The only question you should be asking yourself today is how much can I afford to lose while trading? In other words, how much can I risk losing without stressing about paying this month's expenses? Assuming you answered these questions truthfully, the answer to your choice of prop trading vs retail trading should be an easy one! You can be both a prop trader and a retail trader based on your trading experience and disposable income. However, most of you are looking to make your first $1000 or your first $10,000 while trading, but do not have enough disposable income to trade a retail portfolio, so you should be trading a prop firm account! If you have less than $500-$1000 at the end of the month after all expenses then you should be trading a prop trading account vs a retail trading account.
Our capital, your skills
If you have more than $10,000 in savings (the ideal amount for a small retail trading account), you qualify as a retail trader, and can have a small portfolio trading equities, forex, bonds, futures, and options! 5 Figures to 6 Figures in USD is optimal for a small portfolio for a retail trader in this decade! Just be wary of long-term investments in 2024 with the P/E ratio of most equities at an all-time high. Disclaimer: This is not financial advice, but there is a high probability of recession beginning August 2025 that would run on till the mid-end of 2026. This prospective situation would provide a once-in-a-lifetime buying opportunity to all retail traders and investors alike. So your wise choice now would be to get a double axe prop firm account with Axe Traders and save up $10,000-$100,000 in the next year before pulling the trigger on a big short 2.0 with options and buying the dip in the aftermath with equities and options. Again, not financial advice, this is purely an observation and a prediction on how the market's price action has played out when the FED cuts interest rates. (based on historical price action post-event).
If you have under $10,000 in savings (after all expenses have been deducted for the year), then you qualify as a prop trader, and can trade CFDs or Contracts for Differences of Forex, Indices, Commodities, and Cryptocurrencies! You can get a prop trading account with a reputable trading prop firm like Axe Trader with as little as a risk of $48 for a $5,000 account size with the prop firm model: Single Axe (one step or two step).
This way you can risk losing a finite amount of $48 in challenge fees prop trading vs risking losses on your whole $5000 retail trading portfolio. Make the smart choice here, as it's a no-brainer as you’d be risking 1/104 to manage a portfolio of $5000 with a prop firm account rather than risking $5000 as a retail trader with the traditional instruments!
So, are you Ready to take your trading to the next level? Traders get the funding you need with Axe Trader. Follow us on our socials to keep upto date with promos, and new updates to our business operations. Here’s all our Axe Trader social handles:
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Axe Trader Ltd. offers fee-based assessment services and facilitates connections with third parties for Potential Traders who meet specific criteria defined by Axe Trader (“Eligible Traders”). Our services involve evaluating the simulated trading performance and results of Potential Traders in certain virtual off-exchange foreign currency instrument pairs (“Forex”) and/or selected virtual contracts for differences (“CFDs”). We conduct data analysis based on simulated trading activities in demo accounts traded by Potential Traders through Axe Trader’s platform, utilizing data provided by a third-party broker. Our methods and techniques are established and maintained by Eligible Traders.
Axe Trader grants access to a third-party’s simulated trading platform, related demo accounts, and simulated trading information for the purpose of conducting data analysis and assessment services. This third-party offers Eligible Traders a simulated trading environment and an opportunity to earn a share of virtual trading gains generated in demo accounts, as specified in their agreement with the Eligible Trader.
Additionally, Eligible Traders acknowledge and agree, as outlined in their agreement, that the third party has the right to collect and use the data obtained from Axe Trader for their own benefit, including the option to replicate trading activities based on this data. The third party also retains the right to incorporate any information received from Axe Trader regarding Eligible Traders into actual live market trading, which they will conduct for their own account and at their own risk.
Theoretical performance outcomes should not be considered as reflective of real trading experiences and are typically formulated with the advantage of historical knowledge, which may either overstate or understate the influence of specific market factors such as limited liquidity and price fluctuations. Moreover, since theoretical trading does not carry financial risk, it cannot fully encompass the impact of various risk-related elements, including an individual’s or advisor’s capacity to manage losses or adhere to a specific trading strategy when confronted with trading setbacks.
