Hi!
I am wondering if anyone here uses a Prop firm?
If those companies are legit or not?
If you should sign up with a Prop firm to earn money through them in case you lack the funds to invest yourself?
I would love to hear your thoughts on this.
Many thanks,
Michael
I do.
It’s very hard to tell unless you have a friend who is working in the firm.
It’s completely up to you. You must do your own research on this. Prop firm does give you a solution to the “lack of funds” thing but you’ll never know if they ever “slip you to hell” and need to comply their rules if you want to get the fund (Personally, I don’t see it as funds but more like buying power as most prop firm is only using a simulated accounts aka demo). Also, there’s always a chance where you’ve just passed the challenge for months and then suddenly the CFTC come to the firm with a love letter, shut the firm down, your hard work will be in vain. You need to be mentally ready on these uncertainty and must be willing to lose any money you put into the firm.
Either they A book or B book you, to me, this is secondary for as long as they giving payouts without delay or excuse etc. I do hope they A book a small amount % of trader so that when the regulation try to shut them down, the firm could still argue that they not completely B book their traders.
But again, I won’t encourage you to trade with firms. Do your own money management and research before deciding to join any prop firm.
I wish you good luck!
Doing both be also an option, I guess?
1.) Trade yourself on your own account and invest + compound till you have the amount your are satisfied with.
2.) Besides that, also work for a Prop company.
they do - several do
(what you’re asking about are actually “funding companies,” not “prop firms”, though in this forum they’re commonly labelled and described as “prop firms”, and these days even some of the funding companies call themselves that, which is hugely misleading!)
there were - among others - a few people here who successfully traded with MFF (“MyForexFunds”), currently in receivership with regulatory litigation pending
i, like many others here, mistakenly thought they were one of the better companies to deal with - this appears probably not to be so, now (so be aware that whatever you read here on this subject is “opinion only” and mine - just like anyone else’s - can turn out to be wrong!)
big and complicated question
nobody knows with certainty
there’s litigation under way, which may resolve one or two issues, but there’s no guarantee even of that
my own answer is that most (not all) of the CFD/spot forex funding companies are NOT legit (i think FTMO almost certainly is, though, and maybe Lux Trading as well), and that most (perhaps not all) of the futures funding companies are legit and have to be, and that this can easily be verified (and certainly they include TradeDay, Topstep and Earn2Trade), and that the futures ones are - for many other reasons, too - a FAR better proposition
well, those are certainly the people they’re aimed at
there’s no point in paying for an evaluation unless and until you know you have the skills to pass it, and that’s easy enough to find out (with a fair degree of confidence, albeit not quite with certainty) on demo accounts anyway
the only way you really have anything to lose (other than some time/effort) by trying is if you pay to take an evaluation without having previously “passed” the equivalent, to your own satisfaction but under exactly the same “rules”, on demo a couple of times
if my opinion doesn’t put you off (my opinions sometimes do put people off, i’m told!), i said more on this subject in these posts/threads -
be aware, also, that there’s a malicious troll who has been banned under multiple aliases from this forum (and from at least one other, too) whose favorite subject this is, to “discuss” (he loves telling people that all “prop firms” are 100% scams, that nobody is ever successful with them, that nobody has ever been paid out, that all the participants have been “duped”, that all the evidence to the contrary all over the web is fabricated by “paid actors” and a lot of other idiotic garbage like this - it isn’t easy to argue rationally with him (in fact it’s almost impossible), one of the main problems being that some - just a very little bit - of what he says, regarding the CFD/spot-forex companies, is probably actually true!! 
Proceed with caution!
I personally don’t have any experience with a prop firm, but I’ve heard both good and bad reviews. 
So I guess just be super meticulous with the firm you’d decide to go for. 
Maybe you can also ask people here about the prop firms you’re considering?
I am trading on LUX demo account with a $1,500 qualifing target, today $52.66 in profit. While I consider the firm to be legitimate, I am continuing to copy trading on my live account - unless, of course, I am able to trade a $25,000 genuine live LUX account.
The downside is that at least 85% of traders lose out trading live on their MT5 platform. Which is no different from any FX broker.
Is always better to trade your own money, however I can see value trading with a prop evaluation firm if you don’t have the capital or you are learning. Stick with the well-known props FTMO, 5%err or backed broker firms like IC Funded.