Trading Tips & Prop Firm Strategies | Cointracts Learning Hub

While not inherently scams, the forex prop firm industry requires significant caution. Legitimate firms offer traders capital in exchange for a profit share, but many predatory companies exist solely to collect evaluation fees through unattainable challenges. The key for any aspiring trader is to learn how to differentiate between genuine partners focused on mutual success and fraudulent operations designed to make you fail. A trustworthy firm empowers traders; a scam firm exploits their ambitions.

Yes, you can achieve a sophisticated trading experience with advanced tools without being tied to a proprietary firm. While you generally cannot use TradeLocker without a prop firm because it operates on a business-to-business (B2B) model, the underlying goal of most traders is to access a modern, powerful platform free from the restrictive rules of prop firm challenges. This freedom is entirely possible by trading through a direct brokerage that offers its own proprietary, next-generation trading platform, giving you full control over your capital and 100% of your profits.

SurgeTrader is a proprietary trading firm that distinguishes itself with a simplified, one-step evaluation process, offering traders a direct path to a funded account with up to a 90% profit share. It appeals to confident traders who want to bypass multi-phase challenges and quickly prove their profitability. Key features include no time limits on auditions, a profit target of 10%, and a straightforward set of rules, making it a compelling option in the competitive prop trading landscape.

The core difference between A-Book and B-Book prop firms lies in their execution model and fundamental conflict of interest. A-Book firms route trader orders directly to real markets (liquidity providers), earning revenue from commissions and fees, thus aligning their success with the trader's profitability. Conversely, B-Book firms act as the counterparty to their traders' positions, meaning they profit directly from trader losses, creating an inherent conflict.

Finding the proprietary trading firm with the absolute best spreads depends heavily on your specific trading strategy, preferred assets, and the time of day you trade, as spreads are inherently dynamic. However, traders often find that firms like FTMO and The Funded Trader offer highly competitive, low-spread environments, particularly through their raw spread or "swing" account types. These options are ideal for minimizing trading costs, which is a critical factor for achieving profitability in a funded account.

Several proprietary trading firms explicitly permit High-Frequency Trading (HFT), but they often come with specific rules to prevent exploitative strategies like latency arbitrage. Firms such as Quantect, Kortana FX, and MSolutions are known for being HFT-friendly. However, traders must carefully review each firm's terms, as the definition of "allowable HFT" varies significantly. A better approach for many automated traders is to seek firms with flexible rules that support Expert Advisors (EAs) and bots without overly restrictive time limits, such as Cointracts, which fosters an ideal environment for sophisticated, high-speed strategies.

While very few proprietary trading firms explicitly allow a trader to hold 20 active accounts simultaneously from the start, many leading firms permit traders to acquire multiple accounts sequentially over time. Firms like Apex Trader Funding are known for allowing up to 20 active accounts at once. Others, such as FTMO and The Funded Trader, allow traders to pass multiple challenges, which can then potentially be merged into a single, larger funded account upon reaching specific milestones. The optimal strategy often involves building a portfolio of accounts across different firms to effectively scale capital and diversify risk.

Vebson Prop Firm appears to be a legitimate proprietary trading firm offering funded accounts through one-step and two-step evaluation challenges. However, as a relatively new entity in the prop trading space, its long-term reliability is still under scrutiny, and trader feedback is mixed. Key considerations for its legitimacy include its transparent trading rules, clear profit split, and the availability of payout proofs from its user base.