I've just noticed that many people are interested in prop trading — what it is — because they see it as a seemingly easy way to make money with high potential. But in reality, it's much more complex than it appears. I want to share my understanding of this topic more clearly.

The real prop trading is a system where companies offer funding to traders so they can trade in various markets, and profits are shared according to a contract. Some companies offer a 50/50 split, others 25-30%, depending on the trader’s skill. This method is gradually becoming more accessible, especially in online formats that don’t require going to an office.

For Forex prop trading, there are two types: the traditional one where traders are hired as actual employees, and the online version where traders pay an application fee and are evaluated before gaining access to capital. In recent years, the online format has gained popularity, especially after 2020, when the internet and online trading expanded rapidly.

The application process for prop trading involves finding a suitable company, checking qualifications and requirements, submitting an online application with your experience information. Some companies conduct interviews. If you pass, you receive funding and start the evaluation phase, which usually takes 30-60 days. During this period, you must prove that you can generate profits and follow the company's rules.

The advantage of prop trading is the freedom to set your own schedule and the opportunity to make continuous profits if successful. Most of the risk lies with the company; you only risk the application fee, and you gain access to large capital without bearing it yourself. There’s also a community of traders ready to help and share insights.

However, there are many downsides: you need high discipline and mental strength, be the master of your emotions, avoid revenge trading or taking excessive risks. Evaluation fees can be expensive, and income is inconsistent — no regular salary or benefits like office workers.

A good strategy for prop trading is to strictly control risk management, risking only what you can afford to lose. Keep your emotions in check, avoid gambling mentality, stick to what you know and what works, trade at resistance and support levels, and use indicators like RSI, which measures the speed and change of price movements.

Risk management in prop trading is very important. You must constantly learn about the Forex market, develop and stick to effective strategies, test them in demo accounts before risking real money, and only risk money you can afford to lose without financial hardship.

If you're considering entering prop trading, it’s an interesting option, but you need to understand that it requires dedication, skills, and strong mental resilience. Choose a reputable company that aligns with your goals. If you're ready, check out the options available on Gate or other platforms.