The phenomenon of so-called prop trading companies is one of those modern financial innovations that seem rather harmless at first glance. A professional appearance, a presence on customer review portals, convincing advertising promises and awards - this is how the serious appearance of a professional trading model is suggested. Target group: private investors, hobby traders, punters - which is by no means reprehensible or to be demonized. But where do they all come from? A quick glance at the legal notice reveals patterns of the "usual suspects". Hotspots such as Malta and Cyprus or even further offshore are always at the forefront. Anyone who takes the trouble to dig a little deeper - be it through a simple due diligence check, a look at the commercial register or an analysis of the actual value chain - will quickly come to an unsurprising realization: a lot is promised here, but....

To anticipate the answer: Not a single one of these providers delivers what the glossy advertising suggests. Genuine prop trading companies are subject to regulation, trade with their own capital and do not simply make money available to third parties. Anyone who claims the opposite is either playing with definitions or with the credulity of their target group. Proprietary trading means that you trade for your own account and with your own capital - and not on the basis of questionable deposits from third parties, who are initially allowed to undergo a fee-based "qualification phase".

The new marketing growths in this industry rely specifically on wishful thinking and clever communication. It is enough to present trading as a simple "skill" that - for the right fee - can be learned virtually overnight. The promise is financial independence and a life that takes place somewhere between a laptop on the beach and high-frequency trading in the penthouse suite. However, one look at the terms and conditions or the balance sheets of these "talent factories" is enough to realize that the true value stream often flows in a different direction than hoped for.

If you can really read markets and trade successfully, you should perhaps prove your skills where they are actually in demand - for example at a stock exchange, a market maker or a hedge fund. Or, even better: simply through your own trading performance.

And if the first virtual lives in the gaming level of the prop companies have already been gambled away, but there is still conviction in your own competence - we are open to such cases. Better and more transparent is always possible. Anyone who can provide a reliable track record is welcome to contact us. We will have this checked by an independent body, and if the strategy is convincing, there are real alternatives. For example, the possibility of issuing a strategy that can be traded on the stock exchange - comparable to a wikifolio, only with real capital instead of virtual credits. Because in the end, only one thing counts: sustainable success, and that cannot be replaced by clever marketing.