Forex Prop firm vs Personal High Leveraged Account

Hi there. I failed to see how the new breed of 'prop firm' is helpful to traders. If you are a good trader you would be much more profitable trading your own account.

Below is a compounding calculator for a 100k account. The risk here is 0.5% per SL for a 1:2 RR trade(assuming 5% maximum drawdown, so we risk a tenth of that). So, 1% per TP. Say, per day you would win 3 trades. That is 3% per day. Calculator is here https://www.myfxbook.com/forex-calcu...ing-calculator




Below is a 499usd account(price of 100k challenge). Risk here is 10% per SL for a 1:2 RR trade(assuming 100% maximum drawdown, so we risk a tenth of that). So 20% per TP. Per day, you would win 3 trades. 60% per day.



The amount you would gain with personal trading account is astronomically better than you would if you were to trade using a prop firm taking the same amount of risk. I compared 40 days to 40 days. In reality prop firms evaluation on average would set you back about 10 to 20 days which would reduce the Gain even further.

Can someone please enlighten me why prop firm is better and if my logic is wrong?

Thanks for starting this thread and topic; I'm sure it will generate a lot of interesting opinions.

What you present is certainly one way to look at it, but what if...

If and when you are able to generate profits with a prop firm, try it with the next level accounts

And keep on increasing the account size to the Maximums?

How else do you explain these types of payout claims?

I seriously doubt it was from the very 1st attempt and going for broke with the largest, most expensive account.

Hi erebus.

To get to 48k profit you need to do roughly 4 steps of 3% to pass evaluation and another 7 steps of 3% with a 'funded' account. So, a total of 11 steps.

If you do 11 steps of 60% with a 998 usd account. You would get 174.5k usd.

So, personal account still gives better returns.

One problem with Prob firms is that you are not really trading with 100k or some other amount funds supposedly allocated to you. Instead there are numerous traders using the same liquidity which the prob firm then tries to protect by setting unreasonable demands and margin requirements. In worst case also the allocated funds are being b-booked which makes the situation even worse.

There is another point to consider.

1. Risk your own money with a broker that may/may not be above board and who may/may not be around tomorrow. Crypto case in point.
2. Risk some money, gain an account, your own money returned, now trade not using your own money? Stay within the rules, get paid.


If you cannot afford for a broker to disappear with your money, what would be the safest option!

prop firms are only here to make money off dreamers. Something like 99.95% of traders fail so its pure profit for them.

Dreamers ..... And what are brokers providing?
Can you show the source of where you saw the analysis regards 99.95% fail with prop firms? Not disputing it but that is interesting when compared to the
90+% who fail with a standard broker.

I would go for the point 2. If you trust your process, it does not matter where the money comes from as long as your process works.