Why More Brokers Are Launching Their Own Prop Firms

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The trading industry is evolving fast—and not just for traders. Brokers worldwide are increasingly launching their own proprietary trading firms (Prop Firms), unlocking new revenue streams, boosting retention, and gaining a powerful edge in a competitive market.

In this blog, we’ll break down why brokers are taking this leap, what advantages it brings, and how you can launch your own Prop Firm without building everything from scratch.

What Is a Prop Firm and How Is It Different From a Broker?

A Prop Firm (short for Proprietary Trading Firm) funds traders with the company’s own capital and shares in the profits they generate. In contrast, brokers typically provide access to the market and earn from spreads or commissions on each trade.

Key differences:

  • Broker:

    • Provides market access.

    • Earns via spreads or commissions.

    • Bears no direct trading risk.

  • Prop Firm:

    • Offers capital to traders.

    • Shares in the trader’s profits.

    • Often uses its own tech to monitor and evaluate traders.

So, why are brokers merging both models under one roof?

Why Brokers Are Launching Their Own Prop Firms

1. Increase Customer Lifetime Value (CLTV)

Retail traders often start with small accounts—$500 to $1,000. But Prop Firms allow brokers to fund the same traders with $10,000, $50,000 or more, dramatically increasing trading volume and the broker’s earnings from spreads.

“Prop firms have become one of the most efficient channels to boost trading volume without increasing acquisition costs.”
— Finance Magnates, 2023

2. Diversify Revenue Streams

Relying solely on commissions is risky in a volatile industry. Prop Firms enable brokers to generate additional revenue through:

  • Evaluation fees (funding challenges).

  • Profit splits.

  • Platform subscriptions.

  • Strategic education and tech partnerships.

3. Capture the Prop Trader Boom

The number of traders seeking funding has exploded. Platforms like FTMO and MyForexFunds paved the way, and now thousands of aspiring traders enter the space each day.

Running your own Prop Firm puts your brokerage at the center of this demand.

“Over 75% of new traders in 2024 will try a Prop Firm before risking their own capital.”
— Trading Market Pulse Report, Swiset Insights 2024

Real Brokers Already Doing It

ThinkMarkets
Purple Trading
Eightcap
Taurex
Oanda
Hantec Markets
Vantage
Blueberry
Traders Trust (Tradingcult)
ATFX 
Axi

What You Need to Launch Your Own Prop Firm

Launching a Prop Firm as a broker doesn’t require building complex infrastructure. Here’s what you need:

✅ 1. Evaluation System

A simple challenge system (e.g., 2-phase funding with profit targets and drawdown limits) that filters talent and monetizes ambition.

✅ 2. Automated Dashboards

Monitor trader performance, handle account breaches, manage evaluations and process payouts—automatically.

✅ 3. Profit Split + Payout Engine

Define and automate trader payments (e.g., 80/20 or 90/10 splits) with secure and transparent flows.

✅ 4. Account Infrastructure (Demo/Live)

Decide whether funded traders will operate on demo accounts or transition to live accounts upon passing.

Competitive Advantages for Brokers

AdvantageImpact
Higher trading volumeIncreased revenue via spreads
Lower acquisition costsChallenges attract active traders
Higher retentionTraders stay to move up evaluation levels
User behavior insightsBetter targeting and personalized offers
Stronger brand positioningYou become a destination, not just a platform

How to Start as a Broker

  • Start Simple
    Use a basic two-phase challenge model. Clear rules. No gimmicks.

  • Use White-Label Technology
    Don’t reinvent the wheel. Platforms like Swiset allow you to launch in days, not months.

  • Build a Community from Day One
    Use Discord, Telegram, or private groups to grow loyalty, get feedback, and scale organically.

  • Be Transparent
    Clearly communicate your rules, payouts, and breach conditions. Trust is everything.

  • Offer Unique Incentives
    Weekly contests, consistency bonuses, trading tools—small perks go a long way.

Is This the Future of Brokerages?

The brokerage world is shifting. Gone are the days of competing on just spreads and promotions. Traders now expect purpose, community, and career progression.

Prop Firms are the gateway to this new era—one that’s more sustainable, more scalable, and more aligned with trader success.

“If you want a trader to stick around, don’t just sell them access. Give them a future to grow into.”
— Founder of a leading Prop Firm, 2024

Swiset for Props: The End-to-End Solution for Prop Firms and Brokers

Swiset for Props is the ultimate platform built specifically for Prop Firms and brokers looking to launch or scale their own funding program—equipped with automation, AI-driven analytics, and lightning-fast deployment.

🔧 What Does Swiset for Props Offer?

• Proprietary tech stack (formerly PFT)

In 2024, Swiset acquired Proprietary Firms Tech (PFT), expanding its capabilities to offer a full-suite infrastructure tailored for Prop Firms—from evaluations to risk automation
(source).

• AI-powered, scalable, and automated platform

Swiset for Props combines automation with intelligent insights, allowing you to launch a Prop Firm in less than 14 days—with no revenue sharing or operational complexity
(source).

• Fully customizable funding challenges

Create multi-phase evaluations with custom rules for profit targets, drawdowns, time limits, and pricing models (one-time fee or subscription) using Swiset’s intuitive challenge builder
(source).

• End-to-end trader and risk management

Swiset provides real-time dashboards, automatic breach alerts, performance analytics, and automated payouts—all centralized in a user-friendly interface
(source).

• Seamless integration with your broker and brand

Supports platforms like MetaTrader, cTrader, DXtrade, and more. You can launch a fully white-labeled Prop Firm under your brand—no technical team required
(source).

🧠 What Makes Swiset Different?

  • Speed: Launch your Prop Firm in 14 days or less.

  • Keep 100% of your revenue: No tech provider cuts.

  • Built-in AI + automation: Identify strong traders, manage risk, and scale without adding staff
    (source).

  • Global reach: Used by Prop Firms and brokers across Latin America, Europe, and Asia.

Want to build your own prop firm?

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