The first four months of 2025 have been eventful for the proprietary trading (prop trading) industry. New firms launched by seasoned executives, a wave of funding model innovations, rapid shifts in trading platforms, growing community strategies, regulatory tremors, and a major acquisition all defined the quarter. Below is a structured recap of the key developments and emerging patterns in the prop trading space during January–April 2025.
A surge of new prop firms has marked the start of 2025, signaling both strong trader demand and investor confidence in the funding model. Here's a snapshot of the most notable launches:
This influx of new brands reflects a rapidly expanding and diversifying prop firm ecosystem, with models ranging from fast-payout structures to gamified dashboards and subscription-based access. Whether niche or mainstream, these new players are reshaping the competitive landscape.
The first months of 2025 have brought a clear shift in how prop firms fund traders. Instant funding is no longer a side option — it's becoming mainstream, standing alongside the classic challenge-based model.
Meanwhile, evaluation models are being reworked:
Firms are also loosening or reshaping rules:
To boost trader loyalty and competitiveness, firms are introducing:
The instant vs. challenge funding battle is reshaping what traders expect from day one. Most firms now offer both, giving traders real flexibility to match their style. But while innovation moves fast, regulation is not far behind.
Though still largely unregulated, the prop trading industry saw notable movement on the compliance front during 2025. Discussions around upcoming frameworks intensified, and one of the biggest headlines came from the launch of The Prop Association (TPA) — a self-regulatory body aiming to establish transparency and dispute resolution mechanisms within the industry.
While TPA drew attention for its logo's uncanny resemblance to that of the UK’s FCA, the initiative itself has seen early adoption, most notably from Blueberry Funded, which joined as an inaugural Founding Member. TPA’s stated goal is to offer external dispute resolution and to begin platform certification services, in a move seen as preempting stricter formal regulation.
Meanwhile, several European regulators — including the Czech National Bank — have publicly suggested that some prop firms may eventually fall under MiFID regulatory frameworks. ESMA also conducted a preliminary inquiry into prop trading platforms across the EU, further signaling that oversight is on the horizon. Read more
Additional pressure came from MetaQuotes, which restricted the availability of MT4 and MT5 licenses to prop firms serving U.S. traders. In response, some firms like Funding Pips secured direct MetaQuotes licenses, while others migrated to alternative platforms such as cTrader, Match-Trader, and TradeLocker. Read more
As PropInsider noted in its Navigating Regulatory Changes analysis, many firms have already begun investing in compliance training, payout audits, and infrastructure upgrades, preparing proactively for a more structured regulatory environment. Read more
The industry remains divided: while some welcome regulation to weed out bad actors, others fear that heavy-handed approaches could damage an innovative and fast-evolving sector. What’s clear is that 2025 could be a turning point in how prop trading is monitored and legitimized.
In a move that shook both the prop and brokerage sectors, Czech-based FTMO completed its acquisition of retail broker OANDA in early 2025. The deal gives FTMO access to OANDA’s licenses and infrastructure, potentially signaling a future where the lines between traditional brokers and prop firms blur even more.Read more
While FTMO stated that OANDA Prop Trader will remain operational as an independent entity, industry insiders see this as a strategic step toward vertical integration — with prop firms owning distribution and execution channels end-to-end.
The first four months of 2025 revealed a prop trading industry in transformation. While we didn't see dozens of new firms emerge, the launches that did take place — many of them led by experienced brokerage executives — were strategic, well-funded, and built for scale. Alongside the rise of instant funding as a dominant model, the comeback of MT5, and a wave of compliance initiatives, the industry is clearly stepping out of its experimental phase and into a more structured, mature era.
The landscape is being shaped by firms that act fast, listen to their traders, and invest in tools, trust, and transparency. From Fundora’s straightforward launch to Funded7’s multi-model approach, to FTMO’s landmark acquisition of OANDA, every move signals that this market is becoming more competitive — and more professional.
Meanwhile, the growing push toward self-regulation (via initiatives like The Prop Association), MetaQuotes’ licensing limitations, and ongoing ESMA scrutiny suggest that the freedom the industry currently enjoys may not last forever. Smart firms are already preparing.
For traders, this is a window of opportunity. The prop industry has never been more accessible, more competitive, or more tailored to trader needs. But with growth comes noise — and not every firm will survive the coming waves of compliance and consolidation
