Explore the Remarkable World of Prop Trading Firms in Forex
Greetings, fellow traders! It's Andrew Mitchem, your host from the Forex Trading Coach, bringing you video and podcast number 515.
Today, I'm diving deep into the world of prop trading firms. I'll be shedding light on the good, the not-so-good, and how you can leverage these firms to supercharge your returns in the Forex market. But hold your horses, because before you even think about prop firms, you've got to master the art of trading. No shortcuts here! And if you're looking for guidance, well, we've got you covered.
Most traders face a common roadblock: they lack the capital to trade full-time. Even if you're a fantastic trader raking in, let's say, a jaw-dropping 50% return annually with minimal drawdown, here's the kicker - you only have $10,000 in your personal account. Sure, you've made $5,000, but in the real world, that won't get you very far. So, what's the solution?
Prop firms come to the rescue. Now, not all prop firms are created equal. I'd like to give a shoutout to FX2Funding, who, in my opinion, are top-notch. Others are catching up, though, implementing similar rules and criteria. But don't take my word for it; do your due diligence.
Our Forex Trading Coach clients are crushing it with prop firms. Just last week, one of our clients breezed through the challenge stage with a new prop firm, now managing a live account of $100,000 with a sweet 10% profit split on an 80/20 basis. He pocketed $8,000 without risking much of his own capital, only $500 for the challenge.
We've got more clients who have been with prop firms for a while, opening new accounts every week or so, each at different stages of maturity. The returns? Insane! Of course, not every challenge ends in success, but that's where having multiple prop firm accounts pays off. It's like a safety net for those occasional bad trading weeks.
Speaking of safety nets, most reputable prop firms have a drawdown limit of, say, 5% to 6%. FX2Funding has set the bar at 6% maximum drawdown. As for me, I play it ultra-safe, risking just a quarter of 1% per trade on my prop firm accounts. Even with that, I'd need an unprecedented 24 consecutive losing trades to get stopped out. It's practically a unicorn sighting!
Here's a tip: Be wary of prop firms that impose time limits on reaching a 10% profit. You don't want to rush and make reckless decisions. Take your time, trade smart, and focus on preserving your capital.
Check out FX2Funding – I've included a link below. While we have clients using various prop firms, many have found great success there.
If you're in need of a reliable forex broker, I can't recommend Blueberry Markets enough. They're based in Australia, and pretty much anyone worldwide can open an account with a few exceptions. Check them out, and I've included a link below. They offer both Metatrader 4 and Metatrader 5 platforms.
If you have any burning questions about prop firms, leave a comment below or contact me by clicking one of the links below. If you've got ideas for future videos and podcasts, don't hesitate to reach out. Whether you're watching or listening, your feedback matters.
Remember, before you jump into the world of prop firms, master your trading skills and succeed in your live account. Have an awesome week, and I'll catch you right here next week. Cheers for now!
*Please note that some links on this website are affiliate links. I will earn a commission if you purchase through those links.
The opinions I express are entirely my own. I truly believe that Andrew Mitchem’s approach works and I apply all of his recommendations to my own trading. The money earned from affiliates are reinvested directly into my trading account where I use the Forex Trading Coach system.