What is a Prop Firm?
5RF avatar
Written by 5RF
Updated over a week ago

A proprietary trading firm provides traders with a part of the firm's capital. This setup allows the trader to perform their market tactics and get a portion of the profits generated with that capital.

These trading firms in the past used to operate from physical locations, hiring experienced traders or training beginners after these trainees committed a substantial amount of their own money for their preliminary training phase. These ""traditional"" trading firms were not all-inclusive, with entry costs that could be prohibitively high for the average individual trader.

5RF differs from these traditional entities in several ways:

  1. We offer traders from around the world the opportunity to register and participate in our online evaluation program for a considerably lower fee than most traditional proprietary trading institutions. This makes access more affordable, leaving only one crucial criteria for entry into the program: the performance of the trader's strategy.

  2. Providing all 5RF traders with virtual funds in demo accounts allows us to manage risk more effectively across the trader pool.

Did this answer your question?