Are you wondering which trading path to take? Generally speaking, you have two options — you can be a virtual proprietary (prop) trader with a virtual trading prop firm, or use a self-funded account to carry out trading activities.

A virtual proprietary trading firm provides traders with virtual capital to trade in crypto, commodities, currencies and other financial instruments. Depending on the firm, traders may also have access to a streamlined dashboard and data analysis tools to make trading more enjoyable and potentially more lucrative.

Self-funded trading, by contrast, involves using one’s own capital to buy and sell assets. With this option, traders put their money at risk but have more control over their accounts.

Whether you should opt for virtual prop firm or self-funded trading depends on your preferences. Explore the benefits of both options to help you choose the most suitable path.

The Benefits of Using a Virtual Trading Prop Firm

Becoming a virtual prop trader can be an excellent option for those seeking to hone their skills and gain financial independence without the risks of self-funded trading. Here are some of the top benefits of opening an account with a virtual trading prop firm.

1. Access to Substantial Gains

A common deterrent for traders is a lack of capital. Virtual trading prop firms solve this problem. When you join a virtual trading prop firm, you typically gain access to a large amount of virtual capital. In other words, you get to trade with someone else’s virtual money.

For instance, your virtual trading prop firm may give you access to a virtually funded account with thousands of dollars. You’ll use this virtual capital to trade assets in a demo account and, ideally, generate gains. If your trades create gains, you keep part of the gains. Since you’ll be trading with significant virtual capital, gains can be high. This also means you can scale up faster.

For these reasons, virtual prop trading is an attractive option for both experienced and novice traders.

2. Risk Management Guidance

Consider this — your virtual trading prop firm is giving you access to a lot of virtual capital. If you perform poorly on a trade, the firm takes the loss. With that in mind, firms must have some trading rules to help manage risk and protect their capital. Risk management can also benefit traders by helping them make better and ultimately more rewarding decisions.

For example, a firm may require a stop-loss for each trade to reduce potential losses. Implementing stop-losses can be advantageous for any trader — whether they’re part of a virtual trading prop firm or have a self-funded account.

3. Data Analytics Tools and Educational Resources

As a virtual prop trader, you won’t have to worry about supplying yourself with the software and analytical tools to be successful. Virtual trading prop firms generally provide access to helpful tools and advanced dashboards to help traders track progress and make informed decisions.

You’ll also be part of a supportive trading community, which means you can share and receive tips from other experienced traders and increase your knowledge. You might also have access to educational materials and live support to propel your growth.

4. Lower Risk

Trading is never entirely without risk. However, the risk with virtual prop trading is generally lower because it does not involve using your personal capital. You don’t have to worry about losing your own money if you have a loss. This gives you more freedom to apply your trading skills and talents without fearing consequences.

Lower Risk

There is still a degree of risk involved with virtual prop trading, and your performance still counts. Depending on your agreement with your virtual trading prop firm, you may risk losing access to your trading account if your losses exceed a certain limit. In this case, you’ll have to start over again — like taking another Audition at SurgeTrader.

The Benefits of Using Self-Funded Trading Accounts

Want to compare virtual prop trading to self-funded trading? Here are the advantages of being a self-funded trader.

1. More Control

Since they aren’t using someone else’s money, self-funded traders have complete control over their strategies and capital. They don’t have to follow risk mitigation rules or stay above loss limits. There is also no limit to the type of assets they can buy and sell. The only guidelines that self-funded traders must adhere to are the ones they set for themselves.

2. No Profit Sharing

Virtual prop traders share their gains with their virtual trading prop firm. This is how they make money as a virtual prop trader and how their virtual trading prop firm gets paid. Every firm is different, and the percentage of gains you get to keep depends on your agreement. This system is what enables virtual prop traders to have access to substantial funds.

Since you would use your own capital as a self-funded trader, you do not have to share your gains with anyone.

3. Open to Any Skill Level

Although you do not have to be a trading master to start virtual prop trading, you still need to meet certain requirements, such as passing an Audition at SurgeTrader, to begin trading with a firm.

Self-funded trading has no skill requirements to get started — if you’re willing to take risks and have the necessary funds. For this reason, self-funded trading may appeal to someone who’s never traded before and wants to give it a shot.

How to Make Your Decision

Being a virtual prop or self-funded trader allows for a flexible schedule and the potential to earn big. When deciding which one suits you best, consider the following:

  • The level of freedom you desire
  • The risk level you’re comfortable with
  • What you hope to accomplish as a trader
  • How much funds you have access to, and whether it’s enough to help you achieve your goals
  • How much experience you have as a trader

Become a Virtual Prop Trader With SurgeTrader

You’ve decided to become a virtual prop trader — good choice! Now it’s time to find a virtual trading prop firm that offers transparent pricing, fair virtual profit-sharing and exceptional support. At SurgeTrader, we check all the boxes.

The first step to becoming one of our traders is an Audition, where you’ll test your trading skills. Once you achieve the virtual profit target, you’ll gain access to a virtually funded account and can start trading. You can earn up to 90% of the gains you generate, which you can withdraw at regular intervals.

Whether you’re interested in starting a career as a virtual prop trader or want access to more capital, take the SurgeTrader Audition and start trading today.

Become a Virtual Prop Trader With SurgeTrader