How big prop firms trick you into buying an account with them.

Let's say you make money trading, know how to trade, or prop firms interest you. You bought a trading account and you are ready to level up.

You find a prop firm. They have a sale where everything is half off, so you buy an account. You work hard for a month and you can't wait to get your payment. But then, you get a surprising email that says, "Your withdrawal was rejected”

A big discount is a great opportunity if you don’t have the means to buy an account yourself, but it can be your worst nightmare.

PROP FIRMS USE LOTS OF SNEAKY TRICKS

The prop space is very saturated right now with hundreds of firms wanting to make a quick buck off you

Every prop firm has a special tactic to get to you and stand out from other firms.

The most notable latest incident that everyone remembers was the BOGO - Buy one get one free from DEI funded they made MILLIONS and rug-pulled everyone. After a few months. They were the fastest growing company because of their special offer.

Those who got in early on DeiFunded made insane profits considering they got their funded accounts for half the price and one for free. If you got your payouts out in time and passed within the first month, Dei Funded was a gold mine.

When you see a big discount of up to 50% the account sales for the prop are either low or they’re trying to revive their business it should be your first warning.

This doesn’t mean you SHOULDN’T get an account with them it means you should get your payout out of them as fast as possible and take they opportunity they gave you before they collapse.

BEING UNIQUE IS ALSO A WAY THEY GET YOU IN

When you see a prop firm that is different than others you look into them, you see maybe they have different challenge phase rules, they have a cool logo, and their payout times are different and shorter, the way you take the challenge is different.

The most notable additions in the last year are:

1. Faster payout times

2. Different challenge phases

The most notable change in the prop industry was the removal of the 30-day time limit. The 30-day time limit allowed firms to have another way for traders to fail so they could ensure they had more money for payouts and fewer people getting payouts since the time restraint was a very stressful thing for a lot of traders.

The big change that was introduced was the removal of 30 days, it all started with one firm wanting to stand out a bit. Other firms soon followed to compete with them in a race to the bottom. Who can make the challenge phase more appealing, lowering profit targets and similar things.

BIG WORD OF CAUTION

Faster payout times are HUGE for traders, however the fast payout times were introduced by Traddoo. A prop firm that is backed and you trade real funds with therefore they can afford to pay out instantly.

Other firms started to notice they were doing well and are now trying to copy what Traddoo has done and lower their payout times from bi-weekly to weekly and even lower.

The issue, these firms aren’t backed and rely on the legacy prop firm model [Trader 1 fails, Trader 2 gets paid with the account fee of Trader 1]. The reason why firms pay bi-weekly is because they had more time to “Collect money” in case of a bigger payout

Prop firms can be amazing tools to use and get yourself started and make easy money, but picking the right one is very hard. If you are not informed a bad firm can be the end of you. And there are even more sleazy tricks that the firms do and I will reveal them to you in the next addition of my newsletter. Make sure you add this newsletter to the inbox.

I go in-depth on what and how you should view trading, the process you need to follow and more on telegram: https://t.me/silkytrades