# Regulated Prop Firms: What the Label Means (2026)

> No prop firm is regulated as a prop firm, because no major regulator licenses simulated evaluations as of October 2026. "Regulated" prop groups own or run a separate licensed business: FTMO bought OANDA (approved by five regulators, Dec 2025), Topstep runs an introducing broker, and several groups hold Mauritius dealer licences. The evaluation product usually sits outside that licence, and websites must say so.

- Source: https://pipvalley.com/guides/regulated-prop-firms
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** No prop firm is regulated as a prop firm, because no major regulator licenses simulated evaluations as of October 2026. "Regulated" prop groups own or run a separate licensed business: FTMO bought OANDA (approved by five regulators, Dec 2025), Topstep runs an introducing broker, and several groups hold Mauritius dealer licences. The evaluation product usually sits outside that licence, and websites must say so.

Traders search for "regulated prop firms" hoping for extra protection, and some firms use the word loosely. For a founder the question is practical: what licence could my group hold, what would it cover, and how do I describe it without misleading anyone? This guide lists the public examples as of 12 October 2026 and the wording rules that follow from them. For the wider picture, read [are prop firms regulated](/guides/are-prop-firms-regulated).

> This guide explains how things generally work and what we have seen running prop firms. It isn't legal, tax or financial advice, and it doesn't create a lawyer–client relationship. Rules differ by country and change often, so speak to a qualified lawyer (and a tax adviser) in the jurisdiction concerned before you act.

## Which prop groups hold a regulated entity?

The examples below come from regulators' approvals or named trade press. In each case the licence belongs to a specific entity and covers specific activities.

**Prop groups with regulated entities (as reported; checked 12 October 2026)**

| Group | Regulated entity or registration | Reported | Source |
|---|---|---|---|
| FTMO | Owns OANDA, which holds licences in eight jurisdictions; deal approved by five regulators | Dec 2025 | TradeInformer |
| Topstep | Topstep Brokerage, an introducing broker cleared by Plus500; also registered with the NFA as a swap firm | Jan and May 2026 | TradeInformer; Finance Magnates |
| Tradeify | Introducing brokerage unit, Slay Markets | May 2026 | Finance Magnates |
| FundingPips, FNmarkets (FundedNext), Hola Prime, Finotive Markets | Mauritius licences | Jun 2026 | Finance Magnates |
| The5ers' founders | Seychelles licence for a CFD broker unit; minority stake in a Cyprus brokerage | Jun 2026 | Finance Magnates |

## Does a licensed entity make the prop firm regulated?

Not by itself. A licence covers the activities the regulator authorised for that entity, such as dealing, brokering or introducing. The evaluation business, selling simulated challenges and paying rewards, usually runs in a different company and outside those permissions. FTMO, for example, describes its prop accounts as demo accounts with fictitious funds. A trader who buys an evaluation from a group that also owns a broker is not a broker client unless they open a brokerage account.

That is why regulators and trade press keep the two apart. CySEC's chair said in June 2026 that ESMA was not discussing retail prop trading at all, and our [regulation news tracker](/guides/prop-firm-regulation-news) lists claimed "prop firm rules" we could not trace to any regulator.

## Why do prop groups get licensed?

Mostly for access and for a second business. Finance Magnates noted in December 2025 that many prop firms obtained offshore licences mainly to secure a MetaTrader licence, after MetaQuotes stopped serving many prop firms. In the US, firms have registered introducing brokers so traders can move from simulated accounts to real ones within the group. A licence can also reassure banks and payment partners, although processors still judge the evaluation product on its own terms; Stripe, for instance, lists "funded prop trading" among prohibited businesses.

- Platform access: MetaTrader and some other vendors serve licensed brokers.
- A real-account product for traders who graduate.
- Banking and partner credibility for the group.
- Preparation for rules that may come, as discussed in [will prop firms be regulated](/guides/will-prop-firms-be-regulated).

## Should a new prop firm get a licence?

Usually not at launch. A licence costs capital, staff and often more than a year; see our [forex licence cost comparison](/guides/forex-license-cost) and [Mauritius](/jurisdictions/mauritius) page. Buying a licensed company is possible but needs regulator approval of the new owner; see [forex broker licence for sale](/guides/forex-broker-license-for-sale). Most founders launch the evaluation firm on a simple company, prove demand, and add a licensed arm later if the business case is there. Start with [how to start a prop firm](/guides/how-to-start-a-prop-firm) and [do prop firms need a licence](/guides/do-prop-firms-need-a-license).

## How should you describe a licence on your website?

Precisely, and per entity. Misdescribing a licence is the fastest way to lose a processor, and in some places it is an offence; Saint Lucia's regulator, for example, calls documents claiming a forex licence there "false and misleading".

- Name each entity, its registration number and, if licensed, its regulator, licence number and a link to the register.
- Say which products each entity offers: evaluations from one company, brokerage accounts from another.
- Never call evaluation accounts "regulated" because a group company holds a licence.
- Keep the simulated-trading notice on every evaluation page.
- Date the page and update it when licences change.

## Where does PipValley fit?

We build prop firm websites with a [trust center](/features/trust-center) that sets out the group structure, entities and licences in plain words, with separate sections where a group runs both evaluations and brokerage. Multi-entity builds start at the $3,500 Signature tier; a single-entity Launch build is $1,490.

## Questions

### Are there any regulated prop firms?

There are prop groups with regulated entities, such as FTMO through OANDA and Topstep through its introducing broker, but we know of no regulator that licenses simulated evaluations themselves as of October 2026. The evaluation product usually sits outside the licence.

### Are there US regulated futures prop firms?

Some US futures prop groups have registered regulated businesses: Topstep runs an introducing broker and is registered with the NFA as a swap firm, and Tradeify launched an IB unit, per 2026 reports. Their evaluation accounts remain simulated.

### Is a prop firm with a Mauritius licence regulated?

The licensed entity is regulated by the Mauritius FSC for the activities its licence covers, typically investment dealing. Whether the evaluation product falls under it depends on the structure; check which entity sells it.

### Should I say my prop firm is regulated?

Only if a regulator authorises the entity that sells the product, and only in the regulator's terms. Name the entity, licence number and regulator, and link to the register. Ask your lawyer to approve the wording.

### Does a licence protect prop firm traders?

Licence protections such as client-money rules apply to clients of the licensed activity, for example brokerage accounts. Buyers of a simulated evaluation from a separate company usually rely on its terms and consumer law instead.

## Sources

- [TradeInformer: FTMO completes acquisition of OANDA after getting green light from 5 regulators (2 Dec 2025)](https://tradeinformer.com/broker-news/ftmo-completes-acquisition-of-oanda-after-getting-green-light-from-5-regulators)
- [TradeInformer: Topstep launches introducing broker through Plus500 partnership (28 Jan 2026)](https://tradeinformer.com/broker-news/topstep-launches-introducing-broker-through-plus500-partnership)
- [Finance Magnates: US prop firms are now moving inside the CFTC perimeter (21 May 2026)](https://www.financemagnates.com/forex/us-prop-firms-are-now-moving-inside-the-cftc-perimeter-an-opportunity-or-a-survival-strategy/)
- [Finance Magnates: The Comoros was just a layover, prop firms are landing in Mauritius (Jun 2026)](https://www.financemagnates.com/forex/the-comoros-was-just-a-layover-prop-firms-are-landing-in-mauritius/)
- [Finance Magnates: The5ers founders' CFD broker unit receives a Seychelles licence (Jun 2026)](https://www.financemagnates.com/forex/the5ers-founders-cfd-broker-unit-receives-a-seychelles-licence)
- [FTMO: homepage and simulated-account disclosure](https://ftmo.com/en/)
- [Finance Magnates: Prop trading slips down Paris' agenda as the US steps up (26 Jun 2026)](https://www.financemagnates.com/forex/prop-trading-slips-down-paris-agenda-as-the-us-steps-up/)
- [Finance Magnates: Retail trading and prop firms in 2025, five defining trends and one prediction for 2026 (19 Dec 2025)](https://www.financemagnates.com/forex/retail-trading-prop-firms-in-2025-five-defining-trends-and-one-prediction-for-2026/)
- [Stripe: Prohibited and restricted businesses (updated 22 Sep 2026)](https://stripe.com/legal/restricted-businesses)
- [FSRA Saint Lucia: Updated warning notices (8 Jan 2026)](https://www.fsrastlucia.org/images/20260108_Updated_WARNING_NOTICES.pdf)