Capital Requirements for Trading

Malaikah begins by addressing a common question: how much capital is needed to start trading? Previously, the answer would have been at least $5,000 to $10,000. However, with the rise of prop funds, the initial capital requirement has significantly reduced. Prop funds have democratized trading, enabling individuals without substantial capital to make a decent income. Prop funds like FTMO and Funding Talent provide opportunities for people worldwide to trade regardless of their financial starting point. The key takeaway is to focus on the time investment required to learn trading rather than the initial monetary investment.

Benefits of Prop Funds

Malaikah elaborates on the benefits of using prop funds. Despite some cons, such as profit splits and the need to pass challenges, the advantages outweigh the drawbacks. Using an example, Malaikah explains that trading with a prop fund can be more profitable than using personal funds. With a personal investment of $10,000 and a 10% growth, the profit would be $1,000. In contrast, with a funded account of $100,000 and the same 10% growth, even after a 30/70 profit split, the trader would take home $7,000. Malaikah emphasizes that the skill of increasing the account balance is what ultimately generates income.

Trading Styles and Prop Funds

Malaikah acknowledges that prop funds may not suit all trading styles. For instance, swing traders who hold positions for more than two weeks might find prop funds less accommodating. In such cases, maintaining a separate account for swing trading while using prop funds for intraday trading can be a viable strategy. This allows traders to benefit from the monthly returns of the prop fund while growing their swing trading account over time.

Combining Funded and Personal Accounts

Malaikah shares a strategy for integrating prop fund trading with personal trading accounts. For instance, FTMO requires traders to close trades at the end of each week, making it ideal for intraday trading. Malaikah suggests maintaining an FTMO account for short-term trades and a personal account for swing trading. This dual approach enables traders to earn regular returns from the funded account while allowing the personal account to compound over a longer period.

Overcoming Regulatory Challenges

Malaikah addresses concerns from traders in countries with strict regulations on forex trading. Countries like the US and India may have restrictions on specific brokers or leverage limits. Prop funds offer a solution by acting as intermediaries. Traders essentially work as contractors for the prop fund, which handles payments and logistics, bypassing regulatory restrictions. This makes prop funds an effective way to trade forex globally, even in countries with stringent regulations.

Conclusion

Malaikah concludes by reiterating that prop funds provide an accessible way to trade forex and overcome regulatory hurdles. This approach allows traders to make money and engage in forex trading without facing significant obstacles in their respective countries.