Founder Samuel Katallah, the mind behind prop trading firm AuraXtail and its technology division Aura X, has quietly re-emerged in the industry with a focus on building more transparent, verifiable models for prop traders. Beyond early headlines and challenges, Katallah’s story reflects the growing pains and hard lessons learned from navigating the unregulated world of forex prop trading.
Learning the Hard Way
Samuel’s business journey began far from the trading floor. From pursuing renewable energy solutions as a teenager to navigating short-lived ventures in live events and e-commerce, early setbacks shaped his understanding of risk and resilience. Like many first-time founders, Samuel learned that great ideas alone were not enough.
After a series of business pivots, he turned to the prop trading industry, attracted by the potential to build structured models around skilled traders. His first entry into the space showed promise, attracting a wave of attention around one of his top-performing traders, Bernd Skorupinski. Building on this momentum, Samuel launched a company that aimed to raise capital around PAMM structured models seeking to benefit from proven trading strategies at his prop firm.
However, like many in the emerging prop trading industry, his early venture was eventually disrupted by unreliable counterparties, broken commitments, and market realities that exposed operational weaknesses. Missed payments from partners, unexpected liquidity issues, and unreliable prop models forced Samuel to step back from the standard approach entirely.
These experiences led to the quiet development of AuraXtail, a refreshed prop trading firm focused on building trust through verifiable processes and independent oversight.
Laying the Groundwork for Verification
AuraXtail has outlined plans to introduce a verification-driven model that aims to bring more visibility to how trader evaluations, execution flows, and payout processes are handled. While the firm’s CPA-audited program is still in development, the long-term goal is to provide traders with independently verified financial information, moving beyond unverifiable marketing claims that plague much of the industry.
AuraXtail is also exploring registration pathways with the Alberta Securities Commission (ASC) or similar regulatory bodies, with the intent of formalizing its compliance commitments, while seeking to become one of the first prop firms to engage in formal regulatory oversight in the forex industry.
Looking Toward Tech
Under its Aura X division, the company is developing a technology framework aimed at providing traders with greater visibility into trade execution and payout conditions. While these tools remain in the early stages of development, the vision includes creating immutable records of execution activity, helping address disputes over pricing, trade breaches, and payout transparency.
A Measured Step Toward Higher Standards
AuraXtail’s leadership acknowledges that the industry still faces significant challenges, and building meaningful change takes time. While many firms continue to rely on models that profit from trader failure, AuraXtail is attempting to shift toward real-market models designed to align incentives between the firm and its traders.
If the firm succeeds in delivering on its verification and governance commitments, it could demonstrate a prop model that has yet to be seen, ultimately changing the conversation around what we should expect from modern day prop firms.
