What is the BEST PROP FIRM in 2024? ( what to look for )

Summary

In 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

00:00

📈 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.

05:01

🛠 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.

10:01

🤝 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.

15:04

💰 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.

Keywords

💡Prop firm

A prop firm, short for proprietary trading firm, is a company that provides capital to traders in exchange for a share of the profits. In the video, the speaker discusses the challenges faced by prop firms, such as cheaters and the difficulty of managing risk, which are central to the theme of choosing the best prop firm in 2024.

💡Cheaters

In the context of the video, 'cheaters' refers to individuals who exploit the prop firm system by using multiple accounts and identities to manipulate trades for personal gain. The speaker mentions this as a significant issue in the industry, impacting the sustainability of prop firms.

💡Hedging

Hedging, in trading, is a strategy used to reduce risk by taking an opposite position in a related security, commodity, or currency. The video describes how some traders use hedging against their personal accounts to exploit prop firms, which is a key issue affecting the industry's integrity.

💡Payout denials

Payout denials occur when a prop firm refuses to pay traders their profits. The speaker highlights the importance of finding a prop firm with minimal payout denials as a sign of trustworthiness and financial stability, which is crucial for traders looking to join a prop firm.

💡Risk management

Risk management is the process of identifying, assessing, and controlling risks in trading. The video emphasizes the lack of proper risk management in some prop firms as a reason for their failure, making it a critical concept for understanding the selection criteria for a good prop firm.

💡Challenge fees

Challenge fees are amounts paid by traders to prove their trading abilities before receiving capital from a prop firm. The speaker mentions that some traders exploit the challenge phase to secure large payouts, which is a practice that affects the prop firm's profitability.

💡Profit split

Profit split refers to the percentage of profits that a trader and a prop firm agree to share. The video discusses how certain prop firms offer high profit splits as an incentive, but the speaker advises against choosing firms based solely on this, as it may not be sustainable.

💡Community and communication

A supportive community and clear communication are highlighted as essential for a prop firm's success. The speaker suggests that a good prop firm should have a positive community of traders and应及时 communicate changes in rules or policies to maintain trust and transparency.

💡Regulation

Regulation in the context of the video refers to the rules and restrictions imposed on trading activities, such as limitations on daily payouts or drawdown percentages. The speaker sees these regulations as healthy changes for the industry, promoting responsible trading practices and protecting prop firms from excessive risk.

💡Scalability

Scalability in trading means the ability to increase trading capital while maintaining profitability. The video script mentions that the speaker's previous methods for scaling capital are no longer viable due to changes in the industry, emphasizing the need for traders to adapt to new conditions.

💡Payout

A payout in the context of prop firms is the profit share that a trader receives from the firm. The speaker discusses the importance of feeling secure about receiving a timely payout, which is a key factor in evaluating the reliability of a prop firm.

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