Poll Reveals 60% of Prop Firm Clients Lose Funds, Investing $4,300 on Average

Although proprietary trading has been surging in popularity, this arena remains a challenging landscape where success eludes many. A recent PipFarm poll, exclusively obtained by Finance Magnates, sheds light on the current state of prop trading. The study, which gathered insights from 459 respondents, reveals a striking contrast: while the industry attracts many, only 40% manage to turn a nice dime.

The poll revealed that most retail traders (70%) start their market journey either with FX/CFD (51%) or cryptocurrencies (19%). Only one in nine people (14%) entered the markets through evaluation firms, while others indicated stocks, futures, or other instruments as their debut venue.

ASIC Is Monitoring the Emergence of Prop Trading Firms

In another of our exclusive stories of the week: “The Australian Securities & Investments Commission (ASIC) is monitoring the emergence of ‘prop trading’ firms or services relating to CFD trading,” confirmed Dr Rhys Bollen, the regulator’s Senior Executive Leader of the Digital Assets and Markets Group.

“An area for future focus for ASIC is the distribution of CFDs by issuers via emerging channels, such as ‘prop trading’ services. In 2024/25, we plan to undertake detailed surveillance of new and emerging distribution methods across the CFD industry and review consumer outcomes,” shared Dr Bollen.

Prop Firm Indigo Trader Funding Ceases Operations, Files for UK Strike-Off

In the volatile proprietary trading space, Indigo Trader Funding suspended its Discord and then stopped engaging on other social media channels. The troubled firm later filed an application to strike the company off the UK's official register. This is the latest prop firm to collapse recently, potentially leaving clients without their due funds.

As recently as late last month, Indigo was conducting business as usual, advertising its products and services on popular prop firm channels, including Discord and X (formerly Twitter). However, activity on the latter platform suddenly ceased on July 23, where previously there had been numerous posts.

Prop Firm Goat Funded Trader Considers Adding cTrader After MetaTrader Departure

This year, Goat Funded Trader (GFT) moved away from MetaQuotes' trading platforms twice, prompting the search for suitable replacements. In response, the company first introduced TradeLocker access and is now contemplating the inclusion of cTrader. GFT's CEO, Edoardo Dalla Torre, recently sought community feedback on this potential addition.

This week, Dalla Torre posted on GFT's official Discord channel, hinting at the possible addition of another platform to their lineup. “We heard you want cTrader as well. Recently, we introduced TradeLocker. Should we add cTrader?” the CEO inquired.

Scope Markets Is Rebranding, Taking Final Step in Rostro Group Integration

Scope Markets rebranded and presented a new logo, Finance Magnates learned exclusively. “The motivation is to align our core foundational focus of building a multi-brand financial services group,” revealed Michael Ayres, CEO of Rostro Group, which includes Scope. Ayers added that the number of active clients increased by over 30% in 2024 while volumes grew by 150%.

Scope Markets has prepared a brand overhaul that aims to reflect the company's approach to offering clients more financial instruments and products. On the one hand, Scope is focusing on “democratizing” access to investing, while on the other, it's adapting its current offering to the increasing number of clients, which, according to the company, has reached record levels.

TipRanks Lands in Prytek’s Hands with $200M Deal

Prytek, an international technology group, acquired TipRanks, an investment research platform, for approximately $200 million. TipRanks provides alternative datasets and insights to both retail investors and financial institutions.

The platform serves over 50 million users each month and has a client base that includes notable financial institutions such as Nasdaq, Robinhood, CIBC, Morgan Stanley, TD, and Rakuten. TipRanks was founded in 2012 by Gilad Gat and Uri Gruenbaum. Prytek’s relationship with TipRanks dates back to 2017 when it made a strategic investment in the platform.

Trading 212 Acquires FXFlat in Expansion into Germany

Trading 212, a fintech firm offering cash equities and contracts for differences (CFDs), acquired FXFlat Bank GmbH in an expansion into the German market, the latter announced. This acquisition aims to provide German investors with access to Trading 212's zero-commission investing platform, an offering promising to disrupt traditional brokerage models in the UK and Europe.

The acquisition of FXFlat Bank GmbH represents a leap for Trading 212. Known for zero-commission investing, Trading 212 has built a reputation across the UK and Europe. The latest acquisition allows the company to operate within Germany through a fully licensed German entity.

CySEC Overhauls Digital Onboarding Rules, Harmonizes with EU Standards

Lastly, the Cypriot regulator, CySEC, issued a “Policy Statement on the Enhancement of the Non-Face-to-Face Customer Onboarding Process with Electronic Methods” last week. The Statement is a welcome alignment with EU norms and technological advancements.

It removes unnecessarily specific arrangements in favor of a more balanced, material approach. Among the elements highlighted are technology neutrality, risk management, GDPR, and information security. This aims to improve not only compliance but also customer experience.

Until next week!