Exclusive: Prop Trading Firm Smart Prop Trader Shifts to New Brokers, Including cTrader (2024)

FAQs

How long does it take for smart prop trader to payout? ›

The payout can be processed just after after four weeks and two weeks for all subsequent payouts, but you also have the ability to choose your own Virtual Profit Split Day, which can be even changed up to three times. In conclusion, we make sure that you will always receive your withdrawal on your most convenient day.

Prop Firm Trader Salary

The salary of a prop trader can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.

While prop trading is one of the most profitable opportunities, it is affected by asymmetric risk. This means that the profit-sharing ratio may be from 75% to 90%, but you bear 100% of the risk of your trades. When becoming a prop trader, you often need to deposit an amount of money known as your risk contribution.

Also known as “prop trading,” it offers higher earnings potential much earlier in your career than jobs like investment banking or private equity. It's arguably the most merit-based industry within finance: if you make millions of dollars for your firm, you'll earn some percentage of it.

It is estimated that only 4% of Forex traders succeed with prop firm challenges, and only 1% of traders can generate profits consistently without violating any rules.

Historically, retail prop firm challenges have been designed to set traders up to fail. They're given harsh targets, limited time, no support, and huge leverage – a perfect storm! It's not surprising that 95% of traders fail their challenges!

Although extremely tough, if 5% of trades are routinely made each month, the annual return for the trader is 60%. It is a lot given that the most successful traders typically generate a 20–30% profit annually.

Apex Trader Funding is the best futures prop trading firm on this list for a variety of reasons, but most notably because it boasts the highest pass rate for its evaluation program out of all the futures prop firms on this list. It is also by far the most friendly option for beginner futures traders.

It is against JPMS policy to engage in proprietary trading activity that JPMS believes would be prohibited under the Volcker Rule (Section 13 of the Bank Holding Company Act of 1956 and the associated rules and regulations).

What is the cheapest prop firm? ›

Among many other potential factors, the main disadvantages of prop trading arise from being classified as a market professional, unfavorable profit sharing, and whether your net trading profits are taxed as capital gains or ordinary personal income.

The Costs of Prop Firm Regulation & Company Registration

Some prop firms may opt to be regulated which puts costs significantly higher. One should expect to pay a one time fee of around $10,000 for company registration and payment options while regulation involves a minimum budget of $75,000.

Statistics on Average Trader Payouts

Profit Split: The average prop firm will offer a 80-20 profit split once you become a funded trader. TFT, on the other hand, gives up to a 90% split, — even as high as 95% in some promotions — the highest in the industry.

Payout Process Overview

Standard, Rapid, Royal, Knight, & Dragon Challenges: 3 to 5 business days from request. King's Program: 2 business days from request.

As a prop firm with no time limits, you have absolutely unlimited time to pass the verification phases as well as your fully funded trading account.

Prop traders make all or most of their income from splitting profits they generate in financial markets with the prop firm that provides them with capital. Prop traders face the same challenges as other traders but benefit from access to capital, technology, and interaction with other skilled traders.

You can receive your profits by creating an account on Rise. Whatever amount of profit you generate, that's what we split by 75/25. Please note that if you breach your funded account and there is still profit remaining, that profit is no longer payable as the account is breached and shut down.