Somesh Kapuria, the former Head of Business Development at AAAFx Global, is the latest forex and contracts for differences (CFDs) industry executive to launch his own prop trading platform, Finance Magnates has learned.
While Kapuria founded the new prop platform Hola Prime and is acting as its CEO, he is no longer associated with AAAFx. The prop trading platform also denied any links with AAAFx or its parent company, Finvasia, which owns several trading industry brands.
Recently, FX and CFDs broker ATFX also confirmed its entry into the prop trading industry, joining other brokers like OANDA, Axi, Hantec, Trade.com, and others. The former Chief Revenue Officer at BDSwiss, Andreas Andreou, also launched his own prop brand after his separation from the brokerage.
Targeting Developed Trading Markets
Kapuria’s new prop trading platform will primarily target traders from the United Kingdom, Canada, Australia, and the European Union, as it believes these countries have many skilled and experienced traders. It will also offer services to traders in the United States. As Finance Magnates reported earlier, 20 percent of prop traders come from the US, while 10 percent are based in the UK, according to FPFX Tech data.
Hola Prime, which offers demo account prop trading services, is registered in Hong Kong but has already established offices in Cyprus, Dubai, and India. The company told Finance Magnates that it has a current headcount of over 100 and is in the process of opening a new office in the UK.
Furthermore, a Hola Prime affiliate, Hola Markets, has also obtained an offshore brokerage licence from the regulator on the island of Comoros. “We don't need to work with any outside broker as we have our own broker licence,” a Hola Prime representative told Finance Magnates, adding, “we use our in-house technology, and we directly work with top-tier global liquidity providers to source institutional-grade liquidity.”
The platform is offering Match Trader, DXtrade, cTrader and two MetaTrader trading platforms, MT4 and MT5. However, the MetaTrader trading platforms are only available to non-US traders, according to the prop trading platform.
An Experienced Financial Industry Executive
Kapuria launched his prop trading firm when there were already dozens, if not hundreds, of such firms offering services. While many established brokers are now entering this space, some smaller ones have closed, citing various reasons.
“Many prop firms have not been successful, which has shaken the trust of traders,” Kapuria told Finance Magnates. “But at the same time, there are some firms that have been running successfully due to their solid fundamentals.”
“In my view, the firms operating in a way that truly benefits them when their traders profit will be the ones to sustain. The firms that stick to transparency and self-governance will succeed, as there is a consistently growing number of talented traders who want to make it big in their lives.”
Apart from his role at AAAFx, Kapuria also spent a significant portion of his career at established financial services companies. According to his LinkedIn profile, he served about 13 years at Citi's New York and India offices. He also had a short stint at BlackRock and runs a company called Algomill Technologies, which offers technological infrastructure to FX and CFDs brokers.
Interest of Regulators
Although prop firms have existed for some time, the industry's popularity has increased in recent years. The influx of retail traders into this space has also prompted regulators to pay attention to them. As Finance Magnates reported earlier, the pan-European regulator ran initial checks, and its Australian counterpart is also monitoring prop trading firms.
“We are an advocate of having regulations,” Kapuria said. “They help establish solid operations that are process-driven with various checks and balances in place. With the proper use of technology, regulations help achieve efficiency and scalability while also simultaneously reducing the business risk.”
Meanwhile, the Indian central bank recently mentioned two prop trading companies in its warning list, which also included CFDs broker ThinkMarkets along with some other names. The warning list already includes many well-known brokers, like eToro, IC Markets, and XTB.
