Should You Trade With a Prop Firm?

Trading full time is hard work. It requires a lot of money up front, and the resources to be successful.

Anybody starting off with less than a few thousand dollars is doomed to fail from the start. Just keeping up with commission fees alone can be costly.

Many people consider this as a viable option simply because of the security it offers. A simple peek on Indeed and you will find several prop firm opportunities out there.


Trading With a Prop Firm is Expensive

What most people don’t know is the fees involved with trading prop firms.

There are several ways firms charge you to trade with them. The two most common are:

1) Monthly Fees.

A prop firm may offer you a chance to trade their capital, but they charge a monthly fee to go with it. The firm conveniently calls them “desk fees” and says they cover administrative and software costs.

The way I see it, there’s very little value you receive from desk fees. It’s a lame excuse to charge you money and make money off of you. I was told it covered the cost of “education”.

2) Commission Fees

Again, you may have a large sum of money you’re given to trade with, but are asked and encouraged to trade often. The firm then charges you a small commission fee for every trade you make.

So, they require you to trade a lot, and then they charge you a fee for every trade that you make. It’s another way the prop firm makes money off of you.


Trading With a Prop Firm is Misleading

I traded with a prop firm for about 4 months. By the end of it, I totally felt duped.

The draw of the firm is trading firm capital. Every prop firm will have different setups in what they offer. The firm I traded with required me to put $5k of my own money in to start with. Most firms will require you to put something in.

The company matched my $5k with $20k, to allow me to avoid Pattern Day Trading rules.

Here’s where the twist came in. I could only risk at the most 10% of my overall portfolio. That equates to $2,500. I put in $5,000. All of the losses would be on me, while they’re charging a $200 monthly fee.

They tell you they’re going to give you $20,000 of their money to trade with, but don’t allow you to actually trade it. They only allow you to risk your own money.

On top of that, any success you have trading, the prop firm will claim 20-30% of the profits.


Why You Should Trade With Tim Sykes Instead

I’ve seen the best and worst of both sides. Both are going to charge fees and provide training.

Prop firms promise you tons of money to trade with, but not actually allow you to trade with it. They limit your risks, so that only you would lose money in the deal. And on top of it, they will take 20-30% of the profits from your trades.

And it is for that reason that I recommend that you trade with Tim Sykes instead. Sure, with Pennystocking Silver or Investor’s Underground you still have to pay a monthly fee. And both have Pro’s and Con’s to their trading methods and training models.

But the fact that trading with Tim allows you to keep all of your profits is enough for me. Assuming all of the risk and not keeping all of the profits is not good enough.

You deserve the money you earn.

The best part is that with Tim you can even do a two week trial. You can’t get that with a prop firm.

Sign up today and start learning right away.

 

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