An introduction to the essentials of proprietary trading.
Posted in BVI | EN | Labs | Forex
OANDA- Proprietary Trading

An introduction to the essentials of proprietary trading, it’s advantages, and how to become a forex prop trader. Know the difference between a forex proprietary firm and a forex broker.

What is Proprietary Trading?

FX Proprietary Firms versus FX Broker

Concept Forex Proprietary Firm Forex Broker
Role Provide funds for traders Provide trading platforms and services for traders
Funding Company funds Traders’ funds
Funds threshold Provide funding programs to lower the funding threshold for individuals An initial deposit may be required for trading
Profit  From profit sharing From trader’s spread, commission, etc.
Risk The company bears trading risks and losses Traders bear trading risks and losses
Trader’s profits Profit sharing Trading profits
Trader’s max risk Loss of entry fee All trading funds
Trader profile Traders who have technical skills but do not want to use their own capital and have a lower risk tolerance Traders who have sufficient funds and higher risk tolerance

Advantages of prop trading

Profit sharing is a common approach in forex prop trading

Who is suitable to be a Proprietary Trader?

Steps to becoming a forex prop trader