Atomiq Consulting has consulted some of the largest and most reputable prop trading firms, making our team an ideal resource for starting your own prop trading firm. Naturally, one of the first questions that comes to mind is how much money it will cost to start a prop trading firm? The answer depends on a variety of factors which we’ll outline and provide cost estimates.
How Much Does Prop Trading Software Cost?
Software is a good starting point since a prop firm obviously cannot function without it. To provide a clear and detailed answer, one must understand that each technology vendor has unique pricing. For example, some firms charge volume fees for each transaction while it is waived for others. Atomiq Consulting offers a complete prop trading technology package with everything required to successfully launch your prop firm. Contact us today to book a complete demo walkthrough.
In most cases though one can expect to pay a flat monthly fee, set up fee and in some cases a fee per account. Once again, each software provider varies with their pricing with some only charging per demo. As a general rule one should expect to pay at least $50,000 to operate a prop firm for one year.
The Costs of Prop Firm Regulation & Company Registration
Prop firms must register their business somewhere. We recommend starting offshore in order to keep costs low, however, local registration is possible. When registering a prop firm a bank account and other payment options must be established which also entail costs. 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.
Additional Costs to Consider
The remainder of the costs are very much dependent on the aspirations and risk appetite of the prop firm. For example, the marketing budget will be heavily dependent on the regions being targeted and the type of marketing campaigns. Additionally, outsourcing marketing or hiring an in house team will lead to more variety in costs.
Client support and sales are another factor to consider. While we believe a prop firm does not require a massive support center to start, this may not be the case for sales. If a prop firm is ambitious they will require a relatively large team to keep the business growing at an aggressive pace.
Atomiq Consulting – Your Partner For Starting a Forex Prop Trading Firm
Founded in 2014, Atomiq Consulting has been advising both new and existing prop trading firms. Our team of industry experts remain at your disposal. If you would like to learn more about how much money it costs to launch a prop trading firm, or to check out our prop trading software, book a meeting with one of our consultants today!
