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This week I met someone who has traded repeatedly with a prop firm for the last few months.
As it was the first person I’d met ‘in the wild’ who used one and they were also very into the product, I thought it would be fun to give some insights into what they think and why they traded prop.
I don’t want to go into a huge amount of detail here but they are in their late 30s and live in the UK.
Can you talk about how you found a prop?
I started to watch or listen to trading videos and podcasts a lot in the last year. Prop firms would come up a lot in those videos. It could be an actual trader, even though I don’t believe they’re real a lot of the time. Or it could actually be the prop firm talking to customers, things like that.
What do you mean not real?
Like the influencer guys, I think most of them are lying or fake.
A fair comment. You mentioned you trade with FundedNext. Why did you choose them?
I saw someone from the company in a podcast and then learnt about them that way. After that I just watched a few of their YouTube videos. I went to the website, saw what they offered, and bought my first challenge.
So was that a trust thing? You had seen others and then chose them or something like that?
I think they were just the first ones and I saw them a lot. I guess I felt like I could trust them as well but I think that was more like a subconscious thing.
What did you trade?
So far I’ve spent about $800 on challenges. I think I’ve bought four or five of the $6k Stellar Challenges and then four of the $15k ones.
And did you get a payout?
Yup…I got $85. I breached all of the accounts so far though but I am trading another account at the moment.
Oh dear…what was the payment process like?
The payout was actually really bad. It was fast but I had to open an account with Kraken so that I could get paid in USDT. Then I had to convert it into Ethereum and then into pounds. So that ended up taking loads of the payout in fees anyway.
What is the actual appeal of this can you tell me? Why prop and not a broker?
It’s just kind of fun. You feel like you’re playing a game or something. Like, if you trade CFDs normally, it’s fun because you can make or lose a lot of money. But with this, because there are the rules, the steps, and everything, it just feels more fun. You know, when you fail a challenge, they’ll send you an email, giving you 20% off the next one. So there is something more like a video game about it.
I also just realised, ok I spent $800. But if I compare that to a broker account, I could have deposited £2,000 and then blown half of it in one day. This gives you a much higher reward if you do well for less money. It makes you a bit more careful as well because you have to make sure you are paying attention to the rules and all those things. I pay a lot more attention to how I am trading from prop firms than I do when I use my broker account.
Do you think the rules are fair?
Some of them. But other times it does feel like they are trying to get you. Like there is a trailing drawdown rule, which means it can be so hard to bounce back from a loss. That is one thing I don’t like about FundedNext.
Do you understand that they don’t use real money?
What do you mean?
You never use any real money with the accounts you have with FundedNext
For the funded account it’s real
I got some news for you…
