Axi Warns of Impending Collapse in Demo Prop Trading Account Model

Axi, an Australian brokerage business, announced the probable extinction of the demo prop trading account concept, which many proprietary trading companies have embraced. Axi Select, the firm's proprietary trading platform, has 40% more active traders month over month.

The growth in Axi Select's user base comes at a crucial time for the proprietary trading industry, which is facing possible threats from MetaQuotes, the provider of the widely used MetaTrader platforms. Axi has voiced caution about the common demo trading methods used by proprietary businesses, differentiating itself by offering customers genuine trading chances.

Greg Rubin, Head of Axi Select, expressed his worries, claiming that the increase in real trading activity might signal the start of a slump for the demo account model inside proprietary trading businesses. Traditionally, these organisations operate in demo trading settings, using simulated scenarios to mimic real market circumstances based on trader behaviour. However, issues occur when rewarding traders using this strategy.

Numerous businesses that shut down due to strained relations with their brokerage partners have blamed recent disruptions in the proprietary trading market on vulnerabilities they discovered. MetaQuotes' activities against US-based organisations have pushed concerned corporations to seek alternatives to MetaTrader platforms.

Rubin praised Axi's proactive approach, saying, “We anticipated these developments, leading us to establish a capital allocation programme based on live trading accounts, accessible in over 100 countries for more than 16 years.” Axi Select's concept, which does not require a demo account registration fee, is positioned as a long-term solution for the proprietary trading community, free of the regulatory and technical challenges that other organisations face.

Axi launched its customised trading services in September, giving traders up to 90% of earnings. While the brokerage is licenced in renowned countries such as Australia and the United Kingdom, its proprietary trading services are offered via a corporation in St. Vincent and the Grenadines.

Axi emerges as a pioneer among big brokers offering proprietary trading services, with OANDA and Hentec Markets following suit. Notably, these corporations also run their proprietary trading services from overseas operations, with OANDA considering its proprietary trading customers as signal suppliers.

In the face of developing issues in the proprietary trading industry, Axi's revolutionary live trading strategy stands out as a possible game changer, providing a safe and long-term alternative to the traditional demo account structure. As the sector faces uncertainty, Axi's commitment to provide live trading possibilities might redefine the market for proprietary trading businesses.