Which Are Broker-Launched Prop Brands?
Hantec Group
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Broker: Hantec Markets
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Regulation: FCA/ASIC/FSC
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Payout Proof: Discord channel & proof
OANDA Group
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Broker: OANDA Global Markets
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Regulation: FCA/ASIC/CFTC/IIROC/FSA/MAS
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Payout Proof: No Discord, no proof
ThinkMarkets Group
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Broker: ThinkMarkets
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Regulation: FCA/ASIC/JFSA/FSCA/FSA/CIMA/CySEC/NZFMA/DFSA
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Payout Proof: Discord channel & proof
Blueberry Group
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Broker: Blueberry Markets
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Regulation: ASIC/VFSC
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Payout Proof: Discord channel & proof
How to Choose Broker-Launched Prop Brands?
Prop trading brands launched by traditional CFD brokers usually have liquidity provided by their own brokers, making them truly "Broker backed" among the many prop firm brands.
When choosing these broker-launched prop brands, I tend to first understand the broker's background, such as:
- Which broker is it?
- What licenses does the broker hold?
However, choosing a prop firm based on the broker's background deviates from the typical way of selecting prop firms. After all, even if the broker itself holds top-tier licenses, it doesn't guarantee they won't stumble in the prop trading sector. For us as traders, it just adds another layer of filtering.
But this doesn't mean we should ignore the challenge rules, reputation, and other conditions of these prop brands. These factors are absolutely important and cannot be overlooked.
In terms of selecting broker prop brands, I would judge from both the broker's and prop firm's perspectives before making a choice.
Choosing from the Broker's Perspective
The Broker Itself
Among many brokers, why have only these few launched prop brands? Try to think about the logic and reasons behind this. Is the broker:
- Not profitable in its brokerage business, so they're trying to make money from prop trading?
- Does the broker have a good reputation or withdrawal record in its brokerage business?
- …
Or, is the broker:
- Already involved in many areas and just riding the trend of retail prop trading?
- Meeting market demand from existing brokerage clients?
- …
Broker's Licenses
First, understand that "regardless of which regulatory licenses are held, there is no guarantee for prop firm clients."
But starting from the license perspective, if they hold top-tier regulatory licenses like UK's FCA or Australia's ASIC, we can gauge how seriously the broker takes its brokerage business. Therefore, they "should" not mess around with their prop trading business, which could affect their brokerage operations.
Choosing from the Prop Brand Perspective
Prop Trading Rules Design
Different prop brands naturally have different rules. Understanding these rules is the same as selecting any prop firm, choosing one that suits your trading style based on profit targets, drawdown limits, challenge periods, etc.
Smooth Withdrawals
If there are successful traders sharing proof of smooth withdrawals, that's the best selection criteria. This is also the simplest and most straightforward way to choose any prop firm, including broker-launched prop brands.
However, since the prop trading industry is not yet regulated and there's no requirement to disclose withdrawal records, the current common practice to gain traders' trust is to apply the standards used in the prop trading industry to broker-launched prop brands.
Usually in the prop trading industry, it's common to set up a Discord (DC) withdrawal channel for traders to share, so you can also observe if the above prop brands have similar setups or other withdrawal proofs.
Broker-Launched Prop Brands vs Pure Prop Firms
There's no substantial difference between choosing broker-launched prop brands or pure prop firms. The only difference is that you need to consider the broker's background when selecting. The pros and cons of this are debatable. Will the transparency of the brokerage business extend to the prop brand? Or does the backing of the brokerage business give the prop brand room to develop?
These questions can't be answered definitively before clear industry regulations are in place. We can only choose prop firms suitable for ourselves based on objective conditions.
As retail prop trading becomes increasingly popular, more and more brokers are launching their own prop brands. The trend of brokers developing prop trading businesses has taken shape. If these traditional brokers enter the prop trading industry with their resources and customer base advantages, it could pose a significant challenge to prop firms without a brokerage background.
In terms of regulation, many regulatory authorities have started to pay attention. In 2023, the US FINRA, in 2024, the Czech National Bank in Europe have expressed opinions, and some EU jurisdictions have begun to monitor prop trading industry activities. However, comprehensive regulatory measures for the prop trading industry have not yet been introduced.
Currently, there are three voices in the regulatory discussion: "drafting new rules," "applying the old MiFID framework," or a "hybrid system." If one of these three is adopted, it could be a significant advantage for prop brands with a brokerage background.
Currently, FTMO, the leading prop trading company without a brokerage background, is also preparing to develop into a broker, seemingly predicting dramatic changes in the future industry to face this challenge.
Risk Warning:
Forex and Contract for Difference (CFD) margin trading carries a high level of risk and may not be suitable for everyone. The high degree of leverage can work against you as well as for you. Before deciding to trade forex and CFDs, you should carefully consider your trading objectives, level of experience, and risk appetite. You may sustain a loss of some or all of your initial investment. You should be aware of all the risks associated with forex and CFD trading, and seek advice from an independent financial advisor if you have any doubts.
Please note that before deciding to purchase any retail proprietary trading firm challenge, you should carefully consider the company's challenge trading objectives, drawdown risks, and various rules. You may lose part or all of your initial funds used to purchase the challenge account.
Some prop firms offer accounts to clients that are demo accounts with virtual funds. All trades are conducted only in a simulated environment. For details, please refer to the announcements on the official websites of each proprietary trading firm. This article is solely a sharing of personal experiences and does not constitute any operational recommendations. It does not represent any recommendation to open an account or make purchases. Please do your own research and judgment before investing or purchasing any challenges.
