Currently, there is a new modern way of trading spreading throughout the financial markets called prop trading. Prop trading in offline form has been with us for many years, but it was a company called FTMO that most expanded it in its online form. Prop trading or trading on funded accounts is becoming a competitor to traditional trading in forex and CFD markets, as well as other regulated markets such as futures.
This old model of trading offers traders new approaches and benefits that can improve their trading results and reduce risk. One of the biggest advantages of trading on funded accounts is that the trader does not have to risk their own capital, but can trade with significantly higher capital provided by the prop firm. This means that the trader can achieve much higher profits than would be possible with traditional trading, with far less risk than if they were trading with only their own capital. At the same time, this means that if the trader suffers losses, their own finances are not at risk.
Prop trading also allows traders to trade with much less stress and emotions, which can influence decision-making processes that occur with traditional trading. The result is a better and more objective approach to trading, which increases the likelihood of success.
Online prop trading represents a new modern way of trading in the financial markets, offering traders many advantages over traditional trading. This method allows traders to trade with higher capital while reducing the risk of trading. No more losses of entire accounts and savings. If you are looking for a new and safer way to achieve higher profits in the financial markets, trading on funded accounts may be just what you are looking for.
How does prop-trading work.
How does it work and why are these companies becoming more popular among traders? In this section, we will look at how prop firms work and why they are beneficial for traders.
Prop firms seek successful traders from all over the world. At the beginning of the partnership, the trader buys a program. At Rebelsfunding, we offer up to five training programs that are suitable for everyone. Trading is done with a demo account, which is used to test the trader’s abilities and risk management capabilities. This demo trading is an important part of the process and allows the prop firm to determine whether the trader can consistently achieve profits and manage their risks. At Rebelsfunding, we also offer the COPPER program, which even a complete beginner can gradually learn to follow the rules to the extent that they can manage a large capital. If it is not a fraudulent prop firm, the fees for these programs are used to operate, technologically develop, and maintain the quite demanding equipment so that traders who go through the programs can trade under the best possible conditions and create additional profits for the firm and the trader.
If a trader can demonstrate consistent adherence to the rules, profitability, and pass the overall evaluation, the prop firm will provide them with trading capital. This means that the trader will have an account and be able to trade with high capital. The form of providing this capital varies depending on the specific company, jurisdiction, and the model of each firm. It can be fully funded accounts controlled by automatic software, direct connections to liquidity providers, or demo accounts that the firm copies to its real accounts. Many firms do not allow traders onto the market at all, which could indicate fraudulent behaviour. The most legislatively reasonable choice for companies and traders in general is to use demo accounts and then copy to their own accounts. In other cases, the trader must be careful of their country requirements regarding permits to manage capital on the trader’s side, which could be quite restrictive and limiting. Pay attention to this!
The amount of capital provided depends on which prop firm the trader decides to use and also on the program they choose. It can reach hundreds of thousands of dollars. In this way, the trader is in a position to achieve high profits without risking their own financial resources.
At this stage, the trader is entitled to a share of the generated profits. This share ranges from 50 to 90 percent, depending on which prop firm and what type of program the trader chooses. At Rebelsfunding, we offer the widest range of training programs for both novice and experienced traders. This way, a trader can earn very decent amounts of money, as trading profits can be very high. For a serious prop firm, it is crucial for the trader to be successful, and therefore, they will strive to ensure that conditions are always maximally advantageous for the trader.
Trading funded accounts in an online environment is a huge advantage today that did not exist in earlier times. If a trader is not a gambler, understands the basics of risk management, and is able to identify interesting market opportunities, prop trading is the easiest path they can choose for their development and profit increase.