Are you ready for your opportunity? Mirriam-Webster defines opportunity as, “an amount of time or a situation in which something can be done.” Your opportunity waits for you in the area of forex trading, but there is a problem.
You need forex funding! How can you trade effectively and make a profit without the proper funding? This is where a Proprietary Trading Firm (Prop Firm) can help. They are companies that provide funding for traders.
Maybe this is your opportunity? Maybe a Prop Firm would be the perfect fit for you? Here are some areas to think through as you are looking for the perfect Prop Firm.
Before the Prop Firm
Getting funded is the goal, but before you do that you want to have your focus. Many firms will have ways to evaluate your ability, which is only fair because they are giving you money!
What you need to do is have your system worked out. Every person is different and how they see things is unique. Your system of trading needs to be at a basic level before you try to go to a Prop Firm.
Most Prop Firms want people who are experienced or have a good amount of practice. Even if your practice has been virtual, you want to have that practice down. This will give you a good foundation to build your knowledge.
Prop Firm Benefits
Prop Firms are springing up all over and there is a reason for it, they are incredibly popular. They have opened the door for the average person anywhere in the world to become a trader.
This helps them find people outside of their local area and gives people the chance to test their skills. The firms give great benefits that the average person would not have when entering the trading world.
Training and Resources
Many Prop Firms provide training to help traders gain experience and knowledge. They also consolidate analytics and other information that can be very useful as you trade.
The main benefit of being part of a Prop Firm is they provide capital for you to trade with. The old adage, “You need money to make money,” is solved with a prop firm. Their funding is based on their guidelines, but it is available.
Many firms have you pass specific tests before you can become a funded trader. Every prop firm is different in its evaluation. For example, Fidelcrest offers its evaluation in the form of a trading challenge.
Investigate the Forex Funding Firms
Some of the Prop Firms will have specific areas for you to invest in and Forex Funding is one of them. What you want to do is investigate potential prop firms and get a few details.
Their Trading Platforms
Different Prop Firms have different options for you to use. Some have specific brokers that you work with and others let you pick from a list of approved brokers.
You will also want to see what trading platforms they offer. Different firms have different platforms that you can work on. If there is one that is your favorite, you want to make sure you can use it with a potential firm.
Their Upfront and Monthly Costs
Prop Firms have different expenses built into their system. Many will have an upfront cost to enter their testing program. Once you are approved, there is usually a monthly cost involved with using their resources.
These costs are often based on the amount that you are investing with and where you are investing. You will want to get a complete list of all expenses upfront. Most firms will list all expenses on their website.
Training and Resource Options
Depending on your experience and the type of investing you want to do, you will want to see what training is available with a potential Prop Firm. Some firms offer lots of upfront training for the new trader.
Others recognize that many traders are just looking for the freedom to trade. They don’t offer as much training but seek to have the resources that an experienced trader would want.
You will also want to see what collaboration options are available. If you like to have a group of people to talk through options with, this would be something you would want.
Their Profit and Payout Schedule
When you trade with a prop firm, there is a percentage agreement. You get a percentage of the profits for trading and they keep a percentage for providing the capital.
Many firms offer an 80/20 split. You are able to keep 80% of the profits and they take 20%. This is pretty standard across the board. Some firms offer incentives as you prove yourself where you get paid a little more.
Other firms will offer a larger split like a 50/50 for traders who are newer and haven’t proven themselves yet. Each firm also has a specific way that they make their payouts.
You will want to investigate their payout schedule to see how they pay and how often they pay. Most firms have a set funded account trading period which is the basis for the profit payout.
Start Your Forex Adventure Today
Forex trading is an exciting market that many ambitious traders are entering. The one thing that is keeping many traders out is the lack of funding. However, forex funding is available through Prop Firms.
When you find the right prop firm and pass their qualifications tests, you will have the confidence and the backing you need. You can become the Forex trader that you have dreamed about.
Fieldcrest was founded in 2018 by a group of Forex traders wanting to help the average retail trader get the funding they needed. Their business model has helped hundreds of traders see their dreams become a reality in Forex trading.
Check out their 1 Step Challenge and see if you have what it takes to join the team and be a funded trader.