Trading firms within the Forex industry operate under a different model than standard proprietary funding firms that are typically found on Wall Street. Traders who register with traditional prop trading firms do not receive real capital in their accounts. When a trader reaches the “Funded” stage, they are operating in a simulated demonstration stage where they are rewarded with commissions in exchange for positive performance during this level of the program aligned with the program rules. Traders’ trading data can be monetized and used to gain greater profits by copying the data into the company’s own fund.
Market conditions are provided by an external price provider, which traders can use to grow, learn, and earn commissions based on their performance after passing the evaluation stage and moving up to become a “Funded trader.” Please note that any reference to a “Funded” stage is a commercial account with simulated real conditions. Forex support companies are generally created on the basis of gamifying trading through software that rewards traders in simulated market conditions, although it is a similar concept to the real market with a potentially amplified reward.