Understand Prop Firm Trading

Proprietary Trading Firms Are Companies That Provide Trading Capital, Trading Infrastructure, & Often Other Resources To Traders, Allowing Them To Trade Financial Instruments In The Market.

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Last updated 1 month ago

Understand Prop Firm Trading

Proprietary Trading Firms Are Companies That Provide Trading Capital, Trading Infrastructure, & Often Other Resources To Traders, Allowing Them To Trade Financial Instruments In The Market.

Here are the main reasons and things to consider when working with prop firms. Here is a brief rundown of the top 3 firms that Nexgen feels offer fair opportunities for our users. Each firm will allow you to trade multiple tests and live prop accounts. Some of them, like APEX, will let you trade up to 20 accounts simultaneously.

Access to Capital: One of the main advantages of joining a prop firm is access to significant amounts of trading capital. Prop firms typically provide traders with substantial financial backing, enabling them to trade larger positions than they might be able to with their money.
Reduced Risk: Trading with a prop firm's capital means that traders risk the firm's money rather than their own. This can help alleviate the pressure and risk of trading one's funds and provide traders with a safety net during drawdowns.
Cost vs. Payout: This will be another essential factor to consider when picking your prop firm. Sometimes the higher costs come with faster payouts. Lower-cost trading firms may make you trade for a much more extended period before getting paid for your trading efforts.

Top 3 Prop Firms that are reputable and offer fair terms for traders. Remember, losing the cost of a test account while learning to trade is much better than blowing out a bunch of your trading capital. We suggest starting with one, passing the test, and using profits to pay for more accounts as you grow.

TAKE PROFIT TRADER - to learn more. Is the fastest payout after passing your test ( as little as 5 days), and why traders trade in the first place. The fee for the qualification test is a bit higher than some of the other firms. They regularly run 40% off specials and offer free accounts when you pass your evaluation. The most desirable quality with TPT is your ability to withdraw funds as early as the FIRST DAY after you start trading live. The only stipulation is that whatever your most significant draw-down was during your test, you leave it in the live account as padding—any profit above that you may remove. So if you want to be paid ASAP, Take Profit Trader is best for you. TPT has one of the best support systems out there. They also offer the BEST POSSIBLE drawdown scenario. Drawdowns are calculated at the end of the day(not intra-trade), which makes them unique and simultaneously makes it easier for you to pass the evaluations. They will soon be adding the ability to trade stocks and cryptocurrencies to the futures trading they offer today. They have a live chat help desk that is highly responsive 10 hours per day, M- F.
APEX TRADER FUNDING - to learn more. They are #1 in the business in size and number of traders. Apex frequently has sales that are as much as 80% off the cost of the testing fees, making them the lowest-cost option. They will let you keep the first 25K in profit per account, but the actual payouts are limited for the first couple of months to 2000 dollars per withdrawal period, regardless of how much profit you make. Note: the biggest drawback to APEX is the "open equity" draw-down which can leave new traders wondering why they failed a test without losing a lot of money requiring a new subscription. Please visit the site and learn about drawdowns. We feel this is very important to know. The customer support is solid but through a ticketing system that responds quickly.
TOP STEP TRADER- to learn more. They are one of the older, more mature firms in the Prop firm industry, with over 10+ years of experience. They are excellent and very reputable. They are slightly more expensive and not quite as generous with the draw-downs, but if you pass their test, you get to keep the first 10K in profit, and they have a 90/10 trader split.

It's important to note that while prop trading can offer significant benefits, it also comes with certain restrictions and guidelines. Traders often have to adhere to the firm's trading rules and risk management protocols, and they may be subject to performance targets or specific trading strategies imposed by the firm. Additionally, not all prop firms are the same, so traders should carefully research and assess the terms and conditions before joining one.

PreviousUnderstand Trade Management NextTrade Tracking Sheet

Last updated 1 month ago

Access to Capital: One of the main advantages of joining a prop firm is access to significant amounts of trading capital. Prop firms typically provide traders with substantial financial backing, enabling them to trade larger positions than they might be able to with their money.
Reduced Risk: Trading with a prop firm's capital means that traders risk the firm's money rather than their own. This can help alleviate the pressure and risk of trading one's funds and provide traders with a safety net during drawdowns.
Cost vs. Payout: This will be another essential factor to consider when picking your prop firm. Sometimes the higher costs come with faster payouts. Lower-cost trading firms may make you trade for a much more extended period before getting paid for your trading efforts.

Top 3 Prop Firms that are reputable and offer fair terms for traders. Remember, losing the cost of a test account while learning to trade is much better than blowing out a bunch of your trading capital. We suggest starting with one, passing the test, and using profits to pay for more accounts as you grow.

TAKE PROFIT TRADER - to learn more. Is the fastest payout after passing your test ( as little as 5 days), and why traders trade in the first place. The fee for the qualification test is a bit higher than some of the other firms. They regularly run 40% off specials and offer free accounts when you pass your evaluation. The most desirable quality with TPT is your ability to withdraw funds as early as the FIRST DAY after you start trading live. The only stipulation is that whatever your most significant draw-down was during your test, you leave it in the live account as padding—any profit above that you may remove. So if you want to be paid ASAP, Take Profit Trader is best for you. TPT has one of the best support systems out there. They also offer the BEST POSSIBLE drawdown scenario. Drawdowns are calculated at the end of the day(not intra-trade), which makes them unique and simultaneously makes it easier for you to pass the evaluations. They will soon be adding the ability to trade stocks and cryptocurrencies to the futures trading they offer today. They have a live chat help desk that is highly responsive 10 hours per day, M- F.
APEX TRADER FUNDING - to learn more. They are #1 in the business in size and number of traders. Apex frequently has sales that are as much as 80% off the cost of the testing fees, making them the lowest-cost option. They will let you keep the first 25K in profit per account, but the actual payouts are limited for the first couple of months to 2000 dollars per withdrawal period, regardless of how much profit you make. Note: the biggest drawback to APEX is the "open equity" draw-down which can leave new traders wondering why they failed a test without losing a lot of money requiring a new subscription. Please visit the site and learn about drawdowns. We feel this is very important to know. The customer support is solid but through a ticketing system that responds quickly.
TOP STEP TRADER- to learn more. They are one of the older, more mature firms in the Prop firm industry, with over 10+ years of experience. They are excellent and very reputable. They are slightly more expensive and not quite as generous with the draw-downs, but if you pass their test, you get to keep the first 10K in profit, and they have a 90/10 trader split.