Financial Watchdog Labels Alpine Funded and Aura Funded as Questionable
Ukraine’s financial regulator has added two proprietary trading firms, Alpine Funded and Aura Funded, to its warning list. These firms were among seven flagged by the National Securities and Stock Market Commission (NSSMC) last week. This move follows a similar warning issued last July against another prop trading firm, Forex Prop Firm.
Ukraine Targets More Trading Firms
While the NSSMC did not provide specific reasons for blacklisting Alpine Funded and Aura Funded, it has previously raised concerns about prop firms. Last year, the regulator also flagged BDSwiss, a well-known broker dealing in contracts for differences (CFDs).
Along with the two prop firms, the latest warning list includes a trading course provider and two companies offering services in currency pairs, stocks, and cryptocurrencies.
Alpine Funded is reportedly based in Switzerland, while Aura Funded lists Dubai as its headquarters. The NSSMC categorized these entities as “dubious projects,” echoing concerns raised by regulators in other countries.
Regulatory Scrutiny on Prop Firms Grows
The proprietary trading industry has gained massive popularity in recent years, attracting more scrutiny from regulators. Unlike traditional brokers, prop firms do not manage client investments. Instead, they generate revenue by selling trading challenges, which traders must pass to access a funded account.
Most prop firms operate on a simulated trading model, meaning even “funded” traders use demo accounts rather than real capital. This approach has led to warnings from financial authorities in Belgium, Spain, and Italy. The Italian regulator Consob even likened prop trading to “video games.”
Ukraine is not alone in tightening its stance. India’s central bank recently placed two prop firms on its warning list, and European regulators have discussed potential rules for the industry. The Czech Republic’s financial authority believes some prop firms might already fall under the MiFID II framework. With regulatory pressure mounting, the future of prop trading remains uncertain.
