According to FPFX Tech's data, 1 in 3 clients comes from the US and UK, but the most dynamic growth is seen elsewhere.
As the company CEO forecasts, the industry will see “significant growth rates out of the Middle East” in the next 90-180 days.
In the world of prop trading, success is elusive for many. According to FPFX Tech's data, exclusively seen by Finance Magnates, a mere 7% of investors manage to turn a profit. Among those who do succeed, the average earnings are modest: just 4% of their allocated capital.
Traders Use 2.2 Prop Firms on Average
Prop
trading is dominated by men, who make up 78% of all trader-funded
firms (TFFs) clients. This type of investment is most popular among Gen Z and Millennials,
who together account for over 60% of all clients.
The data
comes from FPFX Tech, a fintech that specializes in providing technology
solutions for prop trading firms, offering software-as-a-service (SaaS)
solutions. It covered a total of over 300,000 accounts belonging to 100,000 traders from 10 different prop trading companies.
Justin Hertzberg, the Founder and CEO of FPFX Tech
“According
to the data in the survey, 14% of traders passed the challenge and obtained a
funded account. Of those, about 45% achieved a payout (7% of all traders) in
their funded account, with the average payout being 4% of the plan size (or
account value),” Justin Hertzberg, one of the founders and CEO of FPFX
Tech, commented for Finance Magnates.
How much
can traders earn? Most often, these amounts oscillate around 4% of the funded
accounts' size. If a prop investor gained access to an account worth $100,000,
which is relatively large, they would typically earn $4,000.
Considering
that a single account spends an average of $800 on challenge purchases
throughout its entire activity cycle, typically taking three different challenges,
the average profits are not high at all.
What is more, according to FPFX data, one in ten traders uses more than one prop firm. Information from 100,000 investors indicates that on average, they trade with 2.2 companies.
According
to FPFX Tech data, they account for 20% of all traders active in the industry.
The UK ranks second (10%), followed by India (4%). The rest of the ranking
consists of several countries, including many from the Old Continent, which
have a 2–3% market share.
However, as
Hertzberg admits, there is currently dynamic growth in the number of investors
from Asia, Africa (mainly Kenya and Nigeria), LATAM, and Eastern European
countries. “Over the next 90–180 days, we expect to see significant growth
rates out of the Middle East,” adds the CEO of FPFX Tech.
He bases the forecasts on the planned launch of new operations in the company's pipeline, which are set to start later this year. As Hertzberg emphasizes, these operations focus on several countries in the Middle East that have not been targeted by other firms from the industry so far.
Prop is the Future
of Retail Trading
Asked for
his opinion on whether prop trading could be the direction in which the retail
industry will develop, Hertzberg predicts that it is its future.
“It
shifts leverage concerns and risk management to the institution and away from
the individual trader,” said Hertzberg. “This gives the trader a
greater opportunity to achieve outsized results when compared to their own
personal buying power.”
He predicts
that prop trading's popularity will grow, as will the technologies behind it, and
FPFX Tech wants to “lead the charge” by developing new features for
the industry.
Hertzberg
is also convinced that the TFFs should be regulated, ensuring that operators
have sufficient experience, net capital, compliance controls, defensible
marketing, and appropriate disclosures in terms of how they operate. Regulatory actions this year already suggest the industry is heading in that direction.
As exclusively reported by Finance Magnates, ESMA started discussions a few months ago on regulating prop trading. A similar view was expressed by CySEC Chair, Dr. George Theocharides, who stated that “prop trading will fall under robust regulation at some point.” At the same time, the Czech market watchdog confirmed that the activities of prop trading firms “may be subject to MiFID” regulations.
“The
rash of recent prop firm halts, failures, suspensions, etc. is a direct result
of prop firms being undercapitalized and poorly managed,” added FPFX CEO.
“Especially as it pertains to risk management, which is the most important
and most neglected driver of prop firm success and profitability.”
It's worth
comparing this data with the results of another survey conducted by prop firm
PipFarm, also exclusively reported by Finance Magnates last month. Although
the sample size was significantly smaller (450 respondents) and focused on just
one prop firm, the differences in results were substantial. The average amount
spent on challenges exceeded $4,200 (compared to $800), and the number of
profitable traders reached 41% (compared to 7%).
In the world of prop trading, success is elusive for many. According to FPFX Tech's data, exclusively seen by Finance Magnates, a mere 7% of investors manage to turn a profit. Among those who do succeed, the average earnings are modest: just 4% of their allocated capital.
Traders Use 2.2 Prop Firms on Average
Prop
trading is dominated by men, who make up 78% of all trader-funded
firms (TFFs) clients. This type of investment is most popular among Gen Z and Millennials,
who together account for over 60% of all clients.
The data
comes from FPFX Tech, a fintech that specializes in providing technology
solutions for prop trading firms, offering software-as-a-service (SaaS)
solutions. It covered a total of over 300,000 accounts belonging to 100,000 traders from 10 different prop trading companies.
Justin Hertzberg, the Founder and CEO of FPFX Tech
“According
to the data in the survey, 14% of traders passed the challenge and obtained a
funded account. Of those, about 45% achieved a payout (7% of all traders) in
their funded account, with the average payout being 4% of the plan size (or
account value),” Justin Hertzberg, one of the founders and CEO of FPFX
Tech, commented for Finance Magnates.
How much
can traders earn? Most often, these amounts oscillate around 4% of the funded
accounts' size. If a prop investor gained access to an account worth $100,000,
which is relatively large, they would typically earn $4,000.
Considering
that a single account spends an average of $800 on challenge purchases
throughout its entire activity cycle, typically taking three different challenges,
the average profits are not high at all.
What is more, according to FPFX data, one in ten traders uses more than one prop firm. Information from 100,000 investors indicates that on average, they trade with 2.2 companies.
According
to FPFX Tech data, they account for 20% of all traders active in the industry.
The UK ranks second (10%), followed by India (4%). The rest of the ranking
consists of several countries, including many from the Old Continent, which
have a 2–3% market share.
However, as
Hertzberg admits, there is currently dynamic growth in the number of investors
from Asia, Africa (mainly Kenya and Nigeria), LATAM, and Eastern European
countries. “Over the next 90–180 days, we expect to see significant growth
rates out of the Middle East,” adds the CEO of FPFX Tech.
He bases the forecasts on the planned launch of new operations in the company's pipeline, which are set to start later this year. As Hertzberg emphasizes, these operations focus on several countries in the Middle East that have not been targeted by other firms from the industry so far.
Prop is the Future
of Retail Trading
Asked for
his opinion on whether prop trading could be the direction in which the retail
industry will develop, Hertzberg predicts that it is its future.
“It
shifts leverage concerns and risk management to the institution and away from
the individual trader,” said Hertzberg. “This gives the trader a
greater opportunity to achieve outsized results when compared to their own
personal buying power.”
He predicts
that prop trading's popularity will grow, as will the technologies behind it, and
FPFX Tech wants to “lead the charge” by developing new features for
the industry.
Hertzberg
is also convinced that the TFFs should be regulated, ensuring that operators
have sufficient experience, net capital, compliance controls, defensible
marketing, and appropriate disclosures in terms of how they operate. Regulatory actions this year already suggest the industry is heading in that direction.
As exclusively reported by Finance Magnates, ESMA started discussions a few months ago on regulating prop trading. A similar view was expressed by CySEC Chair, Dr. George Theocharides, who stated that “prop trading will fall under robust regulation at some point.” At the same time, the Czech market watchdog confirmed that the activities of prop trading firms “may be subject to MiFID” regulations.
“The
rash of recent prop firm halts, failures, suspensions, etc. is a direct result
of prop firms being undercapitalized and poorly managed,” added FPFX CEO.
“Especially as it pertains to risk management, which is the most important
and most neglected driver of prop firm success and profitability.”
It's worth
comparing this data with the results of another survey conducted by prop firm
PipFarm, also exclusively reported by Finance Magnates last month. Although
the sample size was significantly smaller (450 respondents) and focused on just
one prop firm, the differences in results were substantial. The average amount
spent on challenges exceeded $4,200 (compared to $800), and the number of
profitable traders reached 41% (compared to 7%).
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
73% of Young Investors Say Traditional Wealth Building Is Broken – Here’s How They Trade Instead
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
