How to open a prop firm: FCA capital rule vs vendor guides
How to open a prop firm, by the documents: the UK's £750,000 MIFIDPRU capital floor for dealing on own account beside what three vendor guides print.
To open a prop firm, first decide which business you are opening. A firm that sells paid evaluations on simulated accounts buys, on TradeLocker’s cost list, a platform, a CRM, payment processing and compliance advice. A UK firm with FCA permission to deal on its own account also faces a £750,000 permanent minimum capital requirement under MIFIDPRU 4.4.1R.
The three founder guides read here mostly do not say which of the two they are pricing. This desk read the FCA Handbook’s MIFIDPRU 4.4 and its Glossary entry for dealing on own account, and the founder guides from TradeLocker, Spotware and Axcera, on 19 October 2026. The question is evergreen; the figures are a dated reading.
How to open a prop firm: which business are you opening?
The FCA Glossary defines dealing on own account as “trading against proprietary capital resulting in the conclusion of transactions in one or more financial instruments”.
Spotware’s guide, dated 08 Jan 2026, defines a prop firm as one that “uses its own capital to trade financial instruments”, then describes the most common model as one where traders “pass a simulated evaluation phase” for an upfront fee before reaching live capital. The guide does not reconcile the two in the text read. Axcera’s guide says a prop firm needs FCA authorisation and describes a funded challenge, with an application fee and “a test platform”, without calling it simulated. Our explainer on what a prop firm is reads how three firms describe their accounts.
How much does it cost to start a prop firm? Vendors vs the FCA rule
| Source | Date on page | What it prints on cost or capital |
|---|---|---|
| TradeLocker, “Open a Prop Firm” page | Undated | No figure in the page text; its FAQ says cost “depends on your region, structure and tech choices” and defers to a gated PDF |
| Spotware, founder guide | 08 Jan 2026 | No regulator’s figure in the text read; says starting one “no longer requires millions in upfront capital” |
| Axcera, founder guide | February 13, 2025 | “A minimum of £750,000” for trading on your own account; “a minimum of a million pounds” in total; names the FCA, cites no rule number |
| FCA Handbook, MIFIDPRU 4.4.1R | Last updated 06/04/2026 | £750,000 for dealing on own account, down to £75,000 at the lowest row |
Axcera’s £750,000 is the regulator’s number, unattributed. MIFIDPRU 4.4.1R sets the permanent minimum capital requirement as the highest that applies:
| Permission or role (UK, MIFIDPRU 4.4.1R) | Permanent minimum |
|---|---|
| Depositary of a UK UCITS or authorised AIF | £4 million |
| Dealing on own account; underwriting or placing on a firm commitment basis; operating an OTF without the MAR 5A.3.5R limitation | £750,000 |
| Depositary of an unauthorised AIF | £750,000 |
| Targeted support | £500,000 |
| Operating an MTF; an OTF with the limitation; holding client money or assets in MiFID business | £150,000 |
| Reception and transmission of orders, execution for clients, portfolio management, investment advice, placing without firm commitment | £75,000 |
The Handbook’s example in 4.4.7G puts portfolio management plus advice plus client money at £150,000. This is a floor, not a launch budget, and the Handbook sets further requirements this desk did not read. It is a UK rule and says nothing about other jurisdictions.
Do you need a licence to start a prop firm?
Axcera’s answer is yes: “you will need authorisation from the Financial Conduct Authority before you will be legally able to operate as a prop firm”. That is Axcera’s statement, written for a firm trading its own account, not a general rule. Whether a business selling simulated evaluations needs any permission is a legal question that none of the five pages read answers, and it is the line our report on education products and financial services follows. This post makes no claim that any vendor or prop firm named is or is not authorised.
How long does it take to launch?
TradeLocker’s page promises a “5-week launch timeline”. Its own FAQ narrows that: the five weeks are for founders “who already have their model and partners lined up”, and a realistic plan “usually spans several weeks to a few months”, depending on jurisdiction and vendors. Axcera says founders who fund the operation themselves speed up the launch.
Axcera and Spotware both describe renting a white-label platform. Renting has its own risk, as our report on Rev One Trading’s shutdown showed.
Frequently asked questions
What do I need to have when starting a prop firm?
A company, a trading platform, rules, payment processing and a compliance view on which business you are running. TradeLocker’s page lists platform, CRM, payment providers, compliance and marketing as cost lines. Axcera adds FCA authorisation for a UK firm trading its own account. Whether an evaluation seller needs a permission is a legal question none of the pages read here answers.
How much capital do I need to start my own prop shop?
In the UK, a firm with FCA permission to deal on its own account has a £750,000 permanent minimum capital requirement under MIFIDPRU 4.4.1R. That is a floor, not a budget: Axcera puts the likely total at a minimum of a million pounds. Spotware says starting one no longer requires millions, without separating the two businesses in the text read.
Planning to start a prop firm: where do I begin?
With the definition, not the platform. Decide whether traders will trade your own money or simulated accounts, because the FCA Glossary’s wording on dealing on own account is what puts the £750,000 row in play in the UK. Then take legal advice in your own jurisdiction. Platform choice and the launch timeline come after that decision.
A floor, not a business plan
The vendor guides are sales pages for their platforms; the regulator’s table is the only number here with a rule behind it. This is industry coverage, not legal advice, and a challenge fee still buys a trader an evaluation, not a job. Trading involves substantial risk of loss, and nothing here is financial advice.