My Experience Looking at Prop Firms - Go it alone?

I was looking at the idea of joining a Prop Firm, but thinking I’m better off going it alone. Here are a couple of things I ran into.

Company A: Minimum Position Size is 100K. No overnight holds
Company B. Didn’t have any of the above restrictions. They were more flexible.

The Capital Contribution goes towards your losses, which seems to be typical. But wouldn’t you risk burning through this? And if you do then you have to contribute more and if you do exceed your contribution amount you’ll be asked to pay the overage.

Monthly cost to use trading software should also be taken into account. Which means your trading earnings need to exceed your monthly costs out of the gate.

It would seem you’re better off growing your own account. The minimum recommendation to trade forex is $2,000? I’m wondering, is this a big uphill battle to grow an account that size? or isn’t a Prop Firm a bad idea after all?

What Prop firms are you looking at; would have to review their offering in detail to give an answer or my view on it.

Both offer a similar structure.

Payout on $10K and $20K Account Size is 70%
Payout on $40K and $80K Account Size is 75%
Payout on $150K and $300K Account Size is 80%
And they have higher account sizes that payout to as much as 90%

You’re paying $200/month to use software and I would have to contribute $2,000 of my own money (minimum)

The initial match would be another $2,000, then after a trial period they would bring the total account up to $10K. After that you would work up to different incriments.

what the maximum drawdown in a week or month

Here’s one other item I need to add when I asked about access to capital, 'as the account increases so does its risk amount of the account (and qualification into the next level)."

What are the names of the prop firms? If they’re offering you 75% of the profit it seems a little too good to be true.

It would be interesting to find more information if you have it.

There are different type of prop firms. In which or which category do you wanted to join? Your thread is pretty interesting seems to me. I am following your thread. But I would like to say before joining any prop firm please check some other firms. So, you can differentiate advantages and disadvantages for the firm you select. Also I would like to know which firm finally you are joining.

So you’re trading £4k of which 2K is your own ? - YOU have to pay any losses - and after a “Trial period” they might put in another £6k ?

Meanwhile they’re charging you 200 a month for “using the software” and they will graciously let you keep 70% of the profits you make trading basically your own money ?

I suggest the first word begins with “F” and the second word has three letters, two of which are also “F”'s ! :rage:

Absolutely - Where can you find gullible fools to trade their own money and pay you £200 a month for teh priviledge of being allowed to keep 70% of their profits ?

Pm me - I’ll fund you on that basis ! :wink:

Max drawdowns are daily. On a typical $5,000 deposit (capital contribution), it is around $750.