No More "Wild West", How Prop Traders Can Break Through the Industry Shake-up?

Proprietary trading is no longer a niche game. While industry giants generate hundreds of millions of dollars in annual revenue, other once-illustrious names have collapsed under the weight of fraud allegations. Within this multi-billion dollar track, the steady expansion of FTMO stands in stark contrast to the regulatory implosion of My Forex Funds (MFF). As we approach the end of 2025, traders face more complex choices: stick with the high-leverage CFD model, or pivot to the regulated futures arena?

The Giants' Data Revelation

Over the past few years, the prop trading industry has undergone explosive growth, reaching a scale far beyond the imagination of many retail traders. Take FTMO as an example: founded in 2015 and headquartered in Prague, Czechia, this veteran firm saw its 2023 turnover hit a staggering $213 million. Even more notable is that its platform has climbed to 2.3 million accounts, attracting top-tier global talent with profit splits as high as 90%. These figures serve as powerful evidence of the massive potential within the "funding talented traders" business model.

However, there is a dark shadow on the flip side of this prosperity. My Forex Funds (MFF), formerly based in Toronto, Canada, revealed the other side of the coin. Founded in 2020, the company attracted over 135,000 traders in just over two years (2021-2023), raking in approximately $310 million in evaluation fees. Yet, the myth came to a screeching halt in 2023 when regulators forcibly shut it down over fraud allegations. The fall of MFF became an industry watershed, ruthlessly exposing how some platforms in the unregulated "Wild West" leveraged "betting against clients" to harvest capital.

Moving Beyond MT4 Dependency

Beyond the regulatory storm, shifts in technical infrastructure are reshaping the daily experience of traders. For a long time, MT4/MT5 were the absolute mainstream of the prop industry. However, as software provider MetaQuotes began restricting "Grey Label" licenses for prop firms, many platforms were forced to seek alternatives. This has driven a surge in popularity for other platforms, forcing traders out of their comfort zones to adapt to new interfaces and tools.

Simultaneously, the range of tradable assets is quietly expanding. While Forex remains dominant, cryptocurrencies and stocks are becoming new growth engines. Some prop projects now specifically target crypto traders, providing funded accounts for Bitcoin or Ethereum futures, though this market share remains small compared to Forex. In the equities sector, with the rise of remote work, traditional office-based prop trading is migrating online, allowing global traders to participate in stock market speculation via CFDs or futures.

The Stakes of Speed and Scale

In addition to the competition for compliance, major platforms are caught in an "arms race" regarding capital access models. The5%ers, based in Tel Aviv, Israel, has carved out a market niche since 2018 with its unique "Instant Funding" model. Unlike competitors that require lengthy evaluations, The5%ers provides a faster track to capital and features an aggressive scaling plan—doubling the account size whenever a trader achieves a 10% profit.

Meanwhile, a wave of emerging platforms since 2020 (such as The Funded Trader, FideLcrest, etc.) has experimented with stocks and multi-asset classes. However, the industry's "survival of the fittest" never ceases; data shows that in 2024 alone, an estimated 80 to 100 prop firms closed down due to intensified competition or regulatory pressure.

Conclusion

The prop trading industry is leaving its "grassroots" era and entering a new epoch dominated by compliance and institutional strength. The sheer volume of FTMO proves the industry's ceiling, while the collapse of MFF defines the legal floor.

For traders, the choice today is no longer just about "who offers a higher profit split," but "who can survive the longest." When attempting to break through, it is essential to look past the flashy marketing figures and scrutinize the platform's registration, regulatory status, and the sustainability of its business model. After all, in the world of trading, the safety of principal always precedes the growth of profit.