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.