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Becoming a prop trader is somewhat like applying for a job as it can take a while to pass the evaluation challenge (up to 6 months) and then work your way to receive a payout every month or so and aim to increase your capital through scale ups like being promoted.
By being dedicated, determined along with a sound work ethic, one can return a healthy income as trading profits are a by product of following a process routinely (4-5% per month on a 100K account is realistic within a year). After being funded , you will be your own boss, working for yourself, at your own hours.
Make no mistake, this is not a get rich quick scheme, some get lucky but for the most it will require perseverance.
- There are many benefits in trading for a prop firm rather than your own account with a broker such as being sufficiently capitalized which allows for good risk management practices, potential to make respectable gains at the same time as withstanding adverse movements in positions and being taken out of the market after which price inevitably reverses.
- There is also a reduced risk factor of losing one’s own capital due to being funded and losses absorbed by the firm.
- Traders can feel more motivated and focused whilst under a prop firm and the idea of treating it more seriously and as a career than one’s own account with the potential of scaling or increasing funded capital.
- Traders are forced to adhere to trading rules and discipline which is paramount to the longevity in the markets due to the risk parameters placed on the accounts.
- Prop trading can also feel more social and have a sense of being part of a community of like-minded traders and have elements of competitiveness with a greater willingness to achieve targets.
Recommended Prop Firms to use:
- FTMO
- TrueFOrexFunds – 10% Christmas discount offer , time extension to 45 days for stage 1 evaluation.
- ApexTraderFunding – 80% Christmas discount offer
- FundedNext – 15% profit share from challenge phase
- The5ers – Buy 1 get 1 free bootcamp offer
- HowToTrade – 30 % off Jan 23
There is no need to break the bank to get on board this venture.
Firms have accounts which can be purchased from as little as $50 for a $5000 account from MyForexFunds.
You can then use the profits from one account to pass another account and keep compounding profits with bigger sized accounts or utilise multiple prop firms to best suit your style of trading.
The online prop world is now very competitive so you don’t need to tie yourself to one firm.
You can utilise multiple props and take advantage from the benefits of each one to match your suitability and style of trading.
For example firms have different leverage ranging from 1:10 all the way to 1:100.
Some firms allow holding trades over weekends, and some have mandatory stop loss requirements. Also profit splits can vary from 50% to even 100% to the trader.
These are some of the factors to consider when choosing.
Below is a comparison table for our recommended firms:
| Name | Min Days | Profit Split | Swap Free | Leverage | Current Offer |
| FTMO | 10 | 80-90% | Yes | 1:30 | 10% off |
| TrueForexFunds | 0 | 80% | Yes | 1:100 | 10% off |
| FundedNext | 5 | 80-85% | Yes | 1:100 | |
| ApexTraderFunding | 7 | 100% | Yes | 1:100 | 90% off first month |
| The5ers | 0 | 50-80% | Yes | 1:10 | Buy 1 get 1 free |
| HowToTrade | 30 | 70% | Yes | 1:50 | 30 % off Jan 23 |