Exclusive: 80–100 Prop Firms Shut Down in 2024's Industry Reshuffle

Thursday, 27/02/2025 | 08:11 GMT by Damian Chmiel
  • According to Finance Magnates Intelligence, up to 100 prop trading companies did not make it last year.
  • “I expect many more prop firms to close” in 2025, warned Justin Hertzberg, the CEO of FPFX.
  • While smaller players struggle, industry leaders are strengthening their positions through strategic acquisitions and diversification.
pipfarm prop trading survey

The prop trading industry has just witnessed its most dramatic shake-up yet. Over the past year, between 80 and 100 proprietary trading firms have shut down, challenge pass rates have plummeted, and the average trader’s investment has dropped by 50%. Yet, amid the chaos, a few dominant players are emerging stronger than ever.

Even 100 Prop Firms Gone in 2024

According to estimates gathered by Finance Magnates Intelligence, between 80 and 100 proprietary trading firms may have disappeared from the market in 2024. This aligns with data presented by FunderPro mid-year, which estimated that the number had already reached around 50 firms at that time.

At the heart of this upheaval is a single industry-altering event—MetaQuotes' decision to step back from supporting prop firms. This move sent shockwaves through the market, forcing traders and firms to rethink their strategies, diversify platforms, and ultimately accelerate industry consolidation.

“I expect many more prop firms to close, cease or halt operations and/or find themselves on the wrong end of lawsuits and social media attacks,” Justin Hertzberg, the CEO of FPFX warned.

The numbers tell the story. 300,000 prop trading accounts analyzed by FPFX Tech reveal a fundamental shift in trader behavior. While MetaTrader 5 still holds a 61.9% market share, alternative platforms like cTrader, DXtrade, MatchTrader, and TradeLocker have seized the opportunity, reshaping a once-monopolized space.

But here’s the real shocker: as dozens of firms collapsed, one of the largest prop firms just acquired a major FX/CFD broker. The consolidation is happening fast, and only the strongest are surviving.

Meanwhile, pass rates have fallen, and payouts have tightened—suggesting an industry favoring survival over speculation. The profile of the “average prop trading Joe” has changed, and we have the data:

Source: Finance Magnates Intelligence
Source: Finance Magnates Intelligence

Is prop trading still the high-growth phenomenon it once was? Who are the winners and losers in this shifting landscape? And what does this mean for retail traders?

Find out in the Finance Magnates Quarterly Industry Report, where we break down the data, the trends, and the next big moves shaping prop trading in 2025.

The prop trading industry has just witnessed its most dramatic shake-up yet. Over the past year, between 80 and 100 proprietary trading firms have shut down, challenge pass rates have plummeted, and the average trader’s investment has dropped by 50%. Yet, amid the chaos, a few dominant players are emerging stronger than ever.

Even 100 Prop Firms Gone in 2024

According to estimates gathered by Finance Magnates Intelligence, between 80 and 100 proprietary trading firms may have disappeared from the market in 2024. This aligns with data presented by FunderPro mid-year, which estimated that the number had already reached around 50 firms at that time.

At the heart of this upheaval is a single industry-altering event—MetaQuotes' decision to step back from supporting prop firms. This move sent shockwaves through the market, forcing traders and firms to rethink their strategies, diversify platforms, and ultimately accelerate industry consolidation.

“I expect many more prop firms to close, cease or halt operations and/or find themselves on the wrong end of lawsuits and social media attacks,” Justin Hertzberg, the CEO of FPFX warned.

The numbers tell the story. 300,000 prop trading accounts analyzed by FPFX Tech reveal a fundamental shift in trader behavior. While MetaTrader 5 still holds a 61.9% market share, alternative platforms like cTrader, DXtrade, MatchTrader, and TradeLocker have seized the opportunity, reshaping a once-monopolized space.

But here’s the real shocker: as dozens of firms collapsed, one of the largest prop firms just acquired a major FX/CFD broker. The consolidation is happening fast, and only the strongest are surviving.

Meanwhile, pass rates have fallen, and payouts have tightened—suggesting an industry favoring survival over speculation. The profile of the “average prop trading Joe” has changed, and we have the data:

Source: Finance Magnates Intelligence
Source: Finance Magnates Intelligence

Is prop trading still the high-growth phenomenon it once was? Who are the winners and losers in this shifting landscape? And what does this mean for retail traders?

Find out in the Finance Magnates Quarterly Industry Report, where we break down the data, the trends, and the next big moves shaping prop trading in 2025.

About the Author: Damian Chmiel
Damian Chmiel
  • 3065 Articles
  • 96 Followers
About the Author: Damian Chmiel
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.
  • 3065 Articles
  • 96 Followers

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