Are "Prop Firms" Legit?
The forex market is a vast and complex animal, and it can be difficult for traders with low capital to compete with the whales. However, there are a number of prop firms that offer funding to traders who meet their trading criteria. This can be a great way for traders with low capital to start trading with a larger account size with the potential to cash out on more profits. What is a Prop Firm? A prop firm, or proprietary trading firm, is a company that provides funding to traders who meet their trading criteria. The prop firm will then take a percentage of the trader's profits, typically 15-20%. Every prop firm is different, but usually the incentive is there to keep the competition strong amongst other firms. The business model for a prop firm is simple. The trader pays an initiation fee, then must pass whilst following the criteria. Prop firms are either a single or dual phase, meaning either one or two trials must be passed by the trader before they're funded. Whether the
