Does a UK prop firm need FCA authorisation?

How to approach the question:

1. List what you actually do: sell evaluations, simulate trades, pay rewards, and anything else.
2. Compare with regulated activities under UK law, such as dealing, arranging, managing investments or holding client money.
3. Check promotions: marketing a regulated product requires approval even if you are not authorised.
4. Get a written view from a UK regulatory lawyer.

Firms that copy funded traders into real markets should look at that activity specifically, since it may change the analysis. A simulation-only setup, such as running all accounts on PropExecutor's simulator, keeps the business clearly on the evaluation side. This is general information, not legal advice.

Keep it documented

Record the advice you receive and the reasoning behind your structure, so you can explain it to banks, payment providers or regulators if asked.

If your model later changes, for example by adding real execution for some traders, ask for the analysis again before launching the change.