They are certainly a "funded trader" firm. If the definition of a "prop firm" is a firm that has people trading money belonging to the firm and getting paid based on how well they trade that money, then TradeDay qualifies. Other "funded trader" firms may or may not.
I'm not implying anything negative, just encouraging those who talk about prop firms to be sure they know what one is. The internet is full of resources on this if you want to do more research.
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Maybe we can just call them "funding companies" or something that does not use another term that already has a different, and established, meaning (as "prop firms" does).
"Anyone taken aboard must contribute their own capital as an entry fee, and will be subject to trading risk limits. A prop shop splits trading profits, if any, between the firm and the trader. "
Not the same thing at all. Although there are also similarities, but still somewhat not the same.
@josh, or anyone with experience with those firms, may want to fill in some details, to add to people's understanding.
But I'm voting for not using "prop firm" when "funding firm" is the more descriptive term. It may avoid confusing different things.
(And hopefully this does simply contribute to semantic hair-splitting. )
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
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These firms are hiring you, and they want track records, and you are not bringing any money to the table, generally. Depending on what you're trading, you may be required to take an exam (back in the day, I had to take a FINRA Series 56 exam to even trade, for example).
Other firms do require you to bring some of your own capital, and the barrier to entry is usually lower. However, they do not require you to pay any kind of monthly subscription, etc. They make money if you make money, and they may lose some money if you do, but usually you will bear most of the risk. Why do this? Exposure to others, and increased margin to trade larger, along with heavily discounted commissions and fees.
Then there are funded trader programs. You are a customer, and must pay money to even get the opportunity to trade. In some cases "live traders" are in fact still on sim. I won't rehash all of what's known, but suffice to say it's different than the others.
I have traded for a prop firm, for what that's worth (not much really IMO). As for terminology, it doesn't much matter to me what people call them; I just wanted to clarify any current or future readers of the thread who don't know the difference.
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Thanks for all the replies, there's certainly a lot of them. And most of them could apply to any of the other funding firms.
Have you actually been paid out by them?
EDIT: Actually I'm very suspicious of you, seeing as how you joined 2 days ago and can post in this section already. I'll be reporting this as this part of the forum is supposed to prevent exactly this sort of behaviour.
The following user says Thank You to VirtualMark for this post:
Can you take a look at "RCOtrader" above? He's literally joined 2 days ago, must have spammed the hell out of the site to be able to post here, which I believe is against the rules? Then appears in this section vehemently defending Tradeday.
The following user says Thank You to VirtualMark for this post:
Member @RCOtrader opened an account on October 31, just days ago, and has since made 14 posts, some one after the other. He has made four in this TradeDay vendor review thread since reaching the mandatory minimum of 10 posts required to post in a vendor review thread.
Of his 14 posts, all but three or four have explicitly mentioned this vendor, usually in a glowing light and considerable detail about its good points. Of the few not solely dedicated to TradeDay, some were focused on favorably presenting the model of trader funding companies as a low-cost way for traders to enter into profitable trading.
It is perfectly natural and legitimate to want to point out the value of a company that a person has had good dealings with, and both favorable and unfavorable reviews are welcome, so long as they represent the actual experience of the trader and provide legitimate information or perspective. But there is a difference between that and this persistent, sales-oriented campaign of persuasion.
This flood of posts in praise of this vendor reads like ad copy.
Member @RCOtrader has been banned for vendor promotion, in violation of forum rules, and his posts have been deleted. The ban will be permanent.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
The following 3 users say Thank You to bobwest for this post:
Sup folks. I've passed the challenge (finally) for Tradeday. Starting funded account. Will post my experience after a withdrawal (if I don't break things).
"It does not matter how slowly you go, as long as you do not stop." Confucius
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