The Rise of Prop Trading: How Firms Like Monevis Empower Traders to Succeed

Prop trading, or proprietary trading, is a form of trading in financial markets where traders use the firm’s capital instead of their own. This model emerged as a response to firms seeking to increase profits from financial operations while giving talented traders the opportunity to trade without the need for significant personal capital. Prop firms provide capital and risk management, allowing traders to focus on trading while the firm safeguards its funds.

Why did the prop trading business emerge?

Prop trading firms arose due to the growing demand for alternatives to traditional investing. Companies realized they could profit not only from the markets themselves but also by enabling skilled traders to operate with their capital. This arrangement benefits both parties – the firm earns a share of the profits, while the trader gains access to large amounts of capital without risking their own money.

Another key reason for the rise of these firms was market globalization and technological advancements, which made online trading more accessible. Today, traders from anywhere in the world can access funds and advance their careers.

How do prop firms operate?

Trader selection: Each prop firm carefully selects traders based on their skills and strategies. Typically, traders undergo a series of evaluations or a trial phase with limited capital to demonstrate they meet the firm’s risk management and profitability criteria.

Providing capital:
After passing the trial phase, the firm provides traders with capital to trade. The capital amount can gradually increase as the trader proves their skills and consistent performance. Prop firm Monevis offers top traders access to substantial capital, and our traders are known for their determination and discipline, which help them follow their strategies effectively.

Payouts:
A key part of working with prop firms is the payouts. Traders work with the firm’s capital, and the profits they generate are split between the trader and the firm, often on a predetermined basis (e.g., 70% to the trader and 30% to the firm). Monevis has already paid out over $300,000 to its traders, with our growth exceeding expectations. We’re hitting new milestones at a rapid pace and continuously enhancing our services.

Risk management:
Prop firms place a strong emphasis on risk management. Every trader must adhere to strict rules limiting maximum daily losses, drawdowns, or the size of individual trades. These rules are crucial for maintaining long-term profitability for both the firm and its traders. Monevis utilizes innovative tools like our trading calendar and ABook, which ensure maximum transparency and efficiency.

What is a prop firm?

A prop firm, or proprietary trading firm, is a company that provides its traders with capital to trade in financial markets. Unlike traditional brokers, who make money primarily from fees and spreads, prop firms share trading profits with their traders. The main benefits for traders include access to significant capital without the risk of losing their own money and the ability to focus solely on their trading strategies.

Companies like Monevis offer talented traders the opportunity to trade with capital as high as hundreds of thousands of dollars, while also providing professional support, advanced analytics tools, and a transparent payout system. This model creates an efficient environment for those passionate about trading, while allowing firms to profit from market returns. Our CEO, Miloš Mošovský, is constantly striving to make Monevis the perfect “home” for all traders – a place where they can fully unlock their potential and grow along with us.