What is the BEST PROP FIRM in 2024? ( what to look for )
Summary
TLDRIn this video, Andrew from NFX shares insights on the prop trading industry's challenges in 2024, including platform shutdowns due to unsustainable business models and the rise of cheaters. He emphasizes the importance of choosing a reliable prop firm, highlighting factors such as payout reliability, fair rules, and community support. Andrew also advises traders to opt for more established and potentially pricier platforms that can ensure stability and sustainable payouts.
Takeaways
- 😀 Andrew, the speaker, has been busy with trading, education, and community building, taking a break from content creation.
- 🌐 He is currently in Dubai, observing the prop trading industry and its changes, aiming to guide viewers on choosing the best prop firm in 2024.
- 📉 The prop trading industry has seen shutdowns and difficulties, partly due to cheaters exploiting the system with multiple accounts and hedged trades.
- 💡 The speaker emphasizes the importance of transparency and fair rules in prop firms, suggesting that hidden policies can lead to payout denials or bans.
- 📉 The collapse of the industry was triggered by firms undercutting each other, leading to slimmer profit margins and unsustainable business models.
- 🚫 Meta Quotes' decision to remove MT5 caused significant disruptions, highlighting the vulnerability of prop firms to external platform changes.
- 🤔 Andrew reflects on his own experience, having made over a million dollars from trading with prop firms, and acknowledges the blessings and opportunities provided by the industry.
- 🛑 He warns against prop firms that engage in shady practices to stay afloat, such as sleeping users, banning users, or denying payouts.
- 💰 Andrew advises looking for prop firms with minimal payout denials, transparent rules, reasonable capital offers, and good community and communication.
- 🏦 He suggests that more expensive prop firms might be more reliable, as they can sustain their business and pay profitable traders, unlike those offering extreme discounts that may not be viable long-term.
- 🔄 The industry is expected to undergo significant changes, with only a select few prop firms surviving by managing risk effectively and adapting to new regulations.
Q & A
Why has the prop trading industry been facing challenges recently?
-The prop trading industry is facing challenges due to the influx of cheaters who exploit the system by using multiple accounts to hedge against personal accounts, and the introduction of tighter regulations and changes in trading platforms like Meta Code's decision to remove MT5, which led to significant downtime and financial strain on prop firms.
What is the impact of the Meta Code incident on prop trading platforms?
-The Meta Code incident had a significant impact as it led to a few weeks of downtime, which meant no sales for the prop firms but they still had to pay traders, depleting their capital reserves and leading to shutdowns.
What is the speaker's perspective on the opportunities provided by prop trading firms?
-The speaker considers himself and other traders as blessed to have had the opportunity to make substantial profits through prop trading firms, as he himself made over a million dollars from trading with them.
What are the recent changes in the prop trading industry that the speaker mentions?
-The speaker mentions changes such as more regulation in news trading, restrictions on the amount of payout one can make in a day, minimum profitable trading days, and draw down limits, which he believes are healthy changes for the industry.
What is the speaker's advice on choosing a prop trading platform in 2024?
-The speaker advises to look for platforms with few payout denials, fair and transparent rules, reasonable capital offers, strong community and communication, and to avoid the cheapest options as they may not be sustainable.
Why did the speaker say it's important to choose a prop trading platform with higher pricing?
-The speaker believes higher pricing indicates a more sustainable business model, which allows the prop firm to continue operating and paying out profitable traders, unlike cheaper options that may not be financially viable in the long run.
What does the speaker suggest about the future of the prop trading industry?
-The speaker suggests that the industry will undergo significant changes, with many prop firms shutting down and only a select few that manage risk well remaining.
What is the speaker's view on the role of community and communication in prop trading platforms?
-The speaker emphasizes the importance of a supportive community and effective communication from the prop firm to traders, especially when it comes to rule changes and announcements.
What was the reason behind the speaker's loss of capital from one prop trading platform?
-The speaker lost capital because the platform introduced a new rule prohibiting the use of trade copiers without proper communication, leading to a violation of the new rule and a ban from the platform.
What is the speaker's current approach to scaling capital in prop trading?
-The speaker's current approach involves being more careful, risking only 2-3% during challenges, and focusing on getting the first payout back to ensure sustainability in the current industry climate.
Outlines
📈 Prop Trading Industry Challenges and Changes
Andrew discusses the difficulties faced by the prop trading industry, including the closure of platforms such as TFT due to unsustainable business models and the influx of cheaters using tactics like hedging and arbitrage to exploit the system. He explains how these factors, along with the introduction of stricter rules and regulations, have led to a consolidation of the industry, with only a few strong platforms likely to survive. Andrew emphasizes the importance of adapting to new rules and maintaining a sustainable trading approach.
🛠 Choosing the Right Prop Trading Platform in 2024
Andrew provides guidance on selecting the best prop trading platform for 2024, focusing on factors such as payout denials, fair rules, and transparency. He advises traders to look for platforms with minimal payout issues and clear, written rules to avoid unexpected bans or denied payouts. Andrew also suggests that traders should not opt for platforms offering excessive capital, as this can lead to unsustainable risk management. Instead, he recommends platforms with a good balance of capital and responsible trading opportunities.
🤝 Importance of Community and Communication in Prop Trading
In this paragraph, Andrew highlights the significance of community and communication in prop trading platforms. He points out that a supportive community can foster a positive environment for traders, while poor communication can lead to confusion and potential losses. Andrew shares his personal experience of being banned from a platform due to a lack of clear communication about rule changes. He stresses the need for platforms to maintain open channels of communication and to inform traders promptly of any changes to avoid negative impacts on their trading activities.
💰 The Value of Choosing Prudent and Cost-Effective Prop Trading Platforms
Andrew discusses the pitfalls of selecting prop trading platforms based solely on low costs and high profit splits. He warns against platforms that offer unrealistic discounts and payouts, as these may not be sustainable in the long run. Instead, he encourages traders to consider more expensive platforms that can provide stability and a higher likelihood of receiving payouts. Andrew also shares his updated trading style, emphasizing the importance of scaling capital responsibly and adapting to the changing landscape of the prop trading industry.
🚀 Upcoming Initiatives to Support Traders and the Prop Trading Industry
In the final paragraph, Andrew teases upcoming projects aimed at supporting the growth of the prop trading industry and helping traders achieve success. He expresses gratitude to his audience for watching the video and provides a brief overview of his future plans. Andrew also invites viewers to join his community at swap.com/nfx for further trading education and insights.
Mindmap
Keywords
💡Prop firm
💡Cheaters
💡Hedging
💡Payout denials
💡Risk management
💡Challenge fees
💡Profit split
💡Community and communication
💡Regulation
💡Scalability
💡Payout
Highlights
Andrew discusses the challenges in the prop trading industry due to an influx of cheaters using multiple accounts to hedge against personal accounts.
The collapse of the prop trading industry began with Meta Codes' decision to remove MT5, causing significant downtime and financial strain on prop firms.
Andrew reflects on his personal experience with prop trading, having made over a million dollars from trading with prop firms.
He emphasizes the importance of transparency and fair rules in prop firms, advocating for clear communication of all policies to traders.
Andrew suggests that prop firms offering large amounts of capital are unsustainable, recommending looking for firms with more modest capital offers.
The role of community and communication in prop firms is highlighted as crucial for maintaining a positive and supportive environment for traders.
Andrew warns against prop firms with extremely low pricing and generous discounts, as they may not be financially viable in the long term.
He advises traders to look for prop firms that have a history of timely and undisputed payouts to ensure financial security.
Andrew shares his updated trading style, emphasizing the importance of risk management and responsible trading practices in the current prop trading landscape.
The video provides insights into the future of the prop trading industry, predicting consolidation and the emergence of a few strong, well-managed platforms.
Andrew mentions his intention to release a separate video detailing his ongoing projects aimed at supporting the growth of the prop trading industry.
The impact of new regulations and restrictions in prop firms, such as maximum daily payouts and minimum profitable trading days, is discussed as a positive change for risk management.
Andrew explains why high-risk trading strategies, such as risking more than 3% on a single trade, are not advisable when using prop firm capital.
The importance of choosing prop firms based on their ability to manage risk and adapt to changing market conditions is underscored.
Andrew shares his perspective on the value of prop firms to traders, despite the challenges, highlighting how they have changed lives and provided significant income opportunities.
He offers a final piece of advice to traders to be discerning and choose prop firms that prioritize fair practices and sustainable business models.
Transcripts
hi everyone Andrew Here Andrew nfx has
been a while since my last video
probably a month and something truth be
told I was very busy with my trading
with my education with my um community
so I've been really working on that that
was my main focus uh trading and my
community for the last few months to be
honest so I wasn't really a big content
guy but I do enjoy making some videos
for you guys cuz I know they've been uh
pretty helpful so I am here in Dubai
been in Dubai for the last month and
just been following what's happening
with the prop form industry so want to
make this video and talk to you guys
about how to choose the best prop form
in 2024 so we are mid year now uh the
time of recording this video is 6th of
July so we just passed the half of the
year which is crazy time does fly by
pretty fast but want to talk about the
changes that happen in the industry what
changes are about to come and how to
choose the best platform in 2024 moving
into 2025 so let's begin with the prop
from shutting down so we had TFT true
Forex fund fund engineer finding pics
have been down for for a while but
they're recovering so also other
platforms that have been uh not that
popular have shut down so want to get
into why is that so most people maybe
they think owners maybe Rock pool or
they just closed the business and became
millionaires and trust me I've I've done
my research and that is not the case the
profit form industry at the moment is a
very hard one to manage because there's
been a lot of cheaters coming into prop
so by cheaters I mean people that have
multiple accounts under multiple
identities that hedge the accounts hedge
against the personal accounts so maybe
with the NFP they go long on their
personal account full margin and they
short full margin on their fund account
and in that way they make money I didn't
really know about all of these cheaters
as I did my research I kind of found out
that there's actually a lot that do that
group trading and uh especially reverse
trading and Arbitrage that's the biggest
thing so why have we seen the collapse
of the industry so it all began with uh
meta codes it began a little while
before that why because a lot of Prof
started uh to undercut each other so
they kind of introduced bigger discounts
better conditions and all of that and
that made the profit margins smaller and
smaller for platforms and at that point
it's only a battle of we need to get
enough clients through the door so we
can survive for a few months more right
it's inevitable to shut down so that
happened and then meta Cod happened
where meta Cod decided to remove mt5 and
that caused huge delays in prop for so
two three weeks of downtime means no
sales but you still have to pay your
Traders out so that 3 weeks there was
enough to basically burn any prof's
Capital reserves and basically have to
shut down because nobody's going to get
money out of their pocket to pay Traders
cuz then what business is that a
charitable business basically if if you
guys know what I mean now that's not
really fair for us as Traders but to be
honest we are very blessed to have this
opportunity like I remember last year I
was almost at $7 million in funding with
all these problems and I making 2% a
month that was big big money and I was
blessed cuz my investment for that was
maybe 10% of what I was making in a
month and that was just one time
investment after that I kept stacking
payouts and payouts so I did I made over
a million dollars this way from Trading
profs so I'm very blessed to have had
this opportunity and we are all blessed
to have had this opportunity now there
are platforms you know that they did
Shady stuff in order to keep keep them
afloat sleeping users Banning users
denying payouts and all of that which is
normal when a business is not doing very
well so that's what happened in the
industry in the last few months and
that's what contined to happen now
because margins are getting very low for
these profs why because they're only
relying on challenge fees coming in and
then payouts they don't have a proper
risk management in place place to manage
all the trades the influx of Traders
they don't have any other ways to
actually make money to pay out the
traders that was the whole business
model and now we're finding out that
that is not very sustainable yeah any PL
can launch do well for the first three
six months and then when the backlog
comes in with a lot of payments that's
when things become tricky so that's what
happened in the industry and we are at
the point now where we will see massive
changes we've already seen platforms
change a lot so we we've seen um news
trading being very regulated we've seen
uh consistency days so you cannot make
more than 50% of your payout in one day
uh minimum profitable trading days we
saw draw down getting reduced and all of
that because truth is it was pretty easy
to pass the challenge uh spend 1K on a
300K account pass the challenge and then
get like a 10K payout and that's not
very good for a BL platform right cuz
there's no way to manage that risk so
that's what really really happen and I
think these rules are healthy Chang in
the industry because any good Trader
like myself who can make profit
consistently we can adapt to any type of
rules our draw down is never more than
34% anyways if we trade the correct way
if you go risk two 3% which is another
rule that a lot of problems have added
where if you lose more than 3% in a
position then your account is bridged so
I think that's a healthy a very healthy
rule because why else are you risking 3%
in a trade on the funding the account
now I did say in my previous videos that
the way I scaled out my Capital was risk
big on challenges um and that obviously
was a kind of workaround on how props
operate and that was shut down later on
so sorry for that but I never said on
FAL accounts I risk 3 4% no my Max risk
is maybe 1% or 2% so you should never
lose 3% in a trade on any F that come so
I think these rules are beneficial news
trading also news is a way to either
blow your account or make money and and
I've seen a lot of gamblers actually
make money on news hit like a 50k payout
and then never ever have another payout
again in like a year they keep wasting
money in the challenges so does that
doesn't create healthy profitable
Traders we need this industry to change
into something that's going to be
healthy and beneficial for the Trader
that's going to encourage you to
actually trade profitable so that the
company can use your data to also make
some profit so that's my thoughts on
what happened in the industry uh what's
going to happen next is we're going to
see more prop probably shutting down and
we're going to see only maybe 10 to 15
very good platforms that are going to be
there to stay and usually those are the
ones that will manage risk very well I
know we're not in the same industry that
we were like I said a year ago where we
could scale up to 67 million uh even
myself now I only have 4 million in
capital because all these props Banting
me you know shutting down very hard to
keep the capital and I've been keeping
this capital for a few months now just
trading stacking payouts but that's not
really sustainable unless
the profor actually uses my data and my
trades to make money themselves so maybe
I will get banned and lose all my
Capital who knows but um yeah so now
let's get into the fun part of the video
where I will share my tips to just
choose the best platform for you in 2024
number one is payout denials so look for
a platform that has not a lot of payout
denials there's going to be some payout
denials because you've going to have
those cheaters that I told you about so
it's impossible like you catch them uh
hedging accounts or reverse trading
Arbitrage all of that and that money can
go to a Trader that actually trades and
is profitable and makes money that's
more like correct a correct way to give
that profit away instead to give it on a
cheater best to give it to a profitable
Trader so look for props that don't have
any payout denials or just have a few
payout denials uh second thing that I
would say because payouts are the most
important thing like when your payout
date is due let's say it's in two days
you you need to have that safe feeling
that all right I traded I made 3% two
three trades I just know that that money
is going to come into my bank account
there's no hard feelings like I don't
know if I'm going to get paid out or
they they've been having issues they
haven't paid anyone like a week or two
weeks trust me that sucks I still have
around
$60k in pending payouts from props that
are not doing well and to count all the
props I shut down maybe 70 80k so it's a
lot of money that I never got to see see
and I will probably never see it again
so that feeling sucks right but if you
have a prop that you know I'm going to
get paid for sure during that date
that's the best feeling so that's number
one number two I would say is uh rules
and by rules I don't mean to find the
easiest rules but to find the fair rules
so as long as the company has all the
rules written down uh on their FAQ or
separate page there's no hidden rules um
no hidden policies you know that they
can just use at any time to ban you or
deny your payout that's another very
good thing so as long as a firm is
transparent as it can be has all the
rules written down that you can read and
you know before trading with them that's
perfectly fine and just using those two
you're going to find your perfect prop
number three is I would say look for
props that don't offer a lot of capital
uh we've seen in the industry that props
that failed miserably are those who
offered a lot of capital like 600k Max
fed 800k Max fed count sizes up to 400 K
that's never going to work out in the
long run because that's a lot of risk on
a 400k account you pay let's say 2K
dollars to pass it 1% is for uh 4K
there's Traders making 20 30k a month
from a 400k account that's never going
to work for the prop for because that's
also a lot of risk to manage in the back
end so third thing is look for props
that offer let's say up to 200k 300K
that's more than enough capital for one
plor even for the Trader you don't need
more Capital with one Prof you can to
two three PL firms and scale up to 1
million uh and that's more than enough
if you make 2% 3% on 1 million that's
very good money so moving on to number
four I would say community and
communication so when rules cuz rules
are going to get changed all the time uh
in profs because they need to manage
their their RIS they need to keep
running the business so they can pay out
the profit for Traders which is a good
thing we need to remove all the bad
negativity about props they help a lot
of Traders yeah the business model is
not really for the trader but they still
changed the lives of a lot of Traders it
changed my life cuz I made a million
dollars just from Trading props imagine
that what other business can give me
that kind of money so we need to remove
that negativity from the props they help
a lot of Traders they take a cut maybe
they make 10% profit margin which that's
usually what they do um and they help a
lot of Traders so that's very good for
us as I said communication and community
so Community find problems that have
very very good communities of Traders
I've seen PLS that have good communities
and bad communities and bad communities
it's a toxic environment you know people
throw words it's not a very good thing
but if you have a nice Community behind
you everyone is is there to win right
with all the team we all against the
markets and then communication meaning
that when there's a like I said a rule
being changed or an announcement being
made that announcement needs to reach
every single Trader so either by email
Discord telegram maybe you know Twitter
X YouTube that announcement needs to be
sent ASAP to everyone especially by
email cuz that's what you use to
register but I've seen platforms where
and it happened to me where I got banned
for uh and I lost 400k capital on one
platform because they introduced a rule
where you cannot use a trade copier and
I made a video about it you cannot use a
trade copier to copy your trades between
your two fund account and that was
introduced one day and you know I didn't
know because when I sign up I look over
all the rules I I know that for this
specific platform I can use a trade copy
that was allowed right and then they
introduced that rule where you cannot
copy trades between your accounts fund
accounts and what do you know once I got
my payout I broke the rules so they just
banned me I lost the payout I lost the
capital why because they didn't make any
announcement they didn't send an email
they didn't send any anything why they
did that is pretty simple I mean why
they did not send an announcement pretty
simple because they wanted to ban some
traders to improve their margins uh
remove the profitable Traders and you
know keep growing and I would say the
last thing that you need to know and
look after which will be something that
a lot of people will take negatively but
I would say look for more expensive
props don't go for the cheapest option
don't go for the props that offer 50%
discount 95% profit split weekly payouts
all of those combined never going to
work out you've seen TFT they offer
these crazy discounts and even them shut
down right so look for the more
expensive approach uh there's a reason
why ftmo is still number one because
they're the most expensive and that
allows them to continue running the
business that allows them to continue
paying profitable Traders so don't go
for the you know pay to $200 for the
100K account because you're going to
blow two two three four accounts you're
going to get funded in like a month and
then when your payout comes surprise
you're not going to get paid out and
that's that was the case with if you
guys know the Prof from they funded de
eii so they launch with this crazy
discount that was never seen in Industry
where you would purchase one account
with a 50% discount or something crazy
and you'll get another one so I
purchased for example One 200k account I
paid like $300 and I got two 200k
accounts so basically I got a 400k
account for less than $300 which is very
very cheap right and what do you know
past pass the accounts traded the funded
never got paid out after months and then
they Rock pulled so imagine how how much
in sales they did because they offer
such a low pricing such a good discount
and then they kept telling people like
oh we're working on pay hours there's a
delay there's a new dashboard and they
kept doing it for months getting sales
in and I think they made a few million
dollars just by basically Rock pulling
the whole company and all the people
it's absolutely crazy and why did that
happen because they made this very good
offer for people when they fell for it
right so don't don't fall for it guys
choose the props that have all the thing
that I mentioned which are a few higher
pricing is very important if you pay 500
plus dollars for a 100K account that's
still half% of profit on the fund
account and trade the accounts more
responsibly and also just doing an
update on my trading style cuz I've said
in the previous videos like this is how
I scale up Capital that doesn't work
anymore guys just don't go crazy buy
three for five challenges risk the whole
draw down be more careful with it risk
2% 3% during the challenge pass the
accounts get funed get that first payout
get your money back because we are in a
area of the industry where there's not a
lot of good problems right now that you
know you're going to get paid out and
not looking to announce to promote
anything during this video but I will
make a separate video where I will
announce what I've been working on and
what I'm trying to do to help this
industry grow further and hopefully help
more Traders become like me where you
know their life changes from Prof from
capital and making money trading so
thank you guys for watching this longer
video this is how you choose the best
Prof in 2024 as always thanks for
watching don't forget to subscribe like
and leave a comment join us at swap.com
nfx if you want to learn how to trade
and I'll see you guys in the next one
Weitere ähnliche Videos ansehen
BAD News for Prop Firm Traders
7 Prop Firm Red Flags Guide (2024 Update)
Stop Waiting for Pullbacks, Use Market Maker Models Instead (ICT Concepts)
NFX Marketplaces Scorecard 28 Elements of a Great Marketplace - James Currier, NFX
Best AI TradingView Indicator in 2024 | 100% Winning Strategy 🔥
Answering Forex's Most Asked Questions
5.0 / 5 (0 votes)