The way how majority of prop firms likely operate (?)

McQuant

Member
57 60
I've been long time very skeptical about so called prop firms. They came from nowhere, usually found by unknown people in trading community (even by university students! ), pretending (without any evidence) to have multimillion dollars of capital for traders and only one thing to be funded by them is pay small fee and that's it.

Recently there were a case with Funding Talent prop company which was investigated by Nova Scotia's authorities [1]. The case disclosed truth about how majority of so called prop. firms really operates.

The whole business is based on lie of having capital to fund traders. But the only money they manage comes from fees.

I strongly believe this business needs some sort of regulation.
[1] 2021-03-26 ForexTips101 Ltd et al Decision.pdf

Screenshot_20210411-081916_Instagram.jpg Screenshot_20210411-081921_Instagram.jpg Screenshot_20210411-081925_Instagram.jpg
 
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McQuant

Member
57 60
2021-03-26 ForexTips101 Ltd et al Decision.pdf

Is anybody surprised the whole business is based on fees and not backed by real capital? Once authorities start taking care, suddenly it's completely different business...

"A member can earn credits and take a portion of those credits out as cash which is funded through subscription fees collected from other Members" (see h point below)

In the Ghaney Affidavit, Ghaney represented that:
a. the Company is an online pay-to-play learning platform for Members who want to play and learn about retail investing;​
b. none of the Accounts contain real dollars and no funds are ever deposited or withdrawn from the Accounts;​
c. Members who play within the Rules set by the Company and generate fictitious profits are paid a “Talent Bonus” which is paid from revenue generated through subscription fees;​
d. the real accounts do not contain real dollars. They are also simulated accounts and there is no real trading conducted in these accounts;​
e. Members using any type of account are never in the real market;​
f. Members are never provided with real money in which to trade and all trades are conducted on demo accounts offered by brokerages that the Company has chosen;​
g. for a subscription fee, a Member has access to what is akin to “monopoly money” to trade with on a simulated market; and
h. there is no “profit sharing” of any proceeds from any real world trades. A member can earn credits and take a portion of those credits out as cash which is funded through subscription fees collected from other Members.
 
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IlIlIlIlI

Well-known member
300 272
@McQuant
Filtering threads by number of comments you can find some old gems:
->https://www.trade2win.com/threads/top-step-trader.176392/page-7
TST is the original "game prop firm".
Do you know of any REAL prop firm?
IMO real prop firms are only hedge funds, they employ some traders and mix their results to grow the fund, with a public trackrecord and all required registrations.

Edit:
They are renamed to TOPSTEPFUNDED LLC, the address is a law firm in Chicago.
Source: https://lei.report/LEI/549300E6CR2O10LCKS89
 
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IlIlIlIlI

Well-known member
300 272
Do you know of any REAL prop firm?
Looks like there is one:
https://www.buoytrade.com/buoy-paylater
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But:
The main difference is that you can trade there only with a 1:20 or 1:10 (CFDs) leverage while FTMO offers 1:100 leverage. That makes Buoytrade's 45 days period much tougher than the 30 days at FTMO.
They don't support demo accounts so interested traders have to read the conditions exactly.
 
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IlIlIlIlI

Well-known member
300 272
How about Lepus Proprietary Trading? They seem to be a real prop firm.
If you don't need their trading courses and mentoring ..
1623876015591.png

.. and you are patient with a 2k account, it could be a nice alternative.

But you have to trade your own A$ 2k at Multibank (which IMO is not the best broker, but better for sure in this case).
I'm sure they get a affiliate commision there
1623876306222.png

As far as I got it in a quick overview, they don't take fees if you don't need their training program.

It would be interesting if anybody tried it out and to read the experience.
 
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