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How Do You Set Up A Proprietary Trading Firm?
Proprietary trading is an opportunity to take advantage of innovative investment strategies using your capital to maximise potential gains. How do you start?
November Tech Updates for Prop Trading Firms
November Updates: Axcera’s Latest Tech Updates November has been an exciting month for both the industry and Axcera, marked by significant progress behind the scenes. At Axcera, we remain dedicated to delivering cutting-edge tools and continuous innovation to keep proprietary trading firms ahead in a competitive landscape. This month, we’re excited to share updates designed to enhance user experience and streamline operations. In addition to introducing new features, we’ve made advancements in...
What Was The Legacy Of The Nifty Fifty For Proprietary Firms?
Financial markets are so unique and multi-faceted that there are multiple strategies available to prop firms, but this started through the failure of the norm.
How To Create A Prop Firm
If you are interested in the Forex market and have been involved as a trader, you might feel your knowledge can be put to greater use than simply trying to make more money yourself with ever smarter trades - lucrative though that may be. You may reach a point where you are attracted to setting up your own prop firm. Alternatively, you may not have been a trader yourself, but you have heard a bit about the concept of prop firms and want to know more - including whether it would be a good idea...
Why Is Prop Trading Still Shaped By Ancient Technology?
Given that the stock market can shift rapidly on a moment-to-moment basis, advanced prop firm technology on both the hardware and software end is required to execute effective trading strategies that make the most of your own capital. As technology has progressed, increasingly sophisticated and complex strategies, options, and processes have become available, giving innovative and brave traders the chance at a favoured fortune. However, despite so many advances and a tremendous evolution in...
Exactly How Far Has Prop Firm Tech Advanced?
The history of prop firm technology is not the same thing as the history of prop firms. This is something that may initially sound confusing, but it should not. If you are interested in the idea of starting a prop firm of your own, it is worth noting that these kinds of firms are a very modern innovation. They are generally agreed to have started in or not long before 2014, but, like anyone blowing out the candles on their tenth birthday cake, a lot has happened since they emerged into...
What Features Are Needed In Futures Prop Firm Software?
Investing is, by definition, a forward-thinking industry. Traders do not buy assets, whether they are shares, stocks, options, currency pairs or whatever form they take, without an expectation that they are likely to increase in price. However, the futures market takes this concept more literally, turning predictions on future market conditions into an asset that can be bought and sold, with a trade-off between predictability and volatility making it a potentially lucrative albeit risky market...
When Should You Not Start A Proprietary Trading Business?
One of the key tenets of due diligence in financial trading is not just finding reasons to invest but also reasons to stay away from a financial choice that could ultimately cause more problems than benefits. Starting a prop trading firm can be an exceptionally exciting endeavour, with a lot of freedom to experiment with trading strategies outside of the limitations of rules and regulations set by clients or by working for other firms. This is often the biggest motivation for creative, skilled...
Learning From Failure: Lesson For Prop Firm Success
If you are thinking of starting a prop trading firm, you will be in good company. Many companies have been established for this purpose over the past decade and have made a great success of it, especially when they invest in the right technology to give themselves and their traders the best chance to maximise every opportunity that comes their way. Being well-equipped with software is one of the most important things you can do, but it is not the only one. To make a success of establishing a...
Who Invented Automated Trading Before Financial Technology?
Whilst there are a lot of ways to invest effectively, success as a proprietary trading firm will depend a lot on the software and technology you use, not just in terms of efficacy but also in terms of matching the trading strategy you plan to use. The right technological solution ideally takes a high-level trading strategy and uses advanced analytics, technical analysis and anything else involving certain stocks that numbers are available for and uses it to create orders for the right stock at...
How Did The Financial Big Bang Affect Prop Firm Technology?
Technology is a critical component of any functioning financial market, and the most successful prop firms are ones with trading rooms focused on having the best and most appropriate technology for their particular trading strategies. All of this is only possible thanks to the events of 27th October 1986, an event so critical to the UK financial sector that it is simply known as The Big Bang. The Big Bang changed everything when it came to the UK financial sector and paved the way for a...
How Can Prop Firms Handle Major Market-Shaking Events?
This year has been one when electoral events have created plenty of uncertainty that could have had a significant impact on the value of currencies and, by extension, the Forex market. Some of these may have required significant shifts in trading strategies, while others could have required a rapid response. However, the nature of these events is they can be prepared for. While there was nothing surprising about the Labour Party sweeping into power at the recent UK general election, nor any...
Does Your Prop Firm Need A Technology Upgrade?
Most companies nowadays use modern digital technology in some way or another, even when they operate in a low-tech way such as face-to-face customer contact. But for some, tech is central to what they do. Either way, the need to upgrade technology comes about every so often. This may seem like an imposition, an inconvenience and a matter of extra cost as old systems become obsolete and the new software ceases to be compatible with them, but there are positives too. New tech means a range of...
How Can Prop Firm Tech Handle Political Uncertainty?
There are many times when money markets and stock markets are rocked by sudden, unexpected events. There can be natural disasters, wars, major terrorist incidents like 9/11 and, of course, moments of great political change and uncertainty. All this can lead to significant slippage as well as new possibilities. In these situations, money markets can be volatile. Opportunities can arise and vanish quickly. Therefore, it is important to be well supported by prop firm tech to handle data fast and...
How To Start Up Your Own Prop Firm
The Forex trading sector has always been important, but it has inevitably changed over time, especially as more sophisticated technology and ever-faster flows of information have come to the fore. A consequence of this is that relative values of different currencies can fluctuate swiftly in response to a multitude of factors, big or small, which can make a significant difference to the success a trader has on any given day, especially in trading practices like scalping. In addition, because...
How Did A Green Screen Terminal Change Financial Trading?
One of the most beautiful elements of being a proprietary trading firm is the fact that thanks to modern, dedicated software solutions, you can trade practically anywhere in the world, setting up a business in a place and in a way that works best for your staff and yourself. Part of what makes this possible is the evolution of electronic trading platforms, of which the most notable early example is the NASDAQ, which by 1992 accounted for 42 per cent of US trade volume. However, it was not the...
Is Now A Good Time To Set Up A Prop Firm?
Many factors can determine whether a new business will be successful or not, but it is not always about the economic cycle. For some companies, a recession or a period just before or after one when growth is slow is not an ideal time to set up firms that rely on people having a lot of disposable income, such as a restaurant or company selling luxury items. Equally, some firms can thrive in such circumstances, by offering cheap alternatives to expensive treats - a phenomenon known as the...
How Can Prop Firm Tech Help You Act Fast In Trading?
Setting up a prop firm can be an exciting prospect. With some talented traders on board, you can help serve a large number of clients in time, all of whom can be delighted with the profits you generate for them (and, by extension, you) through some smart trading. At the same time, you will know that you are taking a calculated risk, but one that could lead to substantial rewards along the way. When setting up a prop firm, you will certainly need some substantial capital to begin with. Part of...
What Did We Learn From LSE’s Failed Electronic Trading Technology?
The modern world of electronic trading platforms, prop firm software and a diverse range of traders using a variety of different strategies, data and technology at their disposal was built up piece by piece over the past few decades. Since the launch of the Nasdaq in 1971, technology has shaped how people trade and engage with the financial market as much as regulation and the assets available to trade have, and modern prop trading firms, even on a very small scale, will rely heavily on a wide...
How Can Prop Firm Technology Help In A Market Crisis?
The idea that a prop firm could manage in the modern stock market without the best technology is something that should strike anyone with even a passing knowledge of financial affairs as risible; in a world where modern tech helps people travel fast and information travel faster, a slow response can be fatal. Being able to make both informed decisions and react swiftly once it is clear which way the wind is blowing can make or break investments, as sudden changes in the values of currencies,...
How Technology Can Increase Prop Firm Success
Technology plays a huge part in every aspect of business these days, so it is not surprising that prop firms are increasingly taking advantage of modern solutions too. What do prop firms need help with? Proprietary firms work by providing traders with cash assets to use on the financial markets. These traders then give them a percentage of the profits they earn. This enables traders to gain a much bigger return than if they were only able to use a much smaller amount of capital, and it also...
How Has Prop Trading Technology Evolved Over The Years?
There are more options to set up a prop trading firm now than ever before, with wider access to various financial markets that allow anyone with capital to get onto the market and trade. Moreover, prop firm software solutions can often be tailored to the needs of a particular firm, sector or size of the investment, removing the technological and complex barriers to entry and allowing traders to focus their energies on the more important decisions. However, rather than merely making trading...
How Does Software Help With Risk Management?
The most successful trading operations are not the ones that take the fewest risks, but the ones that take the smartest risks, and a mix of intuition and technology can help a firm get ahead of its competition. There is no truly safe trading philosophy, of course; even low-risk, slow-yielding investments such as government gilts can suddenly fall in price as a result of wider economic factors. However, with proprietary trading firms in particular, where the capital invested comes from the...
The Most Unusual Piece Of Stock Trading Software Ever
Setting up a prop trading firm requires a lot of ingredients to succeed, including the right software, the right minds and enough startup capital to make meaningful trades whilst maintaining an acceptable risk tolerance. Most importantly it requires passion and insight to succeed. There are a lot of ways to get started in trading, and many inciting incidents that turn a curiosity about stocks and shares into a lifelong passion and a future career. One of the most unusual inspirations can come...
How The First Electronic Trading Platform Changed Everything
Financial markets are amongst the most advanced and fast-moving drivers of technology in the entire world of business and it is impossible for a proprietary trading firm to function effectively without effective software, tools and modelling programs. Almost every part of every person’s life is affected by fintech in one way or another, but in the world of investing, the scale of evolution in trading is astronomical, unprecedented and often one of the greatest challenges to firms given the...
What Was The First-Ever Online Stock Market?
Modern prop firm trading is heavily reliant on the adoption of advanced trading software in almost every aspect of a firm’s business, and in 2023 it is simply not an option to eschew trading software as part of a firm’s financial trading protocol. It is a fascinating subject and a huge part of the rapid growth of technology stocks from the 1990s until today has been caused in no small part thanks to the adoption of various different tools onto the very activity of trading, fundamentally...
Is Starting A Prop Trading Firm The Right Business For You?
If there was a single word to describe a proprietary trading firm, that one word would be “freedom”. Unlike retail or institutional trading, where traders buy and sell on behalf of either individual accounts or accounts managed by a larger institution, organisation or pension fund respectively, prop funds allow ambitious, skilled and inventive traders to be in complete control of their portfolio and strategy. This allows them to be more agile, take advantage of volatility in the market, adopt...