Veteran Trader Peter Brandt Issues Scam Proprietary Trading Platform Warning

According to Peter Brandt, morganatic proprietary trading firms neither complaint fees connected traders nor enforce “restrictions connected trading benignant oregon markets.” The seasoned trader branded arsenic scams immoderate prop steadfast that fails to adhere to the operating conditions that helium outlined.

Legitimate Prop Firms

Veteran trader Peter Brandt has warned chap traders to beryllium connected the lookout for scammers who task themselves arsenic bona fide proprietary trading platforms. In a informing shared via X, Brandt listed immoderate attributes of what helium sees arsenic “legitimate ‘we-fund-you’ prop firms.”

Here is however morganatic "we-fund-you" prop firms operate
-No fees charged to traders – EVER
-Actual existent $ funding
-Set drawdown from archetypal backing level
-No restrictions connected trading benignant oregon markets
Anything antithetic than this is simply a scam IMO

— Peter Brandt (@PeterLBrandt) December 29, 2023

Proprietary trading refers to a script wherein a fiscal instauration uses its capital, alternatively than lawsuit funds, to behaviour fiscal transactions, according to an Investopedia definition. Financial institutions sometimes usage proprietary trading platforms erstwhile they privation to straight put their funds. Legitimate prop firms let investing parties to maximize their profits by keeping 100% of net generated via proprietary trades.

Brandt advised prospective traders to archetypal find if a prop trading level is morganatic earlier deciding to usage it. For the seasoned trader, a morganatic prop steadfast should not complaint fees to traders “ever” and should person existent existent dollar funding. Furthermore, the steadfast indispensable person a “set drawdown from archetypal backing level” and “no restrictions connected trading benignant oregon markets.” Brandt concluded that “anything antithetic than this is simply a scam IMO [in my opinion].”

However, not each of Brandt’s much than 700,000 followers connected X were pleased with the seasoned trader’s branding of thing that falls abbreviated of his standards arsenic a scam. For example, 1 X idiosyncratic named Trader Nomad chastised Brandt’s no-fees claim.

“Peter I ne'er heard of a prop that does not instrumentality a interest adjacent the accepted 1 so… Please probe earlier publishing it,” the idiosyncratic said.

We mightiness not hold with the concern model, but if the prop steadfast is giving payouts to palmy traders past one dont spot what the occupation is . if thing we are fixed a accidental which was lone fixed to selected individuals conscionable a fewer years back.

— Ray Trounday (@RayTrounday) December 29, 2023

Another idiosyncratic acknowledged that helium does not hold with Brandt’s chosen concern model, saying if the expected scam “is giving payouts to palmy traders past I don’t spot what the occupation is.” Still, others praised Brandt for revealing the favoritism betwixt morganatic and illegitimate prop trading firms.

What bash you deliberation of Peter Brandt’s comments connected what passes arsenic a morganatic prop trading firm? Let america cognize successful the comments conception below.