Prop trading brand Fintokei recently expanded its operations into Italy, with its newly appointed Country Manager aiming to acquire 3,000 clients by the end of 2025. According to Marco Martire, the timing for entering one of Europe's key markets couldn't be better, especially as the local regulator increasingly scrutinizes the sector.

Will Fintokei Prove to Consob That Prop Trading Isn’t Just “Video Games”?

Martire shared a social media post addressing the recent Italian debut of Fintokei, a platform with Czech and Japanese roots. This expansion is part of a broader growth strategy by the brand, co-owned by David Varga, who also represents Purple Trading brokerage.

“With Fintokei, we arrive in Italy at the perfect time, as Consob's attention on the prop firm sector is currently very high,” Martire commented in his originally Italian post. He referenced the regulator's July warning that compared the industry to “video games” rather than actual trading. Experts viewed this as a signal that Consob might soon take a more serious look at prop trading.

However, Martire's statements suggest that the regulator's increased interest isn't an obstacle for Fintokei but rather a “positive factor” aligning with the company's “transparent operations” rooted in the regulated FX/CFD industry.

This is also “one of the main reasons why we chose to enter this market,” added the Italian Country Manager. “Following our success in Japan, we aim to demonstrate our value through the quality of the tools, methods and solutions we offer our customers in this new initiative,” he summarized on LinkedIn.

In an interview with local magazine Milano Finanza, he also addressed regulatory matters, stating that “In Italy, regulation is very careful, but this is only positive for those who work seriously like us.”

Fintokei currently processes around 400,000 transactions daily and has paid out over €6 million to its clients in 2024. As mentioned earlier, Martire aims to reach 3,000 Italian clients by 2025.

“Payout to our traders not only represents a major milestone for Fintokei but also underscores our commitment to supporting and rewarding skilled trading professionals,” Varga commented. “We're incredibly proud of the talented traders in our community who drive our success through their dedication and expertise.”

Video Games, Not Trading

Consob claims that prop trading challenges 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.”

According to the regulator, users often don't realize they're investing with virtual funds in demo accounts, yet they can lose real money paid for challenge participation.

“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.

More importantly, Consob is not isolated in its opinion.

FSM and CNMV Also Eye Prop Trading

European regulators, including the financial market authorities in Belgium (FSMA) and Spain (CNMV), have issued similar warnings that reflect a growing apprehension about proprietary trading activities.

In May, Finance Magnates reported on a European Securities and Markets Authority (ESMA) discussion aimed at evaluating regulations related to proprietary trading. Remonda Kirketerp-Møller, CEO of the regulatory compliance firm Muinmos, noted 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, proprietary trading firms are regulated under consumer protection, data privacy, and international sanctions laws. While many of these firms are based in jurisdictions like the US, UK, UAE, and Saint Vincent and the Grenadines, a significant number operate within the EU.

In early June, the Czech regulatory authority suggested that certain proprietary trading models, particularly those offering funded trader services, might fall under the MiFID regulatory framework. FTMO, one of the prominent proprietary trading firms headquartered in the Czech Republic, could potentially be impacted by these regulatory changes.