What Prop Firms Are Regulated? Complete List 2025

Finding a regulated prop firm matters. Unregulated firms can disappear overnight with your money. Regulated ones have legal accountability and oversight.

Here's the complete list of prop firms that operate under proper regulation in 2025.

What Does Prop Firm Regulation Mean?

Prop firm regulation is tricky to understand. Most prop firms don't need direct regulation because they're not managing client funds. You're trading their simulated capital, not depositing investments.

However, regulated prop firms have:

• Registered company status in their home country
• Business licenses and tax registration
• Oversight from financial authorities (in some cases)
• Clear legal structure and accountability

The key distinction: prop firms are regulated as businesses, not as investment firms. This is different from brokers who hold your money.

List of Regulated Prop Firms

Here are prop firms with verified regulatory status in 2025:

TradersYard (Austria)

TradersYard operates under Austrian business law with EU-level oversight. Austria has strict corporate regulations, giving traders extra protection.

• Location: Austria (EU)
• Regulatory Framework: Austrian Commercial Code
• Entry Cost: Starting from €36/$39
• Payout Speed: Under 4 hours

FTMO (Czech Republic)

FTMO is registered in Prague and operates under Czech business law. They're one of the oldest prop firms still operating.

• Location: Czech Republic (EU)
• Regulatory Framework: Czech Commercial Code
• Entry Cost: Starting from $155
• Payout Speed: 1-2 business days

The5ers (Israel)

The5ers operates from Israel with proper business registration. They focus on forex and offer unique instant funding options.

• Location: Israel
• Regulatory Framework: Israeli Companies Law
• Entry Cost: Starting from $39
• Payout Speed: 1-2 business days

Alpha Capital Group (UK)

Alpha Capital uses an FCA-regulated broker for execution. This adds a layer of protection for traders.

• Location: United Kingdom
• Regulatory Framework: UK Companies Act + FCA-regulated broker
• Entry Cost: Starting from $97
• Payout Speed: 2-5 business days

EU-Regulated Prop Firms

EU-based prop firms follow stricter business standards than those in offshore locations. The European Union requires:

• Transparent company registration
• Annual financial reporting
• Consumer protection standards
• GDPR compliance for data protection

TradersYard's Austrian base means EU-level protection for your personal data and contractual rights. If disputes arise, you have legal recourse through European courts.

Other EU-based prop firms include FTMO (Czech Republic) and various smaller firms in Cyprus, Malta, and Poland.

US-Regulated Options

American traders face unique challenges. Many prop firms don't accept US residents due to regulatory complexity.

Firms that do accept US traders:

• Topstep: US-based, futures focused
• Apex Trader Funding: US-based, futures only
• TradersYard: Accepts US traders for forex/CFDs

The SEC and CFTC don't directly regulate prop firms, but they do regulate the brokers these firms use. This provides indirect oversight.

Why Regulation Matters

Unregulated prop firms have collapsed before. Traders lost evaluation fees and unpaid profits overnight. Here's why regulation protects you:

Financial Accountability

Regulated companies must maintain proper accounting. They can't just disappear with your money. Legal structures force transparency.

Dispute Resolution

If a regulated firm doesn't pay you, you have legal options. Unregulated offshore companies are nearly impossible to pursue legally.

Operational Standards

Regulated firms follow established business practices. This means:

• Clear terms and conditions
• Proper customer support
• Documented payout processes
• Professional communication

Longevity

Regulated firms invest in compliance. This shows commitment to long-term operation rather than quick money grabs.

TradersYard: Austrian Regulated

TradersYard chose Austria specifically for its regulatory environment. Here's what this means for traders:

• EU Business Standards: Full compliance with European commercial law
• Data Protection: GDPR-compliant handling of your information
• Banking: European banking partners for secure payouts
• Legal Recourse: Access to EU courts if needed

Review TradersYard's compliance and rules to see their regulatory commitments in detail.

Austrian regulation also means TradersYard can offer EUR, USD, and GBP account options without currency conversion issues common at offshore firms.

Red Flags: Unregulated Firms to Avoid

Watch for these warning signs:

• No company registration information on website
• Registered in known tax havens (Seychelles, St. Vincent)
• No physical address or contact phone number
• Anonymous ownership
• Complaints about unpaid profits
• Newly launched with aggressive marketing

Always verify registration before paying for any evaluation. A legitimate firm proudly displays their company details.

Frequently Asked Questions

Are any prop firms actually regulated?

Yes, but not in the traditional sense. Prop firms are regulated as businesses, not investment firms. TradersYard operates under Austrian law, FTMO under Czech law. They have legal accountability without needing FCA or SEC investment licenses.

Does regulation guarantee my profits are safe?

Regulation reduces risk but doesn't eliminate it. Regulated firms are less likely to disappear, but you should still research payout history and reviews before joining any prop firm.

Why don't prop firms need FCA/SEC regulation?

Because you're not depositing investment funds. You pay for an evaluation service, then trade simulated capital. The regulatory requirements are different from traditional brokers who hold client money.

What happens if a regulated prop firm doesn't pay me?

With regulated firms, you have legal options. You can pursue claims through the courts in their registered country. This is nearly impossible with unregulated offshore companies.

Is TradersYard properly regulated?

TradersYard is registered in Austria under EU business law. They comply with European commercial standards, GDPR, and maintain transparent operations. See how TradersYard operates.

Choosing a Regulated Prop Firm

When selecting a regulated prop firm, consider:

1. Verify registration: Check company records in their stated country
2. Review location: EU and UK firms have stronger oversight than offshore
3. Check payout history: Trustpilot and independent reviews
4. Read terms carefully: Legitimate firms have clear, professional contracts
5. Test customer support: Responsive support indicates proper operations

TradersYard combines Austrian regulation with fast payouts and low entry costs. This balance of safety and accessibility makes them a strong choice for traders who prioritize both.

Join TradersYard's regulated trading program and trade with confidence knowing your prop firm has proper oversight.

For a complete explanation of how prop firms work, read our guide on what prop firms are and how they work.