“And yet it moves…” - Galileo Galilei
What began as an alternative path has become a permanent pillar of the industry - prop trading is here to stay, grow and lead a financial uprising.
The recent Finance Magnates London Summit debate, “Is Prop Trading Good for the Trading Industry?” brought together AFTX's Drew Niv and Tradu's Brendan Callan, two heavyweights in the space.
Watching them clash was enlightening - but the discussion just skimmed the surface. Much rhetoric, not enough reality. Here’s the unvarnished truth: Prop trading is the future, and the industry is finally catching up. No other platform, service, technology or provider, had ever served as a red carpet gateway into retail trading more so than prop trading firms.
Here is my perspective on the debate, the current flaws in the model, and why prop trading is not just "here to stay" - it is what the retail trading ecosystem desperately needed.
The Visionary vs. The Realist
Niv sees prop trading as a natural evolution. Like retail FX in 1999, a “Wild West” that matured under pressure, the model isn't perfect, but fundamentally necessary. Yes, there are ridiculous stories surrounding, just as in any new industry’s evolution. Yes, growing pains exist. But the core problem brokers cannot solve - the prohibitive cost of capital for new traders - prop firms solve effortlessly. And Niv is right: prop trading will become more selective, more sophisticated, and more essential.
Callan, in contrast, sees the flaws in real time. He calls out the hype, the arbitrary profit targets, the gambling behaviors. And he’s not wrong. But his criticism is of mechanics, not the model itself. The problem isn’t prop trading - it’s the two-step evaluation system many firms rely on.
Read more: “We Don’t Sell Dreams. We Don’t Drive Lamborghinis”
A Structural Flaw acknowledgment: Two-Step Evaluation
Here’s an honest truth: the evaluation model incentivizes shortcuts and exploitation, for now. Traders can, mathematically, “game” the system. Firms respond with punitive measures - sanction strategies, flagging IPs, sometimes even denying payouts.
This adversarial relationship damages trust. When a trader is forced to chase a 10% return in a short window or lose their fee, they aren't learning to trade—they are learning to gamble.
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Prop Trading: The Necessary Future
Despite these flaws, prop trading isn’t optional - it’s inevitable. The market has spoken. Retail traders are not waiting for brokers to act; they are demanding access to capital and training. Prop firms are meeting that demand, creating opportunities that many traders have felt unreachable up until prop firms introduced themselves to the industry. We’re not battling brokers, we simply enhance and enrich their surroundings.
Why? Because brokers are infrastructure. Prop firms are an opportunity. Brokers offer accounts. Prop firms offer capital, skill development, structured discipline and prospect.
Prop firms and brokers form a perfect synergy: brokers provide access to clients and market execution, while prop firms supply capital and advanced strategies, creating a mutually reinforcing ecosystem where both thrive.
Moving Past the Flaws: The Path to Maturity
While the growth is undeniable, the industry must proactively address the structural issues that Callan rightly points out. The current two-step evaluation model, for example, is a temporary mechanism that must evolve.
The next phase of prop trading maturity will be defined by better evaluation metrics that focus on consistency and risk management over arbitrary short-term gains. This shift will solidify the legitimacy of the model and ensure that the positive energy entering the space translates into sustainable, long-term success for both traders and firms. The goal is to move from a "Wild West" narrative to a recognized, disciplined training ground for financial talent.
The $100,000 Predicament
To understand why prop trading exists, you have to face the harsh math of retail trading.
Here’s the reality:
An individual wants a modest side income - say, $2,000 per month. To achieve that reliably, without treating the markets like a gambling, let’s assume a professional-grade monthly yield of 2% (already an impressive feat).
Do the simple math: $2,000 at 2% requires an account of $100,000.
Now, ask yourself: how many ordinary people have $100,000 in liquid cash they’re willing to risk on a learning curve that could take years? Almost none. And even if they did, how many would dare to gamble their life savings just to figure out this business? The answer is painfully obvious.
This is where prop firms can support brokers the most. Brokers sell access, but only to those who already have the capital to play. They offer infrastructure, The opportunity is given by props. Prop firms, by contrast, carry a heavier responsibility - and we acknowledge it. We provide the chance for talented traders to prove themselves without wrecking their financial foundation. We are here to bridge that gap: skill is separated from capital, and real opportunity becomes accessible to those who deserve it, not just those who can afford it.
The5ers Founder, @Gil_BenHur and Biz-Dev Director Tomer Mann represented the Five Percent Group at FMLS:25 in London!
— The5ers (@the5erstrading) November 30, 2025
Gil spoke on the “State of the Prop 2026” panel - a highlight of a strong week for the group. pic.twitter.com/UjRrqsKymR
The New Ecosystem: Prop & Brokers - A Collective Power
Prop firms aren’t here to kill brokers - left to themselves, brokers stagnate. They offer infrastructure and access, but without cultivating real traders, they simply recycle the same small pool of customers over and over. The market doesn’t grow under that model - it plateaus.
Read more: The5ers Founders Enter Brokerage Business with CySEC-Licensed “TSG.”
Prop firms change the equation. We grow the market by opening doors for talented individuals who otherwise couldn’t participate. We train traders, instilling discipline, strategy, and risk management, transforming curious beginners into sophisticated market participants. Over time, these trained traders become the very clients that brokers need - skilled, active participants who add real liquidity to the ecosystem.
This is symbiosis, not competition. Brokers provide the foundation, the necessary plumbing of markets, but prop firms provide the gateway. We expand the funnel, nurture potential, and produce traders capable of professional-level performance. Without prop firms, brokers are left with a commodity product and a stagnant user base. With prop firms, brokers gain clients who understand the markets, take measured risks, and contribute to a more dynamic trading ecosystem.
Prop firms act as the industry's great accelerator, opening the doors to exponentially more participants. This has brought a powerful new energy to the space, driving growth in technology, media, and trading talent. It is a welcome reawakening that has breathed new life into the entire retail sector.
A Safer, Smarter Future
The retail trading model has been static for decades. Prop trading is disrupting it, responsibly. We fund, we train, we empower. Our goal is not to gamble with people’s futures - it’s to create consistent, risk-aware traders.
Prop firms are not the enemy of brokers - they are their evolution. We are building the next generation of traders, portfolio managers, and market innovators. The revolution has already begun. Brokers can either adapt - or become relics.
