Most comments you will see are in a negative light regarding prop firms.
From what I have read on the forums, the prop firms claim the money up front you have to pay is to cover their costs of recruiting traders but in fact it is how they make most of their money.
I agree Richie, I don’t know where you live but I think this is a uniquely UK problem, I believe the US still has the idea that a guy in a prop fund starts trading his own capital and if successful will be back with funds to trade. It makes sense because a prop firm is about harnessing group motivation to make money. In some cases like any other job you don’t need capital you just need to be prepared to go unpaid to master your skill.
That being said, how many people would join a prop firm and trade without pay? Not many. So the UK firms desperate to get money from their replication of the US system decide to charge you or get you to pay for a course. Truth is why trade when you can charge a whole lot of people for something they can learn anywhere.
I think prop groups are great for motivation but I think if the emphasis is education then no one should be promised company backing. That’s just a scam… Who will give a trader capital without proven results? Back to the old system I think rent your desk and sit in the room, trade and cover costs best idea…
If you’re profitable anyway why not copy your trades onto their account and get more rewards? It isn’t taking away your freedom because you’re not doing anything differently.
What happens when the firm goes under?
[QUOTE=“FOREXunlimited;691652”] What happens when the firm goes under?[/QUOTE]
Well most forex prop shops, are usually well funded they make money through the spread every trader makes as well as monthly fees,
And the upfront cost, so these prop shops generate alot of capital, there a big joke imo
Some of them out there I’m sure are legit but,
Most of them got shut down few years ago
Alot of them started getting fined,
Well I can tell you what happens once you stop given them money! With that said you wont find their video archive on youtube. And my trading plan is better for it.
Hello liberty.
I joined a prop fund last year albeit amongst many negative comments last year. I did my research about them before joining to try for myself. There are so many of them out there that offer courses or you have to go through a trial period first and I didn’t like that.
Luckily I found Blufx. They on the other hand give you real cash to start trading immediately and the subscription fee is less than 400 USD so I’m wondering how these prop funds you mentioned charge such huge amounts for small accounts.
I have been able to hit the target of 5% twice now and get paid also. And I’ve met alot of people in our community who have been paid too.
Hi. I will like to know more about this Blufx you are talking about. Do they have country restrictions? Can i trade from my country in Africa?
Sure you can dear. Coincidentally i am also in Africa. Ghana to be precise.Trading is done remotely. I have had to travel out of the country for about a week and was still able to continue trading.
I am not familiar with any restrictions by the company like you would have with a business like PayPal for example. So they are fine with that.You need to check if your country has any restrictions to prop funds but i doubt though.
This is great. Thanks. Im from Ethiopia. Do i need to invest some money with them to access their own money?
What is the biggest lot i can trade with please?
Hey Phiri. Nice. I have visited addis ababa once before. Beautiful place.
You only need to pay for their packages. £99 and £249 to get either $25k or $50k accounts. So if you think you need to invest a large amount of money with them, no. This is a much better deal right?
The lots depend on the pair, you can google search for their margins ad you’d find a blog post with it.
Ok. But i don’t live there though. I live in a not so popular region.
I like the sound of this. This is much more affordable. I can use the rest of the funds i have saved to fund an account with a broker and copy my trades to one or the other. That can be allowed right?
I have gone through the margin requirements and all. I don’t like that i cant close partially though. Opening several positions looks cumbersome. But its something i would have to get used to as my strategy requires partial closing.
I cant say. you could email them and find out when you are ready.
Yeah. Partial close is something that needs to be worked on. The CEO talked about allowing it quite recently. So it wont be long before you can get to do it the old fashioned way.
OK. I have emailed them to ask. Do you know if they have an efficient customer service? Most Forex companies can be useless in how they treat their customers.
The customer service is ok. Just be patient and wait for a reply after you email or chat.
Yes.I signed up last week for the 25k account to test the waters. when i saw that they did check out, i upgraded to the 50k account. It’s going well. Iwas given a real account and not a demo.
Ok. I like the sound of this. Does the 50k account allow holding trades over the weekend?
Ok. Yeah. I have made some money. I hope to hit the 5% target in 1-2 months.
From what I read, is only when you get to stage 4 in account growth or if you trade with the company consistently for 6 months without breaking the rules I think.
I am also very interested in “prop trade”. I guess you’ve done prop trading, right? Do you think “prop trade” has any disadvantages to yourself? Thank you