The retail proprietary trading industry, traditionally associated with the United States, has found a new hotspot: the United Arab Emirates (UAE). Now the world's third most popular destination for prop trading, the UAE is attracting both prop firms and retail traders alike.

Finance Magnates conducted an in-depth review of the local industry in the Middle East, comparing four popular firms headquartered in the heart of the MENA region: AquaFunded, Blue Guardian, City Traders Imperium, and FundedNext.

The Rise of Prop Trading in the UAE

The Middle East, particularly the UAE, has become a magnet for financial firms worldwide. The region's appeal stems from its attractive tax advantages, strategic location, and business-friendly environment. With their streamlined and favorable regulations, cities like Abu Dhabi and Dubai have become hotbeds for popular CFD and cryptocurrency firms. Now, they're increasingly drawing in prop trading businesses as well.

The region gained significant attention in 2024 when regulatory issues began to surface in the US prop market. MetaQuotes, a provider of popular trading platforms like MetaTrader, withdrew licenses and services from many local firms, blocking access to clients from this part of the world.

As a result, traders migrated to Middle Eastern entities, and many firms began relocating to the UAE or neighboring countries. Currently, the UAE ranks as the third most popular jurisdiction among trader-funded firms (TFTs), accounting for nearly 8% of them, right behind the United States and the United Kingdom.

As the US grapples with regulatory crackdowns and Europe contemplates regulating the prop trading industry, the Middle East has emerged as an attractive alternative. The region offers traders and firms access to high leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and a diverse range of trading instruments, making it an increasingly appealing destination.

AquaFunded: The New Kid on the Block with 90% Profit Split

First in our lineup is AquaFunded, the newest entrant in the local market. Founded in December 2023 by Jason Blax, the firm offers traders access to cTrader, Tradelocker, and Match-Trader platforms.

In February 2024, when the prop trading industry faced temporary paralysis, AquaFunded briefly suspended new client registrations from the US. However, they quickly bounced back, launching a new regulated broker and introducing an alternative to MetaQuotes platforms with software from Match-Trade Technologies.

Great News for Aqua Traders 🌊

Match-Trade Coming Soon 💙

Stay tuned for even more amazing news! Don't underestimate the wave 🤫 pic.twitter.com/Cy6b0igHM5

— AquaFunded (@AquaFunded) May 15, 2024

AquaFunded's offering closely mirrors its competitors: high leverage up to 100:1, funded accounts ranging from $5,000 to $200,000, and a low entry threshold starting at around $40.

Since the beginning of the year, the firm has paid out $1.3 million to its traders and currently serves over 10,000 retail investors. The company also boasts a unique promise: if a trader doesn't receive their due funds within 48 hours, AquaFunded will pay out their entire realized profit as compensation.

Blue Guardian: A Veteran with a Wide Platform Selection

Blue Guardian stands out as one of the longer-established firms in the UAE prop trading market. It currently offers the widest selection of trading platforms, including MetaTrader, Match-Trader, DXtrade, and Tradelocker.

Blue Guardian, founded by Sean Bainton, has been operating since January 2021. Like its competitors, it offers 100:1 leverage and the ability to trade on all popular CFD instruments. The firm also provides some of the most affordable $10,000 accounts, with challenge entry costs as low as $49.

In February, Blue Guardian also faced temporary issues and suspended access to its services for U.S. clients. However, they've resolved this problem over the past few months by implementing new platforms, including DXtrade.

As of now, new account registrations are restricted for US clients. This applies to both US residents and individuals with dual citizenship residing in the US.

Existing US clients can continue trading without interruption until further notice.

Clients outside the US remain…

— Blue Guardian (@BlueGuardiancom) February 19, 2024

Throughout its history, the firm has paid out $9 million to more than 25,000 traders from more than 130 different countries.

City Traders Imperium: Catering to Experienced Traders

City Traders Imperium boasts the most established position in this lineup, having been present in the Middle East prop trading market for six years. Founded by Daniel Martin and Martin Najat, the firm offers trading via MetaTrader 5.

While City Traders Imperium does offer "standard" challenges and small accounts starting at $2,500 with minimal initial fees, their main offering targets accounts where traders don't need to undergo additional evaluation.

The key difference lies in the significantly lower financial leverage offered (maximum 30:1), higher fees (reaching almost $5,000), and a smaller profit split maxing out at 80%.

According to information on the company's website, City Traders Imperium boasts over 36,000 funded traders and more than $367 million in funded capital.

FundedNext: Offering the Highest Profit Split

FundedNext stands out as the only prop firm mentioned in this article that offers MetaTrader 4, one of the most popular platforms among retail traders. Additionally, trading is available on MT5 and cTrader.

Founded in March 2022 by Abdullah Jayed, the firm offers the highest profit splits in the industry, reaching up to 95%. However, some of their challenges also come with the highest profit targets in the business. While these typically range from 6-10%, FundedNext's targets can sometimes reach 25%.

The February issues didn't spare FundedNext, which temporarily suspended new sign-ups from the United States. However, this doesn't seem to have significantly impacted the company's overall operations.

FundedNext serves traders from over 195 countries and manages nearly 100,000 traders, having paid out $95 million in total rewards to date.

Which Prop Firm Should You Choose?

As the prop trading landscape continues to evolve, the UAE's emergence as a key player offers traders and firms alike new opportunities and challenges. Whether you're a seasoned trader or just starting out, understanding the offerings of these UAE-based firms could be crucial in navigating the ever-changing world of prop trading.

AquaFunded and FundedNext offer the widest range of account sizes, from $5,000 to $200,000, making them suitable for both beginners and experienced traders. Blue Guardian starts at a slightly higher $10,000, while City Traders Imperium offers a unique range from $2,500 to $100,000.

In terms of fees, City Traders Imperium has the lowest starting fee at $33, but their highest fee is significantly more than the others at $4,799. FundedNext offers the most competitive fee range from $30 to $1,044.

The choice ultimately depends on your specific needs:

• For beginners or those preferring lower initial investments: Consider AquaFunded
• For traders seeking the highest potential profit split: FundedNext might be the best choice.
• For those prioritizing platform familiarity: Blue Guardian offers the most common options.
• For traders looking for a more established firm: City Traders Imperium, founded in 2018, has the longest track record.

If you're interested in exploring other alternatives, check out Finance Magnates' review of four FX/CFD brokers who also offer prop trading services. In a separate review, you'll find a detailed overview of four popular prop firms from the US.