"to protect themselves from the rockstar trader making bank on sim." a honest business model would actually wont worry about this if they were honestly taking each trade to the real market Trader wins . Firm wins ( I am talking about Futures exchanges not OTC CFD)
You would actually want to even copy the trades. Can you imagine if this whole "funded trader" business model was to find a trader with very good performance and then just execute their own trades with large size? I do remember someone once asked a guy who worked for a broker if they monitor the client trades and profit off of them. I think the answer went something along the lines of it being much more profitable to just provide the service than to copy trades. But for these much smaller firms, I think it would almost make sense to copy trades if they really do find an exceptional trader out of thousands.
Did you miss the part where he said "live brokerage account"? Regulations are moving towards these kind of prop firms needing to provide live accounts as well, like some firms have been doing for ages, such as Topstep. Nothing unfair about that kind of business model.
If these business really offer live accounts that is good but do they? why this BS about A and B book at all? are you ignoring this issue? just because you have blind faith in this business model
Again, do some research before spreading this BS. I actually am a live funded trader at Topstep and I tested it myself ... My orders did show up in the orderbook. I wonder though, what kind of experience do you have with these firms to have such a strong opinion, one that is clearly wrong ... You read it somewhere so it must be true? You don't even have the slightest idea what you are talking about, so why don't you make sure you gain some knowledge regarding the subject before you give your opinion again ...
All you have to say is I am spreading BS Bro I have a simple question ... where does the money come from in the following case 1) Direct funded accounts where the trades don;t go to real market? SO the "firm" must be taking a huge risk ...hoping there wont be enough winners...all of a sudden Take this Tradefundrr mob .. they offer anybody an Direct funded account NO test for $399 but the fine print says it is a SIM account
TST says "In the Trading Combine and Express Funded Account, trades are simulated and don't go to a real exchange. These accounts allow you to demonstrate your trading skills and earn from your trading without additional fees. So in express account if all of a sudden traders start making money TST has to pay them from own pocket! and that could be a downfall of this model ,, meaning not good for the traders who are joining Only in Live Funded Account, your trades will go to a real exchange. The support chat gives this vague answer While your trades don't go to a real exchange, they inform our live prop firm trades. This setup enables us to manage risk more effectively while still providing you with earning opportunities. What a load of BS on one hand they admit the trades dont' go to real exchange and then they say they still pay! HOW from failed fees or that is the risk they always take! here are names of some of properly regulated "Prop Firms" Jump Trading / Optiver/ Bright Trading who don;t do all this BS.. broker dealer member of FINRA
Topstep has been in this business for something like 12 years, if there was going to be a downfall it would have happened already. In fact as far as I know Topstep is the only firm working with regulatory bodies and the CME to make sure they are doing things right for all parties involved and always have been transparent when they were asked. You would have known that if you had done a bit more research instead of relying on a standardised answer from support or a chat bot. There is absolutely no point in having a conversation with you about this subject. You already know the answer to the questions you have asked 100 times before. You keep calling it dishonest with nothing to back it up, you keep comparing these remote kind of prop firms to traditional prop firms while they are completely different, you keep mentioning trades aren't real when they clearly are with the reputable companies (and duh, of course they are going to put you on sim first, no-one with more than 1 braincell would give a live account to anyone straight away without analysing their abilities or reducing the risk for a loss, since as anyone should know most traders fail. It really amazes me that you can't figure that out ...), the list is endless. Congratulations, you just made my ignore list. This has been going on for long enough.
There's never any mystery about that: it takes only seconds to see. All you have to do is very briefly enter a stop order far from the current price and see whether it shows up in the exchange's DoM. Case closed. It's not something they can fool anyone about! Sorry, @traderjo , but on this subject you really do come across as "the voice of prejudice" with very little understanding indeed of what you're talking about. If you don't like funding companies, that's fine: don't use them - but it helps nobody to blather away on the subject as you continually do, with inaccuracies, nonsense and ill-informed misinformation.
You keep calling it dishonest with nothing to back it up, Their own people say "Express Funded Account, trades are simulated and don't go to a real exchange" so it is valid question to ask where do they pay from ? Dishonest part is it is not genuine funding that the TRUE props I mentioned provide,, You can bash me as much as you like talking to you guys is like talking to a cult member.... ever wondered why so many are propping up everyday and going bust too ? none of these are FINRA regulated and still call themselves PROP firms!