Is Regulation Coming for Prop Firms?

Prop firm updates, are regulators coming for the prop trading industry. In this video I talk about the potential future of prop firms, recent regulatory actions, and what major players in the industry are doing to adapt.
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[@daviddombrowsky522]

This is David, CEO of FX2 Funding. We are looking forward to welcome regulation in the industry. We exited the US in September of 2023, way before all other firms, in order to not be out of compliance from the CFTC, which prohibits CFD trading. Too many fly-by firms with flashy CEOs and low- bar- to-entry models are hurting the industry. I'm looking forward to this inevitable consolidation, so the true firms with integrity, capital resources and business smarts are here for the long run and properly regulated to serve the industry fairly.

[@BKForex]

Smart move by someone who clearly has more industry experience than the fly by night 23 year olds

[@yousifyasin6043]

Great article explaining the A Booking & B Booking. l love your show Kathy

[@BKForex]

Thank you!

[@WhichWaytoHeaven]

Good insights, Kathy!!

[@BKForex]

Glad it was helpful!

[@tradedonor]

Definitely agree with you. I recently started Axi Select and Darwinx. We need regulation, I'm tired of the scams.

[@JCYS1860]

Don't believe axi select. It is a bad broker's sub company.

[@BKForex]

I would stick with the big names as well. More brokers will be offering funded programs for sure.

[@fahimshahariar6179]

love the video

[@BKForex]

Thanks

[@jnibs6426]

This is simply another example of the powers that be wanting to keep the "small" man small. Prop trading is quite possibly one of the best ways for a person to climb the socioeconomic ladder.

[@BKForex]

It is amazing how people really see the value to prop. There are certainly "problems" but with the difficulty in finding jobs, being able to trade with low starting capital is very attractive to new grads

[@mettakindness5999]

I like your videos and updates with respect to the prop firm industry. I’d be interested to hear you and Boris thoughts about A-booking and how viable that is for prop firms. If rules are too tight then gambler traders won’t trade and that’s a lot of money props would miss out on in terms of fees. Some Futures firms are allowing traders to have a live account. Is there any publicly available information that breaks down what percentage of profit those companies make from A-booking traders and using their trade info to do copy trading for the firm to boost their profits vs the amounts collected in fees from failed traders? What do you think of bigger brokers doing copy trading of good traders, assuming they offered prop services? Are brokers currently allowed to look at the profitable traders on their books and do copy trading to generate additional income for themselves?

[@valentinojuracic7177]

Thanks

[@BKForex]

Welcome

[@AindriuMacGiollaEoin]

Interesting to see what regulations will appear

[@BKForex]

I think funded accounts will require real capital

[@belfasttiger]

Thanks great video, my thoughts are traders will gravitate back to the bigger more recognized firms like Ftmo and the smaller players will disappear.

[@BKForex]

100% consolidation. The smaller players wont be able to compete the same

[@halkins1]

OMG 😱😱😱 no, no, no... If the regulators touch the industry it means more bad than good. These guys can spoil everything 😢😢😢

[@HereIsmarcus]

I sincerely hope regulators are coming. I got stung

[@BKForex]

They are definitely working on it behind the scenes

[@carlosescurra7819]

What I don't understand about leverage restrictions is this: if you want to risk 50% of your account, it doesn't matter if the leverage is 1:1000 or 1:10, you'll be able to do it. Higher leverage only allows tighter stop loss: restricting it only affects scalpers who won't be able to trade the way they want. My thought process is correct?

[@hans6422]

No

[@gusmanue8337]

I agree poor risk management is not correlated with order size. A bad trade with a big size just quickens your demise. Lower leverage just means you will get stopped out slower that's it

[@normanfagan]

Wish they would leave well enough alone...

[@maderastuff]

Useless incompetent SEC will undoubtedly have an opinion that is good for no one but large brokerages. Id rec everyone who works in USA finance to trade the shit out of prop firms before finra and sec ruin this for everyone but brokers and your boss.

[@georgem3099]

May I ask your opinion on Apex funding trader?

[@BKForex]

They are our futures trading partner currently. Customers seem happy, Boris says they make it easy to pass - we've had many members pass. 90% off ends June 3rd apextraderfunding.com/?c=IJNMGGQZ

[@user-zk5om6ee9u]

Apex is starting to make getting payouts more difficult. Learn proper risk management and a profitable trading strategy and trade your own money.

[@georgem3099]

Yeah that’s what I hear

[@gabrielc5642]

God bless, prop industry along cfd fx market is a mess

[@BKForex]

Many people love it though

[@roni1451]

I'm confused by virtual... that's just demo account since that's virtual.

[@iSmailHossain-dx4mt]

how is FTMO ?

[@BKForex]

One of the oldest with high Trustpilot ratings

[@sibonelelohlatshwayo7753]

This will force brokers to all be prop firms in the future. This means 20yrs to come there will be only prop firms that they own their broker. No one will be trading personal account

[@BKForex]

There will always be people who dont want to be hampered by all of the prop rules and who just want to trade their own account their way

[@jmay8172]

ESMA tends to ruin decent retail trading environments, impose current US conditions all over Europe

[@BKForex]

Regulation anywhere means more restrictions for traders

[@mrume1122]

Regulators We regulate any stealin' of his property We're damn good too But you can't be any geek off the street You gotta be handy with the steel, if you know what I mean Earn your keep Regulators, mount up!

[@halkins1]

I gave a LIKE but I find this video so sad 😢😭

[@BKForex]

Reality can be hard!

[@SomeTrader74]

Prop firms are competition to Wall Street and Wall Street don’t like it. Say no more.

[@BKForex]

Its competition with the brokers - they dont see most of the flow

[@user-zk5om6ee9u]

Prop aka Scam firms need to go out of business and the founders arrested for their scam.

[@meijin888]

Surgetrader was a joke

[@BKForex]

After the ponzi scandal everyone (like us) should have run for the hills

[@deejay4837]

Let them all just fizzle away. Look on the forums these people are pretty wreckless and don't even care if they burn the accounts. Amateurs and dreamers not traders.