Proprietary trading, or “prop trading” for short, is when a company trades using its own money instead of handling trades on behalf of clients. The goal? Pure profit. Unlike brokers who earn commissions, prop firms take on the risk — and keep the rewards — of every trade they make.
How does it work? Your trading activity helps generate insights and signals that we use to support our own proprietary strategies. When your trades are profitable, we benefit — and you get paid.
At MySureFunds, we’re changing the game by giving skilled traders a chance to be part of this model. You trade with virtual capital under real market conditions, and when your trades perform well, we share the profits with you — in real money.
On top of profit-sharing, you’ll also get access to tools, data, and a professional-grade trading environment to give you the edge you need in the markets.
Proprietary trading — or prop trading — is when a financial firm uses its own capital to trade the markets for direct profit, rather than acting on behalf of clients. These trades are often speculative and can involve a range of financial instruments, from stocks and currencies to complex derivatives. Unlike brokers who earn commissions, prop trading firms aim to generate returns from their own market positions.
In a prop trading setup, firms allocate capital to traders who then make independent trading decisions. These traders are responsible for developing and executing strategies — whether it’s day trading, swing trading, arbitrage, or global macro plays. While they have freedom in how they operate, their performance directly impacts the firm’s bottom line, which is why strong trading discipline is key.
Risk management is at the core of prop trading. Since the firm’s capital is at stake, traders operate under strict guidelines — including drawdown limits that prevent excessive losses. If a trader’s account dips beyond a set threshold, trading access is typically suspended to protect the firm’s funds. In this way, prop trading combines the excitement of independent trading with the structure and oversight of a professional environment.
No Personal Capital Required
Higher Profit Potential
Access to Professional Tools
Traders use the firm’s money, not their own. This means you can trade larger positions without risking your savings.
Because firms offer generous profit splits, skilled traders can earn significantly more than they would trading independently.
Prop traders often get access to advanced platforms, analytics, and real-time market data that retail traders can’t afford.
Built-In Risk Management
Learning & Growth Opportunities
Flexible Trading Styles
Firms implement strict rules and limits to protect their capital — helping traders build discipline and avoid catastrophic losses.
Prop trading exposes you to a fast-paced, high-performance environment where you can sharpen your skills and learn from market behavior.
Most prop firms give traders the freedom to choose their own strategy — from scalping to macro — as long as it stays within risk limits.
Strict Performance Expectations
Limited Control Over Terms
If you don’t meet profit targets or exceed risk limits, you could lose access to funding — no second chances in some cases.
Payouts, rules, and trading conditions are set by the firm. You have to play by their rules, even if they don’t always match your ideal setup.
Imagine a proprietary trading desk focused on forex and commodities. The team includes several traders, each with a specific strategy — one specializes in short-term scalping, another in macroeconomic news trading, and another in technical trend following. They’re all trading with the firm’s capital, not their own money.
Each morning, the team reviews global economic news, analyzes charts, and sets their trading plans. They use advanced platforms with real-time data, automated alerts, and direct market access. Risk managers monitor exposure and step in if limits are approached.
At the end of each week, profits are reviewed. If the traders have performed well and stayed within risk rules, they receive a payout — often a large share of the gains. This setup creates a high-performance environment where traders focus on results, not commissions, and the firm benefits from their skill and discipline.
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Hedge funds manage money on behalf of clients and earn fees based on performance and assets under management. Their goal is to grow investor capital, and they must follow strict regulations and reporting rules.
Prop trading firms, on the other hand, trade with their own money to make direct profits. There are no clients involved — just the firm and its traders. The focus is on short-term gains and fast execution.
While hedge funds serve investors, proprietary trading is all about using skill to grow the firm’s capital. One manages money; the other bets its own.
A prop trader — short for proprietary trader — is someone who trades financial markets using a firm’s capital instead of their own money. The goal is simple: generate profits for the firm. In return, the trader earns a percentage of those profits, often through a performance-based payout.
Proprietary traders can trade anything from stocks and forex to crypto and futures. They use a wide range of strategies, from day trading to swing trading or arbitrage (for example merger arbitrage, volatility arbitrage, index arbitrage) and global macro trading. While they have freedom in how they trade, they must follow the firm’s risk rules — like maximum drawdown or daily loss limits.
Unlike traditional retail traders who risk personal funds, prop traders have access to larger capital, professional tools, and firm support. However, they must prove their skill, often by passing a challenge or evaluation phase to prove their trading abilities.
In short, a prop trader is a performance-driven trader, trusted to trade with the firm’s money — and rewarded when they succeed.
A prop trading firm — short for proprietary trading firm — is a company that uses its own money to trade financial markets for profit. Unlike brokers or asset managers who trade on behalf of clients, a prop firm takes on all the risk and reward itself.
These firms hire or partner with individual traders, giving them access to company capital to trade stocks, forex, crypto, or other assets. If the trader performs well, they earn a share of the profits generated — often without risking any of their own funds.
To protect their funds, prop firms set strict rules around how to manage risk, such as maximum drawdowns or daily loss limits. Some firms require aspiring traders to pass an evaluation or challenge to prove their skills before gaining access to a funded account.
In short, a prop trading firm backs talented potential traders with its own capital, aiming to generate substantial profits through their success.
Selecting the right platform among so many available trading platforms is crucial for your success as a trader. Here’s a guide to help you make the best decision when it comes to online prop firms:
Support and Resource
Choose a firm that offers strong support, whether through training, mentorship, or access to advanced tools. The best firms invest in trader development and provide the resources needed to succeed, like real-time data and strategy-building tools.
By focusing on these factors, you can find a prop trading firm that not only suits your trading goals but also provides the environment and support needed for long-term success.
Prop trading is an excellent opportunity for both aspiring and experienced traders. For beginners, it’s a way to explore the trading world without risking personal capital, while experienced traders can access higher funding levels, profit-sharing opportunities, and sophisticated tools and data.
At MySureFunds, we offer a fully self-sufficient prop trading experience, with our own technology and resources, meaning you don’t need to rely on external brokers.
We’re committed to helping new traders get started and supporting experienced traders who want to take their skills to the next level. That’s why we created the MySureFunds Prop Trader Challenge — your chance to prove your skills and start trading with real capital.
Let’s have a look at different strategies of Prop Trading:
Each of these trading strategies offers a unique approach to this type of trading, so choosing one depends on your risk tolerance, trading style, and market preferences.
Getting started with prop trading at MySureFunds is your gateway to unlocking professional-level trading without risking your own capital. Whether you’re a beginner eager to learn or an experienced trader ready to scale, we provide the tools, resources, and funding you need to succeed. Our straightforward evaluation process helps you prove your skills, and once you’re funded, the real opportunities begin.
Ready to take your trading to the next level?
Start your journey today with MySureFunds and trade with confidence!