With the support of the right technology vendor, it is possible to launch a prop firm investing $5,000 and a percentage of the firm's net revenue.
Misuse of data is one of the primary concerns with the growing popularity of third-party vendors.
The prop trading industry has grown rapidly, with new entities appearing frequently. This expansion raises questions about the ease of entry into the market, the integrity of its operations, and the implications of its technological foundations.
The Illusion of Exclusivity
Traditionally, setting up a prop firm was seen as a venture requiring significant capital, trading expertise, and operational efficiency. However, recent trends suggest this perception may not reflect reality. With the support of the right technology vendor, it is now possible to launch a prop firm with a modest investment of around $5,000 and a percentage of the firm's net revenue.
Although, developing in-house prop trading technology is costly, some resourcefull companies already present in the retail trading industry are opting to take the in-house technology route.
Siju Daniel, CCO of ATFX and their proprietary trading arm ATFunded
“We thoroughly researched various options for technology for our ATFunded project. We concluded it was better to develop in-house rather than use a third-party vendor,” said Siju Daniel, Chief Commercial Officer of ATFX and ATFunded. “This isn’t to downplay the work of third-party vendors, but our project requires flexibility. Vendors have contributed significantly to the space, offering time advantages for new participants.”
However, these costs are not for everyone, especially those starting afresh in the prop trading industry. Most of them usually onboard third-party vendors for their technology needs.
These vendors provide technology that combines expertise and efficiency, offering solutions refined over time to save new entrants from the lengthy and costly process of developing proprietary software. Additionally, leveraging existing tech solutions is far more cost-effective than the substantial expense of hiring and maintaining an in-house development team.
Yavuz Karadeniz, Director of Community Development at E8 Markets
“Launching a prop trading platform can be relatively straightforward if you rely on third-party end-to-end tech providers. These solutions handle most of the heavy lifting, including trader evaluations, risk management, and user interfaces,” said Yavuz Karadeniz, Director of Community Development at E8 Markets, a prop trading platform.
Jon Light, Head of OTC Platform at Devexperts, noted that if a platform is “building the tech from scratch or on top of an existing CRM, it’s a lot of work.”
Technology Vendors: Facilitators or Gatekeepers?
Technology vendors offer various services, from full-service operations that manage an entire prop firm to tech-only solutions with flat monthly fees. Pricing varies significantly, with setups costing between $5,000 plus a 25% share of net revenue and fixed rates exceeding $15,000 with per-user fees. However, this convenience comes with responsibilities.
Given the history of scams in the prop trading space, technology vendors have a responsibility to conduct thorough due diligence, raising the question of whether they should also ensure their clients are legitimate operators. Reports of traders receiving unsolicited services via email highlight potential data privacy breaches, sparking concerns about how prop firms acquire and manage trader data and whether technology providers enforce stringent data protection measures.
Possible Conflict of Interest
The overlap between technology vendors and prop trading firms creates complex issues. When a tech vendor also operates a prop firm, the distinction between service provision and competition may become blurred. This situation challenges industry ethics, fairness, and data integrity. Conflict of interest in the prop trading sector can also arise in areas such as fair use of data, technology sharing, and ethical practices.
The Case of Data Misuse
Data misuse is a major concern, especially in the unregulated prop trading sector.
For example, consider a scenario where a defunct prop firm’s user database is used by another firm for marketing. This not only breaches trust but may violate privacy laws and ethical business practices. However, if used correctly, data in prop trading can bring benefits to prop trading firms.
Jon Light, Head of OTC at Devexperts, Source: LinkedIn
As Devexperts' Light highlighted: “When tech providers serve multiple prop firms, efficiencies can arise from data sharing, like sharing information about traders. For example, if one trader has been blocked for breaking the rules on one prop firm, their details and IP can be shared across the others”.
The Technology Conundrum
In prop trading, technology isn't just a tool; it's the backbone that supports operations, compliance, and client interactions. When the same technology platform is used across different firms, especially within a network with shared ownership or interest, the integrity of data handling becomes paramount.
Industry actors point out some conflicts that may arise. For instance, the sharing of client databases for marketing purposes without explicit consent risks violating privacy norms. Additionally, a company's ability to leverage its technological infrastructure across various related businesses may create an inherent competitive advantage, potentially distorting the market landscape.
"For the prop trading industry to thrive", one of them says, "technology vendors must enforce clear boundaries. Transparent data usage policies and adherence to laws like GDPR are vital to prevent misuse. Regular independent audits can further ensure tech platforms are not exploited for competitive advantage".
The prop trading industry has grown rapidly, with new entities appearing frequently. This expansion raises questions about the ease of entry into the market, the integrity of its operations, and the implications of its technological foundations.
The Illusion of Exclusivity
Traditionally, setting up a prop firm was seen as a venture requiring significant capital, trading expertise, and operational efficiency. However, recent trends suggest this perception may not reflect reality. With the support of the right technology vendor, it is now possible to launch a prop firm with a modest investment of around $5,000 and a percentage of the firm's net revenue.
Although, developing in-house prop trading technology is costly, some resourcefull companies already present in the retail trading industry are opting to take the in-house technology route.
Siju Daniel, CCO of ATFX and their proprietary trading arm ATFunded
“We thoroughly researched various options for technology for our ATFunded project. We concluded it was better to develop in-house rather than use a third-party vendor,” said Siju Daniel, Chief Commercial Officer of ATFX and ATFunded. “This isn’t to downplay the work of third-party vendors, but our project requires flexibility. Vendors have contributed significantly to the space, offering time advantages for new participants.”
However, these costs are not for everyone, especially those starting afresh in the prop trading industry. Most of them usually onboard third-party vendors for their technology needs.
These vendors provide technology that combines expertise and efficiency, offering solutions refined over time to save new entrants from the lengthy and costly process of developing proprietary software. Additionally, leveraging existing tech solutions is far more cost-effective than the substantial expense of hiring and maintaining an in-house development team.
Yavuz Karadeniz, Director of Community Development at E8 Markets
“Launching a prop trading platform can be relatively straightforward if you rely on third-party end-to-end tech providers. These solutions handle most of the heavy lifting, including trader evaluations, risk management, and user interfaces,” said Yavuz Karadeniz, Director of Community Development at E8 Markets, a prop trading platform.
Jon Light, Head of OTC Platform at Devexperts, noted that if a platform is “building the tech from scratch or on top of an existing CRM, it’s a lot of work.”
Technology Vendors: Facilitators or Gatekeepers?
Technology vendors offer various services, from full-service operations that manage an entire prop firm to tech-only solutions with flat monthly fees. Pricing varies significantly, with setups costing between $5,000 plus a 25% share of net revenue and fixed rates exceeding $15,000 with per-user fees. However, this convenience comes with responsibilities.
Given the history of scams in the prop trading space, technology vendors have a responsibility to conduct thorough due diligence, raising the question of whether they should also ensure their clients are legitimate operators. Reports of traders receiving unsolicited services via email highlight potential data privacy breaches, sparking concerns about how prop firms acquire and manage trader data and whether technology providers enforce stringent data protection measures.
Possible Conflict of Interest
The overlap between technology vendors and prop trading firms creates complex issues. When a tech vendor also operates a prop firm, the distinction between service provision and competition may become blurred. This situation challenges industry ethics, fairness, and data integrity. Conflict of interest in the prop trading sector can also arise in areas such as fair use of data, technology sharing, and ethical practices.
The Case of Data Misuse
Data misuse is a major concern, especially in the unregulated prop trading sector.
For example, consider a scenario where a defunct prop firm’s user database is used by another firm for marketing. This not only breaches trust but may violate privacy laws and ethical business practices. However, if used correctly, data in prop trading can bring benefits to prop trading firms.
Jon Light, Head of OTC at Devexperts, Source: LinkedIn
As Devexperts' Light highlighted: “When tech providers serve multiple prop firms, efficiencies can arise from data sharing, like sharing information about traders. For example, if one trader has been blocked for breaking the rules on one prop firm, their details and IP can be shared across the others”.
The Technology Conundrum
In prop trading, technology isn't just a tool; it's the backbone that supports operations, compliance, and client interactions. When the same technology platform is used across different firms, especially within a network with shared ownership or interest, the integrity of data handling becomes paramount.
Industry actors point out some conflicts that may arise. For instance, the sharing of client databases for marketing purposes without explicit consent risks violating privacy norms. Additionally, a company's ability to leverage its technological infrastructure across various related businesses may create an inherent competitive advantage, potentially distorting the market landscape.
"For the prop trading industry to thrive", one of them says, "technology vendors must enforce clear boundaries. Transparent data usage policies and adherence to laws like GDPR are vital to prevent misuse. Regular independent audits can further ensure tech platforms are not exploited for competitive advantage".
73% of Young Investors Say Traditional Wealth Building Is Broken – Here’s How They Trade Instead
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.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
