To Prop Or Not To Prop?

[bigpapi]

Should a person wait to save the 25k to 30k required to daytrade or go through a prop firm.

The only advantage I see with trading fully with your own capital is lower commissions.

With 25k, and 4x leverage, there is only intraday 100k buying power, whereas a prop firm will give you 100k buying power with less of your own money at risk (example 20x leverage = only 5k needed).

So I guess the question is, why risk so much of your own money if you have developed good trading systems, when you can have the same buying power at a prop firm with less risk of your own capital????

Is lower commissions and platform fees the only advantage to risking your own money????

 

[gkishot]

Quote from bigpapi:

Should a person wait to save the 25k to 30k required to daytrade or go through a prop firm.

The only advantage I see with trading fully with your own capital is lower commissions.

With 25k, and 4x leverage, there is only intraday 100k buying power, whereas a prop firm will give you 100k buying power with less of your own money at risk (example 20x leverage = only 5k needed).

So I guess the question is, why risk so much of your own money if you have developed good trading systems, when you can have the same buying power at a prop firm with less risk of your own capital????

Is lower commissions and platform fees the only advantage to risking your own money????

Higher leverage means more risk not less.

 

[bigpapi]

Quote from gkishot:

Higher leverage means more risk not less.

Depends how you look at it. If used responsibly leverage can be a very good tool, it's an interest free loan for daytraders. If you are a cowboy then it doesn't matter how much or little leverage you have you will blow up. You can also blow up with zero leverage, I think it depends on who is steering the wheel.

 

[ChkitOut]

Quote from bigpapi:



The only advantage I see with trading fully with your own capital is lower commissions.

I don't think this is correct. At a prop shop like echo for example you can negotiate low commish over time once you establish a relationship. Plus the leverage is a must if taking the biz seriously.


Soooo, if you can trade then yes prop is the way to go, not retail. IMO.

 

[bigpapi]

Quote from ChkitOut:

I don't think this is correct. At a prop shop like echo for example you can negotiate low commish over time once you establish a relationship. Plus the leverage is a must if taking the biz seriously.


Soooo, if you can trade then yes prop is the way to go, not retail. IMO.

So you don't nothing good about having a retail account????

 

[bstay]

Quote from bigpapi:
So you don't nothing good about having a retail account????

have u considered spot forex? don't need $25K min to meet PDT rules and no platform software fees. every retail forex broker will provide 30-days demo account to test out their offering. if u have a proven trading methodology, shouldn't matter what u trade.

 

[bigpapi]

Quote from bstay:

have u considered spot forex? don't need $25K min to meet PDT rules and no platform software fees. every retail forex broker will provide 30-days demo account to test out their offering. if u have a proven trading methodology, shouldn't matter what u trade.

list or pm me some reliable forex brokers that you've used

 

[guardiangel]

if you don't have a proven successful methodology and discipline in your execution process, trading by with or without leverage will result in a loss.

 

[bstay]

Quote from bigpapi:
list or pm me some reliable forex brokers that you've used

i've been using GFT Forex and it's DealBook360 platform (stable, no downtime). but others here preferred no-dealing desk brokers or ECNs and those offering MetaTrader4 (or MT4) charting platforms so that they can take advantage of popular custom indicators written on MT4.

forex brokers give u 100:1 leverage, up to 200:1 or 400:1 on micro accounts if non-USA brokers.