The retail
proprietary trading industry, traditionally associated with the United States,
has found a new hotspot: the United Arab Emirates (UAE). Now the world’s third
most popular destination for prop trading, the UAE is attracting both prop
firms and retail traders alike.

Finance
Magnates conducted an in-depth review of the local industry in the Middle East,
comparing four popular firms headquartered in the heart of the MENA region:
AquaFunded, Blue Guardian, City Traders Imperium, and FundedNext.

The Rise of Prop Trading
in the UAE

The Middle
East, particularly the UAE, has become a magnet for financial firms worldwide.
The region’s appeal stems from its attractive tax advantages, strategic
location, and business-friendly environment. With their streamlined and favorable regulations, cities like Abu Dhabi and Dubai have become hotbeds for
popular CFD and cryptocurrency firms. Now, they’re increasingly drawing in prop
trading businesses as well.

The region
gained significant attention in 2024 when regulatory issues began to surface in
the US prop market. MetaQuotes, a provider of popular trading platforms like
MetaTrader, withdrew licenses and services from many local firms, blocking
access to clients from this part of the world.

As a
result, traders migrated to Middle Eastern entities, and many firms began
relocating to the UAE or neighboring countries. Currently, the UAE ranks as the
third most popular jurisdiction among trader-funded firms (TFTs), accounting
for nearly 8% of them, right behind the United States and the United Kingdom.

As the US
grapples with regulatory crackdowns and Europe contemplates regulating the prop
trading industry, the Middle East has emerged as an attractive alternative. The
region offers traders and firms access to high leverage and a diverse range of
trading instruments, making it an increasingly appealing destination.

AquaFunded: The New Kid on
the Block with 90% Profit Split

First in
our lineup is AquaFunded, the newest entrant in the local market. Founded in
December 2023 by Jason Blax, the firm offers traders access to cTrader,
Tradelocker, and Match-Trader platforms.

In February
2024, when the prop trading industry faced temporary paralysis, AquaFunded
briefly suspended new client registrations from the US. However, they quickly
bounced back, launching a new regulated broker and introducing an alternative
to MetaQuotes platforms with software from Match-Trade Technologies.

AquaFunded’s
offering closely mirrors its competitors: high leverage up to 100:1, funded
accounts ranging from $5,000 to $200,000, and a low entry threshold starting at
around $40.

Since the
beginning of the year, the firm has paid out $1.3 million to its traders and
currently serves over 10,000 retail investors. The company also boasts a unique
promise: if a trader doesn’t receive their due funds within 48 hours,
AquaFunded will pay out their entire realized profit as compensation.

Blue Guardian: A Veteran
with a Wide Platform Selection

Blue
Guardian stands out as one of the longer-established firms in the UAE prop
trading market. It currently offers the widest selection of trading platforms,
including MetaTrader, Match-Trader, DXtrade, and Tradelocker.

Blue Guardian, founded by Sean Bainton, has been operating since January 2021. Like its
competitors, it offers 100:1 leverage and the ability to trade on all popular
CFD instruments. The firm also provides some of the most affordable $10,000
accounts, with challenge entry costs as low as $49.

In
February, Blue Guardian also faced temporary issues and suspended access to its
services for U.S. clients. However, they’ve resolved this problem over the past few months by implementing new platforms, including DXtrade.

As of now, new account registrations are restricted for US clients. This applies to both US residents and individuals with dual citizenship residing in the US.

— Blue Guardian (@BlueGuardiancom)

Existing US clients can continue trading without interruption until further notice.

Clients outside the US remain…

February 19, 2024

Throughout
its history, the firm has paid out $9 million to more than 25,000 traders
from more than 130 different countries.

City Traders Imperium:
Catering to Experienced Traders

City
Traders Imperium boasts the most established position in this lineup, having
been present in the Middle East prop trading market for six years. Founded by
Daniel Martin and Martin Najat, the firm offers trading via MetaTrader 5.

While City
Traders Imperium does offer “standard” challenges and small accounts
starting at $2,500 with minimal initial fees, their main offering targets
accounts where traders don’t need to undergo additional evaluation.

The key
difference lies in the significantly lower financial leverage offered (maximum
30:1), higher fees (reaching almost $5,000), and a smaller profit split maxing
out at 80%.

According
to information on the company’s website, City Traders Imperium boasts over
36,000 funded traders and more than $367 million in funded capital.

FundedNext: Offering the
Highest Profit Split

FundedNext
stands out as the only prop firm mentioned in this article that offers
MetaTrader 4, one of the most popular platforms among retail traders.
Additionally, trading is available on MT5 and cTrader.

Founded in
March 2022 by Abdullah Jayed, the firm offers the highest profit splits in the
industry, reaching up to 95%. However, some of their challenges also come with the
highest profit targets in the business. While these typically range from 6-10%,
FundedNext’s targets can sometimes reach 25%.

The
February issues didn’t spare FundedNext, which temporarily suspended new
sign-ups from the United States. However, this doesn’t seem to have
significantly impacted the company’s overall operations.

FundedNext
serves traders from over 195 countries and manages nearly 100,000 traders,
having paid out $95 million in total rewards to date.

Which Prop Firm Should You
Choose?

As the prop
trading landscape continues to evolve, the UAE’s emergence as a key player
offers traders and firms alike new opportunities and challenges. Whether you’re
a seasoned trader or just starting out, understanding the offerings of these
UAE-based firms could be crucial in navigating the ever-changing world of prop
trading.

AquaFunded
and FundedNext offer the widest range of account sizes, from $5,000 to
$200,000, making them suitable for both beginners and experienced traders. Blue
Guardian starts at a slightly higher $10,000, while City Traders Imperium
offers a unique range from $2,500 to $100,000.

In terms of
fees, City Traders Imperium has the lowest starting fee at $33, but their
highest fee is significantly more than the others at $4,799. FundedNext offers
the most competitive fee range from $30 to $1,044.

The
choice ultimately depends on your specific needs:

• For
  beginners or those preferring lower initial investments: Consider AquaFunded
• For traders
  seeking the highest potential profit split: FundedNext might be the best
  choice.
• For those
  prioritizing platform familiarity: Blue Guardian offers the most common
  options.
• For traders
  looking for a more established firm: City Traders Imperium, founded in 2018,
  has the longest track record.

If you’re
interested in exploring other alternatives, check out Finance Magnates’
review of four FX/CFD brokers who also offer prop trading services. In a
separate review, you’ll find a detailed overview of four popular prop firms
from the US.