90% profit sharing + account size of hundreds of thousands: the real treatment of domestic proprietary traders

Generally, when traders in the market come into contact with transactions, most of them will choose to start with a real offer. Because in traditional understanding, only firm offers can bring real returns. Even relatively cautious people will only briefly verify the feasibility of the strategy in simulated trading first, and soon they will be eager to enter the market to get feedback from funds – this is human nature.

But when retail investors make firm offers, they essentially use their own principal to pay for verification costs. Although this is a necessary investment, not everyone can afford it easily. A retracement may exhaust months of accumulation; a black swan may even lead to immediate exit.

Because of this, the proprietary trading model has begun to enter the public eye.

Proprietary trading can be understood as a combination of real trading and simulation:
Traders use simulated funds provided by the platform to trade, but share profits with the platform based on their real trading capabilities. More importantly, self-operated assessments usually provide demo accounts with tens of thousands or even hundreds of thousands of dollars. This method of using small funds to leverage large accounts is being accepted by more and more traders.

Then, here comes a core question –

What is the treatment of domestic proprietary traders?

Proprietary trading first emerged in mature overseas markets. Early domestic traders were attracted by this model, but suffered from the scarcity of domestic platforms and could only try to participate in foreign platforms. However, many overseas self-operated platforms do not have simplified Chinese interfaces, cultural time differences, slow customer service response, complicated withdrawal rules and other issues, which have indeed discouraged many people from doing so.

In the past two years, the number of domestic self-operated platforms has gradually increased, and the advantages of localization are obvious:

The language and rules are more friendly: an all-Chinese interface, and the assessment cycle is in line with domestic trading habits

Customer service is more timely: WeChat, official website, etc. Instant communication channels instead of waiting for days by email

More reasonable assessment rules: Domestic risk control rules are clearer, which helps traders polish execution and discipline

Because of this, the number of domestic traders currently participating in proprietary trading is rising significantly. In terms of profit sharing, domestic self-operated platforms generally give a ratio of 60% to 90% – taking the local self-operated platform EagleTrader as an example, the highest profit share can reach 90%, which is the first echelon in the self-operated field at home and abroad.

More importantly, the number of domestic self-operated platforms is increasing and the types are rich. The assessment modes and capital scales that traders can choose are also more diverse, and the opportunities are naturally far greater than before. In addition, domestic proprietary trading also has the opportunity to win offers from professional traders, which means that the path to professionalization for ordinary traders is becoming clearer.

Compared with real offer trading, what is the difference in the core treatment of domestic proprietary traders?

1. Source of funds

Firm offer trading: Traders use their own principal to trade, and the size of the funds is limited by personal financial resources.

Proprietary trading: After passing the assessment, traders use the simulated funds provided by the platform (usually tens of thousands to hundreds of thousands of dollars) to conduct transactions without investing large amounts of principal.

2. Risk bearing

Real trading: All losses are borne by the trader himself, and the principal may be partially or completely lost.

Proprietary trading: The trader only bears the assessment service fee, and the risk of loss during the transaction is borne by the platform.

3. Profit distribution

Real trading: The profit belongs to the trader, and the platform does not participate in the sharing.

Proprietary trading: Profit is shared with the platform according to an agreed ratio. A common ratio is 70%-90% for traders, and the platform takes the remainder.

4. Capital Leverage

Real trading: Leverage is chosen by traders themselves. Some platforms provide higher leverage, but it is also easy to magnify losses.

Proprietary trading: The platform sets unified risk control rules and leverage upper limits to prevent traders from taking excessive risks.

5. Risk control mechanism

Firm trading: relies on traders’ self-control and lacks mandatory constraints, which can easily cause major losses due to emotions or mistakes.

Proprietary trading: The platform has rigid risk control rules, such as the maximum daily loss limit, maximum drawdown ratio, etc., and the transaction will be stopped immediately to protect the safety of the account.

6. Growth path

Real trading: Completely rely on oneself to explore, profit and loss is the only feedback, lack of stage goals and certification.

Proprietary trading: Usually there are clear promotion channels, such as assessment period, signing of traders, increasing share ratio, and managing larger funds.

Real offer vs. self-operated trading, how to choose?

If you are just getting started, have limited capital, and want to use low risk to verify whether you are suitable for trading, then give priority to self-operated trading and treat the service fee as tuition. It is far more cost-effective than taking tens of thousands of yuan to try and make a real offer.

If you have a stable profit strategy, sufficient principal, and want to maximize your income, then choose a combination of real offer and self-operation, use self-operation to enlarge the amount of funds under management, and use real offer to retain 100% of the profit margin.

These two types of transactions are not opposed, but need to be decided based on the trader’s own growth.

Proprietary trading is not a shortcut to “get rich overnight”, but it does provide ordinary traders with a professional channel with lower threshold, smaller risk, and clearer growth path.

If you are tired of being on tenterhooks every time you place an order and are afraid of retracement and swallowing up your principal, you may wish to carefully understand the assessment rules of domestic self-operated platforms and let self-operated trading help you relieve the burden of financial pressure. If you want to know more about proprietary trading, you can tell me in the comment area!