Prop Firm Trading vs Personal Trading Account: Which Path Suits You Best?

Have you ever thought about trading in the financial markets? If so, you might be wondering whether it’s better to trade with your own money or through a proprietary trading (prop trading) firm. With the prop trading industry booming in recent years, it’s a question worth exploring: Should you dive in using your own money, or consider the increasingly popular route of prop trading?

For those on the fence, let’s explore what each path offers, especially if you’re somewhere between a beginner and an intermediate trader, seeking not just profits, but also education and a stepping stone in the trading world.

 

Understanding Prop Trading

First off, what is prop trading? In simple terms, Prop trading firm, short for proprietary trading firm is when a firm gives traders access to its capital to trade in the markets. You’re not risking your own money but instead, the firm’s. Here’s how it usually works: you take an assessment by paying a fee to start trading. If you do well, by making a profit while managing risks, the firm will let you trade with their funded trading account through their available trading platforms and share the profits with you. But it’s not just about the money; it’s about proving you can manage risks wisely in your funded account.

 

The Growth of Prop Trading

Prop trading isn’t new. It started decades ago but has changed a lot. Back in the day, traders wearing colorful jackets would buzz around in trading pits. Now, with everything online, there’s a new wave of prop firms. They’re easier to find and join, making prop trading an attractive option for many with profitable trading strategies.

 

Prop Trading vs. Personal Account Trading: The Decision

So, should you go with a prop firm or trade on your own? Each has its pros and cons. Trading with a prop firm can give you access to more capital than you might have on your own. This can mean bigger potential profits. However, you’ll have to pass their test first, and there are rules to follow.

Trading with your own money, even if it’s just $500 or $1,000, gives you freedom. You make all the decisions. But, the downside is, you’re limited by how much you can earn and potentially lose your savings, if you don’t manage the risk properly.Ready to get funded?

Why Emotions and Education Matter

The Role of Emotions in Trading

Whether trading through a prop firm or with your own money, emotions play a big role. Fear of losing money or the excitement of making it can affect your decisions. Successful traders learn to manage their emotions, focusing on strategy and risk management instead of getting caught up in the moment.

Our courses and assessments are designed to not just teach you about the markets, but also about yourself, helping you manage the psychological aspects of trading. This holistic approach ensures that whether it’s our money or yours on the line, you’re equipped to make decisions calmly and strategically.

 

Tips for Managing Risks and Emotions

  1. Set Realistic Expectations: Understand that making huge profits overnight is rare. Aim for steady gains over time.
  2. Risk Management: Never risk more than you can afford to lose. Small, controlled bets are better than risky ones.
  3. Understand the Markets: Knowledge is power. Learn as much as you can about trading before you start.
 

A Gateway to Prop Trading Success

With a lot of prop firm around, The City Traders stands out by not just offering access to capital but also education through our “Prop Trader Roadmap” course. It’s designed for traders like you—ambitious, diligent, yet perhaps needing that extra bit of knowledge to navigate the markets confidently. Our funding programs, ranging from $10,000 to $250,000, are crafted with static drawdown and no time limits, ensuring you have the space to grow at your own pace.

 

Conclusion

In the end, the choice between prop trading and personal account trading is deeply personal but informed by your circumstances, goals, and the resources at your disposal. For those leaning towards prop trading, remember: it’s not just about the capital. It’s about the learning, support, and community you gain access to. The City Traders is here to provide that comprehensive support, helping you navigate your trading journey with confidence.

The best 1-step prop assessment


Ready to Start?

If you’re intrigued by the prop trading route and eager to learn more, why not explore what we have to offer? From our beginner-friendly courses to our tailored funding programs, we’re here to help you succeed. Remember, trading is not just about making money; it’s about making informed decisions and growing your skills along the way.

You can also watch the video we made about this topic here.

 

XAGUSD, XAUUSD

Note: Market data
contract sizes and opening times vary by market. Up to date information is available within the trading platform.

UK Oil UKOUSD | US Oil USOUSD

Note: Market data
contract sizes and opening times vary by market. Up to date information is available within the trading platform.

ANTM Anthem Inc | KGF Kingfisher | ILMN “Illumina | TSLA Tesla Inc | FCL Fineos Corporation Holdings Plc | BEI Beiersdorf | RIOL RioTinto UK | RMD Resmed Inc Cdi 10:1 Foreign Exempt | NYSE ISRG Intuitive Surgical Inc | DHR Danaher Corp | CDA Codan Limited | TPM TPG Telecom Ltd | ALV Allianz | SIQ Smartgrp Corporation | SHL Sonic Healthcare | EL Estee Lauder Companies Inc | CQE Charter Hall Social Infrastructure | GNC Graincorp Ltd Class A | NUF Nufarm Ltd | LLC Lendlease Group Unit/ Stapled Securities | ANSS “ANSYS |HIK Hikma Pharmaceuticals | ENT Entain | CXO Core Lithium Ltd | PDL Pendal Group Ltd | PRU Prudential | LTR Liontown Resources Limited | AIR Airbus | IDS International Distributions Services PLC | ULVR Unilever | SGR The Star Ent Group | AVV Aveva Group | NAN Nanosonics Ltd | BVS Bravura Solution ltd | NOW ServiceNow Inc | ARB ARB Corporation | NG National Grid | TSN Tyson Foods | BDEV Barratt Developments | EXPN Experian | CDW CDW Corporation |HFG HelloFresh |SLR Silver Lake Resources Ltd NFLX Netflix Inc MUV2 Munich RE ROKU Roku Inc LAND Land Securities Group LLY Eli Lilly and Company TXN Texas Instruments Incorporated MSFT Microsoft Corp PXA Pexa Group Limited HLMA Halma SGRO Segro VHY Vanguard Australian Shares High Yield ETF CSL CSL Ltd GS Goldman Sachs NET Cloudflare Inc SIRI Sirius XM Holdings Inc DB1 Deutsche Boerse TW Taylor Wimpey AVH Avita Therapeutics KGN Kogan.com Ltd MNG M&G ERA Energy Resources of Australia PEN Peninsula Energy Limited SPX Spirax-Sarco Engineering BIIB Biogen Inc PAYX “Paychex EML EML Payments ltd CEN Contact Energy Limited SOLV Solventum Corporation VEU Vanguard All-World Ex-US Shares INDEX ETF API_US Agora NVS Novartis AG US UNH Unitedhealth Group Inc 360 LIFE360 Inc AGE Alligator Energy Limited RRL Regis Resources WBC Westpac Banking Corp MMM 3M Company WPL Woodside Petroleum AAPL Apple Inc SMT Scottish Mortgage Inv GSK Glaxosmithkline ALTM Arcadium Lithium plc BOQ Bank of Queensland | 

Note: Market data, contract sizes and opening times vary by market. Up to date information is available within the trading platform.

AUS200, US30, SPX500, NDX100, FRA40, EUSTX50, UK100, GER30, HK50, JPN225, VIX, US2000, USDX, SWI20, NTH25, CAN60, GER40

Note: Market data
contract sizes and opening times vary by market. Up to date information is available within the trading platform.

AUDCAD.i AUDCHF.i AUDJPY.i AUDNZD.i AUDUSD.i CADCHF.i CADJPY.i CHFJPY.i EURAUD.i EURCAD.i EURCHF.i EURGBP.i EURJPY.i EURNZD.i EURUSD.i GBPAUD.i GBPCAD.i GBPCHF.i GBPJPY.i GBPNZD.i GBPUSD.i NZDCAD.i NZDCHF.i NZDJPY.i NZDUSD.i USDCAD.i USDCHF.i USDJPY.i USDSGD.i EURHUF.i EURNOK.i EURPLN.i EURTRY.i USDDKK.i USDNOK.i USDHUF.i USDMXN.i USDPLN.i USDSEK.i USDTHB.i AUDSGD.i USDZAR.i SGDJPY.i ZARJPY.i MXNJPY.i NOKJPY.i CNHJPY.i EURSGD.i GBPSGD.i NZDSGD.i EURHKD.i

Note: Market data, contract sizes and opening times vary by market. Up to date information is available within the trading platform.