Prop challenges are paid evaluation programmes, mostly on simulated accounts. Most participants do not pass: in an analysis by FPFX Tech covering about 100,000 traders at 10 firms, about 14% of traders passed and about 7% received a payout (Finance Magnates, 18 Sep 2024; methodology not disclosed, FPFX sells software to prop firms).
The firms are generally not supervised by FINMA, BaFin, the FMA or the FCA. There is no investor or deposit protection and no ombudsman. The Financial Commission is a private dispute-resolution body, not a regulator.
Firms can change their rules unilaterally and are often the counterparty themselves. Austria's FMA compares paid challenges to the relationship between a player and a casino.
For readers in Austria: the FMA raises the question of a licensable activity for participants themselves too (FMA, "Was ist Prop Trading?", 8 May 2026).
Finance Magnates on FPFX (18 Sep 2024)FMA: Was ist Prop Trading? (German)