Trading in a whole has always been came in every person mind at least once and everyone has thought that they will make a lot of money and get rich and live a happy life But as they get into trading and start it, their first hurdle of their exciting trading journey shows up which is the small capital and with the small capital it is almost as hard as impossible to make big profits and this is where forex prop firms comes in. 

So What is a Prop Firm? Prop firms are a way better option for those who want to trade with a larger capital in exchange for a small amount of price. In this article, we are going to talk about the top 6 advantages that Forex Prop Firm offers to Traders.

1). Advantage of profit maximization 

One of the biggest challenges for a new trader is simply lack of enough capital to trade. It is not the matter of how good can a trader be as long as they do not have enough capital as there will be not much profit to be made. This is the main advantage a prop firm provides, In an exchange of small fees, traders can get prop firm’s capital to trade and make significantly bigger profits.

Let’s take an example of a trader who has $500 and even if he makes 10% of profit then he will only make $50. 

If a trader buys a $50k prop firm’s challenge and get funded, When he makes the same 10% profit on the $50000 account then he makes $5000. As we can see the difference between $50 and $5000 is much bigger and it can help the trader to achieve this getting rich goal a bit faster.

2). Small Trading Fees with low Risk for Large Capital

Trading with your own money is very risky and can be expensive for some people. Prop firms also helps in that matter as the cheapest prop firm account in 2024 can go as low as $10 or $15. Imagine the amount that you are risking for trading with bigger capital. Offers like this can make trading less stressful. 

For Calculation, Maven Trading which offers a capital of $2000 for just $15. If we do the calculation then that $15 is not even 1% of the amount that you are going to trade with. 

3). Access to Trading Technology 

Nowadays Prop Firms does not shy away from providing traders the access of advance trading tools such as charting softwares, Expert Insights and journaling softwares which helps traders in improving their skills. These tools also help the traders to spot the trends and patterns that might not be able to be seen by a normal rookie trader.

4). Access to Trading Guides and Mentors

A lot of big Prop Firms offer traders the access of resources and guides which they can read and learn from to trade better and some prop firms also provide mentors who provide live classes, Webinars and 1 on 1 classes to teach the new traders on how to trade better. These books, guides and other resources are specially curates by experienced traders and also those mentorships which they offer has traders who are trading for over 3 to 5 years and sometimes even 15 years of experience. Feedback is important in every step of life and these mentors can offer that so the trader does not have to go through the same old mistakes and learn faster. They also shed light on the weaknesses of trader to improve.

5). A Community for Traders

Prop Firms also provide a community that can be very helpful for traders and prop firms often make their own community on discord or telegram where they allow traders and like-minded people to join and communicate with each other. Having a good community means that the trader can share their experiences, learn from each other and what not. Sometimes traders find their own personal mentor in these communities.

6). Refund of Challenge Fees 

Many prop firms often refund the charged fees when traders pass Prop firm challenge accounts. That means traders will be able to trade for free after being funded with the prop firm. Trading with large capital for free makes it far more appealing and it also builds confidence in traders and it becomes a win-win situation for both prop firm and the trader as the trader get to trade for free and prop firm gets a trader who can make profit not just for himself but also for prop firm.

Conclusion

These are the few big advantages that a trader gets when they trade with a Forex Prop Firm. A large capital, lower risk, educational resources, mentorship and a good trading community. Prop Firm offer all these advantages for such a small price and this is by far the best option for a beginner to trade with a prop firm instead of going all out with their own money. If a trader is serious about trading and actually wants to look at trading as a career then joining a prop firm is a great opportunity.