Axi Select, the in-house trading platform operated by brokerage firm Axi, has disclosed a 40 percent increase in active traders on the platform compared to the previous month.
These figures come amidst heightened scrutiny on the broader proprietary trading sector following purported actions by MetaQuotes, the developer of two popular MetaTrader platforms.
The company, headquartered in Australia, has also raised concerns about the prevalent use of demo trading models by proprietary firms.
In contrast, Axi Select provides live trading facilities to its proprietary trading clientele.
“Unfortunately, this could mark the inception of the demise for the demo account proprietary firm model,” remarked Greg Rubin, Head of Axi Select.
Many proprietary trading firms solely operate within demo trading environments. Guided by their risk management protocols, these platforms engage in real market positions, drawing cues from traders’ activities.
However, this setup often leads to complications in trader payouts.
Over the past fortnight, vulnerabilities within much of the proprietary trading industry have surfaced, with numerous firms compelled to halt operations after losing their brokerage partnerships.
Others have either been coerced or voluntarily restricted services for their US-based clientele, purportedly due to actions by MetaQuotes.
Consequently, many proprietary trading firms are exploring alternatives to MetaTrader platforms.
“We anticipated this, which is why we’ve devised a capital allocation programme based on our live trading account model, available in over 100 countries for more than 16 years,” Rubin elaborated.
“This has instilled confidence in us that Axi Select offers a sustainable solution to the proprietary trading community, avoiding the issues currently plaguing firms that rely on the demo account registration fee model and face constant regulatory and technological pressures.”
Axi unveiled its proprietary trading services last September, proffering traders up to a 90 percent profit split.
Despite holding licenses in reputable jurisdictions such as Australia and the United Kingdom, the firm offers its proprietary trading services through its St. Vincent and the Grenadines-based entity.
Axi pioneered the launch of proprietary trading services among established brokers, with OANDA and Hentec Markets subsequently following suit.
Interestingly, these brokers provide proprietary trading services through their offshore entities. OANDA has clarified that it treats its proprietary trading customers as signal providers.
“Our Axi Select account encompasses all the controls available to our live account holders globally,” asserted Rajesh Yohannan, Group CEO of Axi.