Prop Trading Firm Bespoke to Resume Onboarding US-Clients with ThinkTrader Integration (2024)

FAQs

Does Smart prop trader accept US clients? ›

We accept traders from all around the world who are at least 18 years old.

While these laws applied to banks, not all independent prop companies in operation today are covered by the Volcker rule. Prop businesses nowadays are utterly unregulated and far apart from the banking industry. As a result, these internet prop companies are legitimate and not a fraud.

The prop firm space has been exceedingly volatile over the last few months, with a number of the most known prop firms being shut down or ceasing operations. In March 2024, The Funded Trader (TFT) ceased trading and cancelled their agreements with all traders in their books.

Yes, prop firms are legal in the US. These firms operate within the regulatory framework set by financial authorities such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.

Prop trading firms have been shutting down or suspending their services, particularly to U.S.-based clients, because of a crackdown from MetaQuotes, the company behind the popular MetaTrader trading platforms.

Among many other potential factors, the main disadvantages of prop trading arise from being classified as a market professional, unfavorable profit sharing, and whether your net trading profits are taxed as capital gains or ordinary personal income.

There's a misconception that propfirms operate like pyramid schemes, especially those using simulated models. However, reputable firms using real funds focus on actual trading activities, leveraging expertise and strategies to generate profits.

Proprietary trading firms often provide evaluation accounts where you prove your trading skills. Usually, you pay a one-time fee to enter this “challenge.” If you lose money during this evaluation, you won't owe anything beyond the initial fee.

Prop trading can be highly stressful due to the fast-paced nature of markets and the pressure to make split-second decisions. Working in the financial markets as a prop trader comes with a series of demanding hurdles. Such traders face an environment filled with: Intense rivalry.

Is prop trading risky? ›

While it offers the potential for substantial profits and innovation in trading strategies, it also carries significant risks and requires robust risk management and regulatory compliance. Understanding the distinction of prop trading is essential for anyone involved in or interested in the financial markets.

It is against JPMS policy to engage in proprietary trading activity that JPMS believes would be prohibited under the Volcker Rule (Section 13 of the Bank Holding Company Act of 1956 and the associated rules and regulations).

As one of the biggest prop trading firms, Funding Traders offers institutional-level resources for all US clients, including: Zero Commission Challenge Accounts. Funded Accounts Up To $200K.

MetaQuotes, the developer of popular trading platforms MetaTrader 4 and MetaTrader 5, is cracking down on several prop trading firms such as Ftmo, the5ers, etc., and forcing many brokers to terminate their services (if these firms do not comply). This decision has had a negative impact on most prop traders in the US.

In addition to it , it is 100% legal for the US citizens to go offshore. The most important thing , is your broker regulated by the Commodities Futures Trade Commission (CFTC) and the National Futures Association (NFA) of the USA. How do I get with a regulated offshore Forex broker? I'm a US citizen.

US nationals/residents including the US overseas territories (Guam, American Samoa, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands) are not allowed to use MetaTrader or cTrader platform.

To become a proprietary trader, earn a bachelor's degree in finance, business, or mathematics. Complete at least one internship with a trading firm to learn about the finance industry and make professional connections. Apply for an entry-level proprietary trader role.

cTrader does not offer its services to United States residents due to regulatory reasons. Contract for difference (CFD) trading is prohibited by the US financial authorities.