In short
Since the 2023 MyForexFunds enforcement, the prop-firm industry has moved into a more regulated phase. As of May 2026, regulators are scrutinising new entrants and pushing existing firms toward clearer disclosure.
For traders, the three things worth checking are the firm’s jurisdiction, regulatory stance, and payout transparency.
What major regulators are doing
US — CFTC and SEC
Since the 2023 enforcement wave, the CFTC has issued recurring warnings against operators that look like unregistered securities or commodities trading. Firms serving US residents are being nudged toward registered FCM (Futures Commission Merchant) or RIA (Registered Investment Adviser) frameworks.
UK — FCA
The FCA has tightened risk-disclosure rules on consumer-facing prop-firm advertising. The simulated nature of profits, the magnitude of losses, and the tax treatment all need to be spelled out clearly.
Canada — OSC
As a continuation of the MyForexFunds case, the OSC now requires firms operating in Canada to clearly distinguish simulation environments from real-money execution.
EU — MiFID II adjacent
Discussions on standardising contract terms and strengthening consumer protection are ongoing. A common EU-level guideline for firms targeting the region may emerge during 2026.
What to verify before signing up
- Does the terms of service explicitly distinguish “simulation environment” from “real execution”?
- Is the loss risk clearly stated (no “guaranteed profits” marketing)?
- Are payouts published on a recurring basis?
- Does the firm have a history of regulatory action? See scam risks guide.
Our approach at PROP NAVI
Our reviews factor jurisdiction, regulatory stance, and payout history into every score. See the latest firm directory and ranking — both built on this view.
Final investment decisions remain yours. This site does not offer investment advice.