-Trading other people’s money is the way to go. Most retail traders never have that opportunity. Now that remote prop firms are a thing, it is possible. The psychology can change, definitely, especially after you have been refunded your challenge fee and are literally trading risk-free.
For me, it is a no-brainer. The few that say that it is not for them likely are just not willing to invest the time to adjust their strategy. It is understandable to a point. That, or they are already managing a much more sizeable account and the time spent just would not be worth it. Probably, you would have to be managing a lot of money for that to be true, though.
Right. If I had a 250K + account, I might consider it. Once again, though, there is always the danger (however slim) of broker going bust, disappearing, black swan, etc. With a prop, you simply start over and if you have diversified across multiple props, shouldn’t be any down time at all.
In the US, there is no protection of funds, even trading with the CFTC regulated garbage brokers, obviously no protection offshore either. Then there are the additional assets…metals, indices, crypto, some even offer stock trading on leverage.
I agree, 150% no brainer for me as well.
Yes. If you succeed, you are fully refunded in most cases, and can trade completely risk-free. If you fail, then costs of doing business, so you can treat it as a tax write-off and lesson-learned.
Now, with swing type accounts and unlimited trading days available, most traders should be able to find something that is suitable to their trading style.
This is all assuming, of course, that the trader is profitable and not still trying to figure out the basics etc… Traders that are still learning might be better off not forking over money for challenges in most cases.
Since I began trading my money, I prefer that over prop firms, since I do not feel restricted and have total freedom from anyone else’s rules. to each it own tho.
BTW, this is not about trading props versus trading your own capital. I was just comparing their offerings and found that they seem to offer the same thing; however, as you pointed out, the rules differ.
Absolutely. But you can also do both; use the profits from your risk-free prop firm accounts to fund your restriction-free personal accounts. For me, it’s more about using risk-free prop firm profits to fund other investment opportunities so that I can have my money working for me. But, as you say, to each their own.
Initially, that would have been my approach when I discovered my current trading strategy. If they were around at the time, maybe I would have adjusted my strategy accordingly.
For me it’s mostly about execution… I can trade big lots with props with minimal simulated slippage in a demo environment. I would be real nervous going to market with similar size using a stp ecn broker on every trade with no idea of available size in the orderbook.
Black swan event that can wipe out my live account = no problem with props since it’s not my money on margin.
What does the future hold? This post would have been dead 5 years ago without crypto payments. We are all at the mercy of crypto regulation going way over the line in the future.
Do you happen to know who that prime broker would be for some of those groups? And wouldn’t it make sense to trade directly with that prime broker instead?
Teir 1 prime brokers (Banks) - require ECP exemption from dod frank (10M assets) + >1M on deposit
Tier 2 Prime of primes (ADM, Saxo markets, StoneX, CFH Clearing, IS prime ect.) - require ECP exemption from dod frank (10M assets) + 100K-250K on deposit
There’s your answer, Alternatively, Eaglefx gives this option if your account size is large enough
Which liquidity providers do EagleFX use?
At the request of our liquidity providers, we cannot reveal this information to the general public. However, if a client is looking to deposit a large sum and has provided proof of funds, we are able to provide such details prior to the deposit’s completion.We can even arrange for the funds to go directly to their accounts to further safeguard their investment. As for cryptocurrencies, our liquid provider is Bitfinex.
I saved this one off a while back but never looked much into them. They claim to not solicit US citizens, but seem to accept them, nonetheless. I only heard about them through an interview I saw with Lambo Raul or whatever his name is. He mentioned that it was the only broker that he would feel comfortable with depositing large sizes… or something similar to that.
I don’t know man, the broker is pretty new with no reviews on FPA and limited reviews on YouTube that are all paid links, I don’t think I can trust a guy who says this is the only broker he will use with large deposits.
A prime of prime broker will provide retail brokers with market access. This is common in CFD and Forex platforms where the forex brokers act more as marketing matching and the prime of prime broker provides the liquidity back office, platform and administration of the accounts.
Regardless of what everyone thinks, these crypto exchanges are needed, we need them to survive the onslaught of regulators.
Coinbase is in deep sh*tcoins—and so is the SEC
Coinbase is in a world of regulatory pain right now. A report this week said the SEC is investigating the company for selling digital assets that should have been registered as securities—a development that triggered a 20% crash in its share price, and resulted in longtime Coinbase booster Cathie Wood finally dumping her position. All of this comes only a week after the Justice Department charged a Coinbase manager with insider trading.
