Are you an aspiring trader looking to break into the industry? Prop trading firms might just be your answer.
Prop trading, or proprietary trading, is a way for traders to invest and make money using the firm’s capital instead of their own. This means they can take more significant risks and potentially yield higher profits. But with many of these firms, choosing which one to work with can be tough.
In this post, we’ll look at the best prop trading firms for aspiring traders like yourselves so you start your trading journey on the right foot.
What Is Prop Trading?
Prop trading, short for proprietary trading, is when a financial firm trades stocks, bonds, commodities, currencies, or other means with its own money rather than on behalf of clients.
The firm is taking on the risk and using its capital to invest in the market, aiming to generate profits.
Prop traders, who the firm employs, use various strategies and techniques such as technical analysis, fundamental analysis, and algorithmic trading to make informed decisions.
These traders are often given a specific amount of the firm’s capital to work with and manage the risks while seeking profitable opportunities in the market.
Best Prop Trading Firms
If you’re looking for a prop trading firm to help you hit the ground running, Oneup Trader is an excellent choice. This fast-growing firm provides a range of funded trading accounts, from $25,000 to $250,000, that you can use to start trading with minimal hassle.
One of the biggest advantages of Oneup Trader is its straightforward evaluation process. Unlike many prop firms, Oneup Trader has a one-step process that allows eligible traders to get started quickly.
Once you start trading, you’ll have fifteen days to meet your profit target. Once you do so, you’ll receive placement with one of their funding partners.
Another great feature of Oneup Trader is its robust analytics, which can help you make better trading decisions. Additionally, Oneup Trader supports various trading platforms, making finding one that suits your needs easy.
Fidelcrest is a prop trading firm that offers funded stock trading accounts, giving traders access to various assets, including stocks, indices, commodities, and forex. Founded by forex traders, Fidelcrest focuses on funding promising traders and helping them generate significant profits.
To get into the Pro Trader Program, you must demonstrate your trading skills by completing a two-step evaluation process.
First, you’ll complete the Fidelcrest Trading Challenge, a 30-day trial period. After that, you’ll move on to the Verification phase, which is similar but requires 60 days.
There’s also the Micro Trader Program for beginners who want to test their skills before trading a large account. These accounts range from $10,000 to $50,000, while the Pro Trader accounts range from $150,000 to $1,000,000.
One of the top features of Fidelcrest is its ability to scale up to $2,000,000, which can be attractive to traders who want to take on larger positions.
Additionally, traders keep 80-90% of their profits, which is a generous payout compared to other prop firms. Finally, Fidelcrest ‘s account pricing is competitive with other firms, making it an attractive option for traders of all skill levels.
Ftmo is a reputable prop trading firm that offers eligible traders-funded accounts. For you to be eligible, you must go through a two-part process. The first part is the Ftmo Challenge, which requires demonstrating your ability to earn profits using a simulated account.
The second part is the Verification phase, where you trade in a live account with increasing funding. Ftmo strongly emphasizes news trading, which involves analyzing and reacting to national and international economic events and company financial news.
This strategy benefits day traders who want to profit from short-term market movements and volatility.
Once you meet the profit targets, you keep 70-80% of the profits, and Ftmo keeps the remaining 20-30%. This incentivizes traders to improve their skills and generate significant profits continually.
Earn2trade is a prop firm that offers funded trading accounts to eligible traders through its Trader Career Path program. This program involves a comprehensive curriculum covering forex trading, stock trading, and trading psychology.
Whether a beginner or an experienced trader, Earn2trade ‘s educational program is designed to equip you with the necessary skills and knowledge to succeed. The program includes a simulated trading environment allowing you to practice trading without risk.
You must pass a two-step evaluation process to qualify for Earn2trade ‘s funded accounts. Once you pass the evaluation, you can start trading with a live account with increasing funding.
One advantage of Earn2trade is that they offer a flexible profit-sharing arrangement. Depending on your risk appetite and trading goals, you can choose between keeping 50-80% of your profits.
Are These Prop Trading Firms Worth Considering?
Choosing the best prop trading firm is a decision that depends on your personal preferences and goals. The six platforms reviewed above are all leading prop firms, each with strengths and weaknesses.
To choose the right firm for you, consider the criteria listed in the previous sections to ensure you consider each platform’s key aspects.
Ultimately, you want a prop firm to provide you with capital and educational support for your trading journey. It is important because the financial markets can be complex and dynamic, and having access to educational resources and support can be a game-changer.
Consider what type of trading you want to pursue and what kind of support you need to succeed, and you’ll be on your way to choosing the best prop trading firm for your needs.
Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.
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