By tayyabrehmat 
Are you curious about how people make money by trading stocks, currencies, or commodities? Some people do this through a special kind of company called a prop trading firm. These firms allow traders to trade with the company’s money, not their own, to make a profit. If you do well, you get a share of the profits!
In this article, I’ll explain in simple terms what prop trading is and list some of the best prop trading firms that are available for people in Pakistan. Even if you’re new to this, don’t worry—this guide is designed to be easy to understand!
1. What Is Prop Trading?
Let’s start with the basics: Prop trading stands for proprietary trading. This means a company (the prop trading firm) allows traders to use their money to trade. In return, the trader gives part of the profits back to the firm.
So, if you are good at trading but don’t have a lot of money, a prop trading firm gives you the chance to trade with more money and potentially make a lot more profit.
How It Works:
- You apply to a prop trading firm and pass a test to show you can trade.
- The firm gives you money to trade in markets like stocks, currencies, or commodities.
- You keep a percentage of the profit you make, while the rest goes to the firm.
2. Why Choose a Prop Trading Firm?
If you’re wondering why people in Pakistan might choose a prop trading firm, here are a few reasons:
- No Big Investment Required: You don’t need to put in a lot of your own money.
- High Profit Potential: You can trade with much larger amounts than what you would normally have access to.
- Learn from Professionals: Some firms offer training and mentoring to help you improve your trading skills.
3. Best Prop Trading Firms for Investments in Pakistan
Now, let’s look at some of the top prop trading firms that are available for traders in Pakistan. These firms allow you to trade different types of assets like currencies, stocks, and commodities using their money. If you perform well, you can earn a lot!
1. FTMO
FTMO is one of the most popular prop trading firms in the world. They give traders a chance to trade with a large amount of capital once they pass a trading challenge. FTMO offers traders up to $200,000 to trade with!
How It Works:
- You have to pass their evaluation challenge, where you show your trading skills.
- If you pass, you can start trading with their money.
- You keep 70% of the profit, and FTMO takes the other 30%.
Why It’s Good for Pakistan:
- It’s available online, so you can join from anywhere in Pakistan.
- FTMO offers various payment methods, including PayPal and bank transfers, making it easy to receive your profits.
2. The 5%ers
The 5%ers is another well-known prop trading firm that helps traders grow by giving them access to capital. They are called “5%ers” because their program is focused on low-risk trading.
How It Works:
- You start by passing an evaluation, showing that you can make consistent profits.
- The 5%ers will give you money to trade with, and you keep 50% of the profit.
- You can start with $10,000 and can grow your account to manage even more money.
Why It’s Good for Pakistan:
- It’s open to traders worldwide, including Pakistan.
- They offer low-risk trading, which is good if you’re just starting out and don’t want to take too many risks.
3. TopStep
TopStep is another excellent option for traders who want to prove their skills and trade with firm capital. They are especially popular among traders who like to trade futures and forex markets.
How It Works:
- You start by trading in a simulated environment, and if you prove you’re good, you can start trading with real money.
- They offer different programs depending on your trading style.
- You keep 80% of the profit!
Why It’s Good for Pakistan:
- TopStep is available online, making it easy for people in Pakistan to join.
- You can trade forex, which is a popular market in Pakistan.
4. Lux Trading Firm
The Lux Trading Firm is based in Europe but offers traders from all over the world the chance to trade with their money. This firm is known for providing access to large amounts of capital to successful traders.
How It Works:
- You start by passing a trial period where you show your trading skills.
- Once you pass, you can trade with their money, and you can grow your account to manage up to $10 million!
- You keep 50% of the profits.
Why It’s Good for Pakistan:
- They provide a lot of capital, which is great for ambitious traders in Pakistan.
- You can trade a wide range of markets, including stocks, forex, and commodities.
5. Fidelcrest
Fidelcrest is another prop trading firm that allows traders to prove their skills and trade with firm capital. They offer different types of accounts for traders, including Micro and Pro accounts.
How It Works:
- You have to pass a trading challenge to prove that you can trade profitably.
- Once you pass, you can trade with up to $200,000.
- You keep up to 90% of the profits, depending on the account you choose.
Why It’s Good for Pakistan:
- It’s easy to join online.
- They offer flexible accounts, which is great for both beginners and experienced traders.
4. How to Get Started with Prop Trading in Pakistan
Now that you know about some of the best prop trading firms, here’s a simple guide on how to get started:
Step 1: Choose a Prop Trading Firm
First, decide which firm you want to trade with. You can check their websites, read reviews, and decide which one suits your trading style the best.
Step 2: Learn and Practice
Most firms will require you to pass an evaluation test, so it’s important to practice your trading skills. You can use demo accounts on platforms like MetaTrader to practice without risking real money.
Step 3: Take the Challenge
Once you feel ready, sign up for the evaluation or trading challenge. This is where you’ll show the firm that you can trade profitably. The challenge might last a few weeks or months, depending on the firm.
Step 4: Start Trading with Firm Capital
If you pass the evaluation, congratulations! You can now start trading with the firm’s money. Remember to be careful and stick to your trading plan to make consistent profits.
Step 5: Earn Profits
As you trade, you’ll start earning profits. The more you trade and the better you perform, the more profits you can earn. Most prop trading firms offer profit splits, where you get to keep a percentage of the profits.
5. Is Prop Trading Safe?
Prop trading can be a great way to make money if you are good at trading. However, it’s important to understand that it also comes with risks. Since you are trading with the firm’s money, they will have rules that you must follow. If you break these rules or lose too much money, the firm might stop you from trading with their capital.
Tips to Stay Safe:
- Start Small: Don’t try to make huge profits right away. Start by making small, consistent trades.
- Follow the Rules: Every prop trading firm has rules about how much money you can risk. Make sure you follow these rules to avoid losing access to the firm’s money.
- Keep Learning: The more you learn about trading, the better you’ll become. Always look for ways to improve your skills.
Conclusion
Prop trading can be a fantastic opportunity for traders in Pakistan who want to trade with large amounts of capital without having to risk their own money. Firms like FTMO, TopStep, and Fidelcrest offer great platforms for you to start your trading journey. Just remember to practice, follow the firm’s rules, and keep improving your skills. Happy trading!