What is a prop firm?

A prop firm, or proprietary trading firm, is a company that employs traders to trade on its behalf. The firm provides the traders with capital, and the traders keep a portion of the profits they generate.

Benefits of trading for a prop firm

  • You don’t need to use your own money to trade.
  • You have the opportunity to trade with a large amount of capital.
  • You can learn from experienced traders.
  • You have the opportunity to build a career in trading.

Drawbacks of trading for a prop firm

  • You must follow the firm’s trading rules.
  • You may have to share your profits with the firm.
  • Trading is risky, and you could lose money.

Popular prop firms

Before applying to a prop firm

  • Carefully research the firm.
  • Practice your trading strategy until you are confident.
  • Have backup funds available for the fees.

Resources

Disclaimer

  • Trading is high risk. Please research and practice thoroughly before investing.

Note

  • The information above is only basic information. Please study more information from reliable sources.
  • I am not a financial expert. Please consult an expert before making an investment decision.