3 ways prop trading is different from traditional brokerage accounts

Posted in OANDA Labs | EN | Prop Trading
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Looking to trade financial markets? How is prop trading different from traditional brokerage accounts? 3 key differences to know before you begin trading.

What is proprietary trading?

What is a brokerage account?

Concept Forex Proprietary Firm Forex Broker
Role Provide funds for traders Provide trading platforms and services for traders
Funding Company funds Traders’ funds
Funds threshold Provide funding programs to lower the funding threshold for individuals An initial deposit may be required for trading
Profit  From profit sharing From trader’s spread, commission, etc.
Risk The company bears trading risks and losses Traders bear trading risks and losses
Trader’s profits Profit sharing Trading profits
Trader’s max risk Loss of entry fee All trading funds
Trader profile Traders who have technical skills but do not want to use their own capital and have a lower risk tolerance Traders who have sufficient funds and higher risk tolerance

Difference # 1: Risk Capital: How are funds involved?

Difference # 2: Client’s losses are limited to the Challenge fee in Prop Trading

OPT-English-Challenges
Prop trading Challenges by OANDA Prop Trader

Difference # 3: Regulatory Scrutiny

Why Prop Trading with OANDA Prop Trader?