How to Start a Forex Prop / Proprietary Trading Firm

Starting a Forex Prop Firm in 2025 – Key Takeaways

  • Starting with MT5 will incur higher costs compared to our software alternative
  • Our technology is not owned independently – no conflict of interest
  • For now a license isn’t required to start a forex prop firm
  • An excellent choice for existing brokers or startups
  • Prop trading is growing rapidly

What Is a Forex Prop Desk / Proprietary Trading Firm? 

Prop trading takes the major components of online forex trading but offers a unique approach. Rather than depositing funds and using them on a leveraged basis, prop trading centers around participating in trading contests that are held in a simulated environment. The participant pays a small fee to enter each contest or “challenge” with the aim to win a prize or advance to the next challenge tier. Additionally, some forex prop firms even allow the user to trade on a live account, where a profit share is arranged between the trader and prop firm.

Starting Your Own Prop Trading Firm – How Does It Work?

  • The first step in the process is selecting the prop firm trading technology. It’s important to emphasize that MT4 and MT5 are no longer available to prop firms so an alternative must be chosen. Atomiq Consulting offers its own prop trading technology that we are happy to show you.
  • Once the tech has been selected, it’s important to either register the business or obtain a license. The choice will depend on a variety of factors that our team can assist your firm with.
  • Once a company has been established, it’s then possible to obtain liquidity for the forex prop trading firm. The liquidity serves two purposes, providing both the pricing and the execution of trades.
  • If your proprietary trading desk requires a website and investor CRM portal, that’s also a service Atomiq Consulting is able to provide.
  • Once the above components have been fulfilled, your forex prop desk is ready to launch!

How To Open A Prop Firm Company? Check Out Our YouTube Channel! 

Why Partner With Atomiq Consulting To Launch Your Prop Firm?

In the past years, the emergence of prop / proprietary trading has been one of the biggest trends to shape the online forex & CFD industry. What started out as a mere blip on the screen within an already niche segment of online trading has quickly emerged as a multi-million dollar industry that may one day rival retail FX. Since the inception of prop trading, Atomiq Consulting has been the leading consulting firm for guidance in launching and establishing a forex & CFD prop trading firm.

Some Thoughts to Consider About Starting a Forex Prop Desk / Proprietary Trading Firm 

  • It is no longer possible to start a prop firm with MT4 or MT5, an alternative must be chosen
  • Atomiq Consulting offers consultation & fx solutions for proprietary trading firms
  • A money management license isn’t required but strongly recommended
  • We strongly advise against targeting US clients as our CEO discusses on the TradeInformer podcast
  • It’s not necessary to build your own prop trading technology; Atomiq Consulting provides white label technology for prop firms
  • All that’s needed to start a forex prop firm is the software, a website, bank account and liquidity
  • Atomiq Consulting also offers advanced technology to help monitor individual trader performance including circuit breakers when equity thresholds hit a certain level

Looking to Create Your Own Prop Firm? Contact Us Today for a Price Quote and Software Demonstration!

Atomiq Consulting provides all the services a prop firm needs to be successful. To learn more about starting your own forex prop shop, view a demo of our prop trading technology or to ask any other questions, don’t hesitate to contact us today!

    Launching a Forex Prop Desk FAQ

    Can I run a prop firm using MT4 or MT5?

    No, in the summer of 2022, MetaQuotes changed their internal policy for white labels. It is no longer possible to start a prop trading firm with MT4 or MT5.

    Does Atomiq Consulting provide liquidity for prop firms?

    Yes. Prop firms that adopt our technology are also able to access liquidity in the form of a multi-asset price feed (FX, CFDs, crypto) as well as execution. We can also assist with risk management.

    Can Atomiq Consulting assist in starting a white label prop firm?

    Yes. We offer all the software needed to establish your own forex prop trading firm.

    Do I need a license to establish a forex proprietary trading firm?

    No, and in some cases it isn’t necessary. If your prop firm is looking to attract outside investors, then a license is strongly recommended for the purposes of credibility. Additionally, attempting to raise funds without a license will pose many hurdles due to overall banking challenges in the financial services sector.

    How quickly can I start a forex prop shop?

    The technology set up is a very fast process. Although other components such as licensing and banking are region dependent, on the technology and liquidity side, the entire system could be established in a matter of weeks.

    What is a white label prop firm?

    A white-labeled prop firm is simply a prop trading company that uses third party technology as the trading platform that clients access and place trades from. In the simplest terms, a white label is just the branded or labeled version of forex & CFD software that is customized for the prop firm.

    What is the difference between futures and forex prop firms?

    Forex prop firms can also offer futures contracts to their traders. Most prop firms, however, offer spot forex trading, meaning the contract has no expiration date and generally lower margin requirements. On the other hand, futures contract have a set expiration date and generally require more margin, for example maintenance and general margin, making it a more sophisticated trading product. 

    What technology is needed to run a forex prop desk?

    Any forex broker trading software will be sufficient for end users. Additional software is needed though to set “circuit breakers” on traders, analyze drawdowns and allocate performance. Atomiq Consulting can help your prop desk get set up with all the technology needed to launch the venture.

    How long does it take to launch a prop trading firm?

    With the right resources and partnerships, it’s possible to launch a prop trading firm in as little as one week, though timelines can vary based on complexity and regulatory requirements.

    What are the risks involved in running a prop trading firm?

    Risks include market volatility, regulatory compliance challenges, technological failures, and the potential for trader losses impacting firm capital.

    Can I operate a prop firm remotely?

    Yes, many modern prop firms operate entirely online, allowing for remote trading and management, provided robust technological infrastructure is in place.

    What is the typical profit-sharing model in prop firms?

    Profit-sharing models vary, but traders commonly receive a percentage of the profits they generate. The splits and other payouts are handled on a case-by-case basis and dependent upon the prop firm.

    How do prop firms evaluate traders?

    Prop firms often assess traders through evaluation programs or challenges that test trading skills, risk management, and consistency before providing access to firm capital.

    What technology is essential for a prop trading firm?

    Essential technologies include trading platforms, risk management systems, data feeds, and customer relationship management (CRM) tools. Partnering with white-label providers like Atomiq Consulting would be a quick way to launch a prop firm.

    What capital is required to start a prop firm?

    The capital needed depends on the firm’s scale and operational costs. While it is possible to start a prop firm on a tight budget, realistically one should consider $50,000 or more in order to be able to operate for a year. 

    How do I start a prop trading firm?

    The capital needed depends on the firm’s scale and operational costs. Some firms may start with as little as $15,000, while others require significantly more to cover technology, staffing, and regulatory expenses.

    Is it illegal to target US residents?

    Yes. The US government strictly prohibits onboarding or targeting American citizens. Prop firms that attempt to solicit US clients can face severe penalties.

     



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