Axi, formerly known as AxiTrader, is boldly stepping into the proprietary trading arena despite the sector’s current turmoil following actions against My Forex Funds. The Australian Forex and CFDs broker has launched a proprietary trading scheme, Axi Select.
Axi Select: The New Player in Prop Trading
In a recent statement, Axi clarified that the proprietary trading services will be handled exclusively by its St Vincent and the Grenadines group, AxiTrader Limited. However, these services will not be available to clients in Australia, New Zealand, and the UK.
Interestingly, Axi refrained from using the term ‘prop trading’ for its new offering. Instead, it described it as a ‘capital allocation program’ that provides traders with access to up to $1 million in capital.
Greg Rubin, the head of Axi Select, had expressed that their initiative aimed to provide traders a chance to construct prosperous careers and fulfill their ambition of becoming professionals in the trading field.
Traders must utilize the capital, support, and tools provided to thrive in this constantly evolving environment. Axi’s unwavering commitment to guiding their journey towards success is matched by our ongoing support to ensure they reach their goals.
Axi highlighted that this program will provide traders with unrestricted trading conditions. In contrast to other prop trading firms that rely on registration fees as a regular income source, Axi Select traders could receive up to 90% of the profits from their trading.
Louis Cooper, Axi’s Chief Commercial Officer, had expressed that their innovative Axi Select offering was pioneering among brokers, truly encapsulating their brand’s promise. He mentioned that previously they had designated $39M to traders via their earlier programs and had assisted numerous traders to elevate to a professional status.
Proprietary Trading: Navigating the Uncertain Waters
In recent years, the prop trading industry has grown rapidly, leading to the emergence of many new businesses. Numerous established brokers have also entered the sector with varying asset allocation models.
However, the recent lawsuit by the US commodities regulator against My Forex Funds has sent shockwaves through the industry. The brand and its CEO, formerly seen as front-runners in prop trading, are now facing serious fraud charges.
Prop trading is still unregulated, which allows firms to avoid broker regulations since they do not handle client funds or execute trades through third-party liquidity providers. While there hasn’t been any concern from European regulators, the CFTC’s action has sparked caution throughout the industry.
Recently, two fintech providers, Tools for Brokers (TFB) and Red Acre Group, have partnered to provide a comprehensive turnkey solution to prop trading firms to meet the growing demand for prop trading.
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