Something massive just happened in prop trading. And if you're not paying attention, you're missing the biggest opportunity of the decade.
On September 1st, 2025, Kraken: one of the world's largest crypto exchanges: acquired Breakout, a crypto prop trading firm. This isn't just another acquisition. It's the first time a major cryptocurrency exchange has entered the proprietary trading space, and it's sending shockwaves through the industry.
But that's not all. Earlier this year, we saw FTMO acquire OANDA in a deal that stunned the traditional forex world. Suddenly, two of the biggest names in retail trading are owned by prop firms.
What's really happening here? Big money is flooding into prop trading, and the smart operators are positioning themselves now: before the window closes.
The Billion-Dollar Stampede Into Prop Trading
Let's get one thing straight: when Kraken drops serious cash to buy a prop firm, it's not because they're bored. They're seeing something we should all be paying attention to.
The numbers tell the story. In May 2025, Kraken also acquired NinjaTrader for a whopping $1.5 billion. Coinbase wasn't sleeping either: they grabbed Deribit for $2.9 billion. That's over $4 billion in trading infrastructure acquisitions in just a few months.
Meanwhile, FTMO's acquisition of OANDA represents something even bigger. OANDA has been a household name in retail forex for over two decades. When a prop firm can afford to buy out such an established player, it tells us that prop trading isn't just profitable: it's massively profitable.
Think about it: FTMO started as a Czech prop firm evaluating forex traders. Now they're buying out one of the most recognisable names in retail trading. That's not just growth: that's domination.
Why the Giants Are Moving Now
Here's what the institutional players have figured out: prop trading is the future of retail finance, and traditional brokerages are yesterday's news.
The Model Is Simply Better
Traditional brokerages make money when traders lose. It's a zero-sum game that creates inherent conflicts of interest. Prop firms flip this on its head: they only succeed when their traders succeed. It's alignment at its finest.
Kraken's CEO Arjun Sethi put it perfectly: "Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself." This isn't just marketing speak. It's a fundamental shift in how capital gets allocated in financial markets.
Capital Efficiency Is King
Prop firms can generate massive returns on capital with relatively low infrastructure costs. FTMO reportedly manages hundreds of millions in trading capital across thousands of traders worldwide. The scalability is incredible: once you've built the evaluation system and risk management infrastructure, adding more traders is nearly pure profit.
Regulation Is Finally Catching Up
The regulatory environment for prop trading has stabilised significantly over the past few years. Clear guidelines mean institutional money can finally flow in without regulatory uncertainty holding things back.
The Infrastructure Arms Race
What we're witnessing isn't just about prop trading: it's about who will control the next generation of trading infrastructure.
Kraken's acquisition of both Breakout and NinjaTrader creates a vertically integrated trading ecosystem. Traders can evaluate on Breakout, trade on advanced NinjaTrader software, and execute through Kraken's institutional-grade infrastructure. It's a complete solution that no standalone prop firm can match.
This is the playbook: buy the technology, buy the distribution, control the entire value chain.
The Network Effects Are Insane
Once these platforms reach critical mass, they become nearly impossible to compete with. More traders mean more data for better risk management. Better risk management means higher profit splits. Higher profit splits attract even more traders. It's a flywheel that's just getting started.
Your Window Is Open: But Not Forever
Here's the thing about market transitions: the early movers get the best terms, and the latecomers fight for scraps.
Right now, we're in the early mover phase. New prop firms can still launch and compete because the market is growing faster than the giants can capture it. But this won't last forever.
The Mathematics of Opportunity
Consider this: if FTMO can afford to buy OANDA, and Kraken can drop billions on trading infrastructure, how much money do you think is flowing through successful prop firms?
The margins in prop trading are extraordinary. Take a typical evaluation fee of £100-300. If even 30% of challengers become funded traders, and funded traders generate an average of £2,000 in profit-sharing over their lifetime, the unit economics are incredible.
First-Mover Advantages Are Real
The firms launching now are establishing themselves before the market becomes saturated. They're building trader databases, refining their evaluation processes, and establishing brand recognition while the giants are still figuring out their acquisition strategies.
The Technology Equaliser
Here's where things get interesting for entrepreneurs: you don't need Kraken's balance sheet to compete in this market. You just need the right technology partner.
The barriers to entry in prop trading aren't about capital anymore: they're about execution. Can you launch quickly? Can you scale efficiently? Can you manage risk effectively? Can you provide a trader experience that competes with the big players?
This is exactly why savvy entrepreneurs are choosing white-label solutions over building in-house. While the giants spend millions on acquisitions, smart operators are launching competitive platforms in weeks, not years.
The technology stack that powers successful prop firms: trader evaluation systems, risk management, payment processing, customer support: is now available as plug-and-play solutions. This levels the playing field in a way that's never existed before.
The Timing Couldn't Be Better
We're at the perfect intersection of market opportunity and technological capability. The prop trading model has proven itself, institutional money is flowing in, and the tools to compete are more accessible than ever.
Market Conditions Are Ideal
Volatility in forex, crypto, and indices creates perfect conditions for skilled traders. The more volatile the markets, the more opportunities exist for profitable trading: and the more valuable skilled traders become to prop firms.
Trader Demand Is Exploding
The success stories coming out of established prop firms are creating massive demand from retail traders who want funded accounts. Every successful trader becomes a marketing case study that attracts dozens more applicants.
The Infrastructure Is Ready
Unlike five years ago, when launching a prop firm meant building everything from scratch, modern platforms like Propriotec's comprehensive solution provide everything needed to compete with the established players from day one.
What This Means for Smart Entrepreneurs
The Kraken-Breakout acquisition and the FTMO-OANDA deal aren't just industry news: they're validation of the massive opportunity in prop trading. But they're also a warning: the window for easy entry is closing.
The entrepreneurs who move now, while the giants are focused on expensive acquisitions, can establish profitable prop firms that compete effectively in this growing market. The key is moving fast and moving smart.
Speed Beats Size
While Kraken spends months integrating Breakout into their ecosystem, a new prop firm can launch and start generating revenue in weeks. Speed to market matters more than size when you're entering a rapidly growing industry.
Focus Beats Features
The giants are trying to build everything for everyone. Focused prop firms that serve specific markets or trader types can often provide better experiences than broad-based solutions.
The prop trading revolution is here, institutional money is flowing in, and the technology to compete is available. The question isn't whether this opportunity exists: the acquisitions prove it does. The question is whether you'll seize it before the window closes.
Ready to explore what's possible? Let's chat about your prop firm vision and how to make it reality while the opportunity is still wide open.
propriotec
Contributor
propriotec is a contributor to the PROPRIOTEC blog.
