Become A Prop Firm Trader
Have you ever thought about how to become a prop firm trader? Do you know what prop trader is? Prop is short for proprietary therefore, a prop firm is a trading firm with a proprietary method of trading. They hire and train traders to trade the firm’s capital. For people who want to be a full-time trader becoming a prop firm trader is often a daunting task. The reason is most prop firms do their recruiting on the campuses of most prestigious universities around the world. They recruit the top students in math and economics and train them to trade their way.
With positions limited and the field of candidates so competitive, many would-be traders never land those coveted roles. Or most like me simply come to trading later in life. I decided to be a trader far after leaving the university. If I had been inclined to apply at the time, my grades and major (photography), most likely would have shut me out of the running. When I finally began my research into working at a prop firm, I came across several opportunities for novice traders who don’t have an ivy league academic education. But often these firms require a substantial investment. However, one company stands out from the rest.
Who do I recommend?
Back in 2012, I came across a company called Blue Point Trading. After following their company for 4 years I have yet to find a bad review. They keep an updated YouTube Channel with daily calls. They have been in business since 2009, have 8 physical offices world-wide and also allow traders to trade remotely from home. All they ask is a reasonable administration fee (depending on account type $230-$350) and give a guarantee to begin trading for real dollars after 10 days of intensive training. Simply complete the training and follow their trade rules.
Can You Follow These Rules?
- Earn a minimum of 300 pips a month
- Have only 2 trades open at a time.
- Stay below a max -300 pip draw down.
- Use a strict max stop loss (60-110 pips) on your trades.
Auto-traders & EA Trading
Following these rules are simple but you would be surprised just how hard it is for many traders to do so. Thankfully Blue Point Trading allows EA & automated trading as long as it follows their rules for trading. Advanced traders are encouraged to develop EA’s. If you have more questions about automated trading with BPT you should sign up to speak with BPT.
Trader Program Overview
Can You Be Consistent?
If you are consistent in making a 300 pip minimum target each month then you will advance to Senior Trader in 10 months. This means you can advance from .50 to $16 per pip earned in only 10 months(PRO account).
|Account Level||Standard $230||PRO $350|
|Trader Trainee – Month 1:||$0.25 Pip||$0.50 Pip|
|Trader Trainee – Month 2:||$0.50 Pip||$1.00 Pip|
|Trader Trainee – Month 3:||$1.00 Pip||$2.00 Pip|
|Full Trader – Month 4:||$2.00 Pip||$4.00 Pip|
|Principal Trader – Month 7:||$4.00 Pip||$8.00 Pip|
|Senior Trader – Month 10:||$8.00 Pip||$16.00 Pip|
Blue Point Trading is a fair and honest place to begin trading with minimal risk. They have very different model for prop trading. You trade a demo account and BPT copies your trades in their live account, managing the lot size for you. This approach allows your to forget about profits and focus on collecting pips. Your only risk is the admin fee and your time. There is no additional investment funds required later and no buying of indicators and additional courses. There simply no other place I know to become a prop firm trader that offers an opportunity like this at such a low level of personal risk.
What can you trade??
Blue Point Trading offers several Forex pairs and CFD trading on US indices / commodities.
|Instrument||Pips / Tick Size||Max. Stop Loss||Spread|
|EUR/USD||0.0001||80 Pips/Ticks||1.0 Pips/Ticks|
|USD/JPY||0.01||65 Pips/Ticks||1.0 Pips/Ticks|
|GBP/USD||0.0001||80 Pips/Ticks||1.5 Pips/Ticks|
|AUD/USD||0.0001||65 Pips/Ticks||1.5 Pips/Ticks|
|NZD/USD||0.0001||65 Pips/Ticks||1.5 Pips/Ticks|
|USD/CHF||0.0001||70 Pips/Ticks||2 Pips/Ticks|
|USD/CAD||0.0001||70 Pips/Ticks||2 Pips/Ticks|
|EUR/GBP||0.0001||60 Pips/Ticks||2 Pips/Ticks|
|EUR/JPY||0.01||80 Pips/Ticks||2 Pips/Ticks|
|EUR/CHF||0.0001||60 Pips/Ticks||2 Pips/Ticks|
|GBP/JPY||0.01||110 Pips/Ticks||3 Pips/Ticks|
|S&P 500||0.25 Index Points||14 Index Points||0.50 Index Points|
|Dow Jones||1 Index Point||110 Index Points||3 Index Points|
|Nasdaq 100||0.50 Index Points||40 Index Points||2 Index Points|
|German DAX 30||1 Index Point||90 Index Points||3 Index Points|
|UK FTSE 100||1 Index Point||60 Index Points||3 Index Points|
|Crude Oil||$ 0.01 per Barrel||$ 0.90 per Barrel||$0.02 per Barrel|
|Gold||$ 1.00 per Troy Ounce||$ 10 per Troy Ounce||$ 1.00 per Troy Ounce|
Some alternatives I don’t recommend.
Apiary Fund out of Salt Lake Utah, is a heavily marketed trading education company with a $695 course and a promise to trade become a prop firm trader after meeting certain requirements (6 months wait period). Its a trader mill, churn & burn. Beware they may appear to be low cost but you will be up-sold / cross sold later additional training and courses. Those courses cost thousands of dollars, in most cases you would learn more trading away that money. To be fair they have a good BBB rating.
MaverickFX usually advertises on Craigslist for its trader recruitment. That means they are paying $25 a job posting per city to recruit wanna be traders from Craigslist. And word from a former trader is it takes $2000 but I have also heard $5000 in investment capital to become a paid prop firm trader with them. In other words, an investment is needed to start trading with firm capital. Advertising on CL is not a bad thing but read between the lines. If they require a large non-refundable capital investment how easy is it to lose your investment? They have a good review on FPA and may be the real deal.
Forex Peace Army Review
Bright Trading is a stock trading firm. They require you have $20,000 of capital to invest. You must complete their online training. Most important, all Traders need to take and pass the Series 57 exam in addition to any state requirements to begin trading with them.