For Traders Launches First Prediction Markets Prop Firm Offering

Prop trading firm For Traders has introduced what it claims is the first prediction markets prop firm, currently available in beta mode for community testing.

The product allows users to engage in prediction market activity, which the company views as a proxy for sports betting. This approach could broaden the firm's appeal to a wider audience, as prediction markets often attract participants from the sports gambling sector.

Importantly, the move leverages a regulatory arbitrage opportunity. Prediction markets are classified as binary options in several jurisdictions, including the UK, European Union, Singapore, and Australia, where they are prohibited for retail clients. Since For Traders' offering uses simulated — not real — trading, it can be offered to customers in those regions without violating local regulations.

The strategy mirrors that of Kraken's crypto prop trading arm, Breakout, which similarly bypasses prohibitions on crypto CFDs and derivatives for UK retail clients by offering simulated trading.

Should the full launch proceed, it would mark another notable expansion in the prop trading space, blending elements of betting and financial derivatives under a regulatory grey area.