EXPOSED: The Prop Trading Industry — Transcript

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1. 0:00You can have a profitable strategy and
2. 0:02still go nowhere as a trader because it
3. 0:05usually comes down to just one thing,
4. 0:08access to larger capital. And that's
5. 0:11exactly what prop trading is supposed to
6. 0:13solve. Let me show you what I mean. This
7. 0:16is trader A. He has $5,000 in personal
8. 0:19capital and he's trading with all of it.
9. 0:22And this is trader B. He has access to
10. 0:25$100,000 through a prop firm and he paid
11. 0:28about $500 to get that account. Both
12. 0:31traders are using the exact same
13. 0:33strategy and make 5% a month. [music]
14. 0:36Now, trader B will grow to a million
15. 0:38dollars in capital just under 4 years.
16. 0:42But over that same period of time,
17. 0:44trader A only grows to about $50,000.
18. 0:48But here's where it gets interesting.
19. 0:50Trader A would need another year just to
20. 0:54get to where trader B started, $100,000.
21. 0:57While trader B hits a million dollars in
22. 1:00under 4 years. Same strategy, same
23. 1:04skill, but one critical difference. Who
24. 1:07has access to more capital? But here's
25. 1:09the best part. Trader A has his entire
26. 1:12$5,000 on the line while trader B is
27. 1:16only risking what he paid to access that
28. 1:19account, about $500.
29. 1:21This is exactly what prop firms give
30. 1:24you, access to 100,000, 500,000, even a
31. 1:27million dollars in capital without
32. 1:30having to put up anywhere near that
33. 1:32amount of money yourself. But this is
34. 1:34where most traders run into problems. To
35. 1:36access that capital, you first need to
36. 1:39pass an evaluation. That's just a test
37. 1:41to prove you can trade and manage risk.
38. 1:44Firms want to fund traders that are
39. 1:46profitable. But let's make one thing
40. 1:48clear. A lot of traders don't pass on
41. 1:51the first attempt. So, I ran the
42. 1:53numbers. Across the major prop firms, if
43. 1:56it takes three attempts to pass, you're
44. 1:59looking at around $1,700
45. 2:01just to get funded. And that's before
46. 2:03you've even made a single dollar
47. 2:05trading. But when a trader does pass,
48. 2:08it's not just about being profitable.
49. 2:11It's about staying within a very
50. 2:12specific set of rules. Here's a perfect
51. 2:15example of what I mean. Some firms use
52. 2:18what's called an intraday drawdown rule.
53. 2:21This means your account can't drop more
54. 2:23than about 5% [music]
55. 2:25from its highest peak during the day.
56. 2:27Otherwise, you completely lose the
57. 2:30account. You won't be funded anymore,
58. 2:32and you have to start from square one.
59. 2:34Now, let's think about this. You can be
60. 2:36up 10% on a trading day, pull back 5%,
61. 2:41still finish the day in profit, and lose
62. 2:43your account anyways. That's a strict
63. 2:46rule, and it makes [music] staying
64. 2:47funded incredibly difficult. But let's
65. 2:50say you do everything right. You manage
66. 2:52risk, you trade profitably, and you stay
67. 2:55within the rules. Do you actually get
68. 2:57paid? Because in this space, payout
69. 3:00issues have been around since day one.
70. 3:02And in 2024, this issue got so serious
71. 3:06that some firms had to completely change
72. 3:08how they operated. And just two months
73. 3:11ago, a major firm shut down its prop
74. 3:13trading operation entirely. Let's be
75. 3:16honest. No matter how you slice it, the
76. 3:19opportunity is real. But the way it's
77. 3:21set up shoots itself in the foot. And
78. 3:24the reality is, if one firm actually got
79. 3:27this right, it would work for everyone,
80. 3:30the trader and the firm. And doing this
81. 3:33really just comes down to three simple
82. 3:36things. That's it. First, the cost to
83. 3:39get funded has to actually make sense.
84. 3:42Because we just saw many traders don't
85. 3:45pass on the first attempt. So, if the
86. 3:47model depends on retries, the the can't
87. 3:51punish you for it. Otherwise, you might
88. 3:53end up paying thousands of dollars just
89. 3:55to access the opportunity. And if good
90. 3:57traders are getting priced out before
91. 4:00they ever get funded, then what's the
92. 4:01point of the model in the first place?
93. 4:04Second, risk management rules can't be
94. 4:06set up in a way that kills the trader.
95. 4:09We saw this earlier. It's not just about
96. 4:11being profitable. In a lot of cases, it
97. 4:14comes down to just not breaking a rule.
98. 4:16So, remove the intraday drawdown rule.
99. 4:19Your risk is based on your end of day
100. 4:21balance. That simple. If you go too big
101. 4:24on position sizing once or twice, the
102. 4:27system closes the trade, not your
103. 4:29account. And you're not confined to a
104. 4:31specific trading style, either. You can
105. 4:34swing trade, hold overnight, the
106. 4:36weekend, trade the news, strategies that
107. 4:39traders actually use. Now, look. Let's
108. 4:42be fair. Firms need to protect their
109. 4:45capital. So, managing risk to some
110. 4:47degree makes sense. But, risk management
111. 4:50cannot come down to technicalities.
112. 4:52[music]
113. 4:53No one should be consistently profitable
114. 4:56and still fail on a gotcha. Finally, and
115. 4:59this is non-negotiable, if you're
116. 5:01profitable, you get paid. That's it.
117. 5:04Now, let's be clear. This is the
118. 5:06standard that all prop firms should
119. 5:08meet. But, if you look around, most
120. 5:11don't even come close. But, one does, IQ
121. 5:15Capital. And the reason it does comes
122. 5:17down to how it was built. When a prop
123. 5:19firm is built to work with the trader,
124. 5:22not against them, that's when it becomes
125. 5:24a very real opportunity in finance. You
126. 5:27can trade with large capital without
127. 5:29putting your own money on the line in
128. 5:32the same way. You keep most of the
129. 5:34upside while your downside is defined
130. 5:37and controlled. You can actually trade
131. 5:39in a way that fits your style, and
132. 5:41you're not fighting technicalities.
133. 5:43You're actually focused on your trading.
134. 5:45That's the model, and it's not
135. 5:47complicated. And that's exactly why who
136. 5:49built this actually matters. This is not
137. 5:52just another faceless challenge melt. It
138. 5:54was built by someone who's been on both
139. 5:57sides of it. His name is Kristoff
140. 5:59Radacquer. He's a trading vice world
141. 6:01champion and former co-founder of one of
142. 6:03the largest prop firms in Europe.
143. 6:06Kristoff has been inside these firms for
144. 6:08years. He knows where things don't make
145. 6:11sense and what needs to change. Here's a
146. 6:13perfect example of that change. Most
147. 6:16firms will charge you 50 or $100 just to
148. 6:19get your foot in the door with their
149. 6:21smallest account. At IQ Capital, you can
150. 6:24test the entire system for just $1. But,
151. 6:27here's the real question you're probably
152. 6:29wondering. If you actually perform, do
153. 6:32you get paid? At IQ Capital, to date,
154. 6:36every trader who's earned a payout has
155. 6:38been paid. No delays, no excuses, no
156. 6:42games. Because at the end of the day,
157. 6:45that's the whole point. If a trader can
158. 6:47perform and a firm funds them, it's a
159. 6:49mutually beneficial relationship. But,
160. 6:52no, it doesn't stop there. We know most
161. 6:55firms bury you in rules, where one
162. 6:58regular trading mistake can cost you
163. 7:01your entire account. IQ Capital keeps
164. 7:04this as simple as possible. No intraday
165. 7:07drawdowns killing your account because
166. 7:09you gave back open profit. Your risk is
167. 7:12based on your end-of-day balance,
168. 7:14period. And if you take on too big of a
169. 7:16position once or twice, the trade gets
170. 7:19cut, not your entire account. And most
171. 7:21importantly, you stay funded. You manage
172. 7:24your risk simply, and you trade. But,
173. 7:26here's what actually matters the most.
174. 7:28We already know that some traders will
175. 7:31take time to figure out prop trading.
176. 7:33So, the most important question is, what
177. 7:36does it cost to actually get funded?
178. 7:39Now, across most firms, if it takes
179. 7:41three or even two attempts, you're
180. 7:44easily looking at over a thousand
181. 7:46dollars just to get funded. And that's
182. 7:49money you have to earn back just to get
183. 7:52even. Now, think about this for a
184. 7:54second. If a firm actually wants good
185. 7:56traders, then this doesn't really make
186. 7:59sense. IQ Capital knows that. With IQ
187. 8:03Capital, by the third attempt, you're
188. 8:05saving over a thousand dollars on
189. 8:08average compared to competitors in this
190. 8:11space. That's up to 69% cheaper overall.
191. 8:15Firms that want good traders won't
192. 8:17squeeze as much as they can from you
193. 8:19while you take time to figure things
194. 8:21out. Now, here's what we're all
195. 8:23wondering. How can IQ Capital even offer
196. 8:26this opportunity at that price? And this
197. 8:29is where Kristoff did something simple.
198. 8:31He implemented crypto-native
199. 8:33infrastructure, no legacy tech overhead,
200. 8:36secured institutional backing, no
201. 8:39middleman markup, and he knows how these
202. 8:41firms are run. So, if something doesn't
203. 8:43need to be there, it gets cut. The
204. 8:45operation stays lean, and savings go to
205. 8:49traders. Now, when we put all of this
206. 8:51together, low cost to start, a structure
207. 8:53that actually makes sense, and rules
208. 8:56that don't work against you, this is
209. 8:58what a prop firm should look like. Built
210. 9:01by a trader for traders. If you want to
211. 9:04try it yourself, you can test the full
212. 9:06system for just $1. But, remember this.
213. 9:09There are over 200 prop firms available,
214. 9:12so we need a way to know which ones give
215. 9:15us an actual shot at success. And that's
216. 9:18exactly what I'll show you in the next
217. 9:20video.
218. 9:44>> Mhm.