Prop Trading a Scam?
There is still much skepticism surrounding prop firms among many people. Many people continue to hold the view that prop trading is a scam. People who believe this are likely either those who have had their account terminated because they did not follow the rules or those who have never attempted trading with a prop firm. The term “scam” is used loosely in this industry. In this article, we will explain why prop trading is not a scam and we will also show FundYourFX payout proof.
Understanding Prop Firms
Prop Firms with Challenges
According to prop firms that require an evaluation process, the evaluation process is in place because a prop firm will want to confirm that the individual is capable of turning a profit. In order to have access to funds, a trader is required to reach a certain profit objective, often within a predetermined amount of time and constraints. These limits may include a maximum drawdown and a maximum loss permitted. The process of assessment frequently consists of numerous phases, each of which has its own objectives and constraints. If a trader is successful in passing the test, it demonstrates to the company that they are able to generate a profit.
Since a large number of traders are unable to pass these challenges, they have the misconception that prop firms are trying to steal their money. Regrettably, this category also includes prop firms that don’t have challenges like FundYourFX. Prop firms such as FTMO generate a significant amount of money off of their challenge fees. They profit from the fact that many traders fail in their challenges. If they do find profitable traders, it would be a win-win situation because they would make money from both failed challenges and profitable traders.
Prop Firms without Challenges
Prop firms such as FundYourFX, eliminate the prop trading challenges. Funding is provided instantly and there is no need to participate in the prop trading challenge. The fact of the matter is that prop firms such as FundYourFX make money off of traders that are successful in trading. Finding traders that are profitable and consistent is the primary contributor to the majority of our profit. No prop firm would turn down the opportunity to work with a skilled and profitable trader.
Prop Firms Risk
In general, the guidelines for the risk level are reasonable and consistent with the practices of other prop firms. When risk controls are inadequate, you will not find a single credible prop firm that will provide a trader the tolerance necessary to lose more than half of a funded account. When prop firms do open up on risk, it is typically because they are fully well-aware of and comprehend the exact trades that a certain trader is making. Prop firms regulate risk very tightly overall, and even when firms do open up on risk, they do so for very specific reasons.
Once you agree to a prop firm’s risk conditions, a legitimate prop firm will not suddenly change the rules. You are given information on the risk parameters, and you decide whether or not to accept them. You’ll do well in a firm using risk measures that you think will align with your trading approach. But if it doesn’t align with your trading approach, maybe you need to refine your trading strategy, or you should simply stick to trading on your own capital.
What We are Looking For?
At FundYourFX, our sincere wish is that you succeed. We reward you for making a profit, and you get to keep a portion of that profit, but you also serve as a walking advertisement to bring in even more talented people. That is, you help spread the word and serve as a positive example of how you could be successful trading with FundYourFX.
Will the majority of traders fail? Yes, but the same can be said about retail trade.
What is your potential risk? One example is the Starter program, you risk only £147 for a $6,000 capital. The savings from being a FundYourFX trader still outweigh the cost of putting $6,000 of your own money into a trading account and losing it all while learning the same skills (risk management, trading style, self-control, patience, etc) that you would have had as a FundYourFX trader with much less risk to your capital.
Why do so many people believe that prop firms are just a way to take their money? The nature of trading requires a healthy dose of skepticism. It’s good to be skeptical. But a lot of people misunderstand prop firms’ true worth.
What really important is that everything is carried out, accounted for, and paid out in a fair manner. You acknowledge that you have read and understood our conditions, and when you are profitable, we will pay you.
FundYourFX Payout Proof
The logic is simple: You trade on our behalf while we put up the capital and assume all the risk, and if you are capable of generating profits for us, you will get 50% of those profits as compensation for your efforts.
Here are some proofs of the payouts we have made to our traders: