That’s because as we tell you all about what is a prop trader, you’ll find that you can double your profit in no time.
Are you ready?
What is Proprietary Trading?
Let’s get to the point right away, what does proprietary trading mean?
Proprietary trading is an act of investment to direct market gain. It is a common alternative for financial or commercial firms and banks.
These companies source their profits from this investment rather than just relying completely on their commission-based business profit.
What is a Prop Trader?
Now, what is a prop trader or a proprietary trader exactly?
These are basically individuals that are in charge of trading the firm or banks’ capital.
Yes, you read that right, proprietary investments give them the right to use their company’s capital as a source of additional and shared income.
How To Become a Prop Trader?
Now that you’ve learned just how profitable investments like these are, you’re probably interested. Don’t worry, we have your back.
Entering the prop trading world has become more accessible through the years. You may even do it remotely in the comfort of your own home.
Becoming a prop trader is as easy as sending in an application for a funded trading program. Some firms require interviews, some come with evaluation periods, and some will take you in immediately.
But of course, to make sure you get the position, you have to have great knowledge of what does a proprietary trader do.
How Much Do Prop Traders Make?
After walking you through the whole “what is a prop trader” topic, let’s talk money.
As always, salaries for the proprietary trader position vary from company to company. Country to country even, due to the conversion rates.
Most salaries are based on the traders’ performance rather than the minimum wage in the area. The majority of their salaries come from bonuses since they are paid by splitting profits with the firm.
The median wage for this position stands at $203,679.
In the United States, salaries range from $42,373 all the way to $793,331. As we said, it varies greatly on your performance.