A crypto proprietary (prop) trading firm provides crypto traders the opportunity to trade with a funded account. To access these funds, traders must first succeed in a crypto trading challenge, after which they can retain up to 90% of the profits they generate. To receive a funded account, traders are required to achieve a profit target of up to 15% during the challenge.
Most crypto proprietary trading firms employ their own trading strategies, such as high-frequency trading (HFT), algorithmic trading, market making, or they provide trading challenges and opportunities for retail traders. It’s crucial to distinguish between
- Traditional proprietary trading firms.
- Proprietary trading firms offering both real trading and simulated trading accounts.
- Proprietary trading firms that offer only simulated trading accounts.
as each tier represents different levels of service, strategy sophistication, and market impact.