Virtual proprietary (prop) trading occurs when a trader uses a virtual proprietary trading firm’s virtual capital to buy and sell tradable assets. Depending on the firm’s structure and location, it may or may not be subject to certain regulations. Whether you need a license or certification for virtual prop trading largely depends on the firm you trade with and the rules they must follow.

Becoming a virtually funded prop trader with SurgeTrader is simple and does not require any certifications or licenses.

What Are the Requirements for Prop Virtual Traders?

The requirements to become a virtual prop trader depend on the firm you’re interested in. If you desire to be a prop trader with a virtual trading prop firm, there may be very few requirements to get started. Anyone can trade with SurgeTrader as long as they meet the following criteria:

Taking the following steps may help you pass the Audition:

In general, virtual trading prop firms require traders to demonstrate their trading and risk management skills before granting them a virtually funded account. Since these firms give traders access to substantial virtual capital, they need to know their traders will handle their accounts responsibly. This does not mean you must be an expert to start virtual prop trading, but you’ll likely want to know some basics first.

Do You Need Any Licenses or Certifications to be a Virtually Funded Prop Trader?

Whether you need a license or certification to be a virtually funded prop trader varies based on the specific firm. You do not need a license or certificate to trade with SurgeTrader. This is the case with many virtual trading prop firms.

Do You Need Any Licenses or Certifications to be a Virtually Funded Prop Trader?

Virtual proprietary trading regulations can get complicated, but in general, virtual trading prop companies providing virtual funded accounts to independent traders are not subject to the same regulations as broker-dealers or financial institutions in the United States.

In most cases, broker-dealer firms are required to register with the Securities and Exchange Commission (SEC). They must also be members of the Financial Industry Regulatory Authority (FINRA). The individuals who work for broker-dealer firms must pass an exam and obtain the relevant license before buying and selling securities on their customers’ behalf.

A virtual trading prop firm like SurgeTrader is not a broker-dealer or financial institution. As a result, our traders do not need to get licensed before they start virtually trading. Our mission is to help virtually funded prop traders capitalize on their talents and obtain financial freedom — all while minimizing roadblocks to success.

If you have any questions about how virtual prop trading works at SurgeTrader, we encourage you to contact us.

How to Get Into Virtual Prop Trading

Virtual prop trading offers many advantages, like low capital risk and substantial gains potential. To become a virtually funded prop trader, we recommend taking the following steps:

  • Learn: The first step to becoming a virtual prop trader is educating yourself. It’s crucial to have a good grasp of various trading strategies and markets. It also helps ensure you can analyze financial data like market trends and understand risk management. Remember to learn specifically about virtual prop trading so you know what to expect.
  • Research: After you have a solid understanding of trading and all that it entails, it’s time to research virtual prop trading firms. Look for a company that’s transparent about its pricing and rules, has a good reputation and offers fair virtual profit-sharing. Bonus points if the firm provides live support, educational resources and a well-established trader community.
  • Practice: Practicing is an excellent way to hone your skills and ensure you’re ready. One way to practice virtual prop trading is to set up a demo account with the firm you’re interested in, if it’s an option. A demo account lets you test your skills and strategies in a simulated environment without risking money. It also allows you to try the firm’s trading platform so you feel comfortable with its features before your account goes live.
  • Consider: Virtual prop trading is generally less risky than other trading types, but it still involves some risk. It’s essential to cultivate a positive mindset and develop emotional control before becoming a virtual prop trader. Consider if you have the discipline, stress tolerance, resilience and passion to succeed as a virtual prop trader. Thinking about your psychological skills beforehand can help you determine if virtual prop trading is worth your time and energy.
  • Audition: Once you feel confident in your skills, you’re ready to take the next step. At SurgeTrader, we evaluate potential traders by requiring them to complete an Audition. Our Audition is performed with a demo account. You’ll trade in a simulated environment while meeting our requirements, such as hitting a specific virtual profit target. Once you pass the Audition, you’ll gain access to a virtually funded account and can start trading and generating gains.

While virtual prop trading does require some trading knowledge and skill, it can be a great option for beginners. Virtual prop trading allows traders at any level to apply their skills and grow their understanding without using their own capital. It’s an attractive option for anyone who wants to be a prop trader but needs more capital to create significant gains.

We welcome virtual prop traders of various skill levels and strive to make the Audition beneficial to everyone — whether it serves as a learning experience or opens the door to a long-term prop trading career. Our Audition features simple trading rules and no minimum trading days.

Take the SurgeTrader Audition

Prop trading with a virtual trading prop firm can be a lucrative and exciting path for traders desiring autonomy and minimum start-up requirements. If you’re ready to dive into virtual prop trading with SurgeTrader, select your Audition type and start trading today.

Take the SurgeTrader Audition