It depends, some brokers offer services or features which are not available in prop firms like copytrading or PAMM, or interest on deposit, free VPS. Lots of other things. For example I also use free autochartist software at HFM, couldn’t find it free anywhere else. There are both pros and cons when dealing with prop firms and regular fx brokers.
Well you want to find a broker that earns money from providing you with a service (i.e. from charging commissions) instead of winning from your losing trades. That’s one of the reasons why you trade futures instead of CFDs, because the broker takes the opposite side of your trade in CFDs, which means they make money when you lose money.
Also Prop firms they make much more money when you buy their eval and blow up accounts… They don’t lose much if you are successful, but they earn so much more when you are blowing accounts… so calling them having “all the reasons in helping you being successful” is actually quite hilarious. 
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That’s all totally right for forex prop firms, @Doits . As expained above, the opposite’s true of futures prop firms. 
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Hi, thank you for your reply. Trading options is for professional traders, (I am Not one). Us the retail guys, we do forex, and I thought this forum is mostly for helping people like me. What I find not just bad, but terrifying, is the fact you stated (and I completely agree upon) that CFD brokers play against you deliberately, and that’s not just legal, but regulated. To me this is just a Scam, well funded and aggressively promoted scam! With CFD brokers I was constantly losing, with prop I’m constantly whining … I don’t know, I’m the same guy, I’m not smarter, don’t do things differently, and yet - results are quite the opposite. Thanks again.
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Certainly, yes.
Not true of futures at all, though. Hence the great growth in futures prop firms as the CFD ones go under.
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Both models, proprietary trading firms and retail brokers, have their place in the financial system, and the outcome may not necessarily be as black-and-white as it might seem.
What’s the issue with Axi Select? I’ve been trading with them for a couple of months now and haven’t run into any problems. I really took my time picking and learning about different prop trading firms, and Axi Select ended up being the most reliable choice for me. They were the only ones offering a real account instead of just a demo when I was looking. They offer free registration, their support team is pretty good, and I can pull out the money I put in at the start.
Yea, that’s sound right. I mean a couple of futures traders here, mixed with prop firm traders, and then the retail crowd. I think I remember reading some folks are spread betting. I like that there’s options.
So, prop firms are kind of new to me. These days however, you cannot listen to a trading podcast or watch a Youtube video without being hammered with this. I trade mainly CFDs (also actual stocks, but that is besides this), and I get annoyed when I get stopped out way off the current price. Is this the same with props? Is the pricing of assets the same? And what do you mean @Pipesteroid when you say the proop firms dont fund their sucessful trialists (the link to Pipsteroid did not work)? Also, your answer to @John_Mn stating brokers have a conflict of interest, while the props dont, makes little sense to me. Can you elaborate? Lots of other interesting aspects in this discussion, but dont want this post to be too long (which it already is…). Final note, I believe brokers are not turning prop firms because it is a very different product. They would need all kinds of different tech solutions, funding, regulations, etc.
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Prop firms run simulated accounts, even for people who have passed their evaluation, and that’s enough reason to ■■■■ you over.
On the other hand, ECN/STP brokers want winning traders, because they make profit from spread markup/commission.
Do not be fooled. Prop firms are scammers.
To me all CFD brokers are scammers, I’ve tried more than one regulated CFD broker, and it is a waste of time. I will not go in details here, but I will not go anywhere near CFD broker ever again. As for ‘‘Prop firms run simulated accounts, even for people who have passed their evaluation’’ … I would respectfully disagree. Good Luck!
Whether retail brokers will phase out like dinosaurs remains to be seen. I’m skeptical of the claim that prop firms will cause their demise due to the reasons you’ve outlined. The causation you suggest oversimplifies a complex industry.
Historically, some retail brokers have indeed engaged in questionable practices, tarnishing the entire industry’s reputation. However, the idea that all brokers inherently exploit retail traders is misleading. Yes, most retail brokers (technically dealers) act as market makers. Yes, this role can create conflicts of interest, but it doesn’t necessarily mean they all act detrimentally towards traders. In fact, regulatory frameworks have been becoming increasingly more rigorous, even in offshore jurisdictions. Obtaining and maintaining a brokerage license involves strict compliance and regular scrutiny, making the exploitation you described impractical and risky for any broker’s business continuity. It is tough to obtain a license to operate as a broker in any halfway decent jurisdiction and even harder to maintain (speaking from personal experience).
Moreover, considering prop firms, their business model is also profit-driven. They are not altruistic entities; their interests align with profitability, just like in the case of brokers.
Out of curiosity, what do you think is their business model?
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While some retail brokers have faced criticism, not all operate against clients’ interests. Prop firms offer benefits but also come with risks. Success depends on individual skills and strategies. It’s about choice based on personal preferences and goals, not a simple case of one overtaking the other.
I think in this way. And I think it will help me a long.
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Prop firms are unlikely to kill retail brokers, as both serve different segments of the trading community. Prop firms cater to traders seeking professional environments, capital, and often rigorous risk management, while retail brokers provide access to the market for individual traders who prefer to trade independently. Both can coexist by fulfilling distinct needs within the trading ecosystem.
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Really? What proportion of forex prop-firm users do you think also have a forex CFD account? I would think it’s well over 95%. Maybe even over 99%.
Exactly, and it’s this diversity that helps create a more robust and dynamic market, which can lead to a healthier trading environment overall.
Currently, there is a trend where forex brokers are creating their own prop trading firms, and this is becoming a trend. It seems to me that Axi and Oanda were among the first to do this, although I might be mistaken. This could lead to a partial shift of traders to prop firms, based on my experience
Axi, Hantec Markets, OANDA and IC Markets now offer prop trading
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Man why not. If you can trade all you need is the money. Prop firms get the fees and the trading split. It’s kinda a win-win for them as long as they’re not shady scammers.
Axi select recently added a new feature to reset your edge score every 3 months. If, for example, something went wrong or mistakes have piled up, now you can simply reset your score and start fresh. I think it’s a cool feature.