Italian Consob, along with FSMA and CNMV, is warning against proprietary trading.
According to the institution, its growing popularity carries significant risks for investors and their capital.
Italy's securities regulator, Consob, has issued a warning to investors about the risks associated with retail prop trading activities. It describes them as online
trading simulations that promise profits but may lead to financial losses.
Consob Flags Prop Firm “Trading
Games” as Potential Investor Trap
The Italian
market watchdog describes the prop trading industry very interestingly,
completely different from how the companies operating within it do.
The
regulator said these offerings, promoted on websites and social media platforms, "simulate an online trading activity in a type of finance video game aimed at passing skill tests and making a profit." They are presented under various names, including "shadow investment game," "funding trading," and "financed trading accounts." These simulations often require users to
enroll in paid training courses before participating in online trading
challenges.
According
to Consob, the schemes typically involve users progressing from simulated
trading to purportedly real trading using capital provided by self-described
"proprietary firms" or "prop firms." To entice
participants, these firms offer to share some profits generated.
The
regulator emphasized that these simulations carry significant risks for savers and could result in the loss of
invested funds.
“Consob has
received several reports from users who have signed up for such offers. The
complaints concern both the level of difficulty of the tests, which are
allegedly contrived to push ‘players’ to try again, and the failure to share
the alleged profits.” The regulator commented.
Regulatory
interest in proprietary trading began in February, leading to the withdrawal
from part of the market by the popular trading
platform provider MetaQuotes, difficulties in access for investors from
the USA, and the suspension of operations by
some companies
Increasing Number of
European Regulators Warning Against Prop Trading
Similar
warnings have been issued by financial market supervisory authorities in
Belgium (FSMA) and Spain (CNMV), highlighting a growing trend of concern among
European regulators.
Muinmos' Founder and CEO, Remonda Kirketerp-Møller
At the end
of May, Finance Magnates reported that the European Securities and
Markets Authority (ESMA) had convened a discussion on the regulations
concerning prop trading. Remonda Kirketerp-Møller, the founder and CEO of
regulatory compliance firm Muinmos, shared that “regulators have been
conducting studies, gathering data, and engaging in consultations with industry
participants to better understand the nature and implications of prop trading.”
Currently,
prop trading firms are primarily governed by laws such as consumer protection
rules, data protection regulations, and international sanctions conditions. These companies are predominantly registered in the US, the UK, the UAE,
and Saint Vincent and the Grenadines, although many are also registered within
the EU.
In early
June, the Czech regulator indicated that prop trading firms “may be subject to
MiFID regulations.” The business models used by firms engaged in prop trading
(technically funded trader services) can take various forms, some of which may
be subject to the MiFID regulatory framework.” Notably, one of the leading prop
trading firms, FTMO, is based in the Czech Republic.
Although the industry is controversial among regulators and some investors, it attracts more clients. FX/CFD brokers are also taking advantage of this by increasingly adding proprietary trading offers to their basic services. This month, ThinkMarkets joined them by launching its own proprietary trading brand, ThinkCapital.
Italy's securities regulator, Consob, has issued a warning to investors about the risks associated with retail prop trading activities. It describes them as online
trading simulations that promise profits but may lead to financial losses.
Consob Flags Prop Firm “Trading
Games” as Potential Investor Trap
The Italian
market watchdog describes the prop trading industry very interestingly,
completely different from how the companies operating within it do.
The
regulator said these offerings, promoted on websites and social media platforms, "simulate an online trading activity in a type of finance video game aimed at passing skill tests and making a profit." They are presented under various names, including "shadow investment game," "funding trading," and "financed trading accounts." These simulations often require users to
enroll in paid training courses before participating in online trading
challenges.
According
to Consob, the schemes typically involve users progressing from simulated
trading to purportedly real trading using capital provided by self-described
"proprietary firms" or "prop firms." To entice
participants, these firms offer to share some profits generated.
The
regulator emphasized that these simulations carry significant risks for savers and could result in the loss of
invested funds.
“Consob has
received several reports from users who have signed up for such offers. The
complaints concern both the level of difficulty of the tests, which are
allegedly contrived to push ‘players’ to try again, and the failure to share
the alleged profits.” The regulator commented.
Regulatory
interest in proprietary trading began in February, leading to the withdrawal
from part of the market by the popular trading
platform provider MetaQuotes, difficulties in access for investors from
the USA, and the suspension of operations by
some companies
Increasing Number of
European Regulators Warning Against Prop Trading
Similar
warnings have been issued by financial market supervisory authorities in
Belgium (FSMA) and Spain (CNMV), highlighting a growing trend of concern among
European regulators.
Muinmos' Founder and CEO, Remonda Kirketerp-Møller
At the end
of May, Finance Magnates reported that the European Securities and
Markets Authority (ESMA) had convened a discussion on the regulations
concerning prop trading. Remonda Kirketerp-Møller, the founder and CEO of
regulatory compliance firm Muinmos, shared that “regulators have been
conducting studies, gathering data, and engaging in consultations with industry
participants to better understand the nature and implications of prop trading.”
Currently,
prop trading firms are primarily governed by laws such as consumer protection
rules, data protection regulations, and international sanctions conditions. These companies are predominantly registered in the US, the UK, the UAE,
and Saint Vincent and the Grenadines, although many are also registered within
the EU.
In early
June, the Czech regulator indicated that prop trading firms “may be subject to
MiFID regulations.” The business models used by firms engaged in prop trading
(technically funded trader services) can take various forms, some of which may
be subject to the MiFID regulatory framework.” Notably, one of the leading prop
trading firms, FTMO, is based in the Czech Republic.
Although the industry is controversial among regulators and some investors, it attracts more clients. FX/CFD brokers are also taking advantage of this by increasingly adding proprietary trading offers to their basic services. This month, ThinkMarkets joined them by launching its own proprietary trading brand, ThinkCapital.
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.
CFD Industry Stats from 2025: Five Defining Trends - And One Prediction for 2026
How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
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.
