FinanceFeeds has released a new episode of its FF Podcast, featuring an in-depth conversation with Petros Kalaitzis, Chief Strategy Officer at FunderPro. In this episode, Kalaitzis discusses the evolution of proprietary trading, payout transparency, the psychological shifts in trader behavior, and what the industry should expect as regulation comes into focus.
As one of the most visible firms in the funded trader space, FunderPro’s dual B2B/B2C model, A-book execution approach, and open stance on daily withdrawals have drawn both attention and scrutiny. Kalaitzis brings clarity and insight to these practices and weighs in on broader questions about the legitimacy and future of prop trading.
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Redefining “Prop Trading”
Asked whether the term “proprietary trading” still fits the funded trader model, Kalaitzis was clear about the industry’s mislabeling:
“The very first time that I heard the term, I was also like—but that’s not prop trading. Because by definition, prop trading is that the firm is actually trading with its own funds, right? Which—it is quite close to this because you’re actually funding somebody else to trade with your own funds.”
He acknowledged that while the terminology may not be strictly accurate, it’s become widely accepted: “For the sake of marketing, I would say that it should be used, even though it’s not 100% accurate. I also agree on that. But marketing—it is.”
What Sets FunderPro Apart
On how FunderPro differentiates itself, Kalaitzis focused on execution transparency and the firm’s A-book model: “FunderPro has been, from day one, very open to the audience in saying that the way we are operating in terms of execution—sending the markets directly to the LPs—is like so-called A-book prop firm. We’re still using this as our marketing tool, and I think this is the number one thing that sets us apart from the rest.”
FunderPro also operates on both the retail and institutional fronts: “All the technology—or almost all the technology—that FunderPro is using on the B2C side can be actually white-labeled. We’re having the B2B arm, so we’re giving the software on a SaaS model for those who want to start their own prop trading with a white label.”
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Kalaitzis emphasized that one of FunderPro’s most defining features is its daily payout option, starting from just $50 in profit: “Anybody who is making more than $50 profit can withdraw as many times as they want on a daily basis. This is also one of the unique things that we offer.”
He explained how the payout system builds trader confidence—but can also affect behavior: “They check—let’s say they request a small payout first time, second time, third time—and then when they actually see that indeed we’re delivering what we promised, in some cases, we have seen that somehow the psychology changes. They drop the guards and they are starting to become a little bit more reckless or less conservative in the strategy.”
“At the end of the day, psychologically, maybe they think: this is not my money. I’m here to make profits. I get 80% for it. So let me try one-on trade, let me do this, let me do that.”
Managing Risk in a Funded Environment
The behavioral shift presents serious challenges to prop firms like FunderPro: “This specific topic is actually the biggest nightmare of our risk department. When you have to apply risk management rules on the prop side—especially on a model that everything is sent to the market such as ours—the mindset has to be completely different.”
Kalaitzis said the firm sometimes directly engages with funded traders whose actions appear out of line with risk expectations: “We actually had to interfere and call people and say, ‘Listen, this is our money. We are going to pay you. But what you’re doing is actually quite risky, and you’re taking a risk on our money. So please, can you just adjust the logic here?’”
Security Standards at FunderPro
The conversation then turned to the EU’s DORA Act, which doesn’t apply directly to prop firms but has affected FunderPro’s IT infrastructure decisions: “Practical speaking, some of the things that DORA is demanding to people who are regulated are extremely good things to have anyway—regardless if you are regulated or not.”
“We found out that a lot of the requirements of DORA in our company were already covered because anyway, we wanted to be protected. It’s your money.” Kalaitzis confirmed that many B2B clients now ask about security infrastructure as part of the onboarding process.
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As the conversation shifted to the issue of arbitrage abuse, Kalaitzis acknowledged the rise in coordinated groups trying to exploit prop firm models: “We’ve seen quite sophisticated group attacks… They are targeting and they try to harm the company.”
“The majority of prop trading firms are actually taking the risk on them. Most of them don’t send the trades to the market, which means that when somebody starts gaining, you have to pay him from your own pocket. And this is where you can be really harmed by these groups.”
While there is no official industry association, Kalaitzis noted that informal cooperation exists: “It’s a small industry. Yes, we are competitors, but nobody wants the bad side of it in his own firm.”
Legal Framework Could Help End Prop Space’s ‘Bad Reputation’
Looking ahead, Kalaitzis shared his thoughts on possible regulation in the EU and beyond: “No, we don’t have regulation now. Again, it’s the complete discretion of each company if they want to do things clear, clean, or not clean. But that can also happen even if you have regulation.”
“Maybe a legal framework will actually assist all of us in the prop space to clean up the bad reputation—people who came into the industry and tried to take advantage.”
While he doesn’t expect strict rules like those governing retail brokers, he sees consumer protection and marketing practices as likely regulatory priorities: “We never promise profits. Something close to the actual legal framework of the forex industry—maybe not so strict in some points—would make sense […] “Better safe than sorry. We are getting ready.”
Will Prop Trading Merge With PAMM and Copy Trading Systems?
Kalaitzis was also asked where he sees the prop trading industry heading over the next five years: “Futures or options—this is already happening. It’s very, very young as a product in the prop space, but it’s becoming quite popular.”
He believes that future convergence with other trading models is likely: “The easiest shift is that somehow prop trading will be actually merged with PAMM systems or copy trading systems and put under the umbrella of money management […] “Let’s see. It should be very interesting for the next five years. But I think it’s here to stay.”
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The full podcast episode is available now on FinanceFeeds.com, along with highlights and resources for those interested in the future of prop trading. Kalaitzis’ remarks offer a rare look behind the scenes of one of the most talked-about segments in trading—and the infrastructure that supports it.
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