The prop trading industry has just witnessed its most dramatic shake-up yet. Over the past year, between 80 and 100 proprietary trading firms have shut down, challenge pass rates have plummeted, and the average trader’s investment has dropped by 50%. Yet, amid the chaos, a few dominant players are emerging stronger than ever.

Even 100 Prop Firms Gone in 2024

According to estimates gathered by Finance Magnates Intelligence, between 80 and 100 proprietary trading firms may have disappeared from the market in 2024. This aligns with data presented by FunderPro mid-year, which estimated that the number had already reached around 50 firms at that time.

At the heart of this upheaval is a single industry-altering event—MetaQuotes' decision to step back from supporting prop firms. This move sent shockwaves through the market, forcing traders and firms to rethink their strategies, diversify platforms, and ultimately accelerate industry consolidation.

“I expect many more prop firms to close, cease or halt operations and/or find themselves on the wrong end of lawsuits and social media attacks,” Justin Hertzberg, the CEO of FPFX warned.

The numbers tell the story. 300,000 prop trading accounts analyzed by FPFX Tech reveal a fundamental shift in trader behavior. While MetaTrader 5 still holds a 61.9% market share, alternative platforms like cTrader, DXtrade, MatchTrader, and TradeLocker have seized the opportunity, reshaping a once-monopolized space.

But here’s the real shocker: as dozens of firms collapsed, one of the largest prop firms just acquired a major FX/CFD broker. The consolidation is happening fast, and only the strongest are surviving.

Meanwhile, pass rates have fallen, and payouts have tightened—suggesting an industry favoring survival over speculation. The profile of the "average prop trading Joe" has changed, and we have the data:

Is prop trading still the high-growth phenomenon it once was? Who are the winners and losers in this shifting landscape? And what does this mean for retail traders?

Find out in the Finance Magnates Quarterly Industry Report, where we break down the data, the trends, and the next big moves shaping prop trading in 2025.