To make it simple if I give a trader real money to trade then I need to have a license to do so, otherwise it is not allowed. That is in Germany and EU and also in USA and all major jurisdictions. Everytime when real money is involved then a license is required and you are fully regulated. Point. Any prop firm which is saying the traders are trading REAL funds is just too stupid. AND if the prop is not regulated then the traders needs to have a financial advisor license so (s)he allowed to take foreign real money for his own trading. Point. Otherwise all gains needs to be paid back (and all challenge fees too), because it is illegal.
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