Insights

What we see inside prop firms and brokers

Short pieces on the problems we work on every day: risk, execution, payouts and abuse. Each one links to the full op-ed in Finance Magnates.

Prop firm economics

Broker-backed prop firms are not winning on capital. They are winning on risk discipline.

Vertical integration gives broker-backed prop firms more than a second revenue stream. It forces the risk discipline the challenge model never required.

Read →Execution risk

A challenge pass with frictionless fills is not proof of trading edge

Frictionless simulated fills make challenge passes look like trading skill. Slippage and depth of market are inputs to a prop firm's payout and risk model.

Read →Payout management

Prop firms watch every trade. Very few watch their payouts with the same rigor.

Prop firms monitor every trade but rarely apply the same rigor to payout decisions. Consistent, evidence-based payout review protects firms and traders.

Read →Trade surveillance

Copy trading turns many small accounts into one large position

Copy trading concentrates risk across many funded accounts at once. Why it is a systemic problem for prop firms and how to detect and manage it.

Read →