While the cost benefit analysis of remote prop trading firms for futures and stocks showed that prop traders hardly get any tangible benefits over retail traders, the reality looks quite different when it comes to forex prop trading.
Available products when Trading Forex and CFDs
In general, you can trade spot forex pairs as well as commodity and index CFDs at forex prop firms. This means that in addition to major currency pairs like EUR/USD and GBP/USD, you can also trade stock indices such as the Nasdaq 100 in the Asian overnight session, the German DAX in early European hours or Crude Oil and Gold around the clock.
Comparison of transaction costs and buying power
Fully embracing the opportunity of prop trading implies that you need to accept the drawback of the profit-split, which is okay if the potential benefits increase your odds of actually making a living with trading. Therefore, the main benefits we expect from a prop firm include significantly lower commissions – which lowers the break-even point of our strategies – and more trading capital compared to retail brokers measured as effective capital. Can forex prop firms deliver?
Round-trip transaction costs
Retail forex brokers that offer raw spreads usually charge a commissions around $7-8 per round-trip trade ($3.50-4.00 per side). As of August 2021, myforexfunds and FTMO offer $3 RT or $1.50 PS, which is more than 50% less than retail pricing.
However, since it is not clear to what extent orders are actually executed with a real counterparty at these firms, these published fees need to be taken with a grain of salt.
Profit split and scaling plan
Evaluation model
The respective profit-splits here are 80-90% at FTMO and 75% at MFF reaching 85% going forward with the third profitable month.
NOTE: FTMO does not provide you with a real money account but reserves the right to copy your trades. Whether or not orders are executed in its master account at all is not clear. MFF is unwilling to provide any proof for its claim of actual order execution or that real money is deposited in a trading account.
Qualify for a prop account trading U.S. stocks
- Live-account equity
- Buying power in live account
- Evaluation profit target Step 1|2
- Max. loss Step 1|2
- Max. days Step 1|2
- Daily loss limit
- RT Commission/lot
- Profitsplit
- Trading platforms
- Effective capital
- Special features
Qualify for a prop account trading U.S. stocks
- Live-account equity
- Buying power in live account
- Evaluation profit target Step 1|2
- Max. loss Step 1|2
- Max. days Step 1|2
- Daily loss limit
- RT Commission/lot
- Profitsplit
- Trading platforms
- Effective capital
- Special features
Qualify for a prop account trading U.S. stocks
- Live-account equity
- Buying power in live account
- Evaluation profit target Step 1|2
- Max. loss Step 1|2
- Max. days Step 1|2
- Daily loss limit
- RT Commission/lot
- Profitsplit
- Trading platforms
- Effective capital
- Special features
Get started with approaching trading as a business
- $10,000
- $1,000,000 (100:1)
- 10% | 5%
- 10% | 10%
- 30 | 60 days
- 5%
- $3
- MT4, MT5, cTrader
- ($2,000 + 3,000) * 0.8 = $4,000
- refundable fee, 25% scale up every 4 months + 90% payout
Get started with approaching trading as a business
- $25,000
- $2,500,000 (100:1)
- 10% | 5%
- 10% | 10%
- 30 | 60 days
- 5%
- $3
- MT4, MT5, cTrader
- ($5,000 + 7,500) * 0.8 = $10,000
- refundable fee, 25% scale up every 4 months + 90% payout
Get started with approaching trading as a business
- $50,000
- $5,000,000 (100:1)
- 10% | 5%
- 10% | 10%
- 30 | 60 days
- 5%
- $3
- MT4, MT5, cTrader
- ($10,000 + 15,000) * 0.7 = $20,000
- refundable fee, 25% scale up every 4 months + 90% payout
Better algo order flow analysis = better trading results
- Eval. $5,000 | Live $50,000
- $500,000 (10:1)
- 6% | 6%*
- 4% | 4%
- no max. days
- –
- $4
- 75/25%
- TradingView, TraderEvolution, MT4
- ($4,000+$1,000) * 0.65 = $3,250
- 200% scale-up of BP for 10% profit
Better algo order flow analysis = better trading results
- Eval. $10,000 | Live $100,000
- $1,000,000 (10:1)
- 6% | 6%*
- 4% | 4%
- no max. days
- –
- $4
- 65/35%
- TradingView, TraderEvolution, MT4
- ($8,000+$0) * 0.65 = $5,200
- 200% scale-up of BP for 10% profit
Better algo order flow analysis = better trading results
- Eval. $1,500 | Live $150,000
- $1,500,000 (10:1)
- 6% | 6%*
- 4% | 4%
- no max. days
- –
- $4
- 65/35%
- TradingView, TraderEvolution, MT4
- ($12,000+$1,000) * 0.65 = $7,800
- 200% scale-up of BP for 10% profit
Combine training with funding and save!
- $2,000
- $400,000 (200:1)
- your own targets
- your own rules
- as long as you need
- <5% of equity recommended
- $7
- it’s all yours for compounded account growth
- TradingView, TraderEvolution, FIX API, Web, MT4
- your own deposit (min. $200 AUD)
- same level of transparency as institutional traders
Combine training with funding and save!
- $5,000
- $1,000,000 (200:1)
- your own targets
- your own rules
- as long as you need
- <5% of equity recommended
- $7
- it’s all yours for compounded account growth
- TradingView, TraderEvolution, FIX API, Web, MT4
- your own deposit (min. $200 AUD)
- same level of transparency as institutional traders
Combine training with funding and save!
- $10,000
- $2,000,000 (200:1)
- your own targets
- your own rules
- as long as you need
- <5% of equity recommended
- $7
- it’s all yours for compounded account growth
- TradingView, TraderEvolution, FIX API, Web, MT4
- your own deposit (min. $200 AUD)
- same level of transparency as institutional traders
Instant funding model
Qualify for a prop account trading U.S. stocks
- Live-account equity
- Starting buying power in live account
- Scale up milestone/factor
- Max account equity
- Max. drawdown
- Time limits
- RT Commission/lot
- Profitsplit
- Trading platforms
- BP factor (higher=better)
- Max drawdown factor
- Broker
Qualify for a prop account trading U.S. stocks
- Live-account equity
- Starting buying power in live account
- Scale up milestone/factor
- Max account equity
- Max. drawdown
- Time limits
- RT Commission/lot
- Profitsplit
- Trading platforms
- BP factor (higher=better)
- Max drawdown factor
- Broker
Qualify for a prop account trading U.S. stocks
- Live-account equity
- Starting buying power in live account
- Scale up milestone/factor
- Max account equity
- Max. drawdown
- Time limits
- RT Commission/lot
- Profitsplit
- Trading platforms
- BP factor (higher=better)
- Max drawdown factor
- Broker
Get started with approaching trading as a business
- $10,000
- $1,000,000 (100:1)
- 10% | 1.25
- 10% | 10%
- 5%
- 30 | 60 days
- $3
- 70%
- MT4, MT5, cTrader
- $1,000,000/155 = 6452
- refundable fee, 25% scale up every 4 months
- unknown
Get started with approaching trading as a business
- $25,000
- $2,500,000 (100:1)
- 10% | 1.25
- 10% | 10%
- 5%
- 30 | 60 days
- $3
- 70%
- MT4, MT5, cTrader
- $2,500,000/250 = 10,000
- refundable fee, 25% scale up every 4 months
- unknown
Get started with approaching trading as a business
- $50,000
- $5,000,000 (100:1)
- 10% | 1.25
- 10% | 10%
- 5%
- 30 | 60 days
- $3
- 70%
- MT4, MT5, cTrader
- $5,000,000/345 = 14,492
- refundable fee, 25% scale up every 4 months
- unknown
Better algo order flow analysis = better trading results
- Eval. $5,000 | Live $50,000
- $500,000 (10:1)
- 10% | 2x
- 4% of account equity = $2,000
- none
- $4
- TradingView, TraderEvolution, MT4
- $500,000/$410= 1219
- $2,000/$410 = 4.87
Better algo order flow analysis = better trading results
- Eval. $10,000 | Live $100,000
- $1,000,000 (10:1)
- 10% | 2x
- 4% of account equity = $4,000
- none
- $4
- TradingView, TraderEvolution, MT4
- $1,000,000/$550 = 1818
- $4,000/$550 = 7.27
Better algo order flow analysis = better trading results
- Eval. $15,000 | Live $150,000
- $1,500,000 (10:1)
- 10% | 2x
- 4% of account equity = $6,000
- none
- $4
- TradingView, TraderEvolution, MT4
- $1,500,000/$685= 2189
- $6,000/$685 = 8.75
Combine training with funding and save!
- $2,000
- $400,000 (200:1)
- your own scaling
- up to your skill
- your discretion
- none
- $7
- 100%, it’s all yours for compounded account growth
- TradingView, TraderEvolution, FIX API, Web, MT4
- –
- –
- same level of transparency as institutional traders
Combine training with funding and save!
- $5,000
- $1,000,000 (200:1)
- your own scaling
- up to your skill
- your discretion
- none
- $7
- 100%, it’s all yours for compounded account growth
- TradingView, TraderEvolution, FIX API, Web, MT4
- –
- –
- same level of transparency as institutional traders
Combine training with funding and save!
- $10,000
- $2,000,000 (200:1)
- your own scaling
- up to your skill
- your discretion
- none
- $7
- 100%, it’s all yours for compounded account growth
- TradingView, TraderEvolution, FIX API, Web, MT4
- –
- –
- same level of transparency as institutional traders
Conclusion
FTMO is back in the mix as the top dog, due to its recent increase in the profit split up to 90% after the first successful scaling up of the account. Overall, forex prop forms actually deliver on the promise of offering real tangible benefits to professional full-time traders:
- Cost savings through lower transaction costs
- More buying power with potential of accelerated scaling up
- Higher net profit potential
For traders with sufficient starting capital we suggest our preferred partner broker Global Prime with fully transparent order execution:
Markus
MBA, former equities prop trader at Carlin Financial Group and WorldCo LLC. Now independent trader and mentor. Previously held FINRA Series 3, 7, 55, 63.
Website : https://www.ceedtrading.com
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