This month’s prop firm news covers everything that shook the funded trading world. The prop trading space never really slows down. But February 2026? This month hit different.
February 2026 brought some of the most important developments the prop firm world has seen in months. From big acquisitions and shake-ups to a fee war and a real battle at the top between the biggest names in proprietary trading, there was no shortage of headlines. Whether you are a seasoned individual sitting on a $200K allocation or someone working through their first evaluation, this month’s news matters to you. Let’s get into it.
The State of Prop Trading Heading Into February 2026
Before jumping into specific headlines, it helps to understand where the prop trading space stands right now because context changes how you read the news.
Between 2023 and 2024, an estimated 80 to 100 prop firms shut down due to tighter competition, regulatory pressure, and business models that could not last. The firms that survived did it by building better technology, publishing transparent rules, and actually paying on time. Every proprietary trading firm that wants to stay relevant must now prove it can deliver real payments week after week, and actual trading performance is what separates winners from the rest.
As of early 2026, top prop firms have paid out over $1 billion around the world. FTMO gave out roughly $450 million over its decade of operation. Apex Trader Funding reached $378 million in just three years. FundedNext crossed $150 million in verified payouts and was named Prop Firm of the Year at the Finance Magnates Annual Awards 2025. FundingPips crossed $200 million in rewards in just three years, as covered by Finance Magnates in their round-up.
These numbers tell you one thing clearly: prop trading has gone fully mainstream. In a maturing market, the firms that stand out are not the loudest, they are the ones keeping their promises every single week. As Finance Magnates has reported, the shift toward accountability is reshaping the entire proprietary trading landscape.
Quick Summary
Here is your prop firm news at a glance. February 2026 proved to be one of the most eventful months in recent prop trading history, marked by big shifts across acquisitions, pricing models, and how firms compete. FPFX Tech’s acquisition of BullRush Entertainment, backed by Quadcode’s investment, pointed to a broader push toward gamified tools across the prop firm world. The long-running debate between FTMO and FundedNext got even hotter, with FundedNext reportedly beating FTMO in payout volume, while FTMO responded by launching its first-ever single-phase evaluation and rolling out pricing discounts. Meanwhile, the removal of extra fees, led by E8 Markets and others, kept shifting the cost burden away from those doing the actual trading. Finance Magnates covered many of these developments, noting the speed of change across the proprietary trading space.
Against this backdrop, Funding Traders came up as one of the most appealing options for anyone looking at where to build a funded position in 2026. The firm offers generous profit sharing, zero commissions on evaluations, and fully open event-driven strategies across all stages. The Novice path, where Phase 1 is completely free, solves one of the most common pain points, removing the financial risk of paying upfront before you are ready. With support across MetaTrader 5, TradeLocker, and DXTrade, Funding Traders also avoids the kind of infrastructure risk that left multiple futures firms scrambling after ProjectX’s exit.
Why Funding Traders Deserves Your Attention in 2026
In a space crowded with copycats, FundingTraders stands out in ways that matter to actual prop traders.
Founded in 2023 and based in Dubai, Funding Traders has built a name for keeping things simple, keeping things fair, and making payments on time. The firm offers options ranging from $10,000 to $200,000, with a profit split that goes all the way to 100%, no tricks. Evaluations carry zero commissions, and there is no time limit on active days. Participants can pick from several account types to match their skill level and goals, and there are consistency rules built into the framework to reward disciplined behavior.
What makes Funding Traders especially interesting is how it earns revenue. Rather than profiting mainly from failed evaluations, the firm mirrors successful funded traders, meaning the incentive lines up with their success. As a prop trading firm, Funding Traders focuses on growing alongside those it backs with real capital.
The CEO, Stan G.K., brings over 18 years of institutional finance experience, having held senior roles at Merrill Lynch, Grayfox International, Laurus Investments A.G., and Spectrum Global Partners. Finance Magnates highlighted this institutional approach as a growing trend among newer prop firms.
Here is what the challenge structure looks like:
1-step and 2-step options to suit different preferences
10% profit target with a 12% total drawdown limit and 6% daily loss limits
Up to 100% profit split after passing
A scaling plan that increases size by 25% every three months for consistently profitable participants
No commission on evaluation phases, and zero commission on swap-free allocations
Weekly payouts via Rise and Coinbase (both fiat and crypto withdrawal options)
Event-driven strategies are fully permitted across all stages
Trading platforms include MetaTrader 5, TradeLocker, and DXTrade
One feature that really stands out is the Novice path, where Phase 1 is completely free. You only pay after you pass the first phase. This removes a real financial barrier and shows the firm is serious about building talent rather than collecting fees. The Novice path is one of the most talked-about instant funding accounts options in the prop trading space right now, since you can start without spending anything upfront.
Right now, there has never been a better time to start. Use code MADNESS at checkout to get 30% off every challenge, plus a 100% profit split, meaning every dollar you earn stays with you. Start your free Phase 1 today at Funding Traders and keep everything you make from day one.
Copying positions between your own setups is allowed, expert advisors are supported within normal risk limits, and holdings can remain open overnight and across weekends. For those who favor swing approaches across forex, indices, metals, commodities, or crypto, Funding Traders offers one of the most open environments around. The broker infrastructure supports fast execution and fair pricing across all asset classes.
With a 4.5 Trustpilot rating and a growing Discord community, the firm has built real word-of-mouth trust. For anyone looking at where to spend their fee in 2026, Funding Traders should be near the top of the shortlist. Many consider it a strong contender for the best prop firm title among newer entrants.
The Big Story: FPFX Tech Acquires BR Management Group LLC and BullRush Entertainment
One of the biggest pieces of prop firm news this month was FPFX Tech’s acquisition of BR Management Group LLC, the parent company of BullRush Entertainment, on January 27, 2026.
BullRush is a gamified platform built around skill-based competitions, real-time leaderboards, and community engagement. Think of it as a competitive pit where participants test their skills against each other on real tools. FPFX Tech is one of the most important infrastructure companies in the retail prop trading space, powering hundreds of prop firms worldwide.
According to Finance Magnates, the deal gives FPFX’s partner prop firms the ability to launch custom competitions alongside their regular offerings. The goal is a more engaging journey from first click all the way to funded status.
The story grew even bigger when Quadcode, the fintech group behind IQ Option, bought a large stake in Game 7 LLC, the parent company running FPFX Tech, PropAccount.com, and BullRush under one roof. Quadcode had just sold its CFTC-regulated exchange to Polymarket for $112 million and is now placing a major bet on prop trading technology. Finance Magnates noted the overlap between gamified financial products, prediction markets, and proprietary trading is getting harder to ignore.
Firms like FundingTraders, which already run strong community layers via Discord and YouTube, are well-placed to gain from this shift. The modern trading pit is no longer a physical floor; it is an online community where funded traders compete and grow together.
FTMO vs FundedNext: Who Actually Holds the Crown?
FTMO has been the standard for serious prop trading since 2015. Built on the classic two-step challenge, the Czech-based firm keeps a 4.8 Trustpilot rating and a name for institutional-level quality.
But according to a February 2026 analysis from Finance Magnates contributor TradeInformer, FundedNext may have passed FTMO as the largest firm by payout volume. Over the trailing 12 months, FundedNext reportedly paid out over $177 million across its CFD and futures brands. In February alone, FundedNext reported paying $15 million to over 8,300 participants. Finance Magnates covered this rivalry closely, calling it one of the most important competitive stories in prop trading today.
FTMO recently launched a one step challenge for the first time and started offering discounts of around 19% on their most popular $100,000 tier. You do not change your pricing when you are comfortably in the lead.
For those who want a firm that is less well-known but more lined up with success, FundingTraders keeps coming up in community talks. The mix of 100% profit split, zero commissions, free Phase 1, and truly open event-based rules means there is no reason to skip it when building a plan in 2026.
FundingPips, The 5ers, and the Rest of the Pack
FundingPips
FundingPips keeps growing as one of the most popular prop firms worldwide, crossing $200 million in total rewards after just three years. Their Zero Reward Denial Policy commits the firm to honoring payouts whenever rules are met. They won Most Popular Prop Firm at the Prop Firm Match Awards 2025. Finance Magnates listed FundingPips among the top firms to watch, and their track record of performance speaks for itself.
The 5ers (The5ers)
The5ers have been running since 2016, and their brand is built on consistency and long-term scaling. Their tiered splits can scale to 100% as participants show sustained discipline, making them the top choice for experienced traders building a real career.
FundingTraders: The Underdog Worth Backing
Among mid-tier firms, Funding Traders stands in a class of its own: the whole model is built to help people become profitable, not to collect fees from those who fail. The instant funding option lets you skip the evaluation entirely if you already have a proven approach and want immediate access to capital.
For new traders not yet ready for FTMO’s level, Funding Traders is the most practical starting point in 2026. The CEO’s institutional background, the 4.6 MyFXBook score, and an active community make this one of the better-run newer firms in the field.
The Rest of the Field
FXIFY, backed by the FXPIG broker with over a decade of market history, offers institutional-grade tools to retail traders. GoatFundedTrader has built loyalty by keeping evaluation rules simple. BrightFunded, launched in 2023 with advisory help from former European Central Bank figures, mixes sharp risk management with a professional feel.
The Activation Fees Era Is Ending
One of the most meaningful changes carrying into February 2026 is the end of unnecessary surcharges, truly good news for prop traders across the board.
E8 Markets permanently removed activation fees across all programs, including futures offerings. No extra charges after passing the evaluation. Since its founding in 2021, E8 Markets has given out over $67 million in rewards across forex, futures, commodities, and crypto.
Funding Traders has taken an even more direct approach to cost clarity. Evaluation phases carry zero commissions, and the Novice track removes the upfront fee entirely. The total cost of reaching a funded position at Funding Traders is among the lowest of any trustworthy firm. The broker-level pricing on executions further keeps costs low once you are active.
The broader push toward cleaner, simpler, one-time pricing is a positive shift for anyone entering the prop trading space.
Challenge Types in 2026: What You Need to Know
If you are new to prop firms, the variety of evaluation formats can feel overwhelming. Here is the simple breakdown.
Two-step challenge: The classic format. Hit a profit target in Phase 1, show consistency in Phase 2, then access your funded account. Some two-step evaluations use simulated accounts in the assessment phase before granting access to live capital.
One step challenge: A single evaluation phase, then straight to a funded setup. FTMO’s launch of this format shows how mainstream the model has become. Funding Traders offers both options, giving participants the choice based on their own comfort and pace.
Instant funding: No evaluation at all. You get direct access to capital and share the profits you generate. Funding Traders offers an instant funding track built for experienced traders who want quick access to capital. The demand for instant funding has been strong, especially among those who already have a proven method. These instant funding accounts paths let you skip straight to generating returns in the markets. Many prop firms now offer several instant funding tiers across different account types, so you can pick the capital level and leverage that fits your style.
CFD vs futures evaluations: These work very differently. Futures prop trading runs on exchange-traded products through CME markets with different daily loss limits and margin setups. Multi-asset firms like E8 Markets and FundedNext offer both tracks, while Funding Traders focuses on CFD-based activity across forex, indices, metals, commodities, and crypto, the right fit for most retail traders. Each path uses simulated accounts during evaluation before you can access funded capital with real backing.
News Trading Rules: Where Every Major Firm Stands
Rules around economic event restrictions are still one of the most important things to check before choosing a prop trading firm. Here is the picture in early 2026:
The picture in early 2026:
FTMO: Two-minute restriction window before and after high impact news events on funded setups
E8 Markets: Five-minute window at the funded stage, unrestricted during evaluation
DNA Funded: Ten-minute window around major events on funded setups, one of the more restrictive positions in the field
FundingPips and FundedNext: Generally permissive, with FundedNext offering unrestricted event access on certain types as a direct selling point
FundingTraders: Event-driven strategies are fully permitted across both evaluation and funded stages, no restriction windows, no blackout periods
If your edge lives in the moments that move markets most, NFP, CPI, FOMC, you need a firm whose rules protect your strategy, not restrict it. Use code MADNESS for 30% off your challenge and a 100% profit split on everything you earn. Join Funding Traders and trade every high-impact event without limitation, from your very first challenge day through to your funded account.
Analysis from Finance Magnates suggests that restriction periods around releases will likely become more official as regulators look at how prop firms handle risk. If your approach depends on high impact events, locking in with a firm that allows unrestricted activity around economic releases is a real edge while that window stays open.
ProjectX Exits: A Platform Crisis for Futures Prop Firms
ProjectX confirmed it is ending all third-party services by the end of February 2026. Firms including One Top Futures, Blue Guardian Futures, and Tick Tok Trader all relied on ProjectX’s tools. Going forward, the service will work only through Topstep.
This echoes the MetaQuotes crackdown of early 2024, when dozens of prop firms had to pause US offerings after the MetaTrader broker network restricted prop firm onboarding of American participants. Risk tied to infrastructure is real. Before committing to any prop trading firm, understanding what trading platforms they run on and whether the broker behind them has a stable partner base is more and more important.
Funding Traders handles this by running across three trading platforms: MetaTrader 5, TradeLocker, and DXTrade. That spread means a single infrastructure change does not cut off access to funded capital, a practical edge that becomes clearer every time a story like ProjectX breaks.
Regulation, Consolidation, and What Comes Next
The big theme shaping the prop firm space in 2026 is regulation. What was once a mostly unregulated area is now under active review from the CFTC, FCA, ASIC, and multiple European authorities.
Expected changes include required licensing, stricter KYC and AML checks, formal transparency around profit sharing, and possible CTA classification of evaluation-based prop firms. The EU’s MiCA framework is now fully in place, and regulators have raised concerns about non-refundable fees looking too much like gambling. The sector grew by over 1,264% between 2015 and 2024, making regulatory attention unavoidable. Finance Magnates has run a full series tracking these shifts, noting that every serious proprietary trading firm must prepare for tighter oversight.
FTMO has predicted that three to four players will control 80% of the market within a few years. The firms that survive long-term will be those that invested early in compliance, keep transparent rules, and have real payout histories. Funding Traders’ clear revenue model and institutional leadership put it in a good spot. As a broker-backed operation with real capital behind it, the firm is built to meet the standards regulators are starting to require.
Copy Trading, Expert Advisors, and Account Add-Ons
Most major prop firms now allow expert advisors within set risk limits. Funding Traders follows this standard, allowing EAs within normal risk limits without charging extra fees.
Copy trading between a participant’s own setups is widely allowed. Copying from outside sources is not, for good risk management reasons: when thousands of funded individuals run the same positions at once, the firm’s total exposure becomes dangerously linked.
Add ons have become a more competitive area. Funding Traders’ structured scaling plan, which raises size by 25% every three months for profitable participants, is one of the cleaner versions of this. Payouts happen within seven days of request, and the firm provides leverage options suited to different experience levels, so capital can be managed properly. Many firms now let you pick from multiple account types and leverage tiers.
The February 2026 Leaderboard: A Fair Summary
If you are choosing a prop firm right now, here is where the leading options stand.
FundedNext leads on payout volume and global scale, with a 24-hour payout guarantee, up to 95% profit split on CFDs, and 100% on futures across 190+ countries.
FTMO is the benchmark, a decade of verified history, 4.8 Trustpilot, and a newly launched one step challenge. As a proprietary trading firm with the longest track record, FTMO remains the standard others are measured against.
FundingPips is the community favorite and most accessible entry point, with its Zero Reward Denial Policy and four flexible payout cycles.
The 5ers serves those building long-term careers with step-by-step scaling and careful risk frameworks.
E8 Markets has set itself apart on pricing clarity and the removal of activation fees. The broker partnerships behind E8 ensure strong execution across forex, indices, and commodities.
FundingTraders is the best choice for anyone who wants a truly fair model with 100% profit split, zero commissions, free Phase 1, unrestricted event-based rules, and a CEO with real institutional credentials. The leverage options, fast payments, and range of account types make it easy for anyone at any level to find a fit.
With over $5.5 million in total rewards paid to the community and more traders cashing out every week, the momentum is real. Use promo code MADNESS for 30% off any challenge and a 100% profit split, no limits, no catches. Claim your challenge at Funding Traders before this offer closes.
Final Word
February 2026 was a month of real action across the prop trading world. The FPFX Tech acquisition of BR Management Group LLC and BullRush Entertainment is pushing gamification into the core tools of prop firms. The fee war is shifting real costs in favor of participants. The FTMO versus FundedNext debate is healthy competition making things better for everyone. And the regulatory picture is driving the field toward firms that put accountability over volume. Finance Magnates continues to be the go-to source for tracking these shifts.
Staying on top of prop firm news like this gives you a real advantage. In that environment, newer firms with clean models and real alignment, like Funding Traders, are more and more the smarter choice for those who do their homework. Every broker relationship, every leverage option, and every payout policy matters when you are putting your capital on the line.
If you are looking at where to invest in your first evaluation in 2026, start with payout history, read the restriction rules carefully, check stability, and look at what the firm actually earns from. Make sure payments are fast and reliable, and that you can access funded capital through stable trading platforms with proper broker support. The prop trading space rewards the informed. Make sure that is you.
This summary of prop firm news highlights the key trends shaping the space and what to watch for in the seven days and months ahead.
Disclaimer: Trading involves significant risk and is not suitable for every investor. Past performance is not indicative of future results. The information provided in this article is for educational and informational purposes only and should not be considered financial, investment, or trading advice. All account rules, payout structures, profit splits, and promotional offers described in this article are subject to change at the discretion of FundingTraders. Promo codes may expire or be modified without prior notice. Always trade responsibly and only risk what you can afford to lose.
Sources: Finance Magnates · TradeInformer · FX News Group · FXEmpire · For Traders · TradingView News · Forex Prop Reviews · Prop Firm Match · TradingFinder · Funding Traders Official
