ATFX Prop Conversion Gains Momentum in South America

ATFX prop conversion highlights a growing strategy where simulated challenge traders transition into long-term brokerage clients globally. A growing number of contracts for difference (CFD) brokers are rolling out prop trading programs, raising the question: are these simply add-on services or strategic conversion funnels? Drew Niv recently disclosed that more than 10 per cent of traders using ATFunded, the proprietary trading arm of ATFX, have transitioned into brokerage clients in South America.

Niv, who serves as Chief Strategy Officer at ATFX, shared these insights during a discussion with Brendan Callan, CEO at Tradu. Although ATFX entered the prop trading arena only last year, Tradu has yet to debut a prop offering.

ATFX Prop Conversion Data Signals Industry Shift

Niv added that the more “serious” the prop trading challenges are, the greater the likelihood traders on simulated accounts will convert into brokerage customers. This underscores the role of prop platforms as a deliberate acquisition pathway for brokers.

Previously released data revealed that over 6 per cent of ATFunded traders who purchased prop challenges achieved funded accounts in June 2025.

Notably, earlier research shows South America ranks among the top regions for active prop traders. Colombia tops the list, representing nearly 15 per cent of all prop firm clients, followed by the United States and Brazil.

The earliest CFD brokers to venture into prop trading included Hantec, Axi and OANDA, with numerous retail brokers—such as IC Markets and Blueberry Markets—subsequently launching their own prop platforms.

While brokers typically derive income from spreads and commissions, prop firms rely mainly on challenge fees. Because prop firms must facilitate payouts, their risk management framework is also fundamentally different from that of brokers.

This complexity has led many industry specialists to develop prop-specific risk management advisory services.

Prop Platforms Expanding into Brokerage

Despite widespread closures across the sector, top-tier prop firms remain highly profitable. The parent company of FTMO generated more than $62 million in profit from $329 million in revenue during 2024. The previous year, FTMO’s prop unit alone posted over $213 million in turnover.

Some prop platforms are now moving toward brokerage as well. FTMO’s planned acquisition of OANDA, expected to conclude by late 2025, reflects the increasing scale and influence of leading prop firms.

The growing overlap between brokers and prop firms, combined with Niv’s comments, highlights that prop trading is rapidly becoming a central customer acquisition tool—helping brokers bring traders onto their trading platforms.

This trend is further supported by the fact that prop trading promotions, which are not classified as financial services, face significantly lighter advertising restrictions compared to CFD marketing, which involves high-risk instruments.

The prop firms captured the massive Indian retail trading market by positioning themselves as education providers and avoiding terms like “forex” or “CFD.” Although Niv’s figures relate to South America, Indian prop traders can similarly be directed toward brokerage services.

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