PROS & CONS
It is important to consider all of the potential benefits and drawbacks of trading through a prop firm or an individual brokerage account before jumping into the professional camp.
explore key points
Many traders believe that they are struggling because they are undercapitalized. Check the chart to see how much capital you get to work with in the two scenarios.
FIXED Operating costs
& Software Fees
Net profit after tax
Profits received from a prop trading firm are considered ordinary income. To compare net profit after tax, apply the respective tax rates on ordinary income or capital gains in your country to both scenarios.
This represents the biggest cost item for highly active day traders. The cost savings from prop trading firms must offset the profit split and the higher fixed costs for professional market data and the trading platform.
Market data & Software fees
Payout & Taxation
Commission per share