What Is a Prop Firm?
Proprietary trading firms provide capital to skilled traders, allowing them to trade the financial markets without risking their own funds.
The Concept Explained
A Proprietary Trading Firm (Prop Firm) is a financial institution that uses its own capital to trade stocks, currencies, commodities, and other financial instruments.
Unlike a broker that earns commissions from your trades, a prop firm earns money when you make profitable trades. This creates a unique partnership: we provide the capital, you provide the skill.
For Australian traders, this model removes the biggest barrier to entry: lack of capital. Instead of growing a small $1,000 account, you can qualify to trade accounts ranging from $5,000 to $300,000.
Why Trade with a Prop Firm?
Capital Access
Access up to $300,000 in trading capital. Your potential returns are no longer limited by your personal savings.
Zero Risk to Personal Funds
Once funded, you are trading the firm's money. You are not liable for trading losses on the funded account.
Profit Sharing
Keep up to 90% of the profits you generate. The firm takes a small percentage to cover operational costs and risk.
The Path to Funding
The Evaluation
Prove your trading skills in a simulated environment. Reach a profit target while adhering to risk management rules like maximum drawdown.
Verification
A secondary phase to confirm your consistency. The profit target is usually lower, ensuring your first success wasn't just luck.
Get Funded
Receive your funded account credentials. You can now trade real capital and withdraw your share of the profits.