WHAT IS PROPTRADING?

  For both those new to financial trading and experienced traders alike, achieving high win rates and excellent risk management has always been a primary goal. But what if we could trade just like such skilled traders? Prop trading(Proprietary trading) was created with this objective in mind. Propfirms primarily aim to expand their capital by selecting traders through proprietary evaluation processes and leveraging real-time monitoring of the selected traders' trading records.

​​

 Trader who wants to become Prop Traders must first take an evaluation set by the Propfirm, which includes specific rules and conditions. Upon passing the evaluation, they receive a designated account size from the firm and begin trading to generate profits. The profits earned are then distributed between the trader and the firm according to a predetermined profit-sharing agreement. But what happens in the event of a loss? Generally, Prop Traders are not held personally liable for losses. Instead, their contract is terminated. In such cases, traders have the opportunity to retake the evaluation, allowing them to seek reinvestment from the firm.

​

  If traders bear no responsibility for losses but enjoy unlimited rights to profits, how do these firms generate revenue? Most prop trading firms earn their initial revenue from evaluation fees. Once a trader passes the evaluation, they are usually provided with a simulated account rather than a real capital account. This allows the firm to avoid financial losses while still assessing the trader’s performance. The company then mirrors the trader’s funded account activity onto a real trading account at a predefined risk-adjusted ratio.

​

​  Many traders fail to pass the evaluation tests. Some firms exploit this by only providing simulated accounts and profiting from test fees without ever mirroring successful traders' trades. On the other hand, there are firms that provide fully funded real accounts upon passing. In some unfortunate cases, traders have even been denied their rightful payouts due to unethical practices by certain firms. While TradeWorld cannot guarantee that all the firms we introduce offer fully funded accounts or 100% guaranteed withdrawals, our approach is to only recommend firms after our trader team has personally tested them and successfully withdrawn profits. Traders should be aware of these risks and consider diversifying their efforts across multiple firms.

​

  For instance, if a firm suspects that a trader passed the evaluation purely by luck, it may choose not to copy their trades into a real account, preventing potential losses. Conversely, if the firm determines that a trader can consistently generate profits, it may copy their trades onto a larger real account, such as funding a $10 million account instead of the initial $100,000. However, the exact strategies used to generate revenue differ from firm to firm, making it difficult for traders to fully know the inner workings of these companies. Some firms provide traders with real accounts right away, while others use a variety of operational methods. But for traders, the most important question remains: "Can I make money with this?”