Forex PROP firms

Alot of forex prop firms have been popping latley just wanted to know if anyone is dealing with a forex Prop and what is there experience so far,
Majrioty of the firms I looked at are all the same business model you pay a start up fee 2k-5k, collecting fees from teaching and profit splits,
I would loved to hear if anybody has any good experiences with forex prop firms?

Why would you ever feel inclined to not personally redeem 100% of the gains materialized from 100% of your effort.

-If you’re under-funded: save up.
-If you’re looking for a short-cut: you’re going to get burned.
-If you think the grass is greener on the other side: it’s only because you’re not appreciative of what you have and are a victim of capitalistic consumerism.

[QUOTE=“FOREXunlimited;680153”]Why would you ever feel inclined to not personally redeem 100% of the gains materialized from 100% of your effort. -If you’re under-funded: save up. -If you’re looking for a short-cut: you’re going to get burned. -If you think the grass is greener on the other side: it’s only because you’re not appreciative of what you have and are a victim of capitalistic consumerism.[/QUOTE]

I agree with you 100% my purpose would be to gain more capital, alot of these firms are advertising there giving traders 50k -100k to trade with the most I have seen I believe is between 2-500k I’m curious to know how legit these companies are and how are they able to fund traders this amount of capital,especially to newbies, I knwo there a legit stock prop firms but, google forex prop firms 100s pop up advertising 50k to 100k

I can tell you that the stove is hot, and you’ll burn yourself if you touch it.
Chances are, you won’t “learn” what “hot” is until you touch the stove.

[QUOTE=“FOREXunlimited;680165”]I can tell you that the stove is hot, and you’ll burn yourself if you touch it. Chances are, you won’t “learn” what “hot” is until you touch the stove.[/QUOTE]

Oh I get you bro, Lol totally props arnt for me, I trade my own capital, but I’m just curious to know if anybody here as had any experience with
any, I wouldn’t mind having more capital what’s wrong with more money!!’:0

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It’s not yours.
Trading is supposed to be liberating- not further subjugating.
The idea is to trade for yourself- right? Ultimate freedom?

:slight_smile:

Hi liberty, Funlimited is right… They don’t give you all the so called 100k, you trade off a pool and they allocate you to start with 1500k max drawdown 500 usd max daily drawdown, 70-30 split, the first 1500 is theirs to cover initial risk, etc. You need to make 1500 a week to stay in the game. The idea for them is they can front run your orders in a sense, for this little capital that you don’t see they can trade of the data provided by the profitable traders and you pay them a bond to get in or do a course.

Others just provide facilities to trade your own capital.

No free lunches.

[QUOTE=“emeraldorc;680254”] Hi liberty, Funlimited is right… They don’t give you all the so called 100k, you trade off a pool and they allocate you to start with 1500k max drawdown 500 usd max daily drawdown, 70-30 split, the first 1500 is theirs to cover initial risk, etc. You need to make 1500 a week to stay in the game. The idea for them is they can front run your orders in a sense, for this little capital that you don’t see they can trade of the data provided by the profitable traders and you pay them a bond to get in or do a course. Others just provide facilities to trade your own capital. No free lunches.[/QUOTE]

So your basically trading of a pool of money, they don’t acutely give you a account with 100k in it they basically fill your account with your start up fee I guess and some how that account is connected with the pool of money?? I find this interesting one firm I came across said your trading from a demo and the demo is connected to a real account with a expert advisor that just sounds so sketchy to me…emerald have you traded with a prop firm or looked into to any?

Yes, Liberty before I patnered with my buddy we thought it will be good to join a prop fund. Took the trial got through. I won’t mention their name but you trade in a pool and have a choice MT4 or the Interactive brokers platform. You trade the contract lots and you are limited to a certain number of contracts which gets increased with performance. You first have to trade your risk before you can get paid. Your risk is 1500 bucks, my guess is many get stuck at that level. If you drawdown at any point into your risk zone you are screwed because you need to make it up.

I drew down $450 in my first day. I was $500 up by the week end but nowhere near $1500. Eventually after 10 days I had $1200. I decided that for a 70-30 split it wouldn’t add value. We had more capital and could do the same risk control. Why did we need a prop fund?

Just throwing in my experience. Interested in Jakes and emeraldorc views or anyone-else wanting to through in their view.

I recently entered into a relationship with a prop firm but in their educational arm. Paid $1000 for their intermediate program and to be perfectly honest learnt nothing. It can all be found free on the internet. But what is paying for the course is the development of my trading/business plan. Before it was just like half a dozen bits of paper floating around my workspace. Now its like this 60+pg plan that “maps” out my ambitions. That level of business coaching can’t be found on the net or at least I can’t find it. I also have limited access to their data, an on-line forum and a live chat room.

Now this is where it gets interesting. For another $2000 I get acceptance into their advance program. Pre-requisite is completing the intermediate program and having this fully completed business plan. But once accepted I get 4 weeks of “on desk” training. Here the focus is implementation of my systems under the guidance of their prop traders to develop problems solving skills to adapt to fast moving markets.

Then, if one is lucky enough, there comes an invitation to trade in the hot seat with their money. Although I doubt if one gets to handle more than $1000. Then comes an invite to rent a trading seat or employment. Actually they’re very honest about it being a recruitment program. Although they won’t disclose how many participants now work or trade with them.

Will I apply for their advance program, maybe I will maybe I wont. I’m adapting a bit of a mantra “knowledge can be gain, capital can be raised.” But from my understanding, most businesses especially small businesses need business coaching. And that cost money. So IMO for anyone in a similarly situation to myself wanting to take their trading seriously,you will need a coach/mentor at some point. One you will probably have to part money for their services. The secret is knowing what it is you need and of course research/due diligence.

@ emerlad, I think I have a idea on witch firm you might be talking about… :stuck_out_tongue: they all sound they same anyways, and yeah I totally agree I guess just another group of people trying to take advantage of teaching and monthly fees etc, just another marketing company in the end,

@Bob, yeah there some good benefits about forex prop like your pointed out, the education, have the support when ever you need most guys who are willing to teach, only stick with you for little bit or until you pay them more money… Lol but at then end of the day this guys are making a killing off you with all these fees the charge and to bump up to the next level just milking people like cows… Lol @ the end of the day it’s just you and the market when your trading I guess, and what there teaching you will take just as much time, as I’d you where learning buy your self but, they do offer constant support and they try and keep you in check when it comes to money management, I guess there both sides to the story, @ bob how long have you been trading with this prop firm?

Oh yeah bro, got to know exactly where one falls in the food chain and I’m at the bottom… lol. I do wonder how long the support lasts when there’s no money following.

So true my friend. We made this “plan” and I started trading to it and it worked pretty well this month but it’s just not me. What I learnt in Jan was I seriously don’t like being exposed to markets. My strengths aren’t being exploited in this plan. So I’m re-writing it. Wonder if this firm will still be interested in me when I re-summit it?

I’m not bro. Signed up for their “education” in Nov last year. Using them like they used me, they’ve got my money, I’m just trying to extract as much as I can out of them now while I build my plan. Will I pay more money and continue the “education” maybe, maybe not. As Jake so rightly puts it

Trading is supposed to be liberating- not further subjugating.
The idea is to trade for yourself- right? Ultimate freedom?

Knowledge can be learnt, capital can be raised.

Honestly speaking, trading is much like starting your own business. You have to write the play book.

It is impossible for someone to teach you a business idea. The markets are a sandbox defined by a chart for the most part, that chart is plagued with problems, so you have to rely on money management, which is the real business idea IMO. You can trade even MA close above or below and still make money with enough diversification. It is just simply back testing your idea. What goes wrong for most is they spend too much time chasing systems that have no drawdown or they haven’t tested. They just heard it was good…

All that money raised for education. Why not buy a few books and invest that capital into trading?

@ emerlad the problem is people want to do things the fast and easy way nobody wants to do hard work anymore but unfortunately like alot of things in life things take hard work, it would take just as much time to go out invest in proper education and books , than if you where to join any prop firm mind you joining a prop would be alot more expensive, like I said I guess the only benefits is they work side by side with you for a couple of months before your off to venture on your own, everything is different for everyone.I guess there’s not much firms out there that are just going to toss you 40k to trade with or 100k Lol, you would have to be apart of some special trading program or somthing idk Lol.

Yeah agree but… Take your golf game bro. You can go out read a lot, spend hours on the practice range etc etc but probably won’t succeed in playing that sub par round. There’s more to it and you need something to give you the edge a coach. Dont think its much different in speculating.

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,