The transaction assessment is divided into two stages. The two stages set different profit deadlines, loss amounts, and profit targets. After the two stages are passed, the company's capital operations can be obtained and they can become their traders (traders).
After becoming a formal trader, there is no limit to the time limit for making a profit, and there is no profit target.
Simply put，FTMOProvide a variety of fund accounts. You only need to spend the registration fee and pass the assessment to make money with their funds. If you lose money, you don't have to pay, but the profit can be divided.
Of course there are others, but because they are almost all foreign companies, you have to do a lot of homework to study a company in depth. When I first learned about this, it was like discovering a new world, but I also know that there are too many scams in the foreign exchange market, so I have to work hard to study by myself.
Fortunately, a few Taiwanese around me also use it, so I slowly became familiar with this model, and then I actually signed up for it, but because of too many details and rules, it's better to organize a Chinese version by myself for later review and record purposes, and also share this information with those who need it.
What is Proprietary Trading? What is Proprietary Trading?
Forex prop firms are a type of proprietary trading model where companies use their own funds for trading. Some companies have specially established proprietary departments, or the company itself is a proprietary trading company.
Since a company wants to make money in the market, in addition to relying on the company's own shareholders or employees, it can also design a set of models and rules, find people who will make money in the market, and provide account funds to help make money. Making money can be divided into profits, while losing money is borne by the company. This model has been in use abroad for many years., But it is not so popular in China.
What is the difference between a foreign exchange dealer and a foreign exchange broker?
With forex brokers, investors use their own funds deposited in accounts opened with the broker, and the account's risks and profits/losses are borne by the investor themselves. On the other hand, with forex prop firms, investors find a prop firm and participate in their evaluation. If they pass, they trade using the firm's account. The account's risk and losses are borne by the firm, while profits are shared.
Does Forex Prop Firms only offer forex as trading instruments?
The majority of traded products are forex currency pairs, but there are also offerings of indices, precious metals, and other non-currency pair products. For example, FTMO prop firm provides such offerings. The trading products offered by each prop firm can vary greatly.
Are prop firms a scam?
No, but there will be many self-employed merchants who are mixed with fish and fish, so the research on self-employed merchants is very important. And brokers also have many questions about fraud. I have compiled an article before.How brokers crack scams, But after I learned about the model of self-employed merchants, I think it needs to be studied more. In addition to the brokers used by self-employed merchants, it is also necessary to understand their rules, user reviews, various aspects of experience, etc., which are quite areas that need to do homework.
Regarding whether it is fraud or not, in order to verify, I spent a lot of time sorting out and collecting information from these self-employed merchants (fortunately, they are all very public). The techniques of cracking broker fraud can also be applied to verifying self-employed merchants. In addition, many friends around me are using it, so it is currently known that it is not a scam.
At present, the self-employed business I use by myself has this one, but my friends around me have been using other homes for a while, and they have not encountered any problems in dividing profits and withdrawing funds. In the future, I will organize an article on this issue if I have the opportunity. Article.
Why have I rarely heard of prop firms?
Most people who come into contact with foreign exchange margin should be mainly brokers (brokerages), but this self-operated model is quite popular abroad. Many successful foreign traders started from this model. They first use their rules to help them develop trading discipline, and after a period of trading, they haveDivide the profit funds, and then go to the broker to open an account and operate with your own funds.
What is the difference between a foreign exchange dealer and a self-owned fund?
If you open an account with a broker, you put in your own principal. All risks are borne by the investors. In addition, you also need to prevent fraudulent brokers from allowing withdrawals, black-hearted spreads, fake brokers, fake customer service and other issues. You really need to do your own homework.
The self-employed model is to register with the self-employed company and after the assessment, they will give you a sum of funds, and you will help them trade. All losses will be borne by the company (the most is the loss of the registration fee), and when you make a profit, you can get a share of the profit. All the problems that may be encountered in the broker are handled by the company.Worry, and investors just need to concentrate on the rules and profit.
Which foreign exchange dealer should I choose?
There are about dozens of foreign exchange dealers in the world, but I and my friends around me have used at least 4 of them, while I have used 2 of them myself. And each self-operated foreign exchange company has its own examination regulations, profit sharing ratio, risk control standards, and other items such as supported trading platforms, retake rules, registration fees, etc. For too many details, please refer to me.Organize and compare the information of foreign exchange dealers。
How much does it cost to apply for a Funding Plan?
The registration fee of each self-employed company will vary depending on the comprehensive assessment of account funds, rules, profit target setting, challenge period, etc. The minimum FTMO is 155 euros for a Normal account, and the account limit is 10,000 U.S. dollars.
