The Stats Behind Poppin' Prop Trading of 2024

If one word could sum up the prop trading industry in 2024, it would be "popping." Fazzaco's recent "A Top Fazzaco Story Calendar​" highlighted prop trading as a keyword in January, February, and August. Research conducted by PropFirms.com, analyzing search data from the past year, paints a vivid picture of the industry's explosive growth.

Which Countries Search for Prop Trading the Most?

In 2020, global searches for prop trading numbered a mere 25,105. This figure saw only a modest 34% increase to 33,648 in 2021. The real surge began in 2023, with searches skyrocketing by 388.78% compared to 2021, reaching 122,707. By 2024, the increase (again compared to 2021) hit an impressive 607.05%, with 177,505 searches.

Among global searches, the United States, United Kingdom, Canada, and Australia showed the most significant growth. The US, in particular, saw a 526% increase over the five years from 2020 to 2024, jumping from 7,475 to 46,820 searches last year, establishing it as the world's largest prop trading market (despite regulatory hurdles).

The other three countries also experienced substantial five-year growth: the UK (315%, from 3,048 to 12,655 searches); Canada (377%, from 1,020 to 12,655 searches); and Australia (272%, from 865 to 3,219 searches).

Which Asset Classes are Most Popular Among Prop Traders?

Traditionally, forex trading has been a staple for prop trading firms. However, as many traders have diversified into other assets, an increasing number of firms have expanded their offerings to include cryptocurrencies, commodities, and, more recently, futures trading. This allows traders to diversify their portfolios and capitalize on different market dynamics.

Futures, in particular, have seen remarkable growth. With only 373 searches in 2020, they surged to 21,095 by 2024, a staggering 5,556% increase over five years, making them the fastest-growing asset class outside of forex. August 2024 was a particularly strong month, with 31,080 searches.

Forex, the most popular asset class, experienced an 863% increase in searches from 2020 to 2024, rising from 2,525 to 24,319. Searches peaked in January 2024, reaching 31,310, coinciding with Fazzaco's initial coverage of the prop trading industry (as featured in "Voices from the Industry: Is the Rise of Prop Trading A Disruption or Opportunity?​").

Interest in trading cryptocurrencies and stocks through prop firms has also grown. Cryptocurrency searches increased from 83 to 4,361 over the five years (a 5,156% increase), while stock searches rose from 80 to 3,110 (a 3,788% increase).

What Aspects of Prop Firms are Traders Most Concerned About?

As we discussed in "Challenge Costs of Major Prop Firms Explained​," prop firms fund traders to trade, leading some to refer to them as "trader funding companies." Unsurprisingly, traders are most concerned with how quickly they can access funding after passing a challenge.

Searches for "instant funding" exploded from zero in 2020 to 13,070 by 2024, with August 2024 recording 13,880 searches. This clearly indicates that the ability to quickly provide trading capital remains the most attractive aspect of prop firms for traders.

Similarly, searches for "cheap prop firms" skyrocketed from 60 in 2020 to 9,543 in 2024, a dramatic 15,805% increase. This shows that traders are also highly focused on the cost of challenges and the profit split offered by prop firms, which are the primary revenue streams for these companies.

Fierce Competition: How Many Prop Firms Closed in 2024?

Brokeree Solutions, a fintech company, conducted surveys and follow-ups with 82 prop firms in both Q1 and Q4 of 2024. The results revealed that the survival rate of these firms dropped to just 86.6% (71 out of 82 remaining operational) by Q4.

Approximately 60% of the surveyed firms were based in the UK and US, suggesting that the regulatory crackdown on prop trading in the US during 2024 was a major factor in the high number of closures. Brokeree's findings also indicated that while US regulation tightened, the UAE relaxed its regulations, with the proportion of prop firms registered in the UAE increasing from 8% to 15% over the past year.