In financial markets, the working tool of traders (money) is real, so trading without initial capital seems impossible, on the other hand, trading with low capital does not create attractive profit, the trader has to earn more profit with gambling-like behaviors this path ultimately results in losses.
A large capital alone does not guarantee success and continuous profit in the forex market, just as no bird can fly with one wing, no trader can become rich with only a large capital or only with trading skills.
Continuous success in the financial market is directly related to the level of expertise and experience of the trader and the amount of the trader’s capital.
The trader ultimately designs itself personal trading strategy by trial and error, but adherence to the trading strategy and risk and capital management plan is exactly the weakness of most traders who do not have enough trading capital.
After years of effort, traders reach a reasonable and continuous profit of 5-15% in the forex market, but this profit is attractive when the trader trades on a $50K account instead of trading on $500. In simpler words, the trader can reach several times the income without increasing the risk and without increasing the win rate of tardes.
In the FXFinancer prop firm, very large capitals (no risk for the trader) are available.
Risks of trading with the capital of friends or private investors
In addition to attractive profits, trading also has painful losses, 90% of people in the forex market are losers (especially the first years of trading).
The psychological pressure of loss with other people’s capital can have a negative effect on the trader’s performance, the payment of capital principal + possible profits multiplies the trader’s worries.
Losses of 15-20% may happen even by adhering to the risk and capital management plan for every trader.
A 20% loss on a $10,000 account means $1,200 in damages that the trader has to pay out of pocket. Usually, in such a situation, to compensate for the loss, the trader unconsciously withdraws from the trading plan, but experience has proven that with emotional decisions, losses only increase.
Trade without initial capital with prop firm
Prop Trading is looking for cooperation with traders who are profitable but low risk and can create wealth with large capitals. To prove this claim, prop firm do not have to do with the trader’s past statement, it is usually proven by conducting a 2-step test that the trader’s trading strategy is profitable + adherence to the risk and capital management plan to the prop company, so that the prop trading company does not have to worry about the funded account in option of the trader.
(The main profit of prop firm is from the copy trade of profitable traders).
The advantage of prop firm for providing trade capital
1- Excellent profit sharing
Although all the trading capital is provided by Prop Company, but the trader can take up to 90% of the profit if he does not violate the rules. Prop Trading company divides the risk with large capital on profitable and low-risk traders and achieves profit with copy trade and traders’ profits are also paid.
2- No need to pay losses
Trading with other people’s capital means guaranteeing the return of the capital, but in prop firm, the trader loses only the prop account and is not a partner in the losses of the prop company in the worst conditions (flaws in the rules).
3- Continuous capital growth
If the trader’s account continues to be profitable, the FXFinancer company will grow the trader’s account at certain intervals (more money = less risk for the trader).
4- No need to authenticate ( KYC ) in brokers
Many top brokers do not offer small accounts, but through Prop, it becomes possible to trade in reputable brokers.
Are you a profitable trader? Register now on the FXFinancer prop firm site and receive up to $50K trading capital.