“Prop Trading Rules Aren’t to Trap but to Protect Capital”: FMAS:25 Panel Dissects Growing Sector

At the Finance Magnates Africa Summit 2025, the panel “Prop Trading is Here to Eat Your Lunch!” brought together voices from across the sector to examine the rise of proprietary trading firms.

The discussion, moderated by Jesse Waiganjo, Senior Business Development and Partnership Manager at Brokeree Solutions, featured Siju Daniel, Chief Commercial Officer at ATFX; Nathan Meyer, Chief Executive Officer of WeFunded; and Antreas Pilavakis, Operations Manager at FunderPro. Together, they discovered how prop trading is reshaping the trading landscape by offering access to capital, challenging traditional business models, and facing growing scrutiny.

Access to Capital and the Trader Opportunity

The panel opened by highlighting prop trading’s appeal: providing traders with significant capital while limiting personal risk. The format, speakers noted, is especially attractive to those looking to test their skills or scale up without risking their own funds.

“It’s a great way to test your skills and learn without committing your own funds,” it was shared. “For firms, it’s a tool to identify talented traders who can eventually contribute to broader ecosystems.”

The model’s inclusivity was another key point. “It’s designed for everyone—beginners, intermediates, and experts. The structure enforces discipline, and the capital access is a game-changer.” The panel agreed that solving the persistent problem of undercapitalization allows traders to manage large accounts with minimal upfront investment, a shift that has opened the door to new participants across global markets.

Misconceptions and Operational Complexity

While interest in prop trading has surged, the panel sought to dispel common misconceptions about the model. Chief among them is the belief that operating a prop firm is simple. “The biggest misconception is that it’s easy. In reality, it’s as complex as operating a brokerage, if not more so. Surviving in this space requires sophistication.”

There was also pushback on the idea that challenge fees are the primary revenue source. “The narrative that prop firms exist just to collect fees is misleading. Reputable firms build support systems to foster long-term trader growth.”

The discussion emphasized that success hinges on robust infrastructure and risk oversight. “Rules aren’t there to trap traders. They protect the firm’s capital. Those who ignore this don’t last.”

Business Models and Market Discipline

The conversation then turned to how prop firms build sustainable revenue models. While strategies vary, transparency and discipline were identified as critical. “It’s not about whether you internalize trades or send them to markets, it’s about fairness. Honor your rules, pay traders promptly, and trust will follow.”

Concerns were raised about aggressive discounting in the instant funding space. The panel noted that such practices often signal instability rather than innovation. “When firms constantly slash prices, it’s often a sign of cash flow problems. Sustainable firms avoid this race to the bottom.”

You may find it interesting at FinanceMagnates.com: “Even Five Good Trades in a Row Can Be Dangerous”: Inside FMAS:25’s Trading Success Panel.

Navigating an Undefined Regulatory Space

The lack of clear regulation around prop trading emerged as a recurring theme. Since prop firms typically don’t handle client funds, they often sit outside the scope of traditional financial oversight. “Regulators struggle to define the model because it doesn’t involve client funds. The focus should be on preventing misleading marketing while preserving innovation.”

Despite the absence of formal regulation, the panel argued that informal enforcement mechanisms are already at play. “Communities like Discord act as watchdogs. Firms that mistreat traders face swift backlash, which keeps bad actors in check.”

Community, Technology, and the Growth

The panel emphasized that transparency and active community engagement are vital to maintaining credibility. “Transparency is non-negotiable. Address concerns openly, and the community will defend you. Hide the rules, and you’ll lose trust fast.”

Technology was described as another major force shaping the sector. Artificial intelligence, in particular, is expected to transform how firms assess trader behavior and manage risk. “AI will revolutionize strategy development and risk management. Firms that leverage it effectively will pull ahead.” With smarter systems, firms can also better identify toxic trading patterns and respond in real time.

Red Flags and Trader Protections

In the Q&A portion, the discussion became more pointed, with attendees raising concerns about unfair practices. The panel underscored that persistent discounts should raise alarms. “Constant discounts are a red flag—they often signal financial instability.”

When asked about sudden rule changes, the response was equally direct: “Social media is a powerful tool for accountability. The community amplifies grievances better than any regulator currently can.”

The Road Ahead: Trust as a Competitive Edge

The session closed on a forward-looking note. Rather than displacing brokerages, prop firms were seen as complementary players in a broader ecosystem. “Prop firms and brokerages will coexist. The key is building trust—whether through fair payouts, transparent rules, or technological innovation.”

As prop trading continues to change, the message was clear: long-term success in this dynamic sector will depend not just on growth or capital, but on credibility, community, and a firm commitment to ethical practices.