Why You Should Trade at a Remote Prop Trading Firm
Forex Blog Articles
Of all the options available to you as a professional trader, why You Should Trade at a Remote Prop Trading Firm.
Trading with zero risks to personal capital and with access to exponential growth potential at a very low entry cost, remote prop trading offers an incredibly enticing opportunity for motivated professional traders.
What Is a Remote Proprietary Firm
First thing’s first – what exactly is a prop trader? In the most basic sense, a prop trader is a professional trader who trades in order to make a living. The difference between prop traders and traditional broker based traders is that trading for a prop firm means working as a contractor. The proprietary firm provides trading guidelines and all the trading capital. Any profits made from trading are then shared between the firm and the trader.
The Benefits Of Remote Prop Trading Firms
This shared revenue system along with the zero risks of losing personal capital is an extremely appealing setup for traders looking to break free from more conservative trading models.
In addition to zero risks to your own capital plus an attractive revenue sharing model, there are several other advantages to trading at a remote prop firm. If you manage to qualify for entry to the firm, the cost of entry is low. It is usually only a few hundred dollars to access a beginner account worth upwards of 10K. The high cost of retail brokers can never offer this type of return for an initial investment.
The second big advantage of trading with a remote prop firm is the unparalleled growth opportunity. Good funds provide more and more capital to traders who consistently demonstrate a positive trading performance. Trading well for a firm can translate into rapid and exponential growth, faster than the money actually earned for the fund.
The system is carefully crafted to be attractive to and lucrative for constant traders.
Now that we’ve laid out a framework for why a trader should consider trading for a remote prop trading firm.
let’s go through a rundown of all the positive benefits of remote prop trading:
Capital. All of the capital comes from the firm. This means traders trading for the firm don’t risk their own money and therefore trade risk-free.
Liquidity. In prop trading firms, the trader has assurances that the liquidity and trading conditions are excellent. In the forex industry, the dignity of providers is a hugely important factor and with an assurance of high liquidity, prop firms are reliable and can be counted upon.
Deep Pockets. If a trader performs well in their role as a remote prop trader, they will see their accounts grow exponentially, more than their profit actually is. This model offers great traders the incentive to keep performing at a high level in exchange for a windfall of capital to invest.
Trading Supervision. In quality prop trading firms, professionalism is always emphasized in the trading environment. This is done by setting up and maintaining a solid risk management setup to help traders work safer and have better and more responsible trading behavior.
It may sound strange to some, but anyone who has had practice trading alone knows this hard fact – the majority of traders with no supervision may slip and take non-rational risks that are not aligned with their trading plans. found out how to pass successfully evaluation program with a great trading plan.
Low-cost entry. Compared to self-trading accounts with a retail broker, the entry cost to be evaluated for a remote prop fund is just a fraction of the account given by the fund. This is in contrast to the setup with a broker where you have to put in all of the trading margins from your own resources. With the prop fund, the whole cost should not exceed 5% of the entry-level account size.
Structured trading plan and risk management. This is the fundamental key that most traders are lacking. That’s why the prop fund provides determined risk parameters. Professional traders should always trade within the boundaries of defined risk management and have a solid trade execution plan.
Trading Hours. As opposed to an office-based prop firm, the remote online prop firm is open 24 hours a day. Traders can work at hours that are convenient for them while self-determining the trading frequency.
Trading Strategy. This is another benefit that kicks in as soon as you move away from a rigid office-based system where they mainly aim for day trading strategies. The online model is more flexible and allows almost any trading strategy as long as it is aligned with the firm’s risk management requirements.
Trade multiple platforms. Trading for remote prop firms also allows you to participate in more trading venues, Click here to check What Types of Trading Jobs and Trading Firms Are There. You don’t really have to stop trading your own funded trading account and you can trade with other programs as well. You are not limited to give your services to only one prop firm, and you can integrate the flexible trading hours with other work professions as you wish.
Disadvantages Of Trading With Remote Prop Firms
Since we covered the advantages, it’s only fair to take an honest look at the disadvantages of being a prop trader. Since each firm puts its own set of limitations on the trading that occurs under their name, trader’s who are sensitive to such restrictions might find prop trading is not right for them.
In addition to these rules and regulations, each firm will have a set of trading strategies that are allowed along with those that aren’t. Before selecting a prop firm to trade for, learn as much as you can about their program to determine if your trading strategy aligns with their requirements. It might be possible to make modifications to your system in order to work in a new framework. If you cannot, you need to find a firm that works with and for you.
It’s also important not to grow impatient if entry to a firm doesn’t happen immediately. It takes time to find the firm that matches your trading personality and it can also take multiple attempts to pass the qualifying exam.
Once you’ve decided on a firm and you enter into the evaluation phase, remember that it may take some time to complete. Each firm has its own guidelines and schedule for the testing period. Find out how long it may take you to accomplish their stated goals. Some programs are conducted on simulators or demo accounts, while others will be conducted via live trading. The live trading evaluations are likely conducted on an account with limited funds, yet they are still real money accounts that pay you for your profits while you are investing your time in testing.
Certain funds will also require that anyone who trades for them is trained in their trading style, regardless of whether you have your own strategy or not. If you have a well-proven strategy and want to trade with a prop firm, find a firm that does not require special training or education in their specific strategy.
If you’re still following along, it’s likely that the advantages outweigh the downside and you’re almost certain that remote prop trading is for you. If we’re right about this, then the next step is to find a fund that offers the most suitable framework for your needs. Once you’ve done your homework and zeroed in on the right fund, the next step will be to qualify for entrance.
How To Join a Remote Prop Fund
In order to join a remote prop trading firm, prospective members will need to take a qualification test. This entrance exam exists because most prop trading firms deal with thousands of traders and therefore cannot check the backgrounds of each and every trader. During the testing phase, a trader will be required to demonstrate his or her skills according to the fund’s definition of success. The fund will also provide goal targets and risk parameters.
The Bottom Line about Trade at a Remote Prop Trading Firm
As with all systems, even if the advantages sound great, there are of course some disadvantages. However if you can put up with them, you will be rewarded far better than you could if you went to trading with your own resources.
If you have a proven trading strategy and rigorous work ethic, it is potentially highly beneficial for you to spend some time to tweak and modify it to suit the right fund’s requirements regarding trading strategies.
Make sure to constantly consider their risk management guidelines, the entry and ongoing costs, and the environment and support they will give you. Once you’ve worked all of these factors out, learn how fast their growth schedule is, and how is it achievable based on your own trading stats. The growth is where the real income potential is and with remote prop trading firms, the potential is almost limitless.
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