Having the best strategy to trade is not sufficient to generate vast amounts of profits in the Forex

industry. The top reason retail traders fail to achieve their financial goals is undercapitalization. One of

the biggest misconceptions that have marred the forex trading industry is making a full-time income

with $1000 or $2000 worth of investment. Contrary to the popular perception of “starting small,”

chances are traders hardly make it with minuscule investments.

At a glance, Proprietary trading entails firms using their capital to trade stocks, commodities, and bonds

rather than using their clients’ money. As opposed to the traditional way banks and hedge funds work,

taking part in profits made by the company offsets the high risks associated with trading.

What Is Proprietary Trading?

Proprietary trading is when trades are made with the company’s capital rather than the clients’ orders

against commission payments. A notable benefit for traders is how the firm leverages them with more

capital to increase their returns. In addition to addressing the underfunding challenge that most traders

face, most Proprietary firms cushion traders against the risk of massive losses.

Retail Brokers Vs. Proprietary Trading

There has been a massive movement of traders from retail brokers to independent traders with

Proprietary trading firms. A lot of this may be attributed to the prospects of high returns without

exposing the trader to risk.

“When it comes to growth potential, Proprietary trading offers more benefits and gets so appealing to

traders,” says the advisor for the Proprietary Firm Fidelcrest. “Given that traders do not get exposed to

high risks of devastating losses and have a reliable, steady income, remote Proprietary trading becomes

an incredibly ideal option.”

With the retail brokerage, the trader invests and risks their capital alongside minimal prospects for

receiving returns. However, the freedom of Proprietary trading gives the trader the autonomy to act as

a service to a contractor, not a broker’s client.

Benefits of Proprietary Trading

Perhaps one of the most prominent benefits of Proprietary trading is the capital growth rate. When you

trade with a broker, the rigid system of deciding whether funds can be withdrawn or used to grow an

account makes it difficult to build capital. On the other hand, Proprietary trading increases the potential

rate by giving access to colossal amounts of money.

In addition to not risking capital and offsetting the risk for losses, Proprietary firms make payments

based on a profit-sharing commission plan. With different profit-sharing models, Proprietary trading

firms like Fidelcrest pay out is as high as 80% of profits. The trading environment created by Proprietary

trading firms nurtures the best talent to harness the knowledge of seasoned traders. After a

comprehensive set of standards, Proprietary trading firms hand-pick traders and invest in them

monetarily and educationally. The firm invests in and compensates what it regards as mature and

profitable trading.

Is Proprietary Trading Ideal For Profitability?

Access to professional-grade infrastructure and colossal trading capital provides traders with the

resources they need to profit. Proprietary trading firms ensure that your best interests are aligned with

theirs and that your strategy is workable. This more innovative approach fortifies your ability to rake in

huge profits without having to reinvest money every month. Contrary to the limited financing, unlimited

access to capital makes it easier to capture far more significant opportunities to proliferate.

Fidelcrest is a Proprietary trading firm with solutions geared towards aligning what is happening in the

industry to ensure the interest of both parties is towards cohesive market growth. When looking at

getting funded with Proprietary firms, it can sometimes feel too good to be true. With regard to levels of

verification needed to pass the challenge, Fidelcrest features very competitive funding of up to

$400,000. At the same time, the company has a 1:100 leverage, hand-picked brokers, trading platforms,

fully automated account monitoring and seamless customer support.

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