What is prop trading (proprietary trading)?

Proprietary trading is also known as 'prop trading', it is when a company hires professional traders, called 'prop traders', to trade financial instruments such as currencies, stocks, and commodities on their behalf.

One of the main advantages of proprietary trading is that it allows traders to act quickly on market opportunities without having to worry about the constraints that may be imposed by clients.

What is a proprietary trading firm?

Proprietary firms (or prop firms) provide traders with access to the firm's funds in exchange for a percentage of the profits. The frequency and amount of profit distribution vary from company to company.

A prop trading firm may offer traders additional assistance such as instructions, professional tutoring, and professional trading tools.

Prop Trader Definition

Prop traders are professional traders recruited by proprietary trading firms. In exchange for a percentage of the earnings, they trade with the prop firm's capital. Numerous traders are tempted to become prop traders since they see it as an excellent opportunity to trade with substantial capital without risking their own funds.

To become a prop trader, many prop firms have an evaluation process that traders must complete to demonstrate their ability to generate consistent profits and receive funding.

Best Prop Trading Firms

There are many proprietary trading firms out there, and it can be difficult to know which ones are reputable and which ones are not.

We gathered the top prop trading firms on the market, and you can use the reviews and ratings made by real traders' experiences to evaluate which trading firm is the best fit for you.