Instant Funding acquires Funded Trading Plus, lifting group revenue by 70%

What's the deal? Instant Funding, a proprietary trading firm, has acquired Funded Trading Plus, a fellow prop-trading platform. The deal boosts the combined group's revenue by 70%, according to the company.

Both firms operate in the funded-trader space — a fast-growing niche where companies provide capital to retail traders who pass evaluation challenges, sharing the profits. Financial terms of the acquisition were not disclosed.

Why now? The prop-trading industry has exploded over the past few years, attracting hundreds of thousands of aspiring traders worldwide. Consolidation was inevitable as firms look to scale, cut costs, and differentiate themselves in an increasingly crowded market.

Acquiring an established competitor like Funded Trading Plus gives Instant Funding a larger user base and, presumably, stronger infrastructure — both critical advantages as regulatory scrutiny of the sector intensifies.

What could go wrong? The funded-trading model remains controversial. Critics argue it resembles a subscription business more than a brokerage, since most revenue comes from evaluation fees rather than live-market trading profits. Several firms in the space have shut down abruptly, leaving traders out of pocket.

Integration risk is also real. Merging two platforms with different user communities, tech stacks, and payout structures can erode the loyalty that made each brand valuable in the first place.

The signal: This deal reflects a maturing prop-trading sector entering its consolidation phase. As regulators in the US, EU, and elsewhere start drawing clearer lines around what funded-trading firms can and cannot do, scale becomes a survival advantage. Expect more M&A as smaller operators get squeezed.

Read more: prnewswire.com