Tricks Prop Firms Use to Get Out of Funding You For Real - And How to Get Around Them

Shocker: Many Prop Firms do not actually want to fund you and usually don't even have the money to fund everyone in the first place. Read on, You'll be glad you did.

They know if they structure their programs in the right way they can make more money off of challenge fees instead of actually finding great traders.

Here's tested tips of what to do if you actually want to become great at trading and get funded for real.

1. Use a Prop Firm that has a straight forward evaluation process with NO TIME LIMIT.

Great trade set-ups happen in their own due time. One of the tricks Prop Firms use is a set time-frame that you need to keep to meet your profit targets. THIS MAKES NO SENSE. While it is important that you stay active, you should never feel forced to "find a trade" when there is simply, nothing to trade that fits your criteria in a way you feel comfortable with trading.

Prop Firms that make money only off of fees will structure their programs in a way that forces you into taking trades you are not totally comfortable with in order to meet their profit targets in their short time limit. They know this will cause most to fail and they will never have to actually fund them with real money. That means your fees are cash straight into their pocket.

2. 90% Payouts are a RED FLAG.

90% payouts sound real nice, but think about it from the prop firm's investor's point of view. If you were putting up millions of dollars in capital and taking all of that risk, would it make sense to give a 90% split to the trader? Absolutely not! The reason investors put money into a prop firm is to get an above average return, not 10% of gross profits. If they wanted 10% they can just invest their money in the S&P 500 over the next 10-20 years with way less risk.

90% payouts are another trick used to lure you into a paid challenge that is most likely set up with rules that encourage you to trade in a unsustainable way.

Realistic payouts from Prop Firms that are actually prepared to fund you with real capital will pay between 50% - 75%. This provides a great incentive for the trader to perform well while keeping the investor happy tying up his money with said trader.

3. Use a Prop Firm that encourages you to scale down as you grow.

Real Prop Firms want successful Traders that will last in the business. 

Instead of encouraging you to keep trading bigger and bigger, a good prop firm will encourage you to trade smarter and with less size while maintaining a consistent return. Consistency is what attracts more investor capital for the firm.

If you are concerned about making more money, rather than raising your lot size, get more consistent and less risky in your trading. 

With this approach you're prop firm will be throwing all the money you can handle your way and your AUM (Assets under management) will increase exponentially. That's how you raise your income while decreasing your risk!

I hope you enjoyed this article. 

We are a bit bias but if you are looking for a Prop Firm that has all of the qualities of a world class operation and will actually fund you with real money check out ATS Capital Partners.

https://www.atscapitalpartners.io/

We are a family owned firm that has been in the business since 2011. 

We fund great traders with real capital in a simple, 1 step evaluation with rules that accommodate great Traders!

peace out.