Proprietary trading, also known as “proprietary trading”, is used to refer exclusively to a financial company or commercial bank that invests its own funds in the markets to make a profit, rather than earning commissions by trading on behalf of clients.
Although these Forex trading companies still exist, more and more Forex trading companies are starting to offer individual traders the same profitable opportunities that were previously only reserved for companies with a lot of financial backing.
These days, there are many Forex trading companies that seek to fund talented individual traders to trade their own strategies from the comfort of their homes.
In this article, we will explore what support trading is, how it works, and provide a review of the best support trading companies available to forex traders today.
What is prop trading?
Support trading firms, in relation to large financial institutions, seek to achieve higher quarterly and annual returns through active trading in the markets, rather than relying on commissions earned from trading their clients’ funds.
This type of trading is mostly speculative in nature and can involve a whole range of different derivatives and complex investment methods.
On the other hand, support trading for individual traders generally involves an evaluation period in which each applicant needs to demonstrate their ability to properly manage risk by achieving certain trading objectives.
Due to the risky nature involved in trading the markets, each trader needs to show that they have the discipline and experience necessary to achieve these trading goals before being allowed to trade for a forex trading company.
Before we take a look at the best forex trading companies that made our list, let’s discuss the most common pros and cons that you need to consider before choosing the right forex trading company for you.
Forex trading companies pros and cons
With so many online prop trading companies to choose from, it goes without saying that you need to exercise due diligence when choosing the right prop trading company for your needs. Here is a quick summary of the pros and cons associated with supportive trading companies.
Pros:
- Capital financing. Once you pass the evaluation stage, you can trade with the company’s funds without risking your own money.
- Different financing levels. Before you get started, most support companies will offer you different funding levels to choose from which may vary in size.
- Traders who pass the evaluation stage and are able to perform at a high level often gain access to more capital to quickly scale their accounts to larger sizes.
- Organizational risk management. Support trading companies require traders to follow strict risk management procedures to protect their capital and force traders to conduct their trading professionally.
- Flexible trading hours. Instead of strict working hours, trading companies allow their traders to work at hours that suit them.
- Trading strategy. Most of the best supporting trading companies will allow traders to use their strategies if they are in line with the company’s risk management requirements.
- A variety of trading platforms. Good support companies will have a variety of popular trading platforms to choose from.
cons:
- Trading style. Support trading companies generally only allow day trading activities and do not cater to other trading styles that require longer holding periods.
- Limited trading tools. Not all trading companies give traders the flexibility to choose from a wide range of trading instruments.
- Strict trading rules. Although supportive trading companies need to ensure that their traders adhere to strict trading rules, it may not be suitable for everyone and prove to be too much for some to handle.
- High dividend splits. All supporting trading companies will require a share of the profit from their traders. After all, they bear most of the risks. However, some companies may want to keep an unreasonable percentage of your profits, which benefits them more than you in the long run.
- Hidden fees. Not all companies are transparent with their fee structures. Make sure you know all the costs involved before you start – for example, trading commissions.
The best foreign exchange trading companies
Keeping in mind all the pros and cons mentioned before, here is a list of the top five trading companies with an overview of each of them.
1. Fatmo
FTMO has become increasingly popular in recent years and has a good reputation in the prop trading industry. Based in the Czech Republic, it has created an international fund based on retail traders that offers a diversified portfolio to investors, while helping traders reach financial independence.
Key statistics include:
- Profits rate of up to 90%.
- – Different financing levels ranging from $10,000 to $200,000.
- Two steps to becoming a funded trader: an FTMO Challenge phase over a 30-day trading period and a Verification phase over a 60-day trading period.
- A minimum of 10 trading days are required for each step to become a FTMO funded trader.
- The company refunds the fees paid for your chosen tier with the first profit split when you become an FTMO funded trader. There are no recurring membership fees or hidden fees.
- A wide range of instruments, including Forex, commodities, indices, cryptocurrencies, stocks and bonds.
- Choose from a variety of trading platforms.
- Making deals over the weekend – no
2. The financing merchant
Funded Trader was launched in June 2021 and was founded by traders with extensive industry knowledge. They offer one of the highest expansion plans in the industry and are committed to excellent customer support.
Key statistics include:
- Profits rate of up to 90%.
- – Different financing levels ranging from $50,000 to $400,000.
- Two stages to becoming a funded trader: the first stage during a 35-day trading period and the second stage during a 60-day trading period.
- A minimum of five trading days is required for each step to become a funded trader.
- The company refunds the fees paid to your chosen tier when you become a funded trader.
- A wide range of instruments, including Forex, commodities, indices and cryptocurrencies.
- Choose from a variety of trading platforms.
- Making deals over the weekend – yes.
3. BlueFX
BluFX requires no performance challenge to become a funded trader with convenient trading requirements – making it an ideal choice for novice Forex traders who need immediate funding.
Key statistics include:
- Divide profits by 50%.
- Two funding levels: Lite package with $25,000 equity funding and Pro package with $50,000 equity funding.
- Low monthly recurring fees per financing category.
- 29 major and minor currency pairs plus gold.
- Only one trading platform. Access from your computer and mobile device.
- Making deals during the weekend – yes, but upon request.
4. MyForexFunds
MyForexFunds was founded in July 2020 and is an industry leader in Forex trading companies. It currently employs more than 300 employees globally and deals with more than 2,000 clients daily.
Key statistics include:
- Profits rate of up to 85%.
- Three different account types – for beginners, experienced and professional traders.
- Different funding levels depending on account type.
- Huge expansion plan of up to $1,350,000 for funded traders.
- Discord is a large online community.
- Excellent support team 24/7.
- A wide range of instruments, including Forex, commodities and indices.
- MetaTrader 4 and 5 platforms only.
5. Empire of city merchants
City Traders Imperium is based in London and managed by a team of highly skilled traders with over four decades of experience.
Key statistics include:
- Profits rate of up to 85%.
- Funded account sizes range from $20,000 to $70,000.
- Instant funded accounts in various sizes – available for a one-time fee.
- Profit share from 50% to 70%
- Huge expansion plan of up to $2 million.
- The rubric is easy to follow.
- The minimum active trading days range from 0 to 30 depending on the rating level.
- Access to Forex educational materials.
- A wide range of instruments including Forex, commodities and indices.
- MetaTrader 5 platform only available.
Are you ready to trade with a support company?
With so many forex trading companies to choose from, it’s understandable that you might be confused by all the different features, funded account sizes and trading rules they offer. This may make it difficult to choose the best trading company for you.
It can be easy to get tempted by the large amounts of funded trading accounts, especially if you are an inexperienced trader. Remember, these support trading companies are looking for traders who are showing strength Risk management skills This can adhere to certain rule-based parameters.
These are the skills that come with experience and the right mindset to become consistently profitable. Therefore, seeking funding from a supportive trading company may not be for everyone unless you are willing to build your experience and put in the hard work necessary to become a successful trader.
We hope this article has given you a good starting point for choosing the best support trading companies, but in the end, it is up to you to research each company that suits your goals and experience.
