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Financial Services Review | Monday, January 27, 2025
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Effectively predicting price movements and profiting from the differences—that’s a simplified description of trading. Trading involves dealing with various assets, from currencies and stocks to commodities. Proprietary trading, or prop trading, operates on the same principle, but the trader doesn’t use their own money. Instead, they utilize virtual capital provided by the firm they trade for, opening the door to substantial profits.
Prague, Czech Republic
Robert F., from Slovakia, has been trading for ten years, five of which have been full-time. Like many others, he was inspired by the movie *Wall Street*, starring Michael Douglas and Charlie Sheen. Since then, he has come a long way. Last summer, Robert earned over €40,000 through prop trading in just two weeks.
“I started by educating myself—reading ebooks, articles, watching videos, and tutorials,” Robert says. “I mainly trade currency pairs like EUR/USD, AUD/USD, and gold, and I try to close my trades within the same day,” the Slovak trader adds. Compared to traditional trading, he appreciates prop trading for enabling him to work with much larger sums.
How Does It Work?
In prop trading, traders use virtual capital provided by a company instead of their own funds. Several platforms have emerged to support this approach. One such platform is Fintokei, backed by the fintech group Purple Group.
The process involves opening an account, selecting the amount of capital to trade, paying a fee, and starting on a demo account—a simulated real market environment with virtual capital. Then comes the evaluation phase, during which the trader must meet specific requirements, such as achieving profit goals and avoiding certain losses. In this phase, traders risk none of their own money and earn rewards based on set percentages. Most traders remain in this mode.
If the trader fulfills the conditions, they receive access to an account where they can trade and withdraw a portion of the profits. While they still trade with virtual capital, the real money comes from Fintokei’s payouts—up to 100%. Upon reaching the first payout, the platform refunds the initial fee. Successful traders end up paying nothing and earning exclusively.
A Month’s Salary in 18 Minutes
Robert specializes in scalping, a trading style focused on rapidly opening and closing trades to profit from small price movements. His trades often last just a few minutes.
For example, last summer, Robert made nearly €1,600 in just 18 minutes through four quick trades involving gold. He used price action analysis to capitalize on favorable price trends. He exited his position after less than twenty minutes when the market began to reverse, securing a handsome payout.
Prop Trading Is About Mindset and Education
Proprietary trading isn’t easy. “Prop trading is much like professional sports—success often depends on your mindset and emotional control. Once emotions take over logic, mistakes happen,” says David Varga, Co-founder of Fintokei. Working on psychological resilience and emotional regulation is crucial, as is maintaining consistency. Having a plan and avoiding impulsive decisions are essential.
Education is equally vital. Trading is a skill governed by specific principles that traders must actively learn before expecting profits. Quality courses, webinars, and podcasts are available in the market. It’s advisable to work with reputable companies.
“Our educational materials reach thousands of people monthly, helping them navigate the trading world and equipping them with the best knowledge and skills, which we believe is crucial,” says David Varga, Co-founder of Fintokei.