Which Prop Firms Are Regulated in Europe? EU Guide

European traders have an advantage when choosing prop firms. EU-based companies follow stricter business standards and provide better legal protection than offshore alternatives.

Here's your complete guide to prop firms regulated in Europe.

EU Prop Firm Regulations

The European Union doesn't have specific prop firm regulations. However, EU-based prop firms must comply with:

• National Commercial Law: Business registration and corporate governance
• Consumer Protection Directives: Fair terms and dispute resolution
• GDPR: Data protection for all users
• Anti-Money Laundering (AML): Identity verification requirements

These regulations create accountability that offshore firms lack. If an EU prop firm doesn't pay you, you have legal options through European courts.

Why EU Registration Matters

EU-registered companies must:

• File annual financial reports
• Maintain registered office addresses
• Identify company directors publicly
• Follow transparent business practices

This transparency makes it harder for scam operations to exist within the EU. You can verify any EU prop firm through official business registries.

Country-by-Country Breakdown

Austria

Austria offers strong business regulation with reasonable operating costs. TradersYard chose Austria specifically for this balance.

• Registry: Firmenbuch (Austrian Business Register)
• Oversight: Austrian Commercial Code
• Notable Firm: TradersYard

Austrian firms benefit from EU membership while avoiding the higher costs of Western European hubs.

Czech Republic

Prague has become a prop firm hub due to favorable business conditions and tech talent.

• Registry: Czech Commercial Register
• Oversight: Czech Business Corporations Act
• Notable Firm: FTMO

FTMO, one of the largest prop firms globally, operates from Prague.

Cyprus

Cyprus attracts financial services companies with its EU membership and favorable tax structure.

• Registry: Cyprus Registrar of Companies
• Oversight: CySEC for brokers, Companies Law for prop firms
• Notable Firms: Several smaller prop firms

Be more cautious with Cyprus firms. While technically EU, oversight is less strict than Northern European countries.

Poland

Poland's growing fintech sector includes several prop trading operations.

• Registry: KRS (National Court Register)
• Oversight: Polish Commercial Companies Code
• Notable Firms: Various emerging prop firms

Germany

Germany has the strictest business regulations in the EU. Few prop firms operate here due to compliance costs.

• Registry: Handelsregister
• Oversight: BaFin (for financial services)
• Notable Firms: Limited options

Benefits of EU Regulation

Legal Protection

EU consumers have strong legal rights. If an EU prop firm violates their terms or refuses payment, you can:

• File complaints with consumer protection agencies
• Pursue claims through small claims courts
• Use cross-border dispute resolution mechanisms

Try doing this with a firm in St. Vincent. It's essentially impossible.

Data Security

GDPR requires EU firms to:

• Protect your personal data
• Disclose how they use your information
• Delete your data upon request
• Report data breaches within 72 hours

Your trading history and financial information stay protected.

Financial Stability

EU businesses must maintain proper accounting and financial records. This reduces the risk of prop firms suddenly disappearing or becoming insolvent.

Banking Access

EU prop firms use European banks for payouts. This means:

• SEPA transfers for EUR accounts
• Faster processing within Europe
• Lower fees for EU-based traders
• More payment method options

European Regulated Prop Firms List

Here are verified EU-regulated prop firms operating in 2025:

TradersYard (Austria)

• Location: Austria
• Entry Cost: From €36
• Payout Speed: Under 4 hours
• Profit Split: 80-95%
• Currencies: EUR, USD, GBP

TradersYard combines Austrian regulation with the industry's fastest payouts. Their EUR pricing eliminates currency conversion for European traders.

FTMO (Czech Republic)

• Location: Prague, Czech Republic
• Entry Cost: From €155
• Payout Speed: 1-2 days
• Profit Split: 80-90%
• Currencies: EUR, USD, GBP, CZK

FTMO is the largest EU-based prop firm by trader count.

The Trading Pit (Liechtenstein)

• Location: Liechtenstein (EEA)
• Entry Cost: From €99
• Payout Speed: 2-3 days
• Profit Split: 70-80%

Liechtenstein is part of the European Economic Area, providing similar protections to EU countries.

TradersYard: Based in Austria

TradersYard's Austrian location provides specific advantages for European traders:

EUR Native Pricing

Account sizes and evaluations priced in EUR. No currency conversion fees eating into your profits.

SEPA Payouts

Fast bank transfers across the EU. Payouts process in under 4 hours, reaching European accounts same-day in most cases.

EU Legal Framework

Full compliance with Austrian and EU business law. Their rules and terms reflect European consumer protection standards.

Timezone Alignment

Support available during European business hours. Trading conditions optimized for European market sessions.

Frequently Asked Questions

Are EU prop firms safer than offshore firms?

Generally yes. EU firms must comply with business regulations, consumer protection laws, and data security requirements. If problems arise, you have legal recourse through European courts. Offshore firms offer virtually no protection.

Do EU prop firms cost more?

Not necessarily. TradersYard starts at €36, cheaper than many offshore alternatives. EU firms have higher compliance costs but don't always pass these to traders.

Can non-EU residents use EU prop firms?

Yes, most EU prop firms accept traders globally. TradersYard serves traders from over 100 countries. The firm's EU registration protects all users regardless of location.

What's the difference between EU and UK prop firms after Brexit?

UK firms now operate under separate regulation. EU consumer protection laws no longer apply to UK companies. However, UK regulation remains strong. For EU residents, EU-based firms like TradersYard offer simpler banking and legal clarity.

How do I verify an EU prop firm?

Search the business registry in their stated country. For Austrian firms, use the Firmenbuch. For Czech firms, the Commercial Register. Verify company name, registration number, and status match their website claims.

Choosing an EU Prop Firm

When selecting an EU-regulated prop firm, consider:

1. Country of registration: Northern/Central EU countries have stronger oversight
2. Currency options: EUR pricing saves conversion fees
3. Payout methods: SEPA support for fast EU transfers
4. Company history: Check how long they've operated
5. Trustpilot reviews: Look for verified payout proof

TradersYard ticks all boxes: Austrian regulation, EUR pricing, sub-4-hour payouts, and thousands of verified withdrawals.

Start trading with TradersYard, the EU-regulated prop firm built for European traders.

For verification steps, see our guide on how to verify if a prop firm is regulated.