WHERE CAN YOU TRADE?

WHERE CAN YOU TRADE?

WITH A BROKER

A broker is a company that provides traders access to the forex market. It allows traders to open and close trades with currency pairs through trading platforms.  It ensures liquidity and enables trades to be executed between two parties (traders) without the need for direct communication between them. Many brokers operate as market makers, meaning they provide their own prices (bid/ask) and execute the trade directly against the client’s order.  When trading with a broker, you trade with seu próprio dinheiro. 

 

2. IN A PROP-FIRM

a) What is prop trading?

Proprietary trading (prop trading) means that a firm (prop firm) trades on financial markets with its own money to make a profit.

Unlike traditional brokers or institutions that earn from trading fees, prop firms earn directly from trading profits of traders.  A trader in a prop trading firm uses the firm’s capital, not their own, for trading. A prop trading firm provides traders with access to substantial capital, technology, and analytical tools (which help traders achieve better results). 

b) Advantages of prop trading

 

      (I). Access to large capital

Prop firms provide traders with access to larger capital than they could afford to trade on their own account. This means that a trader can trade with huge funds and gain higher profits. 

      (II). Access to advanced tools and technology

Prop firms often provide access to advanced trading platforms and analytical tools, such as RebelsFunding’s RF-Trader.  They also have fast access to liquidity, allowing you to trade efficiently even in highly volatile markets. 

       (III). Profit sharing

A trader earns a share of the profit made from trading on the firm’s account. Profit is usually shared based on a pre-agreed percentage.  You have the opportunity to achieve significant profits without risking your own capital.

c)Risk on the firm’s side

In prop trading, the trader uses the firm’s capital, so the risk of loss is usually on the firm’s side, not the trader’s. Although the trader may face losses, these losses do not affect their personal finances. 

 

3. WHO IS PROP FIRM FOR?

a) Beginners

Beginners can gain experience without risking their own money (which is a big advantage!)

b) Experienced traders

 Advanced traders who already have proven strategies and trading techniques can use larger capital to execute their trades and potentially achieve higher profits. Prop trading can be very attractive for traders who do not want to invest their own funds and prefer to trade with external capital. 

c) Traders with high potential but insufficient capital

Traders with incredible trading potential or experience but without sufficient capital to trade on their own account can use prop trading as a way to access big capital.

 

4. HOW TO GET AN ACCOUNT IN A PROP FIRM?

Go through a “trading challenge” or  program

Prop firms offer trading challenges or training programs where a trader starts with a demo account and is tasked with meeting certain conditions to prove they have the skills to trade with massive funds (provided by the prop firm).

For instance, you may be required to achieve a certain profit or success rate within a few weeks on a demo account before granting you access to real capital.