MainAboutNewsProprietary trading firm vs retail trading
We regularly get requests from prop firms for CRM integration. Let's discuss the difference between a Proprietary Trading Firm and Retail Trading.
What exactly is a proprietary trading firm also known as a "prop shop"?
Proprietary trading happens when a prop firm hires a prop trader to trade company funds. That is, a prop firm is a type of financial company that hires a trader who will capitalize on the company's money acting on its behalf. Such companies became widely known after the financial crisis of 2008 when their speculations with huge sums on the market of such derivatives as CDOs (collateralized debt obligations), credit default swaps and other synthetic instruments had quite a serious effect on the mortgage market which eventually collapsed and led several major banks to bankruptcy. Back then, almost any competent trader could become a proprietary trader and get access to big money management.
Key differences
The key difference between retail trading and proprietary trading is that a retail trader trades with their own funds, while a prop trader trades with the funds of a company which specifically hired such a person to capitalize on the firm's assets and make even more money. In this case, the prop trader takes up to 70% of the profits for their speculations, while the company itself gets 30%, even though it provides the money and takes the risk.
Prop traders working for prop firms are usually subcontractors, as opposed to traditional brokers hired by the company. Funding in such companies is shared among all the prop traders who trade with the firm.
Who to trade with: retail or prop firms?
When trading with a retail broker, the trader transfers their own funds to a trading account. The broker in this case provides leverage, thus increasing the trader’s turnover, a platform, and access to the trading instruments, normally charging commission for it. The trader is still limited by their own capital, but on the plus side, they don’t have to follow trading rules set by the firm, since they own the funds they trade with.
As for prop trading, it has wide prospects of managing huge amounts of company's capital and thus receiving potential profit, but the trader must observe strict rules.
Getting into trading
Here, everything is simple: retail trading is open to all. The broker sets the minimum deposit amount, the trader deposits the account and starts trading. A prop trader, unless they have a reputation, needs to prove their abilities. To do that, the trader is given a trading account, usually with demo funds, where they trade for a certain period of time. At the end of this period, the result is evaluated and a decision to provide real capital for management is made.
Brokerage and prop firms often earn their money by training newcomers. There is nothing inherently bad in it if the company does not try and trick you by promising a fortune for depositing your account, but simply provides a training service for a fixed fee.
SCAM
Prop trading market is full of scams, as well as the retail trading market. So before you decide to fund your account, you should weigh the pros and cons and research the company’s background online. Do not fall for marketing campaigns that require you to make rash decisions. For companies, it is a way to get fast money from new clients, for a trader, it entails a high probability of rapid capital loss. The rule “If you think that the offer is too good to be true, perhaps it is not worth to risk your money” always works.
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Join UpTrader at Forex Expo Dubai 2024!
October 7–8, 2024
We are excited to announce that UpTrader will participate in the Forex Expo Dubai 2024, which will take place at the Dubai World Trade Center from October 7th to October 8th. Anyone working in forex trading, fintech, or brokerage services should not miss Forex Expo Dubai, one of the biggest events in the global finance sector.
Why It Is Important
Reputable as a leading international business-to-business gathering, Forex Expo Dubai brings together influential figures from the Forex, fintech, and brokerage and trading. Insightful panels, keynote discussions, and unique networking opportunities are all part of the expo's impressive list, which aims to propel the next wave of advancements in forex and trading technologies.
Meet UpTrader at Forex Expo Dubai 2024
UpTrader is dedicated to provide brokers with state-of-the-art technologies that enable them to maximize their operations and spur expansion. As a pioneer in forex CRM technology and brokerage solutions, UpTrader's team will be showcasing the most recent iterations of our Forex CRM platform, prop trading services, copy trading solutions and many more. All of these offerings are intended to keep our clients ahead of the curve in a market that is changing quickly. Don’t miss the chance to see how UpTrader continues to lead the industry in innovation, service, and support.
Let’s Connect
Book a meeting with our team now! You would love to discuss how UpTrader’s solutions can transform your brokerage. To arrange a meeting, contact us at [emailprotected] or DM us on our official LinkedIn, Instagram, or Facebook pages. Together, we can explore new avenues and talk about how we can support your success in the forex brokerage industry.
We Look Forward to Meeting You in Dubai!
Forex Expo Dubai 2024 promises to be an exciting and insightful event, and we’re eager to be a part of it. Whether you’re an existing client, a prospective partner, or simply interested in what UpTrader has to offer, we invite you to meet the team.
About Forex Expo Dubai
Forex Expo Dubai is a premier business-to-business (B2B) event in the Forex industry, that brings together experts from across the globe to talk about the newest advancements in brokerage services, fintech, and trading technology. With a packed schedule of keynote speeches, panel discussions, and networking events, this expo provides priceless knowledge and chances to create enduring business connections.
For additional information about the event, visit Forex Expo Dubai 2024.
We're excited to meet you in Dubai!
Kind regards,
The UpTrader Team.
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In Founder Mode: Interview with Vasily Alexeev, CEO of UpTrader
UpTrader’s CEO since November 2015, Vasily Alexeev, has been a driving force behind the company’s innovation and success. With a shrewd strategic mindset, Vasily has played a pivotal role in making UpTrader a leader in the Forex CRM and trading solutions market. He is responsible for the strategy, operations, and profitability, among other areas of the company.
Previously, Vasily was the Chief Technical Officer at a 2007-founded Forex Broker company, where he was in charge of system implementation and technological strategy development. Beginning his professional career with Ittilan, a Gold-certified Microsoft Partner with a focus on enterprise solutions built on SharePoint, he made sure that client solutions were executed to the highest standard.
Vasily's leadership and deep understanding of technology are essential to UpTrader's expansion and dedication to offering innovative solutions.
In this article, the CEO offers an insider’s perspective on UpTrader’s growth as well as a strategic vision that guides the company’s future.
Can you tell what inspired you to start this company and how your vision evolved?
Vasily: “The impetus for starting this company came from seeing a clear demand for customized CRM solutions. In my previous job, we realized that many clients were interested in our in-house CRM solution, which led to four client projects.However, we soon saw that a more adaptable strategy was required. Our earlier solutions used to be too expensive, too customized, and took three to six months to install. This inspired us to create UpTrader, a brand-new, cutting-edge solution meant to tackle these problems head-on.
UpTrader ensures flexibility for all users by providing thorough business profiles and scalable operations. While our core vision remains firm, we distinguish ourselves from others, and focus on flexibility and user-centered design, offering only versatile, one-of-a-kind solutions.”
What are your company’s key strategic priorities for the next 5 years?
Vasily: “Well, although we have already implemented 90% of the extensive functionality we have planned for customers, our highest priority is to complete the remaining 10% of our product functionality to achieve a fully comprehensive solution. At the same time, our vision lies in making UpTrader an all-in-one solution, which would include trading platforms, new services, legal offerings, and other related options.”
And how exactly do you stay ahead of industry trends and ensure your company remains competitive?
Vasily: "I firmly believe that being proactive is necessary to stay ahead of the game. We make sure that our solutions stay at the forefront of technological advancements and compliant with the most recent industry standards by making constant investments in research and development.
But we also think that the greatest source of insightful and valuable information is customer feedback. So we actively engage with clients who offer ideas, suggestions and even trends. Also, we aim to attend workshops and conferences, where we gain news and updates from our partners and key industry players.”
What leadership principles do you think are most important in running a successful company like UpTrader?
Vasily: “UpTrader is a young IT company, with many team members under 25, and requires a focus on trust and accountability. By fostering an environment where team members feel trusted and valued, we increase their motivation and productivity. We emphasize clear communication of expectations and provide flexibility while maintaining oversight to ensure alignment with our objectives. As a result, this balance contributes to higher productivity and team cohesion.”
What has been your biggest challenge as CEO, and how have you overcome it?
Vasily: “One of the biggest challenges was in the beginning of the company when our expenses exceeded our revenues. Without access to investors, I made the difficult decision to make personnel changes and cut salaries, mine in the first place. This period lasted 3 - 6 months and was financially and psychologically difficult. But patience paid off as we attracted new customers, and it finally led to profitability by the end of the year. We also succeeded in bringing back a large number of team members!
This particular challenge pushed us to innovate and develop UpTrader. The end result was a system that was quicker to implement and more cost-effective. We are now pleased to be one of the select few, if not the only, businesses that can install a CRM system in a single day, a development that has significantly increased our productivity and competitive advantage.”
How is UpTrader different from other Forex CRM providers?
Vasily: "I am convinced that our dedication to usability and user experience (UX) makes us stand out from the competition. By providing a "UNIVERSAL SOLUTION WITH A HUMAN FACE," we guarantee that our user interfaces are adaptable and customized to meet their unique requirements. Our CRM allows for a great deal of customisation, allowing administrative procedures to be customized to our clients' specific requirements. Before we tailor our solutions to fit our customers' workflows and business processes using our CRM, we work closely with them to completely understand their specific demands.
In addition, we have had a significant impact on startups and innovative businesses, guiding them from inception to successful operations. Our CRM solutions have been instrumental in helping these clients build and grow their businesses, being used as the main tools and the support they need to succeed in a competitive market.”
What support do you provide to ensure customers can fully leverage the power of your CRM system?
Vasily: “We offer comprehensive support and training, including detailed documentation and 24/7 emergency support. Our onboarding process involves providing access to the service desk, where the customer journey begins.
I will surprise you with my frequent calls with the support team to help solve complex issues and make sure they are properly resolved. This approach ensures that our support team gets the attention and support they need, and as a result, our clients, Forex Brokers, can fully leverage the power of our CRM system.
Recently this mode of operation has been called "FOUNDER MODE", I believe it very much describes what we at UpTrader have.”
What advice would you give other CEOs to succeed in the IT industry?
Vasily: “Success in IT depends on having a clear strategy. Whether a company focuses on immediate benefits or expanding the customer base through a long-term exit strategy, it is important that revenue is managed and prioritized carefully. A balance of innovation, customer satisfaction and operational excellence is the key to continued success.”
Learn more about UpTrader by booking a Free Demo, and follow our official LinkedIn, Instagram, and Facebook pages, where we share useful information and news.
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UpTrader at iFX EXPO Asia 2024: Join Us in Bangkok!
We’re excited to share that the UpTrader team will be attending the iFX EXPO Asia 2024, which will be held from September 16-18 in Bangkok, Thailand. As one of the biggest events on the financial industry’s calendar, iFX EXPO is a key event for networking, sharing knowledge, and exploring the latest fintech and online trading innovations.
Why This Event Matters
iFX EXPO is known as the world’s first and largest B2B financial exhibition, drawing professionals from fintech, financial services, and online trading. The event offers a packed agenda with insightful keynotes, panel discussions, and plenty of networking opportunities, all aimed at fostering collaboration and driving innovation. For us at UpTrader, it’s a fantastic chance to connect with our partners and clients, discuss the latest industry trends, and showcase our latest advancements in Forex CRM solutions.
Meet UpTrader at iFX EXPO Asia 2024
As a leading provider of advanced Forex CRM and trading solutions, UpTrader is always pushing the boundaries of what’s possible in our industry. We’ve recently introduced several new features in our UpTrader Forex CRM, all designed to improve operational efficiency and support the growth of our clients' businesses. During iFX EXPO Asia 2024, our team will be there to demonstrate these innovations and show how UpTrader continues to set the standard for excellence, reliability, and professionalism in forex and trading technology.
Let’s Connect!
If you haven’t set up a meeting with us at the expo yet, now’s the time! We’d love to chat about how our solutions can help elevate your business in the evolving world of online trading. Get in touch with us at [emailprotected], or through our official LinkedIn, Instagram, or Facebook pages to schedule a meeting. We’re looking forward to exploring new opportunities, strengthening our partnerships, and sharing our thoughts on the future of the industry.
We Look Forward to Seeing You There!
iFX EXPO Asia 2024 is shaping up to be an exciting and informative event, and we’re thrilled to be a part of it. Whether you’re already a client, a potential partner, or just curious about what UpTrader has to offer, we invite you to visit our booth and meet the team. Your success is our top priority, and we’re here to help you every step of the way.
About iFX EXPO
For those who may not know, iFX EXPO is the premier B2B event in the financial industry, bringing together professionals from around the world to discuss the latest developments in fintech, financial services, and online trading. With a full program of keynotes, panels, and networking sessions, iFX EXPO is the perfect place to discover new opportunities and build lasting business relationships.
For more details about the event, check out iFX EXPO Asia 2024.
We are looking forward to meeting you in Bangkok!
Best regards,
The UpTrader Team
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