🎯 Evolving Futures Prop Trading Firms: Adapting to Regulation 📜 and Innovation 🚀

Hello traders! Thank you for checking back in to this week’s edition of The Trading Brief, we are going to cover a hot button issue in this issue—regulation coming to the prop space.

Tune in to read about what’s up with regulation and how you can stay ahead of the curve!

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Table of Contents

1. Prop Firm Regulation

2. Prop Firm Deals

3. Important Data Events

4. This Week's Trading Levels

NEWS
🎯 Evolving Futures Prop Trading Firms: Adapting to Regulation 📜 and Innovation 🚀

The landscape of futures proprietary (prop) trading firms is rapidly transforming as regulatory pressures and technological advancements reshape the industry. Leading firms such as Topstep, Apex Trader Funding, My Funded Futures, Take Profit Trader, and Tradeify are adapting their business models to comply with emerging regulations while leveraging innovative tools to provide enhanced opportunities for traders. These changes have significant implications for the industry and traders alike.

Regulatory Developments Impacting Prop Trading Firms

The futures trading industry faces heightened scrutiny as regulators like the Chicago Mercantile Exchange (CME) and the Commodity Futures Trading Commission (CFTC) focus on practices such as the use of simulated (SIM) accounts. In these setups, traders operate in simulated environments, and while profitable trades result in real payouts, they do not contribute to market liquidity or volume.

The CME has raised concerns about the lack of transparency in SIM trading, and the CFTC is investigating firms for potential compliance issues. The U.S. Securities and Exchange Commission (SEC) has also adopted amendments to expand FINRA’s oversight of proprietary trading firms, ensuring these entities adhere to stricter compliance standards.

“Regulators are increasingly concerned that some prop firms operate in ways that distort market activity,” commented a compliance expert in an interview. “The push for live funded accounts is part of a broader effort to ensure market integrity.”

These changes mean firms must transition traders from simulated environments to live trading accounts. While this shift enhances transparency and market participation, it also places greater responsibility on traders to navigate real-time risks effectively.

How Firms Are Adapting to Regulatory Changes

To stay ahead of these regulatory developments, prop trading firms are making significant changes to their business models and operational practices. Here’s how key players are leading the way:

Topstep

Topstep is strengthening its commitment to risk management and transparency. The firm enforces strict daily and weekly loss limits and uses a trailing drawdown system to instill disciplined trading habits. In addition, it launched TopstepX™, a proprietary trading platform designed to provide a seamless user experience, and TopstepTV™, a live-streaming service offering real-time market analysis and insights.

Topstep has also employed a new payout policy which they detail here:

Apex Trader Funding

Apex emphasizes flexibility and trader autonomy. It introduced a one-step evaluation system and allows traders to handle up to 20 accounts simultaneously, offering greater leverage and opportunities for larger trades. Apex is also transitioning to real-time funding models to align with market regulations.

My Funded Futures

My Funded Futures has tailored its offerings to provide both aspiring and experienced traders with access to substantial capital—up to $600,000. Its tiered evaluation structure includes Starter, Expert, and Milestone programs, promoting disciplined trading while preparing traders for real-market risks. These structured programs aim to foster sustainable success in live trading environments.

My Funded Futures CEO, Matt Leech, has stated that they are prioritizing moving traders to live funded accounts.

Take Profit Trader

Take Profit Trader has focused on trader empowerment by providing an 80% profit share and instant withdrawal options. The firm emphasizes trader education through comprehensive resources and mentorship, helping traders refine their skills in preparation for live markets.

Tradeify

Tradeify, a newer player in the industry, specializes in futures contracts for indices, currencies, and cryptocurrencies. Offering up to $750,000 in simulated capital, the firm is refining its policies to allow smoother transitions from SIM accounts to live trading while maintaining competitive pricing and an efficient account setup process.

Rule and payout changes for Tradeify are detailed in this help article posted on their website:

Technological Innovations Driving the Industry

In addition to regulatory compliance, technological advancements are shaping the futures prop trading industry. Firms are increasingly adopting artificial intelligence (AI) and machine learning to enhance market analysis and decision-making processes. Algorithmic trading tools are enabling high-speed, automated trading based on predefined criteria, providing traders with the agility needed to navigate volatile markets.

“Technology is no longer a luxury; it’s a necessity,” said a senior analyst. “Firms that invest in AI and automation are not just staying compliant but are also future-proofing their business models.”

What These Changes Mean for Traders

For traders, the regulatory shift from SIM accounts to live funded accounts brings both challenges and opportunities. While real-time trading environments present increased risks, they also allow traders to develop skills that are crucial for long-term success. Meanwhile, technological tools offer improved strategies for risk management and market analysis.

As firms refine their offerings, traders must adapt by prioritizing discipline, honing their strategies, and leveraging educational resources to thrive in this dynamic landscape.

Conclusion

The futures prop trading industry is at a crossroads, driven by regulatory demands and the need for innovation. Firms like Topstep, Apex Trader Funding, My Funded Futures, Take Profit Trader, and Tradeify are leading the charge by aligning with regulatory requirements and embracing cutting-edge technology. For traders, staying informed and agile is key to navigating these changes and seizing new opportunities in the evolving market landscape. your trading needs. And hey, if it means fewer sleepless nights staring at charts, we’re all for it.

PROPRIETARY FIRMS
Best Prop Firm Deals 12/9

1. My Funded Futures is offering upt o 12% off on certain plans! Use code SUCCESS

2. Apex Trader Funding is offering 80% off! Use code SUCCESS

3. Take Profit Trader is offering 50% off! Use code DEAL

4. Tradeify is offering 50% off Growth and Advanced accounts!

These are the firms that we currently recommend, this list is updated weekly!

EVENTS
Important Data Events - Week 50

These are some market moving events that are occurring this week, take a quick screenshot of this list and set reminders as markets can get volatile during these times.

Monday, December 9th

Tuesday, December 10th

Wednesday, December 11th

Thursday, December 12th

Friday, December 13th

WEEKLY TRADING LEVELS
FUTURES INDICIES

Enjoy this list of levels that have been curated for you! These levels are some major support and resistance levels that have been identified as areas of interest.

Use them to guide your charting, happy trading! ☘️