Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026

§ 01 Executive Snapshot

What: The retail trading industry in 2025 is defined by significant shifts involving prop firms and brokers.
Who: Key players include FTMO, The5ers, FundedNext, OANDA, and major CFD brokers like IG Group and Pepperstone.
Why it matters: The evolving dynamics between prop firms and brokers indicate a transformation in retail trading strategies and technology integration.

FTMO secured a USD 250 million credit line from Czech banks to acquire OANDA, marking a significant trend of prop firms stepping into brokerage roles.
Brokers like IG Group and Pepperstone are expanding into crypto, with IG acquiring a crypto exchange and Pepperstone planning to launch its own.
CMC Markets and other brokers are aiming to develop financial super apps that integrate various financial services and products.
The rise of 24/5 trading services is being adopted by brokers including Robinhood, eToro, and Interactive Brokers in response to increased demand for stock trading.
AI solutions are being integrated into trading platforms, with firms like Bridgewise and Webull launching innovative AI tools to enhance trading experiences.

The retail trading landscape has seen a shift where prop firms, traditionally focused on proprietary trading, are now expanding into brokerage services to capture market share.
The growing interest in crypto and AI reflects broader trends in finance where technology is increasingly central to trading and investment strategies.

Immediate competition is heating up as brokers and prop firms redefine their roles, potentially reshaping market dynamics and service offerings.
Long-term, the integration of advanced technology and risk management solutions may lead to a more resilient trading environment, though it requires careful navigation of regulatory landscapes.

Regulatory scrutiny remains a significant risk as prop firms navigate compliance challenges, especially in the wake of MetaQuotes' crackdown.
The dependency on technology providers poses execution risks, particularly if key platforms restrict services or change operational frameworks.

The anticipated rollout of tech solutions specifically targeting prop firms indicates a potential shift in service provision, which may impact competitive dynamics.
Future developments in risk management services for prop firms will signal the industry's ability to adapt and thrive in a volatile environment.