The5ers has become the latest prop firm to enter the futures arena with the launch of its new futures prop offerings. Several other contracts for difference (CFD) prop firms have also entered the futures prop sector, including big names such as FundedNext.
CFD Props See Value in Futures
The primary goal of most CFD prop firms expanding into futures prop offerings is to capture the lucrative US market. After the so-called crackdown by MetaQuotes on CFD props onboarding US-based traders, futures prop platforms filled the gap in that country. Now, brands such as TopStep, Apex, and MyFundedFutures lead the US futures prop space.
The5ers’ futures prop offerings will be available to traders worldwide, meaning it will onboard US-based traders as well.
As FinanceMagnates.com reported earlier, The5ers re-entered the US market with its CFD prop offerings late last year and is offering services there on the cTrader platform. Notably, only FTMO is offering prop services in the US on MetaTrader 5.
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Addressing the Gaps in the Market
The5ers will offer its futures prop products on the Black Arrow trading platform initially, but has plans to add additional platforms in the future.
“We realised that attracting traders from different backgrounds and disciplines means we need to find common ground for everyone,” said Gil Ben Hur, founder of The5ers.
However, The5ers’ entry into the futures prop market did not come as a surprise, as the company had hinted at its move months earlier.
Despite the launch, the futures offerings are still in beta, as the company wants to “ensure stability and optimal user experience.”
The futures platform stressed that it will allow traders to hold overnight positions in popular markets such as gold, silver, and the NASDAQ. It will also allow traders to trade the news. This comes as several other platforms have been introducing tight rules for traders.
Fundingticks, the futures prop unit of FundingPips, even introduced some harsh rules last December retrospectively, attracting backlash from the trading community. Although the company removed the retrospective effect of the rules, it eventually decided to wind down operations.
Meanwhile, the founders of The5ers have also followed industry trends by entering the CFD brokerage market with the Cyprus-regulated TSG brand.
This article was written by Arnab Shome at www.financemagnates.com.
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