, this has created a whole new kind of trader. Forget the old-school image of a grizzled guy yelling on a floor. The new face of prop trading is a disciplined, tech-savvy operator, probably coding a custom script or executing trades from their living room couch.
So what’s next? The direction is outward and upward. Firms are now in a land grab, pushing hard into emerging markets across Asia and Latin America. And they’re diving headfirst into new, volatile asset classes to find the next big edge.
Disclaimer: The views, opinions and thoughts expressed in this article are solely those of the author(s) and do not reflect the official position of PropInsider, its management, employees or affiliates. This content is provided for informational purposes only and should not be construed as professional advice.
