page title icon Prop Trading

What is Prop Trading?

Financial markets are more accessible today than they’ve ever been. People from all walks of life are trading stocks, bonds, forex, commodity futures, derivatives, and any other financial instrument you can think of.  Good traders are supplementing their incomes and adding to their retirement funds. Great traders are getting filthy rich.  But before they started … Read more

The 6 best proprietary trading firms for beginners (2024)

There are a lot of advantages to joining a good proprietary trading firm. You can trade someone else’s capital, walk away from losses, access premium trading platforms, and receive education and guidance from successful traders. The best proprietary trading firms will provide you with all of these benefits and then some. The worst prop firms … Read more

Is prop trading Illegal?

The very short answer is no, proprietary trading is not illegal, unless you are a trader at one of the large banks. Thanks to the billions of dollars of losses they suffered during the 2008 financial crisis, banks are no longer allowed to proprietary trade. The ban on prop trading only applies to large financial … Read more

Is prop trading a scam?

No. There are some bad actors in the industry to avoid, and becoming a profitable prop trader can be very difficult, but prop trading is not a scam. There are great prop firms out there that can fund your trading strategy and help you maximize your profits. Why do people think prop trading is a … Read more

Proprietary trading and the Volcker Rule

In response to the 2008 financial crisis, new regulations were enacted with the hopes of preventing another such catastrophe. The Volcker Rule, one part of the new legislation, significantly limited banks’ ability to participate in proprietary trading.   The Volcker Rule does not affect individual traders, independent proprietary trading firms, or hedge funds and private equity … Read more

Are prop trading firms regulated?

The most honest answer is: only to the degree that they want to be. By definition, proprietary trading firms are only trading their own money, which puts them beyond the reach of regulators in many cases. Some proprietary firms register with securities associations, but many do not. A proprietary trading firm must register with the … Read more