Best Forex Proprietary Trading Companies in India
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If you're too busy to read the entire article and want a quick answer, the best Forex proprietary trading company in India is FundedNext. Why? Here are its key advantages:
- Is legit in your country
- Has a good user satisfaction score
- Structured evaluation of trading processes
- High profit splits
Best Forex Prop Firms in India:
- FundedNext - Beginners-friendly offers (free trial, trade copier software is allowed)
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Instant Funding - Prop firm offering instant funding with account sizes up to $80,000
- GoatFundedTrader - A proprietary trading firm registered in Saint Lucia and Hong Kong, offering simulated capital of up to $400,000 for Forex and CFD trading.
- The Trading Pit - Free extras for futures trading (various platforms licences, L1 and L2 data)
While many traders in India start out trading their own accounts, the popularity of proprietary trading firms that fund traders is also growing.
Proprietary trading companies provide capital for traders to increase their position sizes and profit potential. In return, the company earns a percentage of the trader's profits. Prop firms hire experienced Forex traders, as well as provide training programs for new talent. They use advanced risk management to preserve their trading capital.
For Indian traders interested in earning a full-time income from Forex, joining a proprietary trading firm can be a viable option. This allows traders to avoid limitations of personal account size and leverage restrictions.
In this article, we will look at some of the top proprietary trading companies that stand out for their training, platform technologies, account leverage, funding limits, and overall terms.
Is Forex prop trading a good idea in India?
Forex prop trading, short for proprietary trading, offers an exciting opportunity in the financial markets. In this approach, traders utilize the capital of a proprietary trading firm rather than their own funds. These firms provide traders with funded accounts, enabling them to execute trades using the firm's resources. In return, traders share a portion of their profits with the company, often within the range of 50-90%. To participate in Forex prop trading, individuals typically need to pass an evaluation process to qualify for a funded account. This method allows traders to access more capital than they possess independently and employ various trading strategies, including day trading, swing trading, and position trading, in the Forex market.
In the Indian context, Forex prop trading may be viable if the trader mitigates the prevalent challenges while embracing the benefit of the opportunity. Experts have discussed this further by highlighting the pros and cons of prop trading in India.
- Pros
- Cons
- Increased trading power
Through Forex prop trading, Indian traders get to access more capital than they possess independently, significantly boosting their buying power in the market - Established international firms
Indian traders also have the option to choose from an array of international prop trading firms that are cash-rich and can provide stable and high amounts of funding - Professional trading environment
Proprietary trading firms offer traders a professional trading environment, which can facilitate skill development and additional exposure within the tightly regulated Indian Forex environment - Performance-based compensation
These firms typically share a portion of the profits with traders, creating a performance-based compensation structure. Skilled Indian traders can take advantage of the same by showcasing consistent performance
- Tight regulatory environment
Prop trading firms in India are regulated by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), who place strict limits on the functioning of the firms through mandatory capital requirements, reporting obligations, leverage limits, etc - Difficult qualification
Traders aiming to participate in Forex prop trading often need to pass a rigorous evaluation process, which can be challenging and time-consuming - Strict rules
Proprietary trading firms tend to enforce strict rules and guidelines that traders must adhere to, potentially limiting their trading strategies and flexibility - Risk of loss
As with any form of trading, Forex prop trading carries inherent risks. Traders can incur losses due to poor decision-making or adverse market movements
Top 5 prop trading accounts for Indians
We compared five leading prop firms with the lowest available challenge prices that accept clients from India. Here are the key factors we analyzed:
| Profit split up to, % | Funding Up To, $ | Max. Leverage | Mandatory Stop Loss | Weekend Position Closure | |
|---|---|---|---|---|---|
| 95 | 4 000 000 | 1:100 | No | No | |
| 90 | 200 000 | 1:30 | No | No | |
| 90 | 2 500 000 | 1:100 | No | No | |
| 95 | 2 000 000 | 1:100 | No | No | |
| 80 | 5 000 000 | 1:30 | No | No |
What are challenge conditions to consider?
We also compared the challenge conditions for the most affordable trading plan offered by these firms.
| Trading Plans | Price, USD or EUR | Profit target, $ | Daily loss,% | Max. loss, % | Managed amount, USD | |
|---|---|---|---|---|---|---|
|
Stellar Challenge 1 Step |
65 |
600 |
3 |
6 |
6 000 |
|
|
Essential |
119 |
2000 |
5 |
6 |
20 000 |
|
|
One Phase |
49 |
500 |
3 |
8 |
5 000 |
|
|
1 Step |
114 |
1500 |
4 |
6 |
15 000 |
|
|
CFD |
99 |
1000 |
4 |
7 |
10 000 |
Rules and Regulation
Regulation
India has strict qualification of managing traders. Only brokers’ employees certified by the National Institute of Securities Markets (NISM) can execute trades on prop accounts. If traders are certified with one broker, they can’t work with another one. Thus, there are no strict requirements to prop firms and brokers themselves, but there are restrictions that forbid traders from working with several prop accounts.Investor protection
There is rather strict legislation in India that limits trading CFDs with leverage. Therefore, if traders work with a company that violates local legislation, their interests are not protected.
If traders find evidence that a prop firm of any jurisdiction violates Indian financial laws, they can file complaints with the Reserve Bank of India (RBI).Taxation
Subject to the taxable amount and the asset type, the tax rate can be up to 30%. Trading digital assets is another asset category with an increased tax rate.
How to withdraw money from a prop trading account?
Withdrawing money from a proprietary trading account involves the following steps:
1. Check withdrawal regulations
Before initiating a withdrawal request, traders should carefully review the withdrawal regulations provided by their proprietary trading firm. These firms often have specific guidelines and rules that traders must adhere to when withdrawing funds.
2. Submit a withdrawal request
To start the withdrawal process, traders need to submit a formal withdrawal request to the broker or financial institution managing their proprietary trading account. The processing time for this request can vary, usually taking a few hours to a few days, depending on the firm.
3. Choose a withdrawal method
Traders typically have various withdrawal methods at their disposal, such as bank wire transfers, PayPal, Payoneer, Revolut, Wise, or even cryptocurrency withdrawals, depending on the specific proprietary trading firm. It's essential to note that some firms may impose withdrawal fees, while others might waive these fees for larger withdrawal amounts.
4. Allow for processing time
Proprietary trading firms often have designated days for processing withdrawals, such as every Tuesday. To ensure timely processing, traders should make sure to submit their withdrawal requests before the firm's specified deadline.
5. Withdrawal fees
Traders should also take withdrawal fees into account. These fees can vary based on factors such as the currency exchange rates, and withdrawal limits set by the broker. It's crucial to understand these fees to make informed decisions about managing capital returns while minimizing taxation and restricted withdrawals due to excessive fee costs.
6. Monthly profit split withdrawals
Profit splitting in a funded trading account requires prior agreement and mutual understanding between the account owner and the broker. Rules for withdrawals may differ based on the account type and the assets being traded. Generally, withdrawals should not exceed the remaining account balance, and profits from a funded trading account are typically subject to taxation, with tax rates varying by jurisdiction. Account owners are usually responsible for reporting and paying taxes on their trading profits. Additionally, withdrawal fees may be applicable in certain situations, depending on the broker and the type of account.
How to choose a prop trading account in India?
When researching different proprietary trading firms in India, experts suggest considering the following factors to make an informed decision:
1. Reputation and track record
Start by evaluating the reputation and track record of each proprietary trading firm. Look for firms with a strong history of success and positive reviews from traders. Online forums and reviews can be valuable resources for this. Also, judge their compliance history with Indian regulators.
2. Compensation structure
Compare the compensation structures offered by different firms. Consider factors like profit sharing percentages and any other incentives they provide. Ensure that the compensation aligns with your trading goals.
3. Evaluation process
Examine the evaluation process required to qualify for a funded trading account. It should be fair, transparent, and well-documented. Ensure that the criteria are reasonable and achievable.
4. Regional support
If you prefer communication in a specific language or require regional support, look for firms that offer such services. Language support in Hindi, especially in regions like India, can be crucial for effective communication.
5. Withdrawal regulations
Thoroughly review the withdrawal regulations of the proprietary trading firm you're interested in. Make sure the withdrawal process is straightforward and free from hidden fees or restrictions. Transparency in this regard is vital.
6. Trading platform
The trading platform is your primary tool for executing trades. Seek firms that offer reliable, user-friendly platforms with a wide range of trading tools and features. A robust platform can significantly impact your trading experience.
7. Profit split
Understand the profit-sharing arrangement with the proprietary trading firm. Consider what percentage of profits they share with traders and whether this aligns with your financial goals.
8. Available instruments
Evaluate the diversity of instruments available for trading. A broader range of instruments can provide more trading opportunities. Ensure that the firm offers the instruments you're interested in.
9. Cost
Consider the costs associated with applying for and maintaining a funded trading account. Some firms may have application fees or ongoing charges, so factor these into your decision-making process.
Is prop trading in India free?
Proprietary trading, often referred to as prop trading, in India typically involves a partnership between traders and prop trading firms. While traders have the opportunity to trade with the firm's capital and share profits, it's important to note that prop trading firms often charge traders a monthly subscription or desk fee for access to their resources and trading platforms.
The monthly subscription fee can vary significantly among different prop trading firms and is influenced by various factors, including the firm's reputation, resources, and the trader's chosen account type. In India, monthly subscription fees for prop trading accounts generally range from approximately $125 to $650 or even more, depending on the specific firm and the services provided.
Expert Opinion
Prop trading undeniably offers intriguing opportunities to gain experience and profit using larger position sizes. However, it is crucial for aspiring traders to properly manage expectations.
The promise of large profits may seem enticing, but the reality is that consistent success in financial markets remains challenging. Even seasoned professionals face drawdowns and losing periods. Those entering prop trading should treat it as an educational journey rather than a shortcut to riches. While the reward is high, so is the pressure to perform. Fundamental trading skills like risk management, discipline, and psychology are most important for long-term achievement.
When selecting a firm, look for ones with transparent evaluations and realistic profit targets. Avoid locations that dangle improbable returns or charge exorbitant fees. It is also wise to research a firm's history thoroughly.
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.
FAQs
What are the best Forex prop firms in India?
Finding the best Forex proprietary trading firms in India requires research and consideration of various factors. Some well-known and reputable prop trading firms in India include Topstep, Fidelcrest, Earn2Trade, The5ers, SurgeTrader. However, it's essential to thoroughly evaluate each firm's terms, fee structures, and track record to determine which one aligns best with your trading goals and preferences.
Is prop trading legit in India?
Yes, proprietary trading, commonly referred to as prop trading, is a legitimate activity in India. Prop trading involves traders partnering with firms to trade using the firm's capital. To engage in prop trading, traders should ensure they collaborate with reputable and authorized prop trading firms that adhere to the regulatory guidelines set forth by the relevant authorities.
Do prop traders make a lot of money?
The potential earnings of prop traders vary widely and depend on several factors, including their trading skills, strategies, risk management, and the prop trading firm's profit-sharing arrangement. While some prop traders can earn substantial profits, it's important to note that trading involves inherent risks, and not all traders achieve significant financial success.
How do I become a prop trader?
To become a prop trader, you typically follow these steps:
- Research and choose a reputable prop trading firm that aligns with your trading goals
- Complete any necessary registration or evaluation processes required by the firm
- Fund your trading account or pass the firm's evaluation to access their capital
- Develop and execute trading strategies while adhering to the firm's guidelines and risk management rules
- Share a portion of the profits earned with the prop trading firm as per the agreed-upon profit-sharing arrangement
- Additionally, continuous learning, discipline, and a commitment to improving your trading skills are essential for success in prop trading
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Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
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).
