45%

OFF 1-STEP CLASSIC

Use Code:

XMAS45
30%

OFF ALL CHALLENGES

Use Code:

XMAS30
CODE
newlook45
CODE
newlook30
Valid Until 
February 15th
Get Funded
Trading Dashboard
Chapter 8

The Future of Prop Firms

Prop firms have achieved huge milestones, far better than legacy proprietary trading businesses like banks. Most notably, they have lowered entry barriers for new prop firms and retail traders. Based on these successes, the proprietary trading industry experienced one of its best years in 2022. However, the future of the firms poses various opportunities and challenges.
Increased Investment in Technology for Market Expansion
According to a report, many prop firms are increasing investment budgets across various departments in anticipation of even greater expansion in 2023. The report detailed that 68% of the surveyed firms intend to allocate more funds to technology solutions. Primarily, the investment seeks to improve latency on existing markets and connectivity to new markets. In addition, transaction speeds are on the agenda because most prop firms anticipate the global financial market to experience substantial volatility in the coming years.
Growth Opportunities through Increased Competition
Increased competition is another opportunity that prop firms will enjoy in the future. More players in the ecosystem will force prices further down and make evaluation rules easier. As a result, even more new firms will enter the space, increasing the benefits for retail traders.
Potential for Regulatory Framework and Global Recognition
There is also the possibility of authorities across the globe recognizing the potential of the prop trading industry and developing a regulatory framework to formalize the sector. This presents a huge opportunity for legitimate prop firms to grow their network across regions and engage more retail traders.
Weed Out Fraudulent Entities for Industry Reputation and Legitimacy
Another massive opportunity prop firms should anticipate is the weeding out of fraudulent entities. As discussed earlier, the low barrier to entry has allowed unscrupulous actors to infiltrate the ecosystem, damaging the industry's reputation. However, it takes a few years for fate to catch up with bad actors. The sooner this happens, the stronger the importance of legitimate players will become.
You have completed chapter 8 of 10. Please answer the question below to continue to the next chapter.
PF Revolution - C8
Fill in the form below to start your trading journey off right with the prop firm that puts traders first.
Revolution 25 percent off
FX2, LLC
Registry #2694 LLC 2022   |   The Financial Services Centre, Stoney Ground, Kingstown, Saint Vincent and the Grenadines
The information provided on this website is for informational and analytical purposes only and does not constitute financial, investment, tax, legal, or other professional advice. FX2, LLC does not offer, solicit, or recommend any trading or investment services. All content is provided on an “as is” basis without any warranties—express or implied—regarding its completeness, accuracy, or timeliness. Trading and investing in financial instruments carry substantial risks, including the possible loss of your principal investment. You are solely responsible for assessing the risks and benefits associated with the use of any information on this website. FX2, LLC, its officers, directors, employees, and agents shall not be liable for any damages or losses arising directly or indirectly from any decision made or action taken based on the information provided.
Disclaimer:
FX2, LLC does not offer its services to residents or citizens of the United States of America or Canada. All content on this website is intended for audiences in jurisdictions where FX2, LLC is legally permitted to operate. By accessing this website, you confirm that you are not located in, or a citizen or resident of, any jurisdiction where our services are restricted or prohibited.
Code Copied!