Forex proprietary trading, “prop trading”, and obtaining funds to trade with from third parties to earn strong commissions is becoming more common place. There are several forex proprietary trading firms now offering funding for traders to give great traders a chance to build a large trading account and share in the profits. The proprietary trading firm supplies the funding to a forex trader in a live account, then the firm shares the profits with the trader.
This market sector is growing. Any private individual who enjoys forex trading and who has good trading skills can become a fully funded forex trader. Any forex trader who lacks funding can use the money provided by various third party public companies, as well as private entities and individuals who have set up funding programs. Proprietary forex trading has a bright future ahead.
From the traders perspective, you must have a great forex trading system and be consistent with your trades. If you want to trade someone else’s money there will be rules or some successful demo trading involved to get the funds. Check the rules of the proprietary trading firm closely. Click on the link to a great illustrated about getting live trading capital and funding for your forex trading account from third party proprietary firms.
Having great trading skills, but not enough funds should not be a deterrent to success if you can prove your skills in a demo account. Then the LLC or hedge fund prividing the funding will provide you with the funds in a live account. So if you are a forex trader and you have a profitable forex trading system, but no funds to trade with, forex proprietary trading firms will provide you with capital to trade with and you can split the profits with them. It is like a miniature hedge fund that the trader is in charge of.
Since the forex market is a leveraged market, at 50:1 or higher, it becomes feasible for the proprietary trading firm as well as the trader to provide lots of buying power. If a proprietary trading form provides a $5,000 account to a trader at 50:1 leverage, this is $250,000 in currency buying power. Many firms provide 100:1 leverge. Any forex trader is eligible as long as they can demonstrate their trading skills.