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Prop Trading Firm

Best Elevate The Talent Prop Trading Firm

Traders do Forex trading in terms of buying and selling money to make profits. Forex trading, although it gives a huge amount of profit but still it is quite risky and volatile. As the prices in Forex trading change frequently, the only skilled ones can go for it. In this blog, we are going to discover the best forex prop trading firm.

Best Forex Prop Trading Firms:

Below are the top prop trading firms recommended for those who want to do forex trading:

1.MyForexFunds

2.Surgetrader

3.E8 Funding

4.Fidelcrest

5.BluFX

Top Forex Trading Firms:

Now, we will tell you about the top forex trading firms and explain why they are the best ones. Below are the top trading firms:

1.MyForexFunds:

MyForexFunds is the top Forex Trading Firm that is established to enable the traders with large accounts to trade efficiently. The traders are provided with an opportunity to make profits without even risking their own money. The accounts range from $10k to even $100k. Here, the traders choose monthly subscriptions to their own choices.

2.SurgeTrader:

The next one on our list is SurgeTrader. It is a recommended investment firm as it does not charge a monthly fee; you will have to give only a one-time subscription. In SurgeTrader, the amount of USD 25,000 to $1 million can be received by traders. These depend upon the packages that are chosen initially. Here, the trader can make profits up to 75%.

3.E8 Funding:

The next recommendation on our list is E8 Funding. It is also a top-ranked Prop Forex Trading firm that gives the opportunity to traders to get 80% profits on spilt while trading. It includes a two-phase evaluation of trading where the trader has already predetermined the capital.

4.Fidelcrest:

Next on our list is Fidelcrest, that is having almost 2 million traders worldwide. The traders can make up to 90% of the profit. It only requires a one-time fee from the traders. The profits are split depending upon the performance.

5.BluFX:

BluFX is a trading firm that helps traders to be among the top traders. A withdrawal request can be submitted whenever an account has at least 5% profit. The 5% amount will be deducted from the trading account. The trader’s profit share of 50% will then be transferred to the trader’s equity account.

How to choose a perfect trading firm?

There are certain terms and conditions to choosing a perfect forex trading firm. Below are the points that you must consider when choosing a prop trading firm:

•Make sure to properly research about the prop trading firm first.

•Make sure to consider the points like the history of the company, team size and client testimonials as well.

•Also, make sure that you are going for a Forex prop trading firm that has a good track and has been in business for a long time.

•Last but not the least, make sure that the charges and fees are budget friendly and you can go long-term with them.

Prop Trading Firms

How Do Prop Trading Firms Work?

Proprietary trading is also known as prop trading, and it is relate d mostly to the banking field. Such type of trading occurs when firms or banks are up to trading. The trading can be of derivatives, stocks, bonds, or commodities. Many other financial instruments are also involved in such types of trading. Before you learn how to do prop trading firms work, we will give a brief detail about prop trading and why it is needed.

The financial firms or banks usually use the clients’ money for trading purposes. But in Proprietary Trading, the bank or the specific firm uses its own money. As a result, the firms earn more profit directly through trading. In this process, they do not get profit from the commission that is used to process trades through clients.

Why Prop Trading is needed, and what are the strategies used by the traders?

Banks and firms need the excess profits to keep the system running. So, the prop trade is made to make more profits. In these scenarios, the banks and firms have the edge over the average investors. There are various strategies used by prop traders so they can maximize their returns. These include index arbitrage, merger arbitrage, global macro-trading, and volatility arbitrage. The propriety trades also use pools and sophisticated software to make critical decisions.

Prop Trading Word Map

Prop trading is one of the most profitable operations when viewing it from a commercial angle or investment bank. But it is quite risky. So firms have to make sure that they are using the right ways to take appropriate steps. In 2008, the financial crisis occurred, and the main reason behind this crisis was the prop traders. But then the Volcker rule was introduced that showed how to do prop trading.

The main theme was to take commercial firms and banks, but not the involvement of the individual traders was considered as they do not help in making profits.

How Do Prop Trading Firms Work?

The main question is how prop trading eventually works. Well, this whole process of trading is taken place when a brokerage firm, financial institution, or hedge fund uses the capital or finances of the firm rather than the individuals’ funds.

To conduct the financial transaction, the balance sheet and total capital are used, and in this way, transactions are promoted.

There are different derivates and vehicles that drive these trades as they are mostly speculative.

The Volcker Rule on Prop Trading

Most propriety trading firms make money by taking a cut of the profits made by trading on behalf of a prop firm or a bank. Returns are then multiplied by the amount of extra capital that is provided by any bank or a trading firm. Many prop traders and firms offer a base salary, and additionally, they pay a performance-based bonus.

According to Dodd-Frank Wall Street Reform and Consumer Protection Act, the Volcker rule was introduced by Paul Volcker. He was the former chairman of the Federal Reserve. According

to this rule, the banks are restricted to not making any investments that are not beneficial for investors or depositors.

Commercial banks make high investments that eventually affect stability and cause financial crises. Thus, the Volcker Rule bans the institutes and banks that engage in prop trading or participate in a private equity fund. As we know that banks keep the commissions and make compensations over them to make the customers happy. But according to prop trading, the commissions are not considered, and banks take the whole profit.

By separating the functions, the banks meet the objective to both benefits the customer and also limiting the conflict of interest. Many prop trading firms offer the services of prop trading to help the firms and banks.

prop trading

How to prop trading? Step-to-Step Guide for beginners

The type of trading in which the traders buy and sell trading securities for making huge profits is known as prop trading. There are several things included in trading securities that are known as trading assets. The trading assets are forex instruments, commodities and other equities that are traded. How to do prop trading? Here is a complete guide for you.

Types of prop trading:

There are several types of prop trading, including:

Directional Trades:

The trade-in in this method is made by a trader while looking at a security’s price that goes up or down.

Market-making Trades:

In this trading type, the traders act as sellers and buyers of securities for making a profit. The profit is made upon the security on which the commodity is sold and bought.

The trading firms also act upon these types and make profits.

Qualification Required for Prop Trading:

To qualify for prop trading, you must have a master’s or an undergraduate level degree in either of the following subjects:

  • Math
  • Physics
  • Statistics
  • Computer Sciences

Additionally, if you have an engineering degree, it can help you become a trader. Similarly, having additional technical diplomas and certifications can also help you. No matter what your education is, if you have experience in this field, you can become a prop trader. The skills you must know are programming, laws of probability or mental mathematics.

Below are the criteria that you must fulfil:

  • You must know the global financial events taking place at the current moment
  • You must be able to formulate theories according to issues
  • Quick math problem solutions
  • Problem-solving

How Do I Start with A Prop Trading Firm?

If you are a new prop trader, there are chances that you can get scammed. To learn, gain experience and excel, you will need to join a prop trading firm. If you want to make sure that the trading firm is legit and it will also help you in getting a better prop trader, follow the steps below:

  • Make sure that there are experienced traders in the firm and have a reputation in the field
  • Check on the reviews for the firm; GlassDoor and TrustPilot are recommended sites to check reviews
  • Make sure the firm will allow you to do practicals with professionals.

If you do not want to collaborate with any firm or join it, you can do trading jobs to gain experience.

Trading Jobs to Practice Prop Trading:

You can do jobs through which you can learn and gain a lot of experience like:

  • Assist Traders or Clerk: if you have no trading experience, you can do this job. All you will need is core degrees and qualifications.
  • Junior Traders: As a fresh graduate, you can join as junior traders where you will help your seniors and professionals in management and making perfect strategies.
  • Senior Traders: if you have an experience in trading and now want to get into the field, we recommend you first do a job as a senior trader to gain some more knowledge.

Trading Strategies To Look For:

As a trader, you must process the strategies. Each strategy is unique and is different from the other. To make them successful, you must make sure to add changes to strategies. Like you can change the statistical, merger, volatility, and indexes of arbitrages.

Which assets are traded normally?

There are several types of trading assets that you can set as a security while trading. These are held by firms for the purpose of reselling them for profit. The main things included are commodities, bonds and stocks etc. Below are the assets that can be traded:

  • Commodities including corn, gold, crude oil and silver
  • Equity Indices including FTSE, Dow Jones, S&P and NYSE
  • Cryptocurrencies including Litecoin, Bitcoin, and Ethereum

How to become a successful prop trader?

The secret of success behind becoming a successful prop trader is simple, FOLLOW THE RULES. To become a successful prop trader and know how to do prop trading, you must:

  • Craft trading journal
  • Learn and never quit learning
  • Stay in touch with other traders
  • Learn and practice risk management

By following these quick tips, you can become a successful trader.

Conclusion:

If you want to start your trading career or bring it to the next level, you can go for Proprietary Trading. Prop trading is not only simple and easier but is also preferred if you want to gain profits and rewards early. All you need to do is make sure how to do prop trading professionally, and you are all set