Technology provider Brokeree announced on Wednesday that it has partnered with Muinmos for its prop trading offering.
Brokeree currently offers a prop solution called ‘Prop Pulse’. This lets brokers set up and monitor challenges, as well as offering connections to MetaTrader, alongside different LPs, payment providers, and CRM solutions.
Muinmos is a regulatory technology provider. The company’s tools are mainly designed to make onboarding clients cheaper and faster. That means they help do things like KYC, appropriateness checks, and risk assessments on clients.
“We have joined forces with Brokeree to help regulated brokers provide a trustworthy prop trading offering and jointly combat negative practices in this sector,” said Muinmos Founder and CEO Remonda Kirketerp-Møller. “Our combined offering enables the firms to offer a compliant and at the same time competitive prop trading option.”
Most props do not do KYC tests until they take a client on as a funded trader. The reason is that the client isn’t trading on a real account and the prop is not holding client funds or letting them trade in securities.
Consequently the sale of a challenge is more akin to an e-commerce product sale, rather than a deposit into a brokerage accont.
However, if a trader does pass a challenge, they are typically made to do KYC processes and the other compliance steps that a broker would do when onboarding a client.
“We are very aware that many regulated brokers are concerned that their reputation will be tarnished if they offer prop trading,” sad Brokeree Co-Founder and Managing Partner. “Andrey Kamyshanov With Muinmos’ compliance expertise and Brokeree’s account management system for prop trading firms, regulated brokers can be reassured that they will have a robust offering to enable them to thrive now and as regulation is inevitably introduced”.