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Proprietary trading firms were more common in Forex trading than in the crypto realm. However, as cryptocurrencies surged in popularity, these crypto prop firms gained traction within the market. Today, there's a multitude of options for traders like you. Yet, the challenge persists: how do you choose and trust the right one?
Let's delve into why opting for a funded trading account could prove beneficial for you.
What are the advantages of proprietary trading firms?
Cryptocurrency proprietary trading firms offer traders a significant advantage: they provide substantial funds for trading. As a novice trader, you can yield handsome profits without the slow grind of building up a small account.
To join these firms, traders typically need to achieve a profit margin of 12-15%. Successful traders may receive substantial funding, such as $100,000, to trade within 1 to 4 months, contingent on their trading performance. If they attain a 10% profit post-verification, their initial trading payout could range from $7,000 to $9,000.
However, here's the catch: before attempting to join these firms, you should already possess a strong track record of generating profits and exude confidence in your trading skills. It's crucial to note that proprietary firms often profit by selling funded account challenges to traders. Hence, it's essential to acknowledge that while some individuals pay for these challenges, they may not receive the promised trading funds. To truly benefit from these firms, you must excel as a trader with a robust strategy and adept risk management skills.
How to Select the Ideal Prop Trading Firm for You:
Trading Conditions
Examine the terms and conditions provided by each firm. Scrutinize their profit targets, verification process, and any trader restrictions or requirements. Understanding trading regulations and potential policies such as gambling guidelines is vital. Familiarize yourself with profit-sharing models, fee structures, evaluation timelines, and growth prospects within the firm.
Funding Structure
Understand how funding works: the duration for funding approval, initial capital provided, and criteria for increasing funding. Seek clarity on whether the firm offers a fixed amount or adjusts funded account capital based on performance. Look into profit splits—whether they're fixed or increase over time—impacting potential trader payouts.
Transparency and Legitimacy
Ensure the firm is transparent about its operations, fees, and terms. Look for transparency regarding the transition from demo to live accounts. It's important to choose a firm that eventually places traders on real accounts or implements copy-trading while being open about its practices. Explore the firm's track record, reviews, and reputation within the trading community to form a comprehensive understanding.
Community and Culture
Consider the community aspect. Some firms foster active trader communities, offering support and a platform for knowledge exchange. Engaging with like-minded traders can offer diverse perspectives and enrich trading strategies through shared insights and experiences.
Personal Alignment
Align your trading style, goals, and preferences with the firm's offerings. Choose a firm that resonates with your trading approach and caters best to your needs. Your compatibility with the firm's culture and offerings is crucial for a harmonious and fruitful partnership.
3 Best Crypto Prop Trading Firms
HyroTrader
HyroTrader offers traders the unique opportunity to utilize real capital on a ByBit sub-account, providing access to a diverse range of crypto pairs. What distinguishes them from other prop firms is their competitive fees and spreads, which are among the best in the market due to direct trading on ByBit. With HyroTrader, traders can begin trading on accounts featuring up to $100,000 in capital and retain 70% of their profits. Furthermore, their scaling plan extends impressively up to $1 million. Finally, they enable funded traders to incrementally increase their profit split up to 90%
FTMO
FTMO stands out as a premier crypto proprietary trading firm for several reasons. With an exceptional reputation, they've been a distinguished prop firm since 2015. They provide personalized coaching to their funded traders, aiming to enhance their performance. What truly distinguishes FTMO is its capacity to provide substantial funding, with amounts reaching up to $400,000 for successful traders. They offer a wide variety of cryptocurrencies for trading, including popular options like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Polkadot (DOT), and Dogecoin (DOGE), showcasing their commitment to meeting diverse trader needs and solidifying their status as a top-tier crypto prop trading firm.
Bright Funded
Bright Funded offers its trading platform and a mobile app, allowing traders to stay connected on the go and conveniently adjust their trades. Moreover, they provide the Trade2Earn Program, a pioneering initiative that rewards funded traders based on both their profits and overall trading activity. With a current offering of approximately 25 crypto pairs, Bright Funded also presents a scaling plan and profit split that extends up to $1,120,000.
Have you found the right Crypto Prop Trading Firm for you, or are you still deciding?
Explore HyroTrader funded accounts and start your crypto trading journey now.
