Solo Trading Prop Firm Pros and Cons
The flip side to funded trading is solo trading. A solo trader takes the longer path and earns their professional licensure and certifications by themselves, then saves up enough capital to start trading on stock market. On the other side, a sole trader can also get funded through personal loan investment, though this option might be risky.
There are positives and negatives to this path as well, let’s check some of them out.
- Solo traders don’t have to answer to anyone and don’t have to split their profits with any employing company, either
- Solo traders have maximum freedom and only have to pay fees related to their licensure or certificates
- Solo traders do not have to obey mandates or special rules put in place by their employing company
- Solo traders are free to change their portfolios or focuses whenever they like
- It’s much more difficult to become a solo trader if you don’t have a lot of start-up capital. You either have to save for several years or be the lucky recipient of a large inheritance in many cases
- You have to pay for your licensure and certification, as well as study hard to acquire both of those necessities