Been trading for a few years now and thinking about taking the next step. Done well with my own capital but wondering what kind of initial investment you actually need to get a prop firm off the ground.
Anyone here who’s been through this process before?
Depends on your business model. Challenge-based firms need way less upfront since traders pay evaluation fees. You could start with $25k-50k for operations and risk management. Traditional prop firms funding traders directly require much more. Don’t forget platform costs, regulatory needs, and enough capital to cover your worst traders’ drawdowns. Most successful prop firms I know started small and reinvested profits instead of launching with massive capital.
Start with at least ten thousand dollars.
Starting a prop firm typically requires at least $50k and can go up to a few hundred thousand. Your capital needs to cover losses when multiple traders struggle. Also, remember that costs for tech and legal setups can add up quickly.