Prop trading firm For Traders has launched the first prediction market prop firm.
The product is in Beta mode at the moment, with testing among community members.
Assuming the full launch goes ahead, it would mark another interesting expansion in the prop space.
Firstly, it provides an avenue to a wider audience, given that a lot of prediction market activity is essentially a proxy for sports betting.
Some prop technology providers did attempt to tap into the ‘real’ sports betting space over in the US but it does not seem to have taken off.
The other important factor is that this acts like another regulatory arbitrage for the industry. Because prediction markets are a form of binary option, they are prohibited in the UK, European Union, Singapore, and Australia, among other jurisdictions.
As the prop offering is not ‘real’ trading, For Traders can presumably offer it to their customers in those regions.
This is similar to what Kraken has done with its prop trading crypto firm Kraken. Although crypto CFDs and other derivatives are prohibited for retail in the UK, Breakout is not as all trading is simulated.
