The prop trading sector dominated the week, with the sale of MyForexFunds’ brand assets, the closure of FundedSeat and CMC Markets’ entry into simulated prop trading highlighting changes across the market. Platform access, broker integration and the economics of trader payouts also featured prominently.
London's trading industry is coming home!
Elsewhere, new retail trading data showed how heavily broker profitability is concentrated among a small group of winning clients. Regulatory developments remained important, with the UK opening its crypto authorisation process and EU regulators examining Binance’s use of reverse solicitation.
Brokers also continued to broaden their offerings, while IG reported lower revenue expectations and industry analysis examined the challenges around finfluencer oversight and technology ownership.
MyForexFunds Brand Assets Sold to Dubai-Based Firm
MyForexFunds’ brand assets have been sold by Traders Global to Dubai-based Global Solutions, headed by former MyForexFunds operations director Haider Raza. The deal, completed on August 1, covers the MyForexFunds and MFF trademarks, logos, websites, domain and official social media accounts.
Financial terms were not disclosed, and there is no confirmed date for a return of services under the brand. Global Solutions has not assumed Traders Global’s liabilities, including outstanding trader payouts.
Traders Global will continue handling those payments through Global Solutions under a service agreement. Before its shutdown, MyForexFunds served more than 135,000 customers and generated at least $310 million in fees, according to the US CFTC.
FundedSeat Closes After Platform Access Limits Growth
Futures-focused prop firm FundedSeat has announced the closure of its operations after two years, citing limitations in access to major trading platforms. The firm said the restrictions prevented it from reaching the growth required to become a larger player. FundedSeat will refund active accounts and pay pending withdrawals and positive live balances.
The company said monthly payouts had reached nearly $700,000. The firm did not support platforms including NinjaTrader and Tradovate, while MetaTrader was unavailable because of licensing restrictions affecting prop firms.
The closure highlights the importance of platform availability for futures prop firms, as access to major trading systems has become increasingly restricted across parts of the proprietary trading sector.
CMC Markets Launches Simulated Prop Trading Programme
CMC Markets has formally announced CMC Funded, a simulated prop trading programme launched on October 1. Participants receive a $100,000 simulated account with fixed performance targets and risk limits.
Traders who pass the evaluation receive a Verified Trader badge and an “interview opportunity” through Verichain, the programme’s first referral partner.
CMC said the service operates separately from its listed financial services business and is not a regulated CMC Markets product. It does not provide live brokerage or funded trading accounts, hold client money or execute customer trades. The programme covers multiple global markets, although CMC has not disclosed the full instrument list or detailed evaluation thresholds.
Broker-Backed Prop Firms Shift the Economics of Trader Payouts
Broker-backed prop firms are increasingly using vertical integration to change how they generate revenue from successful traders, according to an analysis by Shervin Arian, CEO of OmegaRatio Advisors. Independent prop firms typically rely on challenge fees, while broker-affiliated models can generate additional revenue when successful traders move into brokerage accounts.
That can include deposits, spreads, swaps, rebates and other brokerage-related income. The model also gives firms greater access to trading data and risk-management capabilities. Arian argues that established brokers entering prop trading have an advantage through their existing infrastructure and risk expertise.
The analysis highlights a shift from treating trader payouts primarily as costs towards integrating them into longer-term client relationships.
Top 1% of Winning Traders Capture 66.5% of Client Profits
The top 1% of winning retail trading accounts captured 66.5% of all client profits across iSAM Securities’ Radar network over the past year. The top 5% accounted for 85.5%, while 79.5% of clients ended the period in loss. The data covers 12 months through the middle of August and comes from Radar’s brokerage client base.
It also shows that 1% of clients can account for 30% of a broker’s total drawdown. Brokers continued to rely heavily on B-booking, with 94.6% of trading volume handled this way compared with 5.4% A-booked. B-booking also represented 98.2% of broker profit and loss across the dataset.
FCA Opens Five-Month Window for UK Crypto Authorisation
The Financial Conduct Authority has opened a five-month application window for crypto firms seeking authorisation under the UK’s new regulatory regime. Applications submitted by February 28, 2027 can be assessed before the framework takes effect on October 25, 2027. Existing anti-money laundering registrations will not automatically convert into full authorisation.
Firms must demonstrate that they can meet the FCA’s requirements, including explaining their operating model, products, customer segments and funding sources. The regulator began accepting applications on September 30 and has urged firms to start preparing early.
The new framework will replace the current system, under which crypto exchanges and custodian wallet providers primarily operate through AML registration and financial promotion requirements.
EU Regulators Examine Binance’s Use of Reverse Solicitation
EU regulators are examining Binance’s use of reverse solicitation after the exchange failed to secure a MiCA licence and was ordered to wind down its EU operations. ESMA and regulators in France, Germany and Greece have requested information from Binance, according to the Financial Times.
Enforcement action, including fines, remains possible if regulators conclude that the exemption was used improperly. Under MiCA, reverse solicitation allows non-EU firms to serve customers who initiate a relationship entirely on their own initiative.
ESMA has said the exemption should remain an exception rather than a way to circumvent the bloc’s licensing requirements. Binance said it complies with applicable rules and is working towards MiCA authorisation.
Capital.com Adds Direct Stock and ETF Investing in Europe
Capital.com has launched direct investing in stocks and ETFs across nearly all of its European Economic Area markets, expanding beyond its established CFD offering. The service provides access to more than 2,280 US and European stocks and ETFs and carries no commission on investments.
The products are offered on an execution-only, non-advised basis and sit alongside the broker’s existing research, charting and portfolio tools. Capital.com said the launch supports both short-term trading and longer-term investing on the same platform.
The UAE and UK are expected to follow in the coming months, although the broker has not provided specific launch dates. The expansion adds direct asset ownership to its existing trading services.
IG Lowers Q3 Revenue Outlook as OTC Retention Falls
IG Group expects third-quarter 2026 revenue of about £240 million, around 14% below the £280.1 million reported a year earlier. Net trading revenue is expected at approximately £210 million, down from £249.5 million in the same quarter of 2025.
The broker attributed the decline primarily to weaker OTC revenue retention, which fell to about 70% from an average of 80% following market-making optimisation measures introduced in the second half of 2025.
OTC net trading revenue is expected at around £155 million, down 18% year-on-year. At the same time, organic first trades increased by more than 25% and active customers rose about 17%. IG retained its medium-term guidance.
Finfluencer Oversight Creates Monitoring Challenges for Firms
Regulatory enforcement against non-compliant financial influencers has increased across several major markets, while firms face difficulties monitoring the large volume of content published across social media. Seventeen regulators participated in the FCA’s Global Action Week in April, targeting non-compliant finfluencers and firms involved in their promotion.
The issue extends beyond individual influencers, as brokers and banks can also face risks from misleading claims or inadequate disclosures in sponsored content. Social media posts can appear and disappear quickly, making comprehensive manual monitoring difficult.
Sarafina Wolde Gabriel, CEO of Rightlander, highlighted the visibility challenge for financial firms. The growing scrutiny puts greater focus on how firms monitor third-party marketing and promotional activity.
Retail Brokers Reassess How Much Trading Technology to Own
Retail brokers are increasingly weighing the speed and lower development burden of buying trading technology against the control and flexibility of building more of their own stack.
Purchased platforms can reduce the time required to launch core functions such as order management, charting, authentication, risk management and reporting. However, brokers can face vendor fees, integration constraints and limits on how systems can be adapted as their businesses grow.
The strategic question is which parts of the technology stack provide meaningful differentiation. Brokers may choose to own areas such as client applications, trading tools, risk controls, execution logic or analytics while continuing to rely on third-party platforms for core infrastructure. The balance between speed, cost and control remains central to the decision.
This article was written by Tareq Sikder at www.financemagnates.com.
Source: Finance Magnates
