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Funded Trading Accounts vs. Proprietary Trading: Understanding the Differences
In the world of financial markets, trading offers various avenues for individuals to engage with global markets. Two popular methods that attract aspiring traders are funded trading accounts and proprietary trading. While both offer access to capital for trading, they operate under different models and conditions. Understanding the key differences between these two can help traders make informed decisions about which path best suits their goals and risk tolerance. 1. Capital and Ownership The most significant difference between funded trading accounts and proprietary trading lies in the capital and ownership. In funded trading, a trader is given access to a firm’s capital after passing specific evaluation criteria or assessments. The…