Prop trading is an investment business model in which a company with free capital engages traders to manage that capital on the stock exchange. The resulting income is shared between the company (often referred to as the “prop”) and the trader.
An investment company has everything you need for stock trading: capital, software, comfortable brokerage commissions. But it does not have the most important thing: it does not know how to trade. Traders, in turn, know how to trade, but do not have the right capital, software and commissions.
When investors and traders find each other, a prop appears.
Traders Union told us that in a classic prop, money always moves in one direction. The money is earned on the exchange, withdrawn and divided between the trader and the company. The trader usually gets the larger part, the prop gets a smaller part. In this sense prop is a full-fledged commercial organization, which aims at profit.
The weakness of proprietary business is immediately apparent. If your traders are not making money, you don’t have a business. This is an important point.
A broker’s profit is commissions and interest on balances. It does not matter to him whether the trader trades profitably or not. The training centre’s profit is the training fee. It does not matter for him whether his former students trade at profit or not. The profit of trader-blogger is income from advertising and followers. His income is not affected by how his audience trades.
Earn2Trade review — the best way to get started as a trader
Learning the basics of trading can be tough, especially if you haven’t yet found the best place to get the education you need to start your career. You might have come across the Earn2Trade website during your search, but you might be wondering whether it’s worth it. The answer is unequivocally and clearly — yes! And there’s a good reason you’re reading this article, it will tell you everything you need to know about Earn2Trade, as this article is an overview of Earn2Trade.
What is Earn2Trade
Earn2Trade is a 2017 start-up that aims to help you become a successful trader. The company is already featured in Forbes, Entrepreneur and Babypips. Earn2Trade will teach you everything you need to know, and once you’ve mastered the basics, Earn2Trade will help you with your choice of trading company. The answer to the question what is prop trader is earn2trade
You will study and learn as part of your studies through personalized education programs, coaching sessions, webinars and hands-on experience with the trading simulator. If you successfully complete the Earn2Trade Bootcamp or Gauntlet introductory course, you will receive a guaranteed offer from a site partner.
What Earn2Trade offers
The Accelerated Beginner Course consists of 60 videos, which are between six and ten minutes long. They cover both fundamental and advanced trading concepts. Each video is followed by a quiz.