The prop
trading industry has just witnessed its most dramatic shake-up yet. Over the
past year, between 80 and 100 proprietary trading firms have shut down,
challenge pass rates have plummeted, and the average trader’s investment has
dropped by 50%. Yet, amid the chaos, a few dominant players are emerging
stronger than ever.
Even 100 Prop Firms Gone
in 2024
According
to estimates gathered by Finance Magnates Intelligence, between 80 and
100 proprietary trading firms may have disappeared from the market in 2024. This aligns with data presented by FunderPro mid-year, which estimated that the number had already reached around 50 firms at that time.
At the
heart of this upheaval is a single industry-altering event—MetaQuotes’ decision
to step back from supporting prop firms. This move sent shockwaves through the
market, forcing traders and firms to rethink their strategies, diversify
platforms, and ultimately accelerate industry consolidation.
“I expect
many more prop firms to close, cease or halt operations and/or find themselves
on the wrong end of lawsuits and social media attacks,” Justin Hertzberg, the
CEO of FPFX warned.
The numbers
tell the story. 300,000
prop trading accounts analyzed by FPFX Tech reveal a fundamental shift in
trader behavior. While MetaTrader 5 still holds a 61.9% market share,
alternative platforms like cTrader, DXtrade, MatchTrader, and TradeLocker have
seized the opportunity, reshaping
a once-monopolized space.
But here’s
the real shocker: as dozens of firms collapsed, one
of the largest prop firms just acquired a major FX/CFD broker. The
consolidation is happening fast, and only the strongest are surviving.
Meanwhile,
pass rates have fallen, and payouts have tightened—suggesting
an industry favoring survival over speculation. The profile of the “average prop trading Joe” has changed, and we have the data:
Is prop
trading still the high-growth phenomenon it once was? Who are the winners and
losers in this shifting landscape? And what does this mean for retail traders?
Find out
in the Finance Magnates
Quarterly Industry Report, where we break down the data, the trends, and
the next big moves shaping prop trading in 2025.
This article was written by Damian Chmiel at www.financemagnates.com.
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