Prop Firm Industry Report 2026

    Annual analysis of evaluation metrics, drawdown rules, payout trends, and industry consolidation.

    80-100

    Firms Closed 2024

    $20B+

    Global Market Size

    ~7%

    Traders Get Paid

    Published March 2026 · rockstartrader.com

    SECTION 01

    Executive Summary

    The proprietary trading firm industry experienced its most turbulent year in 2024, with 80-100 firms closing after MetaQuotes withdrew MT4/MT5 support from prop firms serving US clients. FTMO posted $329M in revenue (+53% YoY). Apex distributed $598M+ in cumulative payouts. Only ~7% of all challenge participants ever receive a payout, with the average payout equalling approximately 4% of account value.

    Key Findings

    • Evaluation pass rates: 5-10% industry avg; ~7% ever paid
    • Profit targets tightened: 8-10% Phase 1, 5% Phase 2
    • 90/10 split is the new industry baseline
    • Payout speed compressed: 14-30 days (2022) to 1-8 days (2026)
    • MetaTrader prop firm share: 48% to ~24% in 9 months
    • Overnight/weekend restrictions affect ~60% of firms
    • The Prop Association (TPA) formed 2025 — first self-regulator

    SECTION 02

    Industry Overview: The 2024 Reckoning

    The 2024 reckoning was triggered by MetaQuotes' decision to withdraw MT4/MT5 licensing from prop firms serving US-based traders. This single event cascaded through the industry, exposing firms with concentrated platform dependency.

    Notable 2024 Firm Closures

    FirmClosure DateReason / Notes
    SurgeTraderMay 24, 2024Licensing dispute; $2M+ denied payouts
    True Forex FundsMay 13, 2024300 traders, $1.2M outstanding payouts
    The Funded TraderMarch 28, 2024$2M+ denied payouts admitted
    Smart Prop TraderNovember 2024MetaQuotes fallout
    MyForexFunds*2023 (CFTC)Case dismissed May 2025; exploring relaunch
    FundingTicksEarly 2026Rule backlash; reduced splits
    80-100 othersFeb-Dec 2024Platform dependency / liquidity

    Platform Market Share Shift

    PlatformBeforeAfter
    MetaTrader 4/548%24%
    cTrader18%31%
    DXtrade14%22%
    TradeLocker8%14%
    MatchTrader6%9%

    SECTION 03

    Evaluation Metrics: Profit Targets & Pass Rates

    5-10%

    Industry avg pass rate

    14%

    Pass rate at top-tier firms

    ~7%

    Traders who ever get paid

    23%

    Fintokei 2024 pass rate

    Profit Target Norms

    FirmPhase 1Phase 2Model
    FTMO10%5%Two-phase
    FundedNext (CFD)10%5%Two-phase
    E8 Markets8%5%Two-phase
    The5ers (Bootcamp)10%—One-phase
    FundingPips8%5%Two-phase
    Blue Guardian8%5%/NoneOne or two
    Apex Trader Funding6%—One-phase
    Topstep$6K/$100K—One-phase
    Industry Median8-10%5%Two-phase

    Emerging Model: Instant Funding

    Blue Guardian's $19 Instant Funding Starter. IC Markets ICFunded. OANDA Prop Trader. Trade-off: lower initial splits.

    SECTION 04

    Drawdown Rule Trends

    FirmDLLMethodChanges
    FTMO5% initial balEquity-basedUnchanged
    ApexNoneN/ANo DLL — key differentiator
    TopstepRemoved Aug 2024EOD (legacy)Major Aug 2024 change
    FundedNext CFD5%Equity-basedFutures: no DLL
    E8 Markets5% Std; 2% evalEquity-basedAdvanced: DLL removed Nov 2025
    Blue GuardianVaries by planEquity-basedInstant: 3% DLL

    The industry is gradually loosening overnight and weekend holding restrictions. Approximately 60% of firms still impose restrictions, but swing-specific account types are growing in popularity. Trailing drawdown remains more restrictive than static drawdown, with Apex's real-time trailing (including unrealised gains) being the most aggressive model.

    SECTION 05

    Payout Policy & Profit Split Analysis

    $450M+

    FTMO lifetime payouts

    $598M+

    Apex cumulative payouts

    $325M

    Tracked industry payouts 2025

    8 hrs

    FTMO avg payout processing

    Profit Split Comparison

    FirmBaseMaxFirst Payout Bonus
    FTMO80/2090/10Fee refund on pass
    Apex100%90/10100% on first $25K/acct
    Topstep100%90/10100% on first $10K
    FundedNext CFD80+15%95/515% share from challenge
    The5ers50/50100%Scales over time
    FundingPips80/2095/5Standard
    E8 Markets80/20100%Standard
    Blue Guardian85/1590/10Standard
    FunderPro90/1090/108hr avg processing

    SECTION 06

    Platform Shift: The MetaQuotes Fallout

    FTMO/OANDA Acquisition

    January 2025: $250M credit line, MT5 US access restored, $329M revenue. The largest deal in prop firm history.

    Broker-Backed Entrants

    FirmParentLaunchAccount Range
    ICFundedIC MarketsMar 2024$5K-$500K
    OANDA PropOANDAJan 2024$10K-$500K
    Axi SelectAxi2024Performance-based
    Hantec TraderHantec Mkts2024Various

    SECTION 07

    Firm-by-Firm Spotlight

    FTMO

    Trustpilot 4.7/5
    Max FundingUp to $2M scaling from $400K
    EvaluationTwo-phase — 10% + 5% profit target
    DLL5% equity-based, intraday
    Max Drawdown10%
    Profit Split80% base, 90% on scaling plan
    PayoutBi-weekly; avg 8-hr processing once requested
    Key ChangesOANDA acquisition; MT5 US relaunch; India expansion Dec 2025

    Apex Trader Funding

    Trustpilot 4.5/5
    Max FundingUp to $300K per account; up to 20 accounts ($6M total)
    EvaluationOne-phase — 6% profit target
    DLLNone — no daily loss limit
    Max DrawdownReal-time trailing drawdown including unrealised gains
    Profit Split100% on first $25K per account, then 90%
    PayoutOn-demand; 8-10 trading days then 1-4 day processing
    Key ChangesApex 3.0 late 2025: on-demand payouts, no payout windows, DCA allowance added

    Topstep

    Trustpilot 4.6/5
    Max FundingUp to $150K
    EvaluationTrading Combine — $6K profit target on $100K account
    DLLRemoved for TopstepX accounts as of August 25, 2024
    Max Drawdown$3K on $100K, end-of-day calculation
    Profit Split100% on first $10K, then 90%
    PayoutEvery 5 winning days; 24-48hr processing
    Key ChangesTopstepX mandatory platform; new brokerage launched Jan 2026; two-rule payout system Dec 2025

    FundedNext

    Trustpilot 4.6/5
    Max FundingUp to $4M CFD scaling; $700K Futures cap
    EvaluationTwo-phase 10% + 5%; also Stellar 1-Step option
    DLL5% CFD; no DLL on Futures models
    Max Drawdown10% (EOD trailing on Legacy accounts)
    Profit SplitUp to 95% CFD; 15% profit share from challenge phase (industry first)
    Payout24-hour guarantee with $1,000 compensation if delayed
    Key ChangesNo consistency rule for CFDs; profit share from challenge phase

    The5ers

    Trustpilot 4.9/5
    Max FundingUp to $4M via structured scaling
    EvaluationMultiple paths — Bootcamp 10%, Hyper Growth 10%, High Stakes 10%
    DLLVaries by program; leverage reduced in line with industry trend
    Max DrawdownVaries by program
    Profit Split50% base scaling to 100% at upper tiers
    PayoutBi-weekly; highest rated major firm on Trustpilot
    Key ChangesUS relaunch via cTrader in 2025; previously 15-20% of traffic from US

    SECTION 08

    Regulatory Landscape 2025-2026

    RegulatorDevelopmentImpact
    CFTC (USA)MFF case dismissed May 2025; 4 attnys on leaveRED List now 240+ entities
    SEC (USA)Rules 3a5-4 and 3a44-2 adopted Feb 2024Broader dealer definitions
    FCA (UK)9 prosecutions; 650+ social media takedownsInfluencer marketing risk
    Czech National BankProp trading may be subject to MiFIDFTMO regulatory exposure
    ESMA (EU)Preliminary inspections of funded firmsEU regulation incoming
    EU AI Act (2024)High-risk AI obligations effective Aug 2026Evaluation algorithms affected
    TPA (2025)Industry self-regulatory body formedVoluntary standards now

    Key advice: Prioritise firms in stable jurisdictions, favour broker-backed programmes, avoid retroactive rule changers.

    SECTION 09

    The Consolidation Winners

    FirmKey Metric
    FTMO$329M 2024 revenue (+53% YoY)
    Apex Trader Funding$598M+ cumulative payouts; $15M+/month
    FundedNext$158M+ paid; 24-hr guarantee a differentiator
    Topstep$23M+ paid in one recent month; platform revamp
    The5ers4.9/5 Trustpilot; US relaunch 2025
    FundingPips#1 on Prop Firm Match 2025 payout tracker

    What Winners Have in Common

    FactorHow Leaders Applied It
    Platform diversificationNever single-MT dependency; or acquired broker
    Transparent payoutsVerified totals; Trustpilot response cadence
    Conservative rule changesNo retroactive changes post-funding
    Genuine scaling potentialCredible paths to $1M+ allocated capital
    Technology investmentProprietary or multi-platform setup pre-crisis
    Trader educationCoaching, bootcamps, premium programs

    SECTION 10

    Outlook: What Changes in 2026

    1. Further regulatory formalisation

    TPA standards will likely become regulatory minimums in 1-2 key jurisdictions. EU AI Act enforcement begins August 2026 and will directly affect evaluation algorithm design at every major firm.

    2. Profit split floor approaching 90%

    Firms offering less than 80% are losing market share. Expect 90/10 to become the de facto floor by end of 2026, with 95-100% available at premium tiers across all major players.

    3. Evaluation design innovation

    One-phase and instant-funding models continue displacing two-phase evaluations. New hybrid models expected: subscription-based evaluation fees, no-upfront-cost structures, performance-based fees.

    4. Broker-backed programs become dominant

    FTMO/OANDA, ICFunded, Axi Select, Hantec Trader signal a structural shift. Regulatory durability and capital infrastructure advantages will drive disproportionate growth through 2026-2027.

    5. US market reopening

    FTMO's MT5 US relaunch via OANDA's regulated entity is the first successful re-entry post-MetaQuotes. Others building similar paths. US reopening is the single largest growth catalyst for the sector.

    6. Automation and AI trading normalised

    EA and algorithm trading now widely supported. Next frontier is live-account copy trading and signal service integration. Firms that build robust automation compliance frameworks win the professional retail trader segment.

    "The firms that will define the next decade of funded trading are not those with the lowest challenge fees or the best marketing — they are those that can demonstrate irrefutable proof of fair execution, legitimate risk parameters, and honest payout practices. Transparency is no longer a differentiator; it is the entry requirement."

    Trade with clarity. Execute with confidence.

    Professional trading tools designed to help traders identify high-quality setups, journalling, mindset and performance tracking.

    Platform

    Resources

    Company

    © RockstarTrader

    Terms of Use·Privacy Policy

    : Rockstartrader evaluates financial markets using fundamental and technical analysis criteria for educational purposes only. Our scores and rankings do not constitute investment advice or guarantees of future performance. All investing involves risk of loss. Always conduct thorough research (DYOR) and consult a qualified financial advisor before making investment decisions.