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Working for a Prop Trading Firm – Forex Prop Firms List

Many day trading firms allow day traders to trade with a large capital pool given by them rather than day traders’ own money; thus, along with trading firms, day traders benefit as well. Questions like what is a prop firm, the structure of these firms, and how it is like to work for a prop trading firm may arise, which would all be answered through this article.


What is a prop firm?

A proprietary trading firm or prop trading company represents an organization ( bank or firm ) that invests directly on behalf of the financial firm’s trading account. Proprietary traders use a prop firm’s own money to buy and sell assets. Prop funds pay their traders based on a profit split commission plan.

What is prop trading?

Prop trading implies financial assets trading such as stocks, currencies, bonds, commodities, etc., with the firm’s own money. Thus, prop trading firms earn money from trading, not on behalf of clients and clients’ commissions.

A proprietary trading firm offers the structure in which traders get a part of their profit by using a prop firm’s capital. Such advantages give traders the freedom to trade on high leverage without spending their investment. However, along with such lucrative upside benefits, there are specific challenges for a day trader to work with a prop trading firm and fulfill the eligibility criteria.

Working for a Prop Trading Firm

A day trader works with a day trading prop firm as a contractor, which means he is not a full-time employee. As they do not work as employees, they do not get hourly wages, salary, or other benefits. Instead, they get paid when they make a profit, which sometimes can take weeks or months.

Day traders in a prop firm deal in the equity market, options and futures market, forex market, and much more; the purpose is to profit by trading. The good thing here is that a day trader in this structure has just the company they are trading as the client. As the primary focus here is to generate profit, a day trader is least concerned with how well a stock is fundamentally and where it would be in the future. An important point to note here is that traders in prop trading firms are not brokers or financial advisors; they are independent contractors.

There are various types of day traders in this setup. For example, a few traders focus on significant gains and take limited trades, whereas traders make hundreds of traders daily. However, these trades are not substantial. In addition, some traders trade only for a specific hour in the day. So, depending on the choices and willingness, the nature of day traders varies.

Many day trading prop firms give their day traders liberty to work from the office and home. Day traders have to go through training, but they might be given the freedom to work from home after a point in time. Most works from home day traders have years of experience and successful history of profitable trades; many are also hired for the same reasons.

Working for a prop trading firm as a contractor – example

The first step in my trading career is working for a prop trading firm. Of course, if the trader doesn’t have $100 000 capital, it is tough to make a monthly return to pay bills and feed the family as a professional trader. But, in that case, the trader can trade others’ company money, learn trading skills, share knowledge from other traders, etc. One of the most famous day trading prop firms is SMB Trading. Mike Bellafiore is the Co-founder of SMB Capital.
This company decided to be a transparent and public, social networks active company. Using their SMB capital youtube channel, they reveal some trading secrets, traders’ hiring process. Their best traders share their knowledge with the internet community.SMB prop company offers training and trading products for new and semi-experienced traders.

What is SMB Capital trader salary?
The average SMB Capital Trader salary is $83 600 per year. Therefore, trader salaries at SMB Capital can range from $20,357 – $103,400 annually.

What are the Benefits of Day Trading Prop Firms?

You can get certain benefits while working for a prop trading firm; some are listed below.

Are There Any Shortcomings of Prop Firms?

The grass looks greener on the other side, but everything that has a good side has a dark side as well. These are the shortcomings of working for a prop trading firm.

Training may not be necessary for experienced traders, so they should look for prop trading firms that lure them with lesser costs. However, day traders hoping to join a prop trading firm full time by quitting their job need to keep in mind that this is not an easy task, and generating profits would take time, even months. Thus, better to first keep some reserve aside for yourself before diving into this field full time.

Forex prop firms list

Below are presented best proprietary trading firms and remote trading firms list:


Proprietary Trading Firm Legal Structure

There are two types of structures for proprietary trading firms, as stated below.

1. No Capital, Profit Sharing Structure:

In the first structure, the prop firm takes a part of your profit, typically between 20 percent to 50 percent, as their shares. However, the trader here has to put no capital out of their own pockets in trading. As stated earlier, traders have to pay for their training, though.

Based on your experience and skills, the prop firm would provide you with trading capital. Day trading prop firms would also ask you to deposit a certain amount to safeguard themselves from losses made by you.

In this structure, prop firms earn the profit share taken from day traders. As a result, commission charges are low here, which allows traders to make more money. In addition, these prop firms may charge software or rental fees. This kind of prop firm model is quite popular in Canada and many other parts across the globe.

2. No Profit Sharing, Capital Requirement:

In this structure, the prop firms do not ask for higher profit margins, and traders keep 90 percent or even 100 percent of their profits. But this is possible as here traders have their own money to trade. If you have thousands of dollars in your hands, you can opt for this structure. Prop firms leverage your capital, and as a result, you can trade on a higher amount than you have with you.

Prop firms and day traders

These prop firms charge day traders higher commissions, training fees, software fees, seat fees, etc. In the United States, this type of day trading prop firm is very famous.

The financial marketplace and trading of assets can be performed through various practices. Traders and investors who perform on forex by investing and utilizing stocks, currencies, international commodities, bonds, and other financial tools through assistance from a particular form then that concept is known as prop trading, which is contrary to a hedge fund. The latter use the depositor’s money or the client’s assets to profit and generate revenue. The trading or investment of any financial derivative is performed with a firm’s money and not the capital of particular clients or depositors. In the end, the benefits are earned for the firm itself, and this type of trading is beneficial for trading prop firms. Profit is learned through different resources using various financial channels such as arbitrate strategies, fundamental analysis, or another form of financial tech technique that help generate returns for the firm. However, choosing the right kind of prop trading is challenging and overwhelming, particularly for beginners who have just stepped into the world of liquid assets. For those looking to generate maximum profit and minimize the risk of financial losses, investing in the right kind of prop trading firm is a suitable option. Prop traders are known to accumulate an average salary of $125 403 per year in the United States, provided if the funded trading accounts are reliable. There is a minimum risk of losing capital and, at the same time, allow you to generate maximum liquid cash. Therefore if you want to avoid the risk of losing money, then as a beginner investing in a funded program is appropriate. Generating revenue under the rules and strategy set by another company and making the most of their financial assets and capital is bound to push beginners and young traders. As far as their software are concerned, they have the most well-established software systems and insights to advise beginners to make crucial decisions.


There are instances where a day trader can be offered salary and bonuses, just like an employee, along with the training. This is prevalent in a financial or commodity company having a separate trading floor. This job typically has 8 to 12 hours daily. Prop traders work for very little time, primarily from home day traders; they work for less than three hours daily. It is significantly less than the day traders on a trading floor, but both have pros and cons.

Although it may be considered risky, prop trading generates the most profit, similar to commercial or investment banks. Increased yield is one of the benefits of investing and trading with a prop form. However, the entire benefits package is targeted to the firm. If you are a prop trader, the bank will acquire most of the profits from the performed trade. Most of the trading prop forms keep a profit between 50 to 80%. There are comparatively lesser emotions, prejudice, and discrimination amongst readers. They do not utilize and invest their assets, contrary to regular trading, as traders use their own money. Prop traders are expected to submit an initial fee or go through a one or two-time evaluation process to become a part of the prop trader’s community. They can work remotely, but once thriving, they can be provided with an office.

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