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What is Prop Trading? How does it differ from Forex?
Dive into the world of prop trading with our comprehensive guide and learn how to navigate its opportunities and challenges effectively!
Prop trading involves using a demo account, typically offered by prop firms like Fintokei, where traders can withdraw a percentage of their profits. This contrasts with traditional Forex trading, which involves real money accounts.
Unlike standard demo accounts, prop trading accounts require a setup fee (e.g., $900 for access to a $200,000 margin) and allow for profit withdrawal. This setup differentiates it from regular Forex trading, which involves direct financial risk and real money.
The main advantage is the ability to trade with high leverage and significant virtual capital without the same risk level as personal investment in Forex. Successful traders can withdraw up to 80% of their profits under certain conditions, making it an attractive platform for advanced traders to expand their strategies without additional financial risks.
Prop trading also comes with challenges, such as the potential for losing the setup fee if the trading conditions lead to a net loss. The trading conditions, including maximum loss rates and profit targets, are strictly managed by the prop firms, which can be a double-edged sword—providing discipline but also imposing rigid constraints that might not suit all trading styles.
Forex trading involves real funds, which means the financial risks and rewards are directly tied to the trader’s own capital. In contrast, prop trading involves a simulated environment where traders can potentially earn real money based on performance metrics set by the prop firm.
For traders interested in high-volume trading without the immediate risk of personal capital, prop trading offers a viable alternative with the potential for profit. However, it requires understanding the rules and risks associated with demo account setups. New traders should approach with caution, ensuring they fully understand the fees, rules, and conditions before committing to a prop trading program.
What is Prop Trading? How does it differ from Forex? – An In-depth Explanation of the Advantages, Disadvantages, and Appeal of Prop Trading
Prop trading refers to a demo account from which a portion of the profits can be withdrawn.
This will explain in detail everything from the mechanics of the program to the content of successful and unsuccessful challenges for traders who are trying Prop trading for the first time.
Furthermore, we will describe the features of popular prop firms where traders can open accounts, such as Fintokei.
What is Prop Trading?
Prop trading refers to an FX demo account from which profits can be withdrawn.
For example, with Fintokei’s popular plan, by paying 900 USD, you can get an FX demo account with a 200,000 USD margin, from which 80% of the profits can be withdrawn.
What is the difference between Prop Trading and FX?
Prop trading is done on a demo account, and the trading mechanics are the same as regular FX.
- Trading can be done with high leverage of more than 25 times
- Aside from FX currency pairs, gold and the Nikkei stock index can also be traded
The FX demo accounts provided by prop firms are not domestic accounts.
The advantages of paying money for an FX demo account in Prop Trading
While usual demo accounts are free, prop trading demo accounts allow for the withdrawal of FX profits.
| Demo Account | Prop Trading Demo Account | Regular Demo Account |
|---|---|---|
| Usage Fee | Approximately 100 USD and up | Completely free |
| FX Funds | Several hundred to several hundred thousand USD | Several hundred to several hundred thousand USD |
| Profit Withdrawal | Partial withdrawals possible | Cannot withdraw |
| Service Termination Condition | Ends if losses exceed a certain amount | No such setting |
The trading environment, conditions, and rules of prop trading demo accounts vary by prop firm.
Types of Challenge Programs in Prop Trading
Prop trading’s challenge programs are divided into two services: “With Evaluation Program” and “Without Evaluation Program”.
- With Evaluation Program — Profit can be withdrawn several times upon meeting the evaluation criteria
- Without Evaluation Program — No evaluation criteria, profits can be withdrawn immediately
The trading environment, conditions, and rules differ between “With Evaluation Program” and “Without Evaluation Program”.
| Prop Trading | With Evaluation Program | Without Evaluation Program |
|---|---|---|
| Fee | △ High | 〇 Low |
| FX Funds | 〇 High amount | △ Small amount |
| Evaluation for Profit Withdrawal | △ Yes | 〇 No |
| Profit Withdrawal | 〇 High | △ Low |
If it’s your first prop trading challenge, a standard plan with an evaluation program is recommended.
The Flow of a Prop Trading Challenge – From Account Opening to Profit Withdrawal
The flow of a prop trading challenge is basically the same, whether there is an evaluation program or not.
- Select and purchase a program
- Start FX trading with a demo account for the evaluation program
- Achieve the profit target of the evaluation program
- Start FX trading with a demo account from which profits can be withdrawn
- Achieve the withdrawal conditions
- Withdraw a portion of the profits
In prop trading, the challenge fails if a certain amount of loss occurs in the demo account being used for FX trading.
A prop trading challenge fails not when the demo account’s funds reach 0 USD, but when the loss rate falls below a certain threshold based on the initial funds (margin) of the demo account or the results of the previous day’s trading.
Step 1: Purchase a Prop Trading Challenge Program
Let’s explain using the most popular prop farm ‘Fintokei’ as an example.
Fintokei’s challenge program lets you choose from among 11 plans in 2 types.
At Fintokei, the popular & recommended ones are ‘Sapphire’ if it’s ‘With Evaluation Program’, and ‘Gold’ if it’s ‘Without Evaluation Program’.
| Fintokei | Sapphire | Gold |
|---|---|---|
| Category | Challenge Plan (Pro Trader) |
Fast Pro Plan (Swift Trader) |
| Evaluation Program | Yes | No |
| Purchase Price | 900 USD | 500 USD |
| Initial Funds Received | 200,000 USD (200.4 times the purchase price) |
10,000 USD (20 times the purchase price) |
| First Profit Target (Step 1) |
+8% profit or more | No set target |
| Next Profit Target (Step 2) |
+5% profit or more | No set target |
| Trading Days Condition | 3 days or more | No set condition |
| Challenge Failure Criteria 1 (Daily Maximum Loss Rate) |
-5% loss or more | -5% loss or more |
| Challenge Failure Criteria 2 (Overall Loss Rate) |
-10% loss or more | -10% loss or more |
| First Profit Withdrawal Condition | None | +10% profit or more |
| Subsequent Profit Withdrawal Conditions | None | None |
| Profit Withdrawal | 80% of profits | 50% of profits |
| Expiration | 30 days of inactivity | 30 days of inactivity |
In this example of explaining prop trading, we purchased Fintokei’s Sapphire.
Method of Purchasing a Prop Trading Challenge Program (Payment Method)
The purchase of a prop trading challenge program can be paid for in the same way as online shopping, such as by card payment.
- Credit Card
- Debit Card
- ApplePay
- GooglePay
- Cryptocurrency (digital assets)
The conditions for success and failure of a prop trading challenge are almost the same for any challenge program.
It is best to choose a prop trading challenge program based on the point of how many times the purchased funds you get in return?
Step 2: Start FX trading with a demo account for the evaluation program
When you purchase a challenge program from a prop farm, you immediately receive login information for a demo account via email.
| Prop Trading | Flow |
|---|---|
| With Evaluation Program | Achieve profit targets of the evaluation program → Start trading with a demo account from which profits can be withdrawn → Withdraw a portion of the profits |
| Without Evaluation Program | Start trading with a demo account from which profits can be withdrawn → Achieve withdrawal conditions → Withdraw a portion of the profits |
In prop trading, if you are choosing a ‘Without Evaluation Program’, skip Step 2 and Step 3 and proceed to Step 4, ‘Start FX trading with a demo account from which profits can be withdrawn’.
Step 3: Achieve the profit target with the demo account for the evaluation program
When you start FX trading with a demo account after purchasing a ‘With Evaluation Program’ challenge program at a prop farm, you must meet the conditions of the evaluation program.
At Fintokei’s demo account for the evaluation program, you need to achieve two profit targets (conditions for successful challenge).
Here are the first profit target and challenge failure conditions for Fintokei’s evaluation program
| Step 1 | Content |
|---|---|
| Challenge Success Condition 1 Profit Target |
Earn a profit of more than +8% relative to the initial margin at the time of account opening (8% or more of the initial margin at the time of account opening) |
| Challenge Success Condition 2 Trading Days |
Trade for 3 days or more from the time of account opening (1 or more transactions per day × 3 days or more) |
| Challenge Failure Condition 1 Daily Maximum Loss Rate |
A loss of more than -5% occurs relative to the effective margin at 0:00 server time each day (5% or more of the effective margin at 0:00 server time) |
| Challenge Failure Condition 2 Overall Loss Rate |
A loss of more than -10% occurs relative to the initial margin at the time of account opening (10% or more of the initial margin at the time of account opening) |
Here are the second profit target and challenge failure conditions for Fintokei’s evaluation program
| Step 2 | Content |
|---|---|
| Challenge Success Condition 1 Profit Target |
Earn a profit of more than +5% relative to the effective margin when Step 2 was reached (5% or more of the effective margin when Step 2 was reached) |
| Challenge Success Condition 2 Trading Days |
Trade for 3 days or more from the time Step 2 was reached (1 or more transactions per day × 3 days or more) |
| Challenge Failure Condition 1 Daily Maximum Loss Rate |
A loss of more than -5% occurs relative to the effective margin at 0:00 server time each day (5% or more of the effective margin at 0:00 server time) |
| Challenge Failure Condition 2 Overall Loss Rate |
A loss of more than -10% occurs relative to the effective margin when Step 2 was reached (10% or more of the effective margin when Step 2 was reached) |
The standards and calculation methods for profits and losses may vary depending on the prop farm and challenge program.
Examples of Calculating Profit Targets and Loss Rates for Prop Trading
Here is an example of calculating the profit target and loss rate for Step 1 of the Sapphire at Fintokei, which has an initial effective margin of 200,000 USD.
| Step 1 | Specific Examples |
|---|---|
| Challenge Success Condition 1 Profit Target |
200,000 USD × 8% = 16,000 USD or more in profit |
| Challenge Success Condition 2 Trading Days |
1 or more orders per day × 3 days or more |
| Challenge Failure Condition 1 Daily Maximum Loss Rate |
(Day 1) 200,000 USD × 5% = 10,000 USD or more in losses (From the second day) Losses of 5% or more of the effective margin at 0:00 server time |
| Challenge Failure Condition 2 Overall Loss Rate |
200,000 USD × 10% = 20,000 USD or more in losses |
Assuming you successfully achieved +20,000 USD in profits at Step 1 and moved on to Step 2.
| Step 2 | Specific Examples |
|---|---|
| Challenge Success Condition 1 Profit Target |
220,000 USD × 8% = 17,600 USD or more in profit |
| Challenge Success Condition 2 Trading Days |
1 or more orders per day × 3 days or more |
| Challenge Failure Condition 1 Daily Maximum Loss Rate |
(Day 1) 220,000 USD × 5% = 11,000 USD or more in losses (From the second day) Losses of 5% or more of the effective margin at 0:00 server time |
| Challenge Failure Condition 2 Overall Loss Rate |
220,000 USD × 10% = 22,000 USD or more in losses |
If you ever fall below the loss rate that leads to challenge failure even once, it results in a failed challenge for prop trading.
Step 4: Trade FX in a demo account where profits can be withdrawn
Once you successfully achieve the profit targets of the prop trading evaluation program and succeed in the challenge, you can start FX trading in a demo account from which a portion of the profits can be withdrawn.
If you become a professional trader in Fintokei’s Sapphire challenge program, there are no conditions for profit withdrawal.
| Professional Trader | Content |
|---|---|
| Challenge Success Conditions Profit Withdrawal Conditions |
No conditions |
| Challenge Failure Condition 1 Daily Maximum Loss Rate |
A loss of more than -5% occurs relative to the effective margin at 0:00 server time each day (5% or more of the effective margin at 0:00 server time) |
| Challenge Failure Condition 2 Overall Loss Rate |
A loss of more than -10% occurs relative to the effective margin when Step 2 was reached (10% or more of the effective margin when Step 2 was reached) |
Step 5: Trade FX in the demo account and achieve the profit withdrawal conditions
Once you become a prop trader, you should aim to meet the profit withdrawal conditions.
| Fintokei | Profit Withdrawal Conditions |
|---|---|
| With Evaluation Program Challenge Plan (Pro Trader) |
No conditions |
| Without Evaluation Program Fast Pro Plan (Swift Trader) |
+10% or more in profits |
In the case of Fintokei, there are no profit withdrawal conditions depending on the challenge program.
Step 6: Withdraw a portion of the profits from the demo account
There are restrictions on the profits that a prop trader can withdraw from a demo account.
| Fintokei | Profit Withdrawal Amounts |
|---|---|
| With Evaluation Program Challenge Plan (Pro Trader) |
80% of profits |
| Without Evaluation Program Fast Pro Plan (Swift Trader) |
50% of profits |
In the case of Fintokei, if your FX performance is good, you may be invited to a higher challenge program called ‘scaling’, which allows for trading with larger funds.
Prop Firms Where Traders Can Open Accounts
The number of prop firms where traders can open accounts is increasing.
- Fintokei (Fintokei)
- UltimateTraders
- Profitex
- TradingCult
- SuperFunded
- PUPropTrading
- AXIselect
The contents of the challenge programs, the fees, the trading environment, conditions, and rules differ among prop firms.
What is Fintokei?
Fintokei is a prop firm based in Brno, Czech Republic, Europe.
| Prop Firm | Fintokei |
|---|---|
| Founded | April 2020 |
| Operating Company | Fintokei a.s. |
| Headquarters | Masarykova 409/26, Brno-mesto, 60200 Brno, Czech Republic |
| Registration Number | 09110127 |
| CEO | Mr. David Varga |
| Phone Number | +420321338152 |
| Email Address | jpsupport@fintokei.com |
Fintokei started as a trading education and evaluation company, but its current mission is to help traders like you fully realize their potential, regardless of status or financial background.
Japanese professional tennis player Yoshihito Nishioka is the global ambassador for Fintokei.
Fintokei’s Challenge Program Basic Rules
Fintokei’s challenge programs come in 11 varieties across two categories.
- Evaluation Program Available ‘Challenge Plan (Pro Trader)’
- No Evaluation Program ‘Fast Pro Plan (Swift Trader)’
Here are the rules for Fintokei’s prop challenges.
| Basic Settings | Challenge Plan | Fast Pro Plan |
|---|---|---|
| Minimum Trading Days | 3 days | No settings |
| Profit Target (Step 1) | 8% | No settings |
| Profit Target (Step 2) | 5% | No settings |
| Daily Maximum Loss Rate | 5% | No settings |
| Overall Loss Rate | 10% | 10% |
| Profit Withdrawal Conditions | No settings | 10% |
| Withdrawable Reward | 80% | 50% |
| Minimum Withdrawal Amount | No settings | No settings |
| Payment Days | Bi-weekly | Bi-weekly |
Content of Fintokei’s Challenge Plan (Pro Trader)
Fintokei’s ‘Challenge Plan (Pro Trader)’ with an evaluation program offers a choice of six challenge programs.
| Challenge Plan | Plan Price | Initial Trading Funds | Multiplier |
|---|---|---|---|
| Crystal | 200 USD | 20,000 USD | 91.7 times |
| Pearl | 300 USD | 50,000 USD | 135.9 times |
| Ruby | 600 USD | 100,000 USD | 143.3 times |
| Sapphire | 900 USD | 200,000 USD | 200.4 times |
| Topaz | 1500 USD | 350,000 USD | 201.4 times |
| Emerald | 2000 USD | 500,000 USD | 208.5 times |
Sapphire is the most popular among Fintokei’s challenge plans.
Content of Fintokei’s Fast Pro Plan (Swift Trader)
Fintokei’s ‘Fast Pro Plan (Swift Trader)’ without an evaluation program offers a choice of five challenge programs.
| Fast Pro Plan | Plan Price | Initial Trading Funds | Multiplier |
|---|---|---|---|
| Bronze | 100 USD | 2000 USD | 12.7 times |
| Silver | 250 USD | 5000 USD | 16.8 times |
| Gold | 500 USD | 10,000 USD | 17 times |
| Platinum | 1000 USD | 20,000 USD | 16.8 times |
| Diamond | 2500 USD | 50,000 USD | 16.7 times |
Gold is popular among Fintokei’s fast pro plans.
Fintokei’s Challenge Program Trading Environment, Conditions, and Rules
Fintokei’s prop demo account is a demo account from AXIORY.
| Broker | AXIORY |
|---|---|
| Account Currency Unit | Japanese Yen Account US Dollar Account Euro Account Czech Koruna Account |
| Handled Symbols | FX Currency Pairs Precious Metals Energy Stock Indices |
| Leverage | Up to 100x |
| Trading Platform | MT4 (MetaTrader 4) MT5 (MetaTrader 5) cTrader |
| Trading Fees | $6 per round lot |
The leverage for Fintokei’s prop demo account varies depending on the instrument.
| Handled Symbols | Challenge Plan | Quick Pro Plan |
|---|---|---|
| FX Currency Pairs | 100x | 50x |
| Gold | 100x | 50x |
| Silver | 100x | 50x |
| Platinum | 20x | 20x |
| Palladium | 20x | 20x |
| Natural Gas | 20x | 20x |
| WTI Crude Oil | 20x | 20x |
| Brent Crude Oil | 20x | 20x |
| Stock Indices | 50x | 50x |
If you are in Fintokei’s prop challenge program, the Challenge Plan (Pro Trader) offers higher leverage.
Fintokei’s Free Trial & Coupons
Fintokei also offers a “free trial” where you can experience the prop challenge for free.
You can check the latest information about Fintokei’s coupons on the official website (fintokei official website).
What is UltimateTraders?
UltimateTraders is a prop firm based in London, UK.
| Prop Firm | UltimateTraders |
|---|---|
| Year Established | 2021 |
| Operating Company | Ultimate Traders Evaluation Ltd |
| Headquarters Location | 71-75 Shelton Street, Covent Garden, London, United Kingdom WC2H 9JQ |
| Registration Number | 14665391 |
| CEO | – |
| Phone Number | – |
| Email Address | info@ultimatetraders.com |
UltimateTraders Challenge Program – Basic Rules
UltimateTraders’ challenge program offers you a choice of two categories and 12 types.
- Two-stage Evaluation Program ‘Classic’
- One-stage Evaluation Program ‘Speedy’
Here are the rules for UltimateTraders’ prop challenge:
| Basic Setting | Classic | Speedy |
|---|---|---|
| Minimum Trading Days | 3 days | 3 days |
| Maximum Trading Days | None set | None set |
| Profit Target (Step 1) | 10% | 10% |
| Profit Target (Step 2) | 5% | None set |
| Maximum Daily Loss Rate | 6% | 4% |
| Overall Loss Rate | 12% | 6% |
| Profit Withdrawal Conditions | None set | 10% |
| Payout of Rewards | 80% | 50% |
| Minimum Withdrawal Amount | – | 1- |
| Payment Day | – | – |
Content of UltimateTraders’ Classic Challenge Program
In UltimateTraders’ two-stage evaluation program ‘Classic’, you can choose from six types of challenge programs.
| Classic | Plan Price | Initial Trading Capital | Multiplier |
|---|---|---|---|
| Plan 1 | $99 | $5,000 | 50x |
| Plan 2 | $149 | $10,000 | 67.1x |
| Plan 3 | $299 | $50,000 | 167.2x |
| Plan 4 | $499 | $100,000 | 200.4x |
| Plan 5 | $899 | $200,000 | 222.5x |
| Plan 6 | $1,799 | $400,000 | 222.3x |
Content of UltimateTraders’ Speedy Challenge Program
In UltimateTraders’ one-stage evaluation program ‘Speedy’, you can choose from six types of challenge programs.
| Speedy | Plan Price | Initial Trading Capital | Multiplier |
|---|---|---|---|
| Plan 7 | $129 | $10,000 | 77.5x |
| Plan 8 | $199 | $20,000 | 100.5x |
| Plan 9 | $399 | $50,000 | 125.3x |
| Plan 10 | $659 | $100,000 | 151.7x |
| Plan 11 | $1,299 | $200,000 | 154x |
| Plan 12 | $2,199 | $400,000 | 181.9x |
UltimateTraders Challenge Program Trading Environment, Conditions, and Rules
UltimateTraders’ prop demo account is a demo account from T4Trade.
| Broker | T4Trade |
|---|---|
| Account Currency Unit | US Dollar Account |
| Handled Symbols | FX Currency Pairs Precious Metals Energy Stock Indices Stocks Cryptocurrencies |
| Leverage | Up to 100x |
| Trading Platform | MT4 (MetaTrader 4) MT5 (MetaTrader 5) |
| Trading Fees | (To be confirmed) |
The leverage for UltimateTraders’ prop demo account varies depending on the challenge program.
| Handled Symbols | Classic | Speedy |
|---|---|---|
| FX Currency Pairs | 100x | 30x |
| Precious Metals | 10x | 5x |
| Energy | 10x | 5x |
| Stock Indices | 10x | 5x |
| Stocks | 10x | 5x |
| Cryptocurrencies | 3x | 2x |
If you are in UltimateTraders’ prop challenge program, the Classic offers higher leverage compared to the Speedy plan.
UltimateTraders Free Trial & Coupons
UltimateTraders also offers a “free trial” where you can experience the prop challenge for free.
You can check the latest information about UltimateTraders’ coupons on the official website (ultimatetraders.com/ja/).
What is TradingCult?
TradingCult is a prop firm based in Limassol, Cyprus.
| Prop Firm | TradingCult |
|---|---|
| Year Established | – |
| Operating Company | CULTEDGE TECH LTD |
| Headquarters Location | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| Registration Number | HE 455582 |
| CEO | Nicola Berardi |
| Phone Number | – |
| Email Address | support@tradingcult.com |
TradingCult also has a registered company in the Republic of Seychelles where financial licenses like XM (XMTrading) and Exness are obtained (Company: CULTPEDIA LTD, Location: House of Francis, Room 303, Ile Du Port, Mahe, Seychelles, Registration Number: 240995).
TradingCult Challenge Program – Basic Rules
TradingCult’s challenge program offers you a choice of two categories and eight types.
- Evaluation Program Available ‘2-Step Evaluation’
- No Evaluation Program ‘No Evaluation’
Here are the rules for TradingCult’s prop challenge:
| Basic Setting | 2-Step Evaluation | No Evaluation |
|---|---|---|
| Minimum Trading Days | 3 days | 3 days |
| Maximum Trading Days | 90 days | 90 days |
| Profit Target (Step 1) | 8% | None set |
| Profit Target (Step 2) | 5% | None set |
| Maximum Daily Loss Rate | 5% | 5% |
| Overall Loss Rate | 10% | 10% |
| Profit Withdrawal Conditions | None set | 10% |
| Payout of Rewards | 80% | 50% |
| Minimum Withdrawal Amount | $100 | $100 |
| Payment Day | Bi-weekly | Bi-weekly |
Content of TradingCult’s 2-Step Evaluation Challenge Program
In TradingCult’s evaluation program ‘2-Step Evaluation’, you can choose from four types of challenge programs.
| Challenge Program | Plan Price | Initial Trading Capital | Multiplier |
|---|---|---|---|
| Plan 1 | $99 | $10,000 | 101x |
| Plan 2 | $299 | $30,000 | 100.3x |
| Plan 3 | $499 | $100,000 | 200.4x |
| Plan 4 | $999 | $200,000 | 200.2x |
Content of TradingCult’s No Evaluation Challenge Program
In TradingCult’s evaluation program ‘No Evaluation’, you can choose from four types of challenge programs.
| No Evaluation | Plan Price | Initial Trading Capital | Multiplier |
|---|---|---|---|
| Plan 5 | $79 | $1,000 | 12.7x |
| Plan 6 | $119 | $2,000 | 16.8x |
| Plan 7 | $249 | $5,000 | 20.1x |
| Plan 8 | $499 | $10,000 | 20x |
If you perform well in FX trading at TradingCult, you may be invited to an upper challenge program called “scale-up” where you can trade FX with even larger funds.
Trading Environment, Conditions, and Rules for TradingCult’s Challenge Program
TradingCult’s prop demo account is a demo account from TradersTrust / TTCM.
| Broker | TradersTrust / TTCM |
|---|---|
| Account Currency Unit | US Dollar Account |
| Handled Symbols | FX Currency Pairs Precious Metals Energy Stock Indices Stocks Cryptocurrencies |
| Leverage | Up to 30x |
| Trading Platform | MT4 (MetaTrader 4) |
| Trading Fees | (To be confirmed) |
The leverage for TradingCult’s prop demo account varies depending on the challenge program.
| Handled Symbols | 2-Step Evaluation | No Evaluation |
|---|---|---|
| FX Currency Pairs | 30x | 20x |
| Precious Metals | 30x | 20x |
| Energy | 30x | 20x |
| Stock Indices | 30x | 20x |
| Stocks | 30x | 20x |
| Cryptocurrencies | 30x | 20x |
If you are in TradingCult’s prop challenge program, the 2-Step Evaluation offers higher leverage compared to the No Evaluation plan.
TradingCult Free Trial & Coupons
TradingCult also offers a “free trial” where you can experience the prop challenge for free.
You can check the latest information about TradingCult’s coupons on the official website (tradingcult.com/ja/).
What is Profitex?
Profitex is a prop firm based in Melbourne, Australia.
| Prop Firm | Profitex |
|---|---|
| Year Established | May 2024 |
| Operating Company | Prop Trade Tech Pty Ltd |
| Headquarters Location | Melbourne, Australia |
| Registration Number | ABN71661045950 |
| CEO | – |
| Phone Number | – |
| Email Address | support@profitexfunding.com |
Profitex has been named the Best CFD Broker Australia 2022 and is partnered with Eightcap and its group company, Eightcap Challenge.
Profitex Challenge Program – Basic Rules
Profitex’s challenge program offers five types to choose from.
| Basic Setting | Evaluation Program |
|---|---|
| Minimum Trading Days | None set / 10 days |
| Maximum Trading Days | None set |
| Profit Target | 10% |
| Maximum Daily Loss Rate | 7% |
| Overall Loss Rate | 10% |
| Profit Withdrawal Conditions | None set |
| Payout of Rewards | 80% |
| Minimum Withdrawal Amount | – |
| Payment Day | – |
Content of Profitex’s Challenge Program
Profitex’s challenge program offers five types of evaluation programs to choose from.
| Evaluation Program | Plan Price | Initial Trading Capital | Multiplier |
|---|---|---|---|
| Plan 1 | $129 | $15,000 | 116.3x |
| Plan 2 | $215 | $25,000 | 116.3x |
| Plan 3 | $350 | $50,000 | 142.9x |
| Plan 4 | $700 | $100,000 | 142.9x |
| Plan 5 | $1,400 | $200,000 | 142.9x |
Profitex does not offer challenge programs without evaluation programs like Fintokei’s Quick Pro Plan.
Trading Environment, Conditions, and Rules for Profitex’s Challenge Program
Profitex’s prop demo account is a demo account from Eightcap.
| Broker | Eightcap |
|---|---|
| Account Currency Unit | US Dollar Account |
| Handled Symbols | FX Currency Pairs Precious Metals Energy Stock Indices Stocks Cryptocurrencies |
| Leverage | Up to 30x |
| Trading Platform | MT4 (MetaTrader 4) DX Trade |
| Trading Fees | (To be confirmed) |
Profitex Free Trial & Coupons
Profitex does not offer a “free trial” where you can experience the prop challenge for free.
You can check the latest information about Profitex’s coupons on the official website (profitexfunding.com/ja/).
What is SuperFunded?
SuperFunded is a prop firm that uses the platform of PropTradeTech, the same tech company behind Profitex.
| Prop Firm | SuperFunded |
|---|---|
| Year Established | 2024 |
| Operating Company | – |
| Headquarters Location | – |
| Registration Number | – |
| CEO | – |
| Phone Number | – |
| Email Address | support@superfunded.com |
SuperFunded Challenge Program – Basic Rules
SuperFunded’s challenge program offers six types to choose from.
| Basic Setting | Evaluation Program |
|---|---|
| Minimum Trading Days | 4 days |
| Maximum Trading Days | None set |
| Profit Target (Step 1) | 10% |
| Profit Target (Step 2) | 5% |
| Maximum Daily Loss Rate | 5% |
| Overall Loss Rate | 10% |
| Profit Withdrawal Conditions | None set |
| Payout of Rewards | (First time) 70% (Second time) 80% (Third time and beyond) 90% |
| Minimum Withdrawal Amount | – |
| Payment Day | Bi-monthly |
Content of SuperFunded’s Challenge Program
SuperFunded’s challenge program offers six types of evaluation programs to choose from.
| Evaluation Program | Plan Price | Initial Trading Capital | Multiplier |
|---|---|---|---|
| Plan 1 | $66 | $6,000 | 90.9x |
| Plan 2 | $99 | $10,000 | 101x |
| Plan 3 | $158 | $25,000 | 158.2x |
| Plan 4 | $298 | $50,000 | 167.8x |
| Plan 5 | $550 | $100,000 | 181.8x |
| Plan 6 | $999 | $200,000 | 200.2x |
SuperFunded does not offer challenge programs without evaluation programs like Fintokei’s Quick Pro Plan.
Trading Environment, Conditions, and Rules for SuperFunded’s Challenge Program
SuperFunded’s prop demo account is a demo account from Eightcap.
| Broker | Eightcap |
|---|---|
| Account Currency Unit | US Dollar Account |
| Handled Symbols | FX Currency Pairs Precious Metals Energy Stock Indices Stocks Cryptocurrencies |
| Leverage | Up to 100x |
| Trading Platform | MT4 (MetaTrader 4) |
| Trading Fees | (To be confirmed) |
SuperFunded Free Trial & Coupons
SuperFunded does not offer a “free trial” where you can experience the prop challenge for free.
What is PUPropTrading?
PUPropTrading is a prop firm based in Melbourne, Australia.
PUPropTrading has been under maintenance since April 2024. (Reopening soon.)
What is AXIselect?
AXIselect is a challenge program offered by Axi.
AXIselect is not a prop firm that challenges through a demo account like Fintokei.
Finding the Right Prop Firm for You
If you are new to prop trading or an FX beginner, please choose a prop firm based on the following points:
- Does it use the latest MT5, which is convenient for discretionary trading?
- Are the criteria for challenge success and failure not too strict?
If you’re not sure which to choose, start with the Fintokei Challenge Plan ‘Sapphire’.
Prop Firms that Trade with MT5 Are Recommended
Although you can use EAs for automatic trading in a prop challenge, many traders prefer discretionary trading.
| MetaTrader | Year Developed |
|---|---|
| MT5 | 2015 |
| MT4 | 2005 |
For discretionary trading, Fintokei and others that offer FX trading on the faster, updated MT5 are recommended.
Prop Firms with Easier Conditions for Challenge Success and Failure Are Recommended
Each prop firm has different challenge programs, fees, trading environments, conditions, and rules.
| Point | Recommendation |
|---|---|
| Purchase Price | The cheaper, the better |
| FX Capital | More capital for the price paid, the better |
| Profit Target | The lower, the better |
| Loss Rate | The higher, the better |
While expensive for a first-time prop challenge, Fintokei’s Sapphire Challenge Plan offers the most capital for the purchase price.
Prop firms are now offering low-cost programs starting from around 100 USD.
Trying FX in a Demo Account for Prop Trading
Profit targets and loss rates for prop challenge success and failure are settings not found in normal FX real or demo accounts.
| Demo Account | Recommended Trader |
|---|---|
| Prop Account | Experienced FX traders who want to trade with high capital while keeping their own funds low |
| Normal Demo Account | Beginners to FX trading |
If you’re starting FX for the first time, the completely free demo account from XM, the most popular account, is recommended.
FAQs to summarize the article
- What is prop trading?
- Prop trading involves trading with a demo account through a prop firm, where traders can withdraw a percentage of their profits, distinct from Forex trading that uses real money accounts.
- How does prop trading differ from Forex trading?
- Prop trading uses demo accounts with virtual capital and allows for profit withdrawal under certain conditions, while Forex trading involves real financial risks and real money investments.
- What are the financial requirements for prop trading?
- Prop trading typically requires a setup fee, such as $900 for access to a $200,000 margin account, which is different from the direct financial investment required in Forex.
- What are the potential benefits of prop trading?
- Prop trading offers high leverage and the ability to trade significant virtual capital without personal financial risk, with successful traders able to withdraw up to 80% of their profits.
- What are the risks associated with prop trading?
- The main risk includes the potential loss of the setup fee if trading conditions result in a net loss, alongside the strict conditions set by prop firms which may not suit all trading styles.
- Can profits be withdrawn in prop trading?
- Yes, successful traders can withdraw a portion of their profits, typically up to 80%, under specific conditions agreed upon with the prop firm.
- What makes prop trading attractive to advanced traders?
- Advanced traders find prop trading attractive due to the low personal financial risk and the opportunity to test and refine trading strategies using substantial virtual capital.
- How are prop trading accounts monitored?
- Prop trading accounts are strictly monitored by prop firms, with set conditions for maximum loss rates and profit targets that ensure discipline and risk management.
- What happens if a trader fails to meet trading conditions in prop trading?
- If a trader fails to meet the specified conditions, such as exceeding the maximum loss rate, they may lose their setup fee and potentially their access to the prop trading account.
- Are there different types of prop trading accounts?
- Yes, prop firms typically offer various accounts with different leverage rates and trading conditions, allowing traders to choose one that best suits their trading style and risk tolerance.
