How to Start a Forex Prop / Proprietary Trading 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.

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! 

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
  • 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 trading software; Atomiq Consulting provides white label services for new forex 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

Contact Us Today for a Price Quote and Software Demonstration!

Atomiq Consulting providers 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 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 obtain liquidity in the form of a multi-asset price feed 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.

    Is a license required to establish a forex prop 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 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.

    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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