What is a Prop Firm?

Proprietary Trading Firms, often referred to as "Prop-Firms," are firms that trade on the Foreign Exchange (Forex) market and contract traders to trade on their accounts. Each prop firm allows traders to purchase accounts from them to trade on. This gives access to a larger amount of capital to trade with to the trader. In return, traders share a portion of their profits with the firm during each withdrawal.

Prop Firms enlist traders who use capital in the firms account to execute FOREX trades. The firm provides traders with the tools, technology, and capital to trade, and in return, traders share a portion of their profits with the firm.

Prop Firms provided access to trading accounts within a simulated environment. These accounts are for educational use only, evaluating users’ trading proficiency and risk management skills. At no time are users asked to deposit capital for investment purposes, nor do they risk their own funds. Program outcomes depend solely on individual performance and adherence to the stated rules and objectives. Prop Firms do not operate as a broker, accept client deposits, or facilitate live market transactions.