What is a Proprietary Trading Firm & What are the Benefits?

A Proprietary Trading Firm, also known as a "Prop Firm" is a trading firm that enables you to gain access to professional grade infrastructure along with large trading capital. Unlike a broker, you will be provided with support and mentoring to try and help you succeed in beating the market.

The Core Value of a Prop Firm is that they have your best interests truly aligned with theirs, your success is their success. This is due to the Prop Firm making its money from taking a % of the profitable trader's profits, rather than commission.

At a Prop Firm your trading the companies money and NOT your own. This means, unlike a leveraged broker, you will have access to as much trading capital as you need, alongside being able to withdraw all of your profits each month. No need to reinvest your profits to trade the same size account or larger.

This smarter approach means Lower Risk, whilst enabling you to release the large trading capital normally sitting in your brokers account to be used elsewhere. This could be used for let's say a long-term investment or for rental properties. Therefore enabling you to really maximise your capitals use with a far more sophisticated and intelligent approach to risk and money management.

With this Access to Capital, you're therefore able to capture far larger opportunities than you would with a leveraged broker account and in turn make far more money alongside being able to grow rapidly.

You're only as good as the infrastructure behind you and with so little information on the internet about the what a Prop Firm actually is and the clear obvious benefits. Alongside the lack of basic information about how broker commission, leverage, risk and brokers types can really work against you in preventing you from succeeding in this game.

has come up with solutions to issues we see in the industry to help provide a service that is truly in line with both parties interests to ensure rapid, safe and cohesive growth in the market.

In each upcoming blog, we try to explain and explore different issues that you will come across as a new or existing trader. At the end of the day, information is power and the more you know the more informed decisions you will be able to make.

We will explore the following topics:  


  • TraderEquity: What are the advantages ?

  • Prop Firm vs Broker : You want Fixed Buying Power & Not Leverage

  • Prop Firm vs Broker : Commissions - Don’t Go Broke using a Broker!

  • Vastly Lower Risk & Far Smarter Money Management than a Broker

  • Access to Capital to Grow when you Succeed

  • The Importance of Structured Risk Management

  • Are my Trades Really FREE? Get Paid to Trade with ECN Rebates!

  • Advantages of Multiple Routes & Dark Pools

  • Yes, Scalping Stocks Is Profitable & Possible with TraderEquity™

  • Professional Level Trading Software & Detailed Trade Reports

  • Only Pay When I Use the Locates? Our Access to HTB Shorts

  • Difference between DMA vs CFD/Principle Execution

  • FREE Mentoring & Education

  • Zero Conflicts of Interest at TraderEquity™


Hopefully, by reading each blog, you will get a full understanding of how we see the current environment and why it's not just cheaper but essential to be trading at a Prop Firm like TraderEquity™ rather than a retail broker.

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