Best Forex Proprietary Trading Companies in Pretoria
The Best prop trading company in Pretoria - Topstep
The top prop trading companies in Pretoria:
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Topstep - 100% of the initial $10,000 and then 90% (profit split); TSTrader, Quantower, Sierra Chart, T4, MotiveWave (Trading platform)
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FTMO - One of the largest prop companies with favorable conditions (profit split up to 90%)
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The5ers - Up to 100% (profit split); MetaTrader 5 (Trading platform)
The Forex market space is developing into a place where beginners and seasoned traders in Pretoria can trade currency pairs, as some factors that limit traders are no more. The introduction of copy trading systems and PAMM accounts is helping beginner traders profit from trading with zero trading skills. Then, the innovation of prop trading companies in Pretoria seems to be what expert traders who are financially handicapped need to get back into the trading space.
A Forex proprietary trading firm in South Africa provides large funds for traders who have the skill to trade currency pairs. Because this procedure is only for experienced traders, the prop firm assesses each trader before granting them access to a funded account. Therefore, a trader must pass the assessment, which may require showcasing their trading abilities in trades.
Therefore, it is best to research any potential prop trading companies in Pretoria before signing up because some service terms may be more lenient than others. In this article, TU experts will provide traders with the best Forex prop firms in Pretoria.
What is prop trading?
Proprietary trading (also known informally as Prop trading) refers to when a financial institution such as a commercial bank, a brokerage firm or even an investment bank directly trades or invests in activities in the stock market. These organizations can trade bonds, stocks, commodities, derivatives, currencies, and other instruments.
These institutions use their own funds for trading and investing in the stock market and not their clients’ money. So on top of the commission from processing trades for their clients, they can earn the full profits from engaging in the trades as well.
Top 3 prop trading accounts in Pretoria
Topstep
With its brand power and reputation as an industry innovator and one of Inc 5000’s fastest-growing companies, Topstep has earned the trust of many traders. To participate in the funded account program, all traders begin with the Trading Combine. You can open a real-time simulated futures account with $150K, $200K, or $300K buying power.
During the Trading Combine, you can earn a funded trading account if you demonstrate consistent profitability and manage risk appropriately. Using Topstep's capital, you can trade in real time without personal financial risk, with funds provided by Topstep.
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As quickly as within eight trading days, traders can qualify to receive a funded account (the amount of funding provided is determined by the Trading Combine plan)
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The first $5,000 in profits you make can be withdrawn in full, and 90% of profits exceeding that amount can be withdrawn
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With Topstep, payout requests are processed on a daily basis (payout requests made prior to 10 a.m. CT are processed on the same day)
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Topstep’s trader development services include instruction from professional traders, tools, and daily live videos, along with personalized analytics on performance and bonuses for traders
Trading platforms supported include TSTrader, TradingView, NinjaTrader, Sierra Chart, MultiCharts, R|Trader Pro, and many more.
For a $50k account, Topstep pricing starts at $165 per month. $100k accounts cost $325 per month, and $150k accounts cost $375. Free trials are also available for 14 days.
FTMO
FTMO offers an opportunity for traders to potentially manage significant capital by demonstrating their trading skills. Their evaluation process consists of two stages - a Challenge and Verification - designed to identify disciplined traders with consistent performance.
The Challenge is the first step, where traders must adhere to specific Trading Objectives assessing risk management and trading ability. Successfully completing the Challenge allows progression to the Verification stage.
During Verification, traders continue exhibiting compliance and stable results as a final confirmation of their capabilities. Upon passing both stages, traders become official FTMO Traders with access to accounts of up to $200,000.
FTMO also offers an Account Swing option allowing weekend position holding and trades during releases. Consistent profitability leads to Scaling Plans growing balances by 25% every 4 months, incentivizing long-term growth.
For accessibility, FTMO provides a Free Trial experience without financial commitment. Traditional payout ratios are 80%, increasing to 90% under Scaling Plans. FTMO offers flexible payout options, allowing traders to request payouts on-demand after a minimum of 14 days, with the ability to select their own Profit Split Day and make changes up to three times.
To support their traders, FTMO provides a comprehensive suite of tools and resources. These include custom trading apps, performance analysis, multilingual support, educational resources, and performance coaching. FTMO maintains exceptional conditions such as low costs, 1:100 leverage, reimbursable fees, and major platform flexibility across instruments. Traders can freely utilize preferred strategies.
The5ers
The5%ers is a reputable prop trading firm that specializes in Forex trading. Along with Forex, the platform supports trading with indices, cryptocurrencies, and precious metals. The firm stands out with its diverse funding account options, accommodating traders with different capital levels and risk preferences. Experienced traders can join the Hyper Growth program, where they can trade live from day one and double their account with every milestone achieved. The High-Stake program suits those with aggressive trading strategies, offering higher risks and rewards. Beginners can opt for the Bootcamp program, which provides a six-figure funded account and 100% profit upon completing the three-phase challenges. The5%ers ensures realistic trading requirements and access to better accounts without extra charges.
Rules and Regulation
Regulation
Prop trading in the South African Republic is considered an unlicensed and non-regulated activity, given that prop firms don’t act as brokers, are not involved in trading on stock exchanges or over-the-counter markets, or don’t manage investor money. Therefore, prop firms don’t require licenses. However, upon successful completion of the challenge, a prop firm can offer you to work through its partnering broker, that must have a license.
Investor protection
The financial regulator of South Africa is FSCA (the Financial Sector Conduct Authority). The FSCA considers disputes and claims against licensed brokers and foreign companies that violate rights of the country’s residents.
Prior to starting your work with a prop firm, do the following:
- Check whether it is on the blacklist of the national regulator and regulators at the place of its registration;
- Find out information on the subsequent working model. If you are offered to work through a partnering broker, check its license.
Taxation
The country applies the progressive income tax rate on trading in international markets. It can range from 18% to 45% subject to the taxable amount.
Is Forex prop trading a good idea in Pretoria?
Yes. While Forex prop trading is an excellent option for experienced traders, novice traders eager to learn how to trade currency pairs in Pretoria can benefit from this trading offer. A prop firm is a business that provides seasoned traders with a funded account to use for larger-scale forex trading.
With these accounts, traders in Pretoria can open positions that exceed their financial capacity. While this could be risky, the trader's capital is not what is at risk here, even though losing traders could cost the trader the account.
The percentage ratio set by the prop firm determines how the profits are divided between the two parties (prop firm and trader). So long as successful traders use funded Forex accounts to execute their trades, reputable Forex prop firms make money. The knowledge and proficiency of a trader in trading currency pairs is what gets them a place in Forex proprietary trading firms. Below are some benefits and drawbacks of trading with a Forex prop firm-funded account.
👍 Advantages of Forex prop firms in Pretoria
• Forex prop firms offer sophisticated trading platforms, substantial data feeds, in-depth research reports, and cutting-edge analysis tools to prop traders
• Some prop firms provide free trial accounts to traders and guidelines for conscientious risk management
• With the prop firm affiliate programs, traders in Pretoria get an extra way to make money by prompting the services of the prop firm on trading communities or social media platforms
• If a trade fails and a trader loses money, the prop firm will not demand payment from the traders. Some prop firms offer a funded account without challenge
👎 Disadvantages of Forex prop firms in Pretoria
• The offer is not totally free; some prop companies in Pretoria demand what is known as a subscription fee from the trader when they first sign up
• There is a rigorous evaluation process, and traders may have to adhere to the terms set by prop trading companies in Pretoria, which could be strict
How to choose a prop trading account in Pretoria?
Due to the abundance of prop trading firms in Pretoria, traders flounder when deciding which firms to select. But if you understand the nuances and what to look for in Forex prop firms, your chances of finding the best firm rise. The critical elements that Forex prop traders should contrast when evaluating Forex proprietary trading companies are listed below.
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Forex prop firm's reputation: The credibility of a reputable Pretoria Forex proprietary trading firm is undeniable, but you can be sure if you check their regulatory bio
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Experience: Verify how long the prop firm has been in business; this will help determine if it is a Forex prop company to establish a long-term partnership
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Service terms of the Forex prop firm: Because every trader has a different trading style and each prop firm in Pretoria has its own service terms, it is important to find out the regulations governing prop firms. It will help you know how much it could impact your trading
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The share ratio and drawdown caps: Look into the broker split percentage to see how it differs between brokers. Many of the prop trading companies in Pretoria offer a 70% to 90% profit share
FAQs
What are the best prop firms in South Africa?
The top South African prop firms give traders a high-profit split (up to 90%), a variety of account models, a wide range of trading tools, round-the-clock customer service, access to MT4 and MT5, their own proprietary trading software, and flexible withdrawal options. Topstep, FTMO, The5ers, and FundedNext are among the best prop firms integrating the features mentioned above.
How much do prop firms pay traders?
According to research, traders who work for legitimate prop trading companies can expect to make around $100,000 a year. At the start of their professional prop trading career, some prop company traders make between $70,000 and $80,000. However, the exact earnings will vary depending on the trader's expertise and the prop firm. When a prop trader's profit is split 90:10, it means that the firm pays the trader 90% of what they made, leaving the prop firm with just 10% of each trader's profits.
Which prop firm is the best?
There is no fit for all prop firm brokers since what a trader likes about a broker can differ from what others prefer. But reputable brokers like Topstep and The5ers that offer traders top trading platforms and tools, educational resources, and high payouts can be tagged as the best prop companies.
How much do prop firms charge?
Prop firms charge between $100 and $250 when they first show their prop trading interest. This is known as a prop firm sign-on fee, and each prop company has a specific fee it charges traders. For example, Topstep and The 5%ers require $165 and €235, respectively.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
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Team that worked on the article
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).