Proprietary trading firms, also called “prop firms,” let aspiring traders trade with their capital for a share of profits. Some prop firms go beyond, hosting competitions for traders to display skills and win big rewards. In this blog, we’ll give an overview of prop firms with trading competitions. We’ll explore what they are, why they exist, and how they’re set up.
How Do Prop Firms Benefit From Hosting Competitions?
Prop firms see competitions as a way to find talented traders and help the trading community grow.
Prop firms benefit from hosting competitions in several ways:
- Competitions create a dynamic environment within the firm. They foster rivalry and push traders to perform at their best.
- Competitions promote the brand and attract new traders interested in prop trading careers. They boost visibility and serve as a platform for promotion.
- Competitions help prop firms find talented traders who can make profits for the firm.
- Finally, competitions bring traders together, encouraging connections and shared learning experiences.
Types of Competitions and Their Structures
Proprietary trading firm competitions have various structures. They test traders’ skills and create a competitive atmosphere. Common elements of these competitions include:
- Simulated vs. Live Trading: Many competitions use simulated trading environments. Others involve real trading with actual capital.
- Time Frames: Events vary from short challenges lasting hours or days to longer engagements over weeks or months.
- Risk Management Requirements: Competitions often have strict risk management rules. They limit drawdown amounts and need traders to follow predefined parameters.
- Performance Metrics: Performance metrics like profitability, risk-adjusted returns, and consistency determine winners in competitions.
Some competitions have extra rounds, like elimination stages or themed rounds. These help narrow down participants or focus on specific trading styles. Prop firm competitions let traders improve their skills, network, and start finance careers.
Popular Prop Firms Hosting Competitions
| Proprietary Trading Firm | Trading Competitions |
|---|---|
| E8 Funding | ✅ (Occasionally) |
| Alpha Capital Group | ✅ (Monthly) |
| AquaFunded | ❌ |
| Audacity Capital | ❌ |
| Bespoke Funding | ✅ (Monthly) |
| Blue Guardian | ❌ |
| City Traders Imperium | ✅ (Occasionally) |
| Crypto Fund Trader | ❌ |
| Direct Funded Trader | ❌ |
| Fidelcrest | ❌ |
| Finotive Funding | ✅ (Occasionally) |
| Forex Capital Funds | ❌ |
| Forex Prop Firm | ✅ (Monthly) |
| FTUK | ❌ |
| FTMO | ❌ |
| Funded Trading Plus | ❌ |
| FundedNext | ✅ (Monthly) |
| FunderPro | ✅ (Occasionally) |
| Funding Pips | ✅ (Monthly) |
| Glow Node | ❌ |
| Goat Funded Trader | ❌ |
| Leveled Up Society | ❌ |
| Lux Trading Firm | ❌ |
| Ment Funding | ❌ |
| MyFlashFunding | ❌ |
| MyFundedFX | ✅ (Monthly) |
| RebelsFunding | ✅ (Monthly) |
| Smart Prop Trader | ✅ (Monthly) |
| Super Funded | ❌ |
| SurgeTrader | ✅ (Occasionally) |
| The Funded Trader | ✅ (Monthly) |
| The Trading Pit | ❌ |
| The5%ers | ✅ (Occasionally) |
| Top One Trader | ❌ |
| TopTier Trader | ✅ (Monthly) |
| Trading Funds | ❌ |
| True Forex Funds | ❌ |
Strategies for Successful Participation
Participating in prop firm competitions can be a challenging yet rewarding experience. To succeed in these events, traders need a winning strategy, must grasp the rules, and handle risk well. Here are some tips for successful participation in prop firm competitions:
1. Understand the Rules and Conditions
Before joining a prop firm competition, it’s crucial to read and understand the rules and conditions. This involves understanding the evaluation criteria, risk management rules, and any other requirements or restrictions. Some competitions may have time limits or specific trading accounts, like challenge or funded trader accounts, with maximum lot sizes.
2. Develop a Winning Trading Strategy
To excel in prop firm competitions, traders need a winning strategy that fits the rules. They identify profitable opportunities like forex trading and manage risks to cut losses. Traders can practice in simulated environments to refine their approach and gain confidence.
3. Manage Risk
Prop firm competitions carry significant risk. Traders must manage it by following guidelines like limit drawdowns and avoid excessive leverage. They should also be cautious of risks in forex markets and proprietary trading and take steps to reduce them.
4. Utilize Social Media and Promo Codes
Some prop firm competitions give discounts or incentives for promoting on social media or using promo codes. Traders should use these to cut costs and boost their chances of success.
In summary, winning in prop firm competitions means having a solid trading strategy, knowing the rules, and managing risk well. Traders can also use social media and promo codes to save money and boost their chances. By sharpening skills and following smart risk management, traders can shine in these events and start finance careers.
