Prop Trading

Prop Trading (or Proprietary Trading) refers to trading on one’s own account, where a proprietary trading firm, like The5ers, funds traders with its own capital. Unlike independent traders who use their personal funds, traders financed by a prop trading firm do not risk their own money and share profits based on a predefined model.

Advantages of Prop Trading:
Access to significant capital without personal financial risk.
Profit-sharing model of up to 100%.
Scalable funding opportunities based on performance.
Coaching and educational resources to enhance trading skills.
However, these programs typically enforce strict risk management rules, profit targets, and drawdown limits, ensuring that traders follow disciplined and sustainable trading strategies.