Prop Trading UK: Are Funded Trader Challenges Legit?

Prop trading means two completely different things in the UK: a quantitative job at a firm like Jane Street, or a £100-£500 evaluation fee paid to an offshore funded-trader provider. The industry deliberately conflates them.

The challenge fee is the product. FTMO publishes a pass rate around 10%. The expected value of a single £150 challenge attempt is roughly minus £138 for a typical retail buyer.

In August 2023 the US CFTC and the Ontario Securities Commission filed enforcement actions against MyForexFunds, one of the largest retail prop firms. The case is ongoing.

Most retail prop firms are non-FCA regulated offshore entities. UK consumer protection (FSCS, FOS) does not apply. Section 75 chargeback on the challenge fee is the main UK recourse, and only if the fee is over £100 and paid by credit card.