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Why Big Brokers Are Quietly Launching Broker-Backed Prop Firms in 2025

Published on
April 27, 2025
OANDA Prop Trader homepage highlighting 5% profit target promo on Classic Challenges

Introduction

Traditional brokerage models are under pressure in 2025. With new market entrants every quarter, brokers are looking for leaner ways to grow, without relying solely on aggressive marketing or fee compression.

That’s why brokers are quietly launching their own broker-backed prop firms, combining their powerful resources with proprietary trading models to unlock new, sustainable revenue streams using smart tech for prop trading firms.

If you’re considering this model, here's exactly what you need to know.

What Exactly Are Broker-Backed Prop Firms?

Broker-backed prop firms blend the strengths of established brokerages, robust infrastructure, advanced trading platforms, and deep liquidity - with the agility of prop firms.

Most firms run on a white label infrastructure, providing simulated funding, automated evaluation logic, and compliance-friendly interfaces, so they can scale faster. It's the modern way to start a prop firm, without starting everything from scratch.

Why Broker-Backed Prop Firms Are Booming

Broker-backed prop firms are rapidly gaining popularity. Here are some compelling examples:

  • ICFunded launched in March 2024, quickly expanding beyond traditional brokerage revenue streams.

  • Axi Select is another example of how established brokers are expanding into the prop trading space through dedicated trader programs.

  • OANDA's Prop Trader shows how brokers are adapting their infrastructure to support modern evaluation-based trading programs.

  • Fintokei, backed by Purple Trading, highlights how broker-led prop firm brands are emerging across regions, combining compliance-first infrastructure with scalable trader programs.

Essential Technology for Broker-Backed Prop Firms

Launching your own broker-backed prop firm requires a robust, integrated technology stack:

  • Real-Time Risk Management Tech for Prop Firms: Instantly detect drawdowns, copy-trading, and other trading abuses automatically. See how automation saves prop firms millions.

  • Advanced Trading Platforms: Seamless integration with industry-leading platforms like MT5 and cTrader.

  • Efficient Automated Payouts: Facilitate immediate withdrawals through Wise or stablecoins (e.g., USDC).

  • Ready-to-Go Evaluation Platform: Launch quickly with fully customizable, white label prop firm solutions, deployed in less than 1 month.

Discover our complete Prop Firm CRM Guide to see the tech in action.

Major Advantages of Launching a Broker-Backed Prop Firm

1. Stable Revenue Stream: Evaluation fees offer consistent revenue without depending solely on trading volume.

2. Brand Growth: Position your brand as a tech-forward leader in the industry, one that launches new verticals, builds digital authority, and attracts attention from both traders and B2B partners alike.

3. Cost Efficiency: Use your existing teams, and client base to spin up a new revenue line without heavy upfront investment.

4. Enhanced Client Retention: Give your existing clients a new reason to stay by offering access to exclusive evaluation programs, loyalty incentives, or career growth paths within your trading ecosystem

ICFunded evaluation plans comparison – simulated funding tiers from $5,000 to $500,000.

Step-by-Step Roadmap to Start Your Own Prop Firm

A better launch starts with better planning. Here's how we help brokers go from idea to income:

  • Map Your Monetization Strategy: Define your challenge pricing, payout structure, and trader funnel with profitability in mind from day one.

  • Craft Evaluation Rules That Filter (and Convert): Build criteria that are scalable, automation-friendly, and aligned with your firm's operational model, keeping rules consistent, enforceable, and low-friction.

  • Plug in the Right Prop Firm Tech Stack: Here Trade Tech Solutions can power everything under the hood - your prop firm CRM software, branded dashboard, payout logic, and automated evaluations, so you can focus on positioning and scaling.

  • Compliance-Proof Your Frontend: Use clear disclosures and jurisdiction-safe language for your "challenge accounts" and disclaimers.

  • Scale With Data, Not Just Ads: Use real-time CRM analytics to shape your challenge tiers, refine risk filters, and optimize acquisition based on what actually converts.

Want the full forex prop firm playbook? Get our step-by-step guide.

Ready to Launch Your Broker-Backed Prop Firm?

Broker-backed prop firms represent the future, combining powerful prop firm technology with agile prop firm business solutions.

Don’t miss your opportunity, schedule a consultation with Trade Tech Solutions today and launch confidently.

Frequently Asked Questions (FAQs)

1. What is a broker-backed prop firm?

A broker-backed prop firm is a type of prop firm that collaborates with a brokerage to provide traders with access to bigger capital and infrastructure for trading.

2. How is this model different from traditional prop firms?

Broker-backed prop firms differ from standalone prop firms by leveraging a broker's resources, infrastructure, and expertise. This allows them to offer traders more robust support, access to advanced technology, and potentially greater stability.

3. Do I need to build my own tech from scratch?

No. You can launch using a white label prop firm solution like from Trade Tech Solutions, which includes prop firm CRM software, evaluation logic, and payout integrations ready to go

4. What are the key revenue drivers for broker-backed prop firms?

Main revenue levers include evaluation fees, upsells, and increased platform engagement. The model creates a new revenue stream without relying solely on spreads or commissions.

7. What kind of team do I need to start?

Most brokers can launch with minimal headcount by leveraging existing support and leveraging a ready to go white label prop firm tech

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