Prior to jumping into the components, it’s useful to define exactly what a prop firm / proprietary desk in the forex market is. Essentially, a forex prop desk consists of a group of traders, either professional or amateur, who actively manage a live trading account on behalf of either investors, a private entity or both. The traders are chosen by the firm and are given a set of benchmarks to follow, which vary from firm to firm. While each prop desk is unique, some can be quite harsh environments where failing to meet performance standards or dropping below equity thresholds can find a would be trader packing up their desk. The goal of the prop-trading firm is simple: to generate consistent profits for the founds or outside investors.

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!

Can I run a prop firm using MT4 or MT5?

No, in the summer of 2022, MetaQuotes changed their internal policy for white labels. A financial license is now required in order to use their technology. We have prop trading technology we can show you, contact us for a demo.

How are proprietary trading desks normally financed?

There are 2 main ways a prop desk is financed. First, it can simply be established by private investors. Secondly, financing can come from external investors who are not shareholders of the 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.