Kathy Lian, Co-Founder of BKTraders and author of PropTrading Secrets, offered a measured assessment of proprietary trading’s development,challenges, and outlook in an interview with Finance Magnates’ Jeff Patterson.Her comments came during the iFX EXPO International2025, where brokers, trading firms, and technology providers gathered toexamine recent developments in the sector.
“Reconnecting with industry peers and providers has beeninvaluable,” Lian said, emphasizing the importance of industry dialogue amid shiftsin the proprietary trading landscape.
That energy, she noted, mirrors the momentum within proptrading itself. “Prop trading is a relatively new space, but the overwhelminginterest reflects its rapid expansion. Traders and firms alike are eager tounderstand where this industry is headed next.”
An Industry Finding Its Feet
Although proprietary trading has existed in various formsfor decades, its current incarnation—marked by online-funded accounts, globalretail access, and gamified evaluation models—has exploded over the past threeyears. But the path hasn’t been smooth.
“The growth we’ve seen has primarily happened in the lastthree years,” Lian said. “But it hasn’t been without challenges—regulatorycrackdowns, technology disruptions, and firm closures have forced the industryto adapt quickly.”
Still, she sees progress. “We’re still in the infancy stage,but significant maturity has occurred. Traders now demand better technology,transparency, and execution—factors that are pushing the industry forward.”
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Trader Habits and Discipline
Lian’s own journey through markets, and the patterns she hasobserved in successful traders, formed the foundation of her new book. A coreinsight: specialization beats breadth.
“The most successful traders focus on mastering oneinstrument,” she explained. “Instead of spreading themselves thin acrossmultiple assets, they specialize—whether it’s gold, NASDAQ, or anothermarket—until trading it becomes second nature.”
It’s advice grounded in discipline, a trait Lian sees asessential as the market grows more competitive and expectations of tradersrise.
Beyond Flash: Funding Models and Regulation
As the sector matures, proprietary firmsare experimenting with new funding approaches—often with mixed results. Lianwarned against novelty for novelty’s sake.
“Some changes cater to instant gratification but may not bein the trader’s best interest,” she cautioned. Instead, she urges traders toprioritize firms with longevity and transparent terms.
On the regulatory front, oversight remains uneven. The U.S.Commodity Futures Trading Commission (CFTC) has signaled interest in the space,but any near-term enforcement may be slowed by political considerations.
“European regulators are also watching closely,” Lian added.“So we might see international frameworks emerge first.”
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Navigating Macro Shocks
The conversation also turned to market dynamics shaped bygeopolitics and monetary policy. Lian acknowledged that recent volatility hastested even experienced traders.
“The past six months have been incredibly volatile, but Ibelieve markets will stabilize as trade disputes resolve and economicfundamentals take center stage,” she said.
A Sector on the Verge
As the interview drew to a close, Lian returned to a themethat resonated throughout the EXPO: the industry is still writing its ownplaybook.
“There’s so much change happening—not just in globalpolitics but within our own space,” she said. “The next few years will bepivotal.”
For traders navigating this fluid environment, Lian’smessage was clear: adaptability, focus, and an eye for structure are thepillars of success. Prop trading may still be finding its footing, but thefoundations are forming fast.
This article was written by Tareq Sikder at www.financemagnates.com.
