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Firewood, an offshore forex and CFD broker, has launched a proprietary trading program called Firewood Funded, joining a growing list of brokers offering funded trader initiatives. The program allows qualified traders to access capital with an 80% profit share, aiming to reduce personal financial risk. Firewood operates from St. Vincent and the Grenadines but faces regulatory scrutiny as SVG does not license forex/CFD activities. Since 2023, firms incorporated there must prove they hold licenses elsewhere.
This move reflects a broader trend in the forex industry, where brokers like Axi, OANDA, and IC Markets have already launched similar prop trading programs. These initiatives provide traders with capital while brokers earn a share of profits, creating a win-win scenario. However, the crowded market raises concerns about regulatory compliance and the sustainability of such models, especially in jurisdictions with weak oversight.
For traders, Firewood’s entry adds another option in a competitive space, potentially increasing access to capital. Investors should monitor how these programs perform amid regulatory pressures and assess whether they align with their risk tolerance. Firewood’s ability to navigate SVG’s licensing requirements will also be critical to its long-term viability.
