With the recent rise in so-called funded trader programs, interest in prop trading has grown among forex traders. Nordic Funder is a new-generation prop trading firm offering anyone from anywhere the opportunity to become a prop trader through our funded trader programs.
Prop trading, short for proprietary trading, is when a company uses its proprietary capital to trade financial markets for profit. A prop trading firm might look like a hedge fund company on the surface, but what makes them different is the source of money used to trade.
Unlike collective investments like hedge funds or mutual funds, which pool many investors’ money or money managers who directly manage another person’s capital, a prop trading firm only uses capital from its balance sheet. As prop trading firms do not work for investors, we have more flexibility when making investment decisions.
Typically, companies that provide financial services require licenses. However, prop firms do not provide financial services. In fact, they are a financial service user. Prop firms do not deal in or sell securities or hold customer funds.
A prop trading firm uses its own capital to trade with brokers. However, this concept gets confusing when considering funded trader programs where prop firms allow members of the public to purchase assessments to join the firm.
Funded trader programs are the latest innovation in the prop trading industry and the most popular pathway to becoming a prop trader.
We launched our funded trader program to embrace the emerging remote working and gig economy culture to reach a talent pool of experienced traders, especially the hundreds of thousands of self-taught traders scattered across the globe.
However, before we can onboard and fund new traders, we need to verify their trading capabilities; that’s how the funded trader concept was conceived.
Because we get dozens of new applications from aspiring traders daily, we charge an assessment fee to those who want to trade for our firm. The assessment fee is aligned with the amount of capital you want to manage and other optional customisations to your funded trader account.
This assessment fee covers the administration costs to review your performance. Unfortunately, some traders fail to follow the assessment rules and don’t pass the first time.
During the assessment, you’re not trading with real funds yet. The assessment takes place on a demo account, sometimes called paper trading. To pass the assessment, you must demonstrate that you can follow strict risk management rules and meet profit targets.
Traders accepted through the program become prop traders for the company and are given trading accounts funded with the same capital they demonstrated they could manage in their assessment.
As of 2023, the most common path to becoming a prop trader is cooperating with a firm like Nordic Funder that specialises in working with forex traders. The first step is enrolling for an initial assessment. To pass the evaluation, you must trade frequently and reach profit targets while not exceeding specified drawdown limits.
Traders who continue to reach targets can benefit from scaling programs and are given additional funds to manage. You can open larger positions or more trades with more funds, increasing your profitability.
The best part is that a Nordic Funder lets you keep at least up to 90% of the profits you generate, and there is no limit to how much you can earn. Choose your funded trader account today.