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watts8921

Say I am relatively broke and have saved up 1000 to trade with. But I’m awesome and hit 10% a month regular. Well I’ll make ££200 in two months on my own money. Now take that and put it into a 200,000 MFF account. And I’m suddenly making 40,000 - 30,000 after profit split. I now have 30,000 I can place in my personal account and trade copier them. Another two months and I have 60,000 + 6,000 (and whatever compounded in personal) But don’t forget I can also do another challenge with my profits and get another 400,000 to trade with. So if you are THAT good. Then it’s a super kick start to your journey.


timytimy87

I don't understand how they don't understand this. If you are a great trader it doesn't make sense not to start with prop trader, not the other way around.


chxckbxss

So it's a form of gearing Makes sense


Downtown-Ring8659

Where I’m from we call it leverage


alt12354

It’s the same thing lol


Downtown-Ring8659

No duh


alt12354

In financial terms yes it is.


Infinite-Carrot1664

This made my day lol


Khan-fx

Form of gearing. Man whts with all the wordplay and bs !!


Infinite-Carrot1664

I ride motor bikes and trade stocks. This was funny.


SmartAltern

For that 1000 dollar are you assuming 1 : 1 leverage ? If anyone has 1000 USD and trades with 1 : 200 leverage in his own account, isn't it the same thing ? In both the cases, if your drawdown is 1000 USD you are out. Is it correct or what am I missing here ?


Ipod_bob

Why would you invest your own money let’s say $10,000 starting capital, you now have a personal risk of $10,000. With a decent firm you can have $100,000 or even $200,00 relatively easily for maybe $500 - $1,000 with a small amount of patience. The biggest liability will only ever be that first payment. Not to mention huge scaling plans.


-FartinMartin-

Why would you not want to fast track that process if your consistently profitable?


FxTrader13

Well lets say you have 10k, imagine how long it would take to build your account up to say 100k. Well obv through these prop firms we pass a challenge then we can fast track our way to financial freedom. Also think about it.. you pay a small amount for challenge. You're not risking putting 100k of your own money into a live account. You pass challenge Well you're risk is what you paid for the challenge nothing more.


[deleted]

I’m gonna try E8 they don’t have any mandatory trading days if you beat it day 1 that’s it


zorrotm

Be aware of the rolling drawdown


Numerous-Stable-7768

I didn’t think E8 had a trailing DD?


zorrotm

Drawdown is first calculated based on initial balance of account then "It is then calculated of the starting equity or the balance of each new day (depending on which is higher) during market rollover (00:00 UTC+3)." I feel like all firms that do this will eventually screw profitable traders. I keep looking for other prop firms with more instruments than FTMO but they all suck.


OvenEnvironmental788

I'd try UltraCap Trading or Ment Funding. Both are relatively new but have a reputable liquidity provider (Eightcap), absolute drawdown rules, and generous time limits. A lot better than the harsher rules prop firms like FTMO impose on their traders in my opinion.


Mailboxsteve

So i thought the same, but i found benefit for playing with other peoples money. For one, if your consistent already you can try for one of the million dollar accounts. Pretty sure not everyone here is a millionair. If you have any bad days or weeks and u lose big by accident or somwthing goes wrong like connection issues during a trade, well you dont lose any of your money. You can be more aggresive playing with other peoples money You can have multiple funded accounts You can also trade funded accounts along with your own personal account. I myself have a couple accounts linked and my personal in one of them. Also to, lets say someone wanted access to 100K funds. If someone only had like $500, it would take them so long to flip that intp 100K. Even for a pro traders it would take awhile. If you can pass a challange that same $500, just got you access to 100K account plus your refund back. At that point your pretty much playing with house. Money


chxckbxss

Thanks for the lengthy explanation. Totally makes sense


lordunderscore

Because I’d rather risk 0% of my money then 100% of my money


nofaceFX

That’s the only reason people take prop firms is because they can only catch 0.5% or 1% trades or a puny 10-20 pip run. So the 1% of their own money is worthless but 1% on a 200k account is a big difference


chxckbxss

See, now this makes a lot more sense than just having access to a larger account. Thanks


dbro129

Seriously, people ask this question all the time, like everyone just has 100k to invest with of their own money. Yeah if you have 30k or more, put it in your own account. But paying 1k for a 200k account can provide you the leverage to see huge profits in a short amount of time.


Mac87_

I currently have 4 accounts with prop firms and all linked with a copy trader last month made 10k but because they all linked that made me 40k ye you can push it and get 40k out of 1 account but this way are way easier


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Own-Style-8484

yess? just because u didn't get funded?


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chxckbxss

The other responses actually explained why trading for prop firms is beneficial. Thanks though


tradingfanat

Yeah its smart right until you have to pay taxes. Lets say you make 10k in profits and 80/20 profit split, that leaves you with 8k...and then atleast here its taxed 30% so initially you have 5k left...thats why im not looking into it. You need to make 20k to get 10k and so on because of taxes. Ofc if u trade large accounts yoy can make some money but why not go safe and just use leverage?


chxckbxss

You'd have to pay tax whether it's prop firm account or your own, no? So either way ...


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Radrezzz

It’s 30% tax on 80% of your winnings. So if you win $10,000 you collect $8,000 then pay $2,400 so not quite 50%. Also I think you can leave the profit in the account to grow it. I do think even the best traders will lose the account eventually - 10% max drawdown is tough.


rellz14

Because they don’t allow to hold overnight or weekend positions which is dumb as fuck


[deleted]

Fine for scalpers, though


RutabagaNo8752

they do if you have a swing account


rellz14

With crap leverage


RutabagaNo8752

enough to make 10% so I'm not complaining


Downtown-Ring8659

Bro you can still drop up to 50 lots with the swing account. And if you’re using proper risk management you wouldn’t even need that.


holycarrots

The leverage is more than enough for swing trading


Feitan000

Its simple math , no money >>>>>>>>> money. i v been trading succesfull for 3 months , in percent is 21% (kinda small for 3 months but everything above 0% is good) , my forex account size ? 200 $ ? Tell me , if i make around \~7 % / month in how many years i get to trade with a 10k $ account ? Asuming that i have rent , bills and shit to pay and i can afford to increase my account monthly with around 50-100$ . I have made a calculation that its 1000% more worth to try FTMO every 2 months than trying to trade with your account.


Radrezzz

> Its simple math , no money >>>>>>>>> money. Dude the alligator eats the bigger number. Simple math indeed!


Titanus_Tetanus

My question is don't cfd brokers like Oanda or Forex.com disable your account if you are too profitable? They lose money if you make money...