Forex prop trading firms with high profit sharing ratios

Introduction

Prop trading, or proprietary trading, is a type of trading where an individual or firm trades with their own money, rather than the client’s money. This type of trading has become popular in recent years, as it offers traders the opportunity to make profits without the need to manage other people’s money. If you’re interested in prop trading, an Instant Funded Account can be a good option to start trading right away without waiting for a deposit to clear.

Prop trading firms provide traders with the capital, trading software, and other tools they need to trade in the markets. In exchange, the firm takes a percentage of the profits that the trader makes. “Profit sharing” refers to this percentage.

What is Prop Trading?

Prop trading is a type of trading that is done with the trader’s own money, rather than the client’s money. This type of trading has become popular in recent years, as it offers traders the opportunity to make profits without the need to manage other people’s money.

Prop trading firms provide traders with the capital, trading software, and other tools they need to trade in the markets. In exchange, the firm takes a percentage of the profits that the trader makes. This is referred to as the “profit sharing ratio.”

The Benefits of Prop Trading

Prop trading offers several benefits for traders:

• Independence: Prop trading allows traders to trade their own money, rather than someone else’s. This allows them to have more control over their trading decisions, and to make decisions based on their own risk appetite.

• Leverage: Prop trading firms provide traders with access to leverage, which allows them to increase their potential profits.

• Lower costs: Prop trading firms often charge lower fees than traditional investment firms, which can help to reduce costs and increase profits.

• Access to new markets: Prop trading firms can provide traders with access to markets that they may not have been able to access before.

Finding the Right Prop Trading Firm

When looking for a prop trading firm, it is important to consider the following factors:

• Reputation: Ensure that the firm you select has a positive reputation in the industry. Check online reviews and ask other traders for their opinion.

• Services: Make sure the firm offers the services you need, such as trading software, access to leverage, and research tools.

• Fees: Make sure you understand the fees charged by the firm. Some firms may charge a flat fee, while others may charge a percentage of the profits.

• Regulatory compliance: Make sure the firm is compliant with local regulations and has a good track record of complying with them.

Tips for Choosing a Prop Trading Firm

• Do your research: Make sure to do your research and find out as much as you can about the firm before making a decision.

• Read reviews: Read online reviews and ask other traders for their opinion about the firm.

• Ask questions: Contact the firm and ask questions about their services, fees, and compliance procedures.

• Get recommendations: Ask other traders for their recommendations on which prop trading firms they use.

Understanding Profit Sharing Ratios

When you sign up with a prop trading firm, you will need to agree to a profit sharing ratio. This is the percentage of profits that the firm will take as their fee.

The profit sharing ratio can vary depending on the firm and the type of trading you are doing. Some firms may charge a flat fee, while others may charge a percentage of profits.

High Profit Sharing Ratios

When looking for a prop trading firm, it is important to look for one that offers a high profit sharing ratio. This will ensure that you are able to maximize your profits and keep more of the money you make.

The Top 7 Prop Trading Firms with High Profit Sharing Ratios

1. CM Trading

CM Trading offers a high profit sharing ratio of up to 90%. They also offer low fees and access to leverage.

2. ThinkMarkets

ThinkMarkets offers a high profit sharing ratio of up to 80%. They also offer access to multiple asset classes and competitive fees.

3. Darwinex

Darwinex offers a high profit sharing ratio of up to 80%. They also offer access to leveraged trading and a variety of trading platforms.

4. AvaTrade

AvaTrade offers a high profit sharing ratio of up to 75%. They also offer low fees and access to multiple asset classes.

5. FXCM

FXCM offers a high profit sharing ratio of up to 70%. They also offer access to leverage and a variety of trading platforms.

6. XTB

XTB offers a high profit sharing ratio of up to 70%. They also offer access to multiple asset classes and competitive fees.

7. IG

IG offers a high profit sharing ratio of up to 70%. They also offer access to leveraged trading and a variety of trading platforms.

Conclusion

Prop trading is a great way for traders to make profits without the need to manage other people’s money. It is important to find a prop trading firm that offers a high profit sharing ratio, as this will ensure that you are able to maximize your profits. The firms listed above all offer high profit sharing ratios, as well as other features such as access to leverage and multiple asset classes.