Prop Trading Solutions: Key Features and Top Providers

Proprietary trading, or prop trading, business has gained a lot of traction thanks to online trading platforms. Prop trading firms engage in trades using their funds, which allows them to make profits without relying on funds from clients. Proprietary trading firms, on the other hand, need specialized management solutions, such as prop trading CRMs, to run their operations smoothly. In this article, we’ll define prop trading solutions and identify some of the most important prop trading solution companies.

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Key Features of Prop Trading Solutions

Most prop trading solutions are built with multiple functions that ease traders’ activities, reduce risks, and increase overall trader output. Below are the defining features that every provider of prop trading solutions must have:

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1. Prop Trading CRM

A dedicated prop trading CRM (Customer Relationship Management) system facilitates trader relations, and traders’ performance, and ensures compliance within the business. An effective prop trading CRM system should have:

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• Onboard Traders: Accounts and necessary KYC/AML documentation are created and verified automatically.

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• Track Performance: Traders’ activities and profitability are monitored instantly.

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• Risk Management System: Policies for risk are set and enforced trading limits are set.

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• Communication System: Messaging and notification channels for traders and administrators.

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• Effortless payment processing: Automated trader earnings calculations and processing.

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2. Risk Management and Compliance

Any established proprietary trading business must have a strong focus on risk management. Sophisticated prop trading firms' software must have:

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• Analytics of Risks In Real Time: Ongoing assessment of exposure to the market and potential risks from traders.

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• Risk Limits Automation: Setting of restrictions on the level of losses accepted and the amount of capital to be used for trade.

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• Compliance Tools: Software that supports adherence to applicable legal obligations regarding trading activities, both domestic and foreign.

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3. Trade Execution and Automation

For prop trading firms, it is imperative that they can process trades quickly and efficiently. Critical activities are:

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• DMA: Direct Market Access allows for the rapid placement of orders to the market.

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• Supports Algorithmic Trading: Can connect with software that will trade automatically based on certain predefined parameters.

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• Trading Across Multiple Assets: Allows for trading of shares, currencies, cryptos, and other financial instruments like options and futures.

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4. Trader Evaluation and Funding Programs

Traders are usually evaluated by a prop firm before receiving their funded accounts, which is often the case. The appropriate programming in prop firm software should include:

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• Phases of Evaluation: Challenges at trading that can be set independently to evaluate the proficiency of the trader.

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• Tiers of Funding: Gradual increasing of the funds allocated to trading based on proven ability.

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• Automated Splits of Profits: Unbiased and clear mechanisms for profit sharing.

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5. Analytics and Reporting

Comprehensive reporting and analytics tools help firms optimize strategies and track trader success. Features include:

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• Performance Dashboards: Insights into trading activities, which includes the trading done in the past and what is being done currently.

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• Reports that can be altered: Changeable reports destined for risk and tax purposes that can be exported.

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• Behavioral Analysis of Traders: Determining the areas of strengths and weaknesses for each trader

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6. Integration with Trading Platforms

The efficient integration with leading trading platforms facilitates easy functionality. Proper prop trading solutions should enable:

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• Support of cTrader and TradingView: For users with diverse trading needs.

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• Support of Custom API: This allows firms to create proprietary trading applications.

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Top Providers of Prop Trading Solutions

UpTrader

UpTrader provides integrated prop trading software with a powerful CRM, risk management systems, and trade automation. Their service includes integration with multiple major platforms like DXTrade, and cTrader, and enhances prop firms' scalability from startup to established. UpTrader is designed to modernize firms with integrated evaluation systems, automatic profit sharing, and real-time analytics to maximize trader results.

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Try UpTrader here.

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TraderEvolution

TraderEvolution provides a broad trading infrastructure that includes advanced risk management systems. Their multi-asset platform has a wide range of combinations with multiple liquidity providers.

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Visit TraderEvolution here.

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DXTrade

DXTrade is an adaptive prop trading platform developed for both brokers and prop firms. It offers an easy-to-use trader's dashboard, dynamic risk management, and personalized reports.

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Visit DXTrade here.

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Sterling Trading Tech

Sterling Trading Tech offers powerful trading platforms integrated with risk management and compliance tools for prop trading firms and active professionals in equities and options.

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Visit Sterling Trading Tech here.

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Edgewonk

For refining traders’ performance and that of prop firms, Edgewonk is a great choice specializing in trade analytics and tracking as it offers a plethora of services hoping to help increase traders’ rates of success.

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Visit Edgewonk here.

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FundedNext

The evaluation-based trading platform developed by FundedNext enables traders to prove their skills before getting accepted to funded accounts using trade strategies alongside risk management tools and profit-sharing automation.

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Visit FundedNext here.

Match-Trader

Match-Trader offers a comprehensive prop trading solution featuring an integrated CRM system, real-time performance dashboards, and advanced analytics. Designed to support challenge-based trading, it provides seamless integration options through various APIs, enhancing operational efficiency and trader engagement.

Visit Match-Trader here.

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Conclusion and Final Thoughts

The integration of prop trading solutions comes with a significant rise in efficiency, risk mitigation, and trader support which all proprietary trading firms covet. Whether it's prop trading CRM for managing traders, prop firm software that automates operational processes, or even an online prop trading platform- the right provider has to be selected for success.

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Proprietary firms are better able to focus on executing profitable trades and market trends with the appropriate technology in place. Using advanced prop trading solutions, firms can enhance their trading strategies, acquire the best talent, and achieve maximum profitability in the online prop trading highly competitive world.

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If you want to improve your prop trading firm or just want to make use of cutting-edge CRMs, amazing sales modules, and many more features, visit UpTrader and talk to a consultant on our website or request a free demo for our CRM solution today!

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Book your FREE Demo here