Prop firm trading reddit

io Im not affiliated with them. So i've been profitably trading for a few months now but was looking into getting a funded account with either FTMO or The5%ers however i am so confused on UK tax laws that surround this issue. 28%. The chances that someone blows up within that time frame is quite large. I’ve uploaded my KYC documents which are still pending review. Guys. Yes , prop you are 1099 and taxed for income. Jun 24, 2024 · Quick Look: Best Prop Firms. I see traders bitch about how prop firms are unfair (yes they are by design) get over it - put a risk management plan in place for any risk you can think of which matters to you. The term “prop firm” actually comes from places that employ you to trade and they take cuts of profits in exchange for giving you a salary. Basically, you can pay to receive 5-6 digits of a trading account, prove yourself a consistently profitable trader by taking the evaluation, then be given "live" trading account (from $10,000 to $300,000), and any profit will be split with you (you get 70-85%). From months 1-4, you're only allowed to withdraw a maximum of 1500 (it varies from company to company). It can take a long time to become consistently profitable. Oanda recently released their own challenge prop firm model recently and guess which country isn't allowed to join. The initial deposit is $500. IIRC, Somewhere along the lines of out of 10,000 people who took a funding challenge, only 30-40 of them passed and only 8 actually made it to their first pay out. Some of the challenges don't seem too forgiving for mistakes. Reducing risk like this gives you roughly 4 to 10x more room for losses and drawdown than 1%. Risk wise think about . (I am a swing trading trying out some swing strategies on Prop firm accounts (after passing challenge) but strategies' metrics are going way down due to Swap fees) Too many issues: x3 swap fee for trading after wednesday. Reply. They take all the risk and I have no risk. Options are just another way of playing the underlying. The account was so cheap and I figured if I can get a 1:4 with 2. FTMO was worse in my opinion and I switched to 5ers. Best for Forex, Indices and Metal Copy trading sounds good in theory but ends up being pretty dumb in the long run. Best Futures Prop Firm: Apex Trader Funding. Prop firms help you to get a lot of capital to trade with and can generate more income if you compare to trading with your own money and trading using prop firms helps you to become more disciplined and good risk manager because without that you can't pass any challenge which will help you a lot in your trading journey. Truth is, if you can be profitable with your own account then you can build your empire with Prop Firms. Time Limit: 12 months. Trade The Pool can help you with using prop firm as your main income because You can learn from successful traders who trade on funded accounts with prop firms. better to spend $150 and blow it than 1500 of your own money. My friend insists this is not haram, and that funded accounts are completely halal, but I haven’t seen enough people of knowledge talk about prop firms, just regular forex trading. I have the feeling like 95% of people here are trading prop firms, most blowing accounts left and right, some people who achieved success for like 3 weeks or 3 months and now believe they are the new Qullamaggie, because they manage to get a winning streak for some weeks. On a 10k account thats 25-10$ per rr. Yeah, it’s ok if you’re on different prop firms. Don't have talent to copy, or don't have enough capital to outweigh the eval. Highly recommended for anyone serious about advancing their trading career! We would like to show you a description here but the site won’t allow us. . There are others too. People who can’t trade and blown their account calling it a scam. for beginner traders. Almost blew the account but now back to square one. FTMO has step 1 10% step 2 5% with 10 trading days minimum MFF has step 1 8% and step 2 5% 5 trading days minimum. Finally funded by prop firm. None of them, less than 5% of traders ever consistently cash out. Prop firm made me a better trader. 📷 List of prop firms: FTMO MFF FundedNext Funded Trading Plus The5ers Lux Trading The Funded Trader Program Stocknet Institute TopTierTrader True Forex Funds Does anyone here trade with a proprietary trading firm? FTMO, MFF, TFF, TFT are all legit and pay out when you pass their challenges. You can trade almost all US stocks, ETFs and Penny stocks with $100,000 in virtual cash. CANADA SPECIFICALLY this is a big one - it’s actually difficult to trade futures in Canada. Daytrader_Canada. Use 1 contract so the swings don't make you emotional, make your daily $200, get a payout, buy more accounts and the trade copier, rinse and repeat. During the process of setting up a LTD company and bank account, I got asked a few times to describe the nature of the business. If you said the USA you'd be correct. 5% risk per trade. Lately, prop firm companies have appeared here and there. Then you get sent back to the US and you'll be trading real forex accounts from a jail cell. 1K + $3. 3% once I get the funded account to get my money back then it’s all mine and then I can trade Thanks. There are a number of ways that a prop firm can help you become a In other words, since you must have 10 trading days between payouts, and the maximum withdrawal is $2000 for the first three months ($200/day), there's no real reason to oversize. Company is called Quantvue. These firms make a profit primarily or completely off of fees charged to the trader. It makes no sense for an online prop firm to pay for 90% of the traders who lose. 4. A few weeks ago I made a post stating that I am struggling with a prop firm challenge because I close my trades too early due to fear of losing. Thought experiment - 3, 50k accounts. I think I have found a good prop firm based in Toronto. I get to keep 95% of the profits and they get 5% profit. 3 days min Phase 2: Target 3k, max drawdown 5k (not including open equity, like most firms). If you’re trying to trade futures, there are multiple firms like this as well. Prop firms are a business model, designed to profit from newer traders. Hey Almos, I am currently looking for a good COMMISSION FREE prop trading firm or other commission free trading platform or company or prop trading firm. They may have minimum volume requirements with the exchanges etc in order to maintain their favorable rate. Got off to a decent start in the first few days then went down hill for 2 weeks almost losing the challenge. I don't want to burst your bubble, but profitability means Manage ALL your risks - at trade level, account level, prop firm level, industry level so the assumptions dont turn into risks to you or worse actual issues to you. Has anyone had any success in being funded with a prop trading firm using their algo such as FTMO , 5ers etc Welcome to FXGears. This was quite tricky as these institutions don't want anything to do with you if you Weekend trading is available for crypto. Yes, Im currently using automation on TopStep and Apex. Without these anxiety inducing rules. IBKR. 2- use a high win rate strategy so you can minimise the risk of long losing streaks. Sure, if you're looking for a reputable prop firm, consider Axi Select. They offer trading demos without mentioning demo to various so called prop trading firms. 1. This question is specifically for people who know about UK tax and prop firm trading. Prop firm does not promise to make you profitable whereas you are not a disciplined trader. Be careful who you pick though. 1 account 100% long & 1 account 100% short. Gradually increase risk as your balance grows. I just passed my first prop firm challenge after failing several attempts. I've got a LTD company set up to trade with prop firms such as FTMO and E8. 4K + $1. well I don't know how good your strategy is, but you can always do a 50 to 500 challenge first. They want you to succeed because that's how they make their money. 2 completely different things. 3rd one holding doing nothing. Even if you manage your risk safely, you can lose often. 1% risk. •. Your advice helped me realise that I wasn't sure about my strategy and I had to re-evaluate and regain confidence. What’s the deal with prop trading firms? Most of the trading YouTubers are shilling get funded by prop trading firms. Learn to do it yourself instead, there’s no free money in this industry. There isn’t a straight answer because it depends on trading style and risk. Many, many reasons for props to exist. I want a place with a fair profit share and low risk limits, plus a good plan for growing my trades. when a trader has several accounts with prop firms, instead of clicking buy on each of the accounts, they connect them via Topstep, Trade Day and Bulenox. And so your tax owed (without accounting for deductions) would be: $0 + $2. Apex is cheap but the hardest to pull out money from. The profit target to drawdown is better than any other prop firm i have seen, which is the main reason im looking into it: The eval is for VIP $600 option: Phase 1: Target 3k, max drawdown 5k (not including open equity, like most firms). Commissions kill scalp traders (and other high frequency traders) making it prohibitive to engage profitably in that type of trading. Best for Experienced Traders: FXIFY. Proprietary software runs on a vps and passes commands to broker. Emotional trading is a bitch, I thought I was good bc of my sport competitive background, but no ,sadly. It is just there so that I can count the prop firm easier. From there, you can move on to other trading firms, hedge funds, clearing companies or even exchanges (if you wanted to stay in the business). The answer is yes. Are there any other prop firms that offer better spreads for indices? I’ve seen some people mention FTMO is good for them but I’m curious how much better they are than the5ers. com's Reddit Forex Trading Community! Here you can converse about trading ideas, strategies, trading psychology, and nearly everything in between! ---- We also have one of the largest forex chatrooms online! ---- /r/Forex is the official subreddit of FXGears. This is how I'm starting to see it. Their pooled resources provide leverage for lower transaction fees with exchanges, FCMs and vendors. But, most of the rules stay the same. Taxes are a lot less in own account but you're using your own money so there's more risk. Props seem like a good way to go if you don't have enough capital to get in worthwhile trading positions. We would like to show you a description here but the site won’t allow us. FTMO pays back the fee for the challenge. Best of the best, there are a few others, but a quick scan across reddit will give you plenty of companies and plenty of opinions. 99 pc of them fail and attempt at least thrice. With a prop firm, they pay you out as a contractor. Have had good experience so far. Tons of prop firms who had their own MetaQuotes license also had to end up pulling out the US market or don't do business in the US market. Leverage 1:30. Market makers in Australia have moved to Bahamas . Inversely, you're likely only at a prop firm because you don't have enough of your own capital. The higher the level, the greater your leverage and the more favorable the profit distribution in your favor. You know prop firms like 5ers, FTMO, LuxTrading, etc. On the 1 million dollar account, youre allowed to open 100 lots as long as the account isnt breached for -40k. you can get funded as soon as you hit your profit target with no minimum trading days. The firm should be solid in Forex, have helpful tools, good learning stuff, and know how to handle risks. a prop firm is a company that (theoretically) lets you trade with their capital. 3 days min In my opinion, you have a higher chance of doing more interesting work (at least what I think is interesting) at the prop trading firms, especially if you know C++. Problem comes when you’re on the same firm. CFDs Eval Prop Firms: FTMO, the5ers, Audacity, Fintokei, TheTradingPit, Funded Next (with caution) Futures Eval Prop Firms: Topstep, Uprofit, Tradeday, Bulenox, Blusky. If instead you’re trading with a prop and your income is taxed as ordinary income, then it would instead be 100% taxed as short term: $0-$11K at 10% = $1. The 5%ers, have more conservative rules on risk but the benefit is you have 6 months to hit the profit target. 25% to . Generally, trading speed is the same with othes except during 5 minutes before opening of NY market and about 20 minutes after open. They offer free registration and provide real funds for trading, with a clear emphasis on skill development and performance. That's as much in one trade as the whole month of access to a prop firm. Prop firms are a middle ground of both barriers. 3. Both gets you a free reset if all rules are respected and you are break even or in profits. I'm funded 7 figures with 5 prop firms. Very favorable 15%. Many traders I’ve read about decided it’s not worth the headache and stress of #2 and trade for themselves. It’s been two weeks since I passed and the team still haven’t reviewed my account and I haven’t received access to my live funded account. You can trade either in MT4 or MT5 (i chose MT5 for no particular reason). $44K-$95K at 22% = $11. The rules are restrictive as you’ve pointed out and they are there for a reason. Both the market maker and the funding firms share the subscription fees. These online “prop firms” exist to prey upon people with low capital under the guise that you can be “funded”. The Funded Trader is one of the best prop firm in the industry. 48K = $6. Why should they even try prop firm in the 1st place like the guy commenting above. Best Stock Trading Prop Firm: Trade the Pool. 1- find another prop firm that give you more time (some offer from 6 to 12 months) so you don’t over risk. These firms are ultimately counting on your failure for them to make a profit. I see it sort of as a game except with real world consequences for better Welcome to FXGears. Yes its small but understand that scaling and compounding can get way out of control if you execute a system with a better profit factor. : r/Trading. A few weeks ago I passed my challenge with surge trader. Daytrading futures, forex, stocks, etc. Because of this, they tend to have some additional different rules from the known prop firms such as FTMO, TFT, etc. Not many brokers, big minimum account sizes, and taxes are annoying. If you are making good money from trading, there shouldn't be a need to have to use prop firms. These have nothing to do with these online “prop firms”. from the limited information i have a trade copier is just a web based software that copies your orders from your master account to other accounts. TrueForexFunds has lowest spreads and best executions I've experienced so far. Reply reply. AutomaticCard2330. novieww. They'll train you on how to trade, you can collaborate with other traders working for them, they have their own risk management departments, etc. Uses trading view strategies, alerts. Best prop firm for US traders? Title. It’s definitely it is not for everyone. The chance of failing is 99%, and the chance of making profits is 0. Just build a proper forex account from the ground up. A lot of evals require a minimum of 7 trading days and 30% accuracy. Definitely no need to run off to another country. They don’t allow copy trading. OP may also want to look into market making firms like Group One Trading or Wolverine (specifically an options market makers), they have prop trading and provide really strong training courses to traders at the outset but they aren't "training" firms. If they're already trading 25-50 futures contracts there's not much to gain from a prop firm offering 3-25. Hyper Growth Program: Entry cost: $450 (not refunded) Challenge: One-step program requiring a 10% profit with a max loss of 6% and max daily loss of 3%. Prop Firms. When traders start to trade their own money, they realize they need to rein in their emotions. Profit target is both higher than Bootcamp and also a worse ratio. Ok- you get funded. They take a cut of the money, and you get the rest. . Prop firms will sponsor traders for all sorts of niches. com, a trading forum run by professional traders. Individual_Deal7658. Doesn't mean it's number 1 in the list, it is reliable. Here is what I learned. I’m doing my first ever prop form challenge with FTMO. The really hard thing about prop firm challenge is the psychology, because you have a tight deadline and market does not always deliver setups. Either way, it doesn’t seem hard to get funded at all within a couple days. Nov 21, 2022 · A prop firm is a company that provides its traders with access to capital, in return for a percentage of the profits generated. Not saying it does not happen that people can live off of prop firm trading, but just saying that its even harder than with your own money account. Yes absolutely. Morever some Prop firms like The Funded Trader Program allow robot. I’ve emailed surge trader a few times I'm getting into forex trading and looking for the best forex prop trading firms. *The numbering doesn't mean anything. Obviously more complex but yes. It takes 4 months of trading before you're even able to withdraw all your profits. UK Tax and prop firm trading. Prop firms are not in the business of funding traders, they’re in the business of making a significant sum of money from people who cannot trade. It's essentially a real job. They will give me $100k, $500k or even $1 million to trade. Welcome to FXGears. High frequency trading prop firms are firms that allow you to pass the challenge with “HFT” bots that can pass the challenge within a day. It took me 5 years of full time stock day trading to reach my current forex account size. With a focus on fostering talent and promoting growth, Hyro Trader offers an environment where traders can thrive. 16% / yr swap fees on shares/ETFs, 30% / year swap fee on Cryptocurrencies, etc. You can still get a job on an actual exchange trading floor with these types of firms. Trading is hard as it is no need for that prop firm corset. They give you power to trade up 20 times you capital or more. I went into drawdown in the first two trades, then dug myself out of drawdown in the third and passed in the fourth trade. If you want to select firms, select meta quote license holders Firms. "The evaluation fees you pay to "trader prop firms," which include costs for education, market data, and the evaluation itself, can generally be considered deductible business expenses for tax purposes, especially if you are operating under an LLC and are engaged in the activity with the intention of earning income from day trading. r/PropFirmTester: This is a community for prop traders. A little backstory: Now you can trade it to 3k profit or inverse one of the 3 accounts. I’ve been using prop firms for about 2* years and have tried basically all the popular ones. After that, you start trading and need to accumulate points (Edge) to advance to the next level. 3 of 6 accounts are funded. Award. The other stuff, it's typically the same with most prop firms. $11K-$44K at 12% = $3. Canadian prop firm Alkaline Capital allows options trading. 3- just pray the universe (aka the market) is kind enough and give you wining streaks without much dd. But I'd honestly still argue it's very worth it to cut your risk to 0 and trade large size on some larger accounts because it's so affordable. The evaluation is based on your performance. You can also join trading competitions and events to win cash and prizes. Within a regular trade on the mini market, ES-NQ, you would be risking $100-$200 per trade. Revenge trading, FOMO, not using proper risk management, “hoping” trades. Fyi guys. I’ve tested over 7 Forex and Futures prop firms, so far I’m hoping to get some suggestions, so I can buy some test prop firm challenges and share my experiences here on Reddit with you guys, in the future. They're part of the established broker Axi and focus on nurturing competent traders, not just collecting fees. The firm’s commitment to providing robust resources, advanced trading platforms as Bybit, and comprehensive support truly sets it apart in the industry. 5ers is almost raw on EURUSD and has great spreads on everything else too. FTMO has the best commission, the drawback is can you hit 10% profit in 30 days without going into a daily drawdown of 5%. 1K. This. Not to mention the cut the prop takes from your profits. They actually are their own broker which is a breath of fresh air from all of the eightcap white labellers. However, with my limited knowledge Welcome to FXGears. The passing/funded statistics are dismal at best. I trade with FTMO, decent firm I’ve been with them for 1 year now. They offer fantastic trading environment in terms of spread and slippage with reasonable fees, they also upgrading their services and constantly consults with traders about updates. The value of prop firms is of course the ability to trade with large sums with little risk. You’re better off approaching raising capital like a professional and understanding compliance and using a fund structure. I’m currently with the5ers and was interested in trading some indices when I noticed the spreads looked crazy. Will look into it thks. People are better off putting 500 bucks in a small Account and trade 1-2 bucks per point. 22K. Good luck with whatever you choose! 10 I trade with a prop firm but like few mentioned they also take in capital and provide 25x leverage for stocks. For a reputable prop firm, this revenue stream worth more than the evals. If a prop firm is making more on evals than trading, they either. Wow! Prop shops exist because of leverage. The prop firm I use offers a 1 step challenge where you only have to make 10% once. 96K. Most of them do not actually have any real trading operations and it's just about impossible to know whether or not the firm you use is trading. With probably 2 trades remaining before I blew the account I took a step back and Prop firm passed in 1 trade :) Prop Firms. 0. So even if you met the profit target today and only traded 1 micro for the other 6 days, if those trades equate to an accuracy of less than 30% you'll still end up failing it. Most of these firms are completely unregulated, especially in the fx market. Futures trading in the USA , 60 percent of income is taxed at long term capital gains. Few of my friends already got their payouts, it is life changing for someone who knows how to trade and now they are building/funding their own account. So in that sense you could “break in” just buy developing your own trading strategy now and use it to pass the eval. The important thing to answer is whether traders can make money from them. There’s a ton of prop firms out there, a lot of which you just have to buy the evaluation and if you pass, you get access to live funds. You can try the firm I trade with (Alkaline Capital based in Canada). Correct, a real prop firm (proprietary trading firm) won't have you pay them for access to their capital. 98K. They also need volume. If you are talking about funding companies, that's a whole different story. FTMO and Funded trading plus are acc legit. I passed it in 4 trades. Passed my first prop firm challenge. 5% risk then it’ll pass then I only need to make 0. UK LTD company for prop firm trading. The money you deposited into your account can be withdrawn if you don't like it. FTMO or MyForexFunds. No minimum trades or days requirements for completing level 1. For future trading chose Apex for forex trading chose Ftmo. df bd wr wm yd sb da nw ol df