I read your comment over the weekend and took some time out to really check these two opposing concepts out. Man, you made some cogent points. It sounds like a situation of "penny wise, pound foolish" could happen. I don't think i will like a situation where i would keep paying to pass the challenge or test and yet not get paid in return for whatever i make, till its over. I understand that in the Forex market, anything can happen even though i have confidence in my ability to trade the markets. I plan to start this coming month with Blufx and see how it goes. My only issue with BluFX is the leverage. It looks pretty small. Have you been able to get success with it?
hi, I'm interested. I do have some questions: 1) What is the draw-down % if any? 2) Can i hold trades over the weekend? 3) Do i get taxed for my profits if i withdraw by wire transfer?
Hello. These are on their website but i'd help out. 1)10% 2)no. For the Pro account you can hold till Friday close of market. For the lite account you can hold till the close of the Newyork session every day. 3)I don't know about this. Maybe you should check with an accountant or something in your country of residence. You know these things depends on ones country. And it should be applicable mostly to wire transfer payments. I use skrill or bitcoin sometimes.
Yeah bro. It is what it is with these prop firms. One has to be smart about picking one and how to trade with one since they have their rules. The leverage hasn't been much of a bother to me. I had to adjust at first as a retail trader but i have been better off over time. I feel more disciplined now. It can take me 2 months sometimes to hit the target or even 3 weeks. I just focus on taking good trades and building my accounts steadily.
I'm following this thread, I have been on a lookout for prop firms and have come across several. But i'm still skeptical. I'm i not better off trading my own money and growing it with time?
No. Of course i don't. How many retail traders come across such money for trading? I was thinking i could put a couple of dollars like 700 USD and then growing it with time. but i guess it would take some time to get it to 25k USD. But then i wouldn't be sharing my profits with any company and wont have to use such a small leverage.
What about making roughly 35x time the money(assuming you are profitable already) by having 25 000$ in your account instead of 700$? You might think leverage will take care of it, but that's a fallacy. You can take a comfortable losing streak of 3% on the 25k account(750$) while the same loss would whipe your 700$ account. If you can double your money every years in the FX market that would be 25 000$ *2* 0.5(their cut) = 25000. It would take you a little over 5 years to go from 700$ to 25000$ at 100% annual ROI. You could keep doing that for a couple years before you can do it comfortably with your own capital. 100% a year is excellent so don't use it as a benchmark, I used that number to illustrate my point lol.
Well said bro. Many retail traders are being pulled by the lure of "the more the leverage, the better." But that is far from the truth. It's no wonder many traders keep blowing out their accounts and losing money to the broker. Leverage is a double sided coin and it interests me that many times retail traders use it to beef up their small capital and then when they see a fund giving them more money than they are used to, they instead focus on the leverage again. It's a vicious cycle. LOL
Lets put it this way : I would rather be managing a 25k account risking 10% in total and making gains while keeping a sound mental state of mind than managing a 700USD account taking 1-2% risk while panicking about every trade. People need to focus on building % ROI instead of $ ROI. That way, if you are actually a good/profitable trader, you can get funding and just scale your business up without changing any of the execution. Here's to long-term thinking my friend!