There are a lot of different companies providing Prop Firms, and like usual, there are the good, bad, and ugly. We hear good stories from people that appear to have worked out for them, we hear what at first are good stories, and they turn sour, and we hear stories that are never good from the initial payment being made to the Prop Firm company.
In general, a Prop Firm offers the opportunity to purchase an account with a certain balance that you can trade and make profits on, and you get to keep as much as 90% of those profits. For example, you can buy a $500,000 account for $2,500, and then if you can profit 5% a month, that would be $25,000, and you keep 80% for a total of $20,000.
That sounds good if it were that simple. The catch is there are many rules, and if you violate the rules, or in some cases, if the Prop Firm thinks you have violated the terms, you will lose your account with no refunds.
Typical Prop Firm rules include the following:
- Reach a certain amount of profits with a minimum number of trading days.
- Trailing drawdown
- End-of-day drawdown (EOD)/ Daily Loss Limit
- Permitted hours of trading
- No open trades during major economic news
- Types of instruments
- Maximum number of contracts
- Use of copy trading
- Use of Expert Advisor (EA) software
As you can see, there are a lot of rules, and you must be aware of the Prop Firm you are considering using before you hand over your money.
On point nine in the list above, Auvoria Prime wants to clarify that there are no guarantees that any of the software offered by Auvoria Prime will pass or maintain a Prop Firm account.
Auvoria Prime does not promote Prop Firms due to the experiences we have heard about how they are run. Auvoria Prime has no partnerships with any companies that offer Prop Firms and does not recommend Prop Firms unless someone is experienced and familiar with the Prop Firm’s rules.
If an Auvoria Prime member chooses to use software from Auvoria Prime, the company will not accept any responsibility for losses incurred on the Prop Firm. Please do your due diligence if you will use a Prop Firm and, as always, trade with only what you can afford to lose.