How Much Do Prop Traders Really Make?

This is how prop traders get paid out.

[@user-ju1tp5bm2u]

You lose 100k and you get fired

[@jerryware1970]

You lose $25k at these firms and you’re fired.

[@PortCapital]

Nooo 100k was a extreme example. Only his top traders would ever lose 100k within a month. Those same traders likely have had few hundred thousand + months before they are able to lose that much. They start out with much smaller numbers and only the best get more and more risk

[@smbcapital]

Correct. We have had some traders lose 100k on the day but these are top guys who trade with millions and it’s a very rare occurrence. Usually from stuck in a halt.

[@josephcook4041]

Okay. I appreciate the video. But the video did not answer the question that is the title of the video. How much do they actually make?? 65% is not an amount. Can you give us any more insight on what they actually make??

[@PortCapital]

@@josephcook4041 first off the ones mAking 1-10mil plus a year are in the league oflike top sports players. Theyre the best of the best. And smb has many not sure exact number but i know of at least 2 that make over 10mil last yeR and several over 1mil. A fair amount are probably in the 500k ish range a year which are still talented traders and a more realistic goal to strive for.

[@ortegacapital]

Trading your own money will force you to be more precise. The pain of losing your hard earned money will turn you into a monster trader because you can’t afford to make those mistakes again. Pain can be a powerful motivator

[@ZOOLIFE1]

When he speak’s about trading your one money je sais : when you lost 100 K is very difficulté. ( he used a spécifique number 100k ) but he hen he talked about a prop trade he said : ( a couple hundred dollars and not being specific) why ?? Because he and the lady that he is talking to are gurus guy’s they are just there to sell you something , follow your own path . Peace ✌️

[@tariqs2072]

You losing 100k means you lost a hundred kay whether it's yours or your neighbour's. If you don't feel it when it belongs to someone else you need a checkup

[@beta6024]

Of course you fucking don't feel bad-it's not your money. But all that person who's money it was and see how they feel.

[@vashstampede4878]

It's the firm's money. They feel fine because they have a huge team of traders and the gains outweigh the losses.

[@vashstampede4878]

He's trying to explain why the traders would settle for 50% when they could be keeping 100% if they were trading their own money. The psychology of trading your own money can have an extremely negative impact on your performance. That's why they settle for 50%... Because if they were trading their own money and hit a drawdown phase, they'd likely lose their funds and house. Psychology has a LOT to do with trading.

[@smbcapital]

true, most new traders right out college don't have access to a few hundred K right away. We provide technology, training, risk management - all vital to succeed. Most retail traders would love access to these tools.

[@TheBkdot]

That emotion of failure is still there

[@blink2665]

FTMO gives 80% After 4 months if you consistent etc, 90% How much you earn depends also on how big is your margin.

[@newnametrading]

Are you trying to say ftmo is better than an institution?

[@blink2665]

@newnametrading am not trying to say anything wtf?

[@user-wo5nx7sg4b]

lol FTMO, you guys make me laugh. Even the largest of accounts they offer cannot compete with the risk profile that even a junior trader on any of these desks take on. Not to mention senior traders end up paying less or getting rebates on commissions, plus if you are worth your weight most end up with higher splits. Heck, I remember having breakeven months at a smaller firm like this, and still getting 30k back in commission rebates. FTMO and their ilk profits off failure rather than profitability. FTMO even caps capital at 2mill. My BP at a similar firm was 2.5x than that as a junior trader back in 2007, and we did not have to sit around worrying about losing an account and being inactive for a month or two over a 5% drawdown. Opportunity cost are the biggest costs out there. Your only concern at a real firm was if placed the correct trade in the proper manner, if you lost money properly then it was not a concern.

[@blink2665]

People like you make me laugh.So with 2 mil cap if you make 10-20% a month after commission its still 100k+ a month .That's is plenty of money Greedy fuckers.@@user-wo5nx7sg4b

[@blink2665]

Besides who cares what tool do you use as long you make silly money,and there is plenty of it. @@user-wo5nx7sg4b

[@niranjank353]

I will be coming to new york for my masters in finance which is a 2 year program and I am from India. Can I work as an intern and get full time job as a trader?

[@Viper_0930]

The amount of comments on here of people who have no idea about how this business works 😂😂

[@jonny7065]

What are the qualifications to be a trader for you?

[@joeb865]

For some reason I thought it was much higher than that... Still very fair. But for some reason I was thinking it was up to ninety percent for the trader. Not sure where I heard that but 50 to 65% still sounds very fair.

[@PortCapital]

It can be but as a starting trader they are taking big risk on you. 50% to start is only to see if youre worthwhile them they give more and more risk. Then your cut becomes bigger.

[@newnametrading]

No one seems to understand that smb is an entire institution and there turning you into profitable traders

[@user-pr8ox3qx6p]

Yeah if you choose to sign up with topstep or myff it’s 80-90% profits once funded. Disregarding payout rules.

[@krazycoolcat]

A better business model is traders deposit whatever amount (in a popular known broker) they can afford to lose which becomes their maxDD. For e.g, $15k(15%) and prop firm provides another $85k(85%). The acct is automatically suspended when $15k DD is reached. No need for redundant tests for a 50-50 profit sharing scheme since prop firm bear no losses...Where to find such an arrangement?

[@kanyesigyeivan633]

Margin

[@krazycoolcat]

@@kanyesigyeivan633 Not margin.

[@krazycoolcat]

Margin call is triggered differently and there could be a loan interest.

[@krazycoolcat]

If you trade in a standard $15k futures account, the broker can margin call you way before you reach a $3k drawdown. And for stock account, there's interest charged if you are holding stock position size above $15k... Totally different scenarios.

[@HarmonicLiving101com]

Do you allow traders to sell covered calls?

[@carllundgren9754]

You guys are making too many videos, i can't keep up with them all 😂😂 Don't stop I'm learning alot 👍

[@jakesbodyworks]

You allow that much of a drawdown? Why?

[@smbcapital]

only for the top guys. The new traders start out with a couple hundred as a stop

[@javamochafrap]

Make 100k and keep 50k. No thanks

[@nasu68000]

How do you create winning strategies?

[@smbcapital]

it usually involves having an idea and backtesting it for awhile, running the strategy on a small live account, more backtesting and fine tuning and then scaling it up. We continuously backtest strategies because markets are always changing

[@gallardorsq]

@@smbcapital How do you backtest strategies?

[@Milgamix77]

Optionsamurai

[@BballerShowcase]

@@gallardorsqyou gotta journal your trades my man! The process must be the same over 50 times, and from your data you have to tweak it

[@jamiesto]

At Apex I take 90% of my gains.

[@newnametrading]

Alex isn’t an institution

[@Coted1988]

Can you say a little more about apex? Thinking of joining.

[@DavidOnaolapo]

He thinks proprietary trading firms like smbcap are the same as funding firms aka propfirms

[@newnametrading]

@@DavidOnaolapo that’s majority of people , everyone is so extremely uneducated and won’t put in any effort to research

[@jamiesto]

It is Apex Trader Funding. If you Google them you can see how it works. I’m probably best not to give an in depth. You pay for eval (wait for a sale of 80% or more and try your pass.

[@Komsatas]

Idk, this looks like 9-5 job

[@gmg297]

What happens with the loosing trades? We all have those too

[@TheSheriffo123]

How can I join you

[@user-ub3qr4bj8g]

You can't.

[@chubulu9842]

Do you guys trade futures?

[@smbcapital]

for certain things yes. Mostly index futures and crypto but we are primarily stock and options

[@desmondwong740]

I’m in New York, how can I be a trader at your desk? I’m a consistent trader who is looking to improve my opportunities

[@smbcapital]

you can check out smbcap.com and apply there

[@desmondwong740]

@@smbcapital I already submitted an application for your 2024 summer student internship, maybe let’s set up an early interview? 😁

[@smbcapital]

You may have to wait until they start going through applicants. Another month or two is when they are likely to start the process. Until then, you should be creating playbooks of your best trades, tracking all your stats in tradervue, and working on your coding skills (python).

[@user-ul1ku1ds9d]

Look if you lose 20,000 dollars of their money…your out…common man. You’re going to let a trader lose 100,000? If yii are something is very interesting f in this business model….very interesting indeed. 😮

[@smbcapital]

this applies to our big traders who can put up millions in a month. 200K drawdown is normal for them. The newer guys would never be allowed to drawdown that much.

[@jeffnaval4894]

They based their trades on percentage. Lets say if they have 100m dollar then they trade 1%. Thats 1m. If they lose that 1% then on 2nd trade they do 1.5%. And if they lose again then 3%. If the 3rd trade succeed then they make 0.5% which is 500k profit. Prop trader trade with 80% success rate minimum on 1st trade. That escalate up by 95-96% on 2nd trade. 3rd trade is 99%. I never lose 3rd trade in my whole life. 3rd trade is my plan C. And i have plan all the way up to planF which is 6x trade.

[@bdml77]

I can't stand this woman - fake trader