WHAT IS A PROP FIRM? AND HOW TO GET STARTED ?
“Proprietary trading firm” is the meaning of a financial firm or commercial bank that invests for direct market gain rather than earning commission dollars by trading on behalf of clients. It’s also called “prop trading”. They recruit talented forex traders to trade with their capital for a 50/50, 70/30, 80/20 or 90/20 split of profits depending on the prop firm. To be sure the trader is suitable, they must pass a 2-step evaluation challenge where you meet profit targets and have losses within limits.
IS IT WORTH IT ?
Well Yes ! It’s nice having a trading account with up to $500K. It suits those who either don’t have a lot of capital available to trade or are somewhat risk averse. You will simply have to purchase a challenge that is best suited into your budget. Per example: with FTMO, they have trading account from $10k to $200k. The cost of these account varies from $160USD to $1100USD. Now, let's say you purchased a $100K account and you have successfully pass both challenges, now you have $100k of live account. Which mean from now one, every profit you make, 70% of that goes to you either biweekly or monthly. Let's say you manage to make 1%/day on the $100k account, by the end of month you will be around $20k to $30K profits. So off course, I think it is worth it.
Most Prop firm developed a 2-step evaluation. These two steps consist of target goal. Think of it like as a technical job interview. In order for you to get the job you have to complete their two courses of evaluation. Here at MCFX we understand the path of a trader can be challenging and it is where we come in. We can pass and manage the account for you.
How to Start?
Before you start a challenge you have to pay a fee. The fee for the prop firm Challenge covers it all, including the second phase. There are absolutely no recurring fees with them. The fee amount is based on the selected account, price can varies between $250 USD - $1500 USD.
Here are some prop firm we recommend :
If you are not sure if you prop firm is recommended, please message us directly so we can verify as some prop firm does not authorize 3rd party account management.
Once you've purchased your challenge, as mentioned earlier you will be require to pass two evaluation in order to become funded. After you've pass the two evaluation, well that's when the fund start.
At MCFX we also offer to pass your challenge and manage the account for you. For more info, please contact us.