Axi Select, the proprietary trading platform managed by the brokerage firm Axi, has reported a significant 40% increase in active traders month-over-month. This growth comes when the broader proprietary trading sector faces potential challenges from MetaQuotes, the creator of the widely-used MetaTrader platforms.
The Demo Prop Trading Account Model Is Set To Collapse- Says Axi
Based in Australia, the firm has also expressed scepticism towards the demo trading models commonly adopted by proprietary firms, contrasting them with Axi Select’s approach of providing live trading opportunities to its clients.
Greg Rubin, Head of Axi Select, commented on the situation, stating, “This could mark the start of a decline for the demo account model in proprietary trading firms.”
Typically, proprietary trading firms operate within demo trading settings, relying on these simulated environments to mirror actual market positions based on traders’ activities. However, this approach often complicates the process of compensating traders.
Recent events have exposed vulnerabilities within the proprietary trading sector, with numerous firms halting operations due to severed ties with their brokerage partners. This disruption has been attributed, in part, to actions by MetaQuotes against firms in the United States, prompting a search for alternatives to the MetaTrader platforms among these companies.
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Rubin stated, “We anticipated these developments, which led us to create a capital allocation program based on live trading accounts, accessible in over 100 countries for more than 16 years.”
He emphasised that Axi Select’s model, which avoids the demo account registration fee system, offers a sustainable solution for the proprietary trading community, free from the regulatory and technological pressures other firms face.
Axi introduced its proprietary trading services in September, promising traders up to a 90% share of profits. While the broker is authorised in reputable regions like Australia and the United Kingdom, its proprietary trading services are provided through its entity in St Vincent and the Grenadines.
Axi is the first major broker to venture into proprietary trading services, with others like OANDA and Hentec Markets following. These firms also operate their proprietary trading services through offshore branches, with OANDA treating its proprietary trading clients as signal providers.
