Inside the $12 billion prop trading industry that has Gen Z and millennial investors hooked

Core Insights - The global active prop trading market has seen a 25% increase in the last three years, with an estimated worth of around $12 billion [1] - Interest in prop trading surged in 2023, with Google search interest for "prop firms" increasing by 85% and "prop trading" by 139% [2] - The average age of a prop trader is 29, and approximately 75% do not achieve sustained profitability over a six-month period [10] Industry Overview - Prop trading firms provide retail traders with access to capital for trading, typically requiring an upfront fee ranging from $50 to several hundred [5][9] - Successful traders must pass evaluations and challenges to receive funding, with only 12.4% of traders at Topstep achieving this in 2024 [10][11] - Apex Trader Funding reported a sixfold increase in payouts to traders over the past year, indicating significant growth in the prop trading sector [12] Trader Experiences - Many traders, including those like Ricky Saldana and Daniel Inskeep, have invested substantial amounts in prop trading fees, often exceeding $10,000, while facing challenges in maintaining profitability [15][18] - The emotional and financial stress of prop trading is notable, with traders describing it as an "emotional rollercoaster" and acknowledging the risk of losing their accounts [19][20] - Despite the challenges, traders are drawn to the potential for financial independence and the appeal of trading with larger sums of capital [16][21][24]