Proprietary trading, or "prop trading," is quickly emerging as a significant trend within financial domains. The global prop trading industry, valued at USD 6.7 billion in 2020, is anticipated to observe a compound annual growth rate (CAGR) of 4.2% from 2021 to 2028. The burgeoning interest is self-evident, with the search demand for "prop firm" ascending by 8,409% between January 2020 and March 2024.
In line with the growing demand for prop trading and the consequent need for purpose-built software solutions among brokers, B2Broker has launched B2Prop, a highly efficient turnkey solution expertly designed to assist enterprises in creating and developing their proprietary trading firms from inception.
Spotlight on B2Prop
B2Prop is an all-inclusive, challenge-based platform designed for a variety of businesses: prop trading firms, crypto and FX brokers, and multi-asset brokerage houses. The platform enables these firms to diversify their products and expand their customer base. Its development has been influenced by industry-leading practices with a key emphasis on client needs.
B2Prop allows companies to build custom trading challenges focusing on unique metrics such as profit goals, risk limitations, and performance standards. These challenges may be multi-level and offer support for a variety of currencies. Notably, B2Prop does not levy supplementary fees based on the number of challenges, accounts or stages involved.
Successful traders surpassing these challenges are awarded access to funded accounts paired with lucrative profit-sharing models, typically enabling them to retain 70-80% of their trading profits.
B2Prop integrates seamlessly with premier trading platforms such as MetaTrader 4, MetaTrader 5, and cTrader. There are also plans to introduce B2Trader, TradeLocker, and others shortly. Additionally, it offers powerful dashboards that facilitate businesses to track traders' metrics from registration to the funded accounts stage, confirming alignment with customer needs.
Several Revenue Streams for Companies
B2Prop provides businesses with numerous revenue-generation possibilities:
Challenge Fees
Businesses can earn revenue from the fees incurred by traders who sign up for proprietary trading challenges. Traders who are unable to meet the challenge prerequisites often make at least three attempts to repurchase and clear the challenge, increasing the company's revenue.
Profit Sharing
Only premier traders successfully surpassing the challenges can access funded accounts. The company furnishes the capital for these accounts while retaining some of the profits generated from the traders' dealings. This part usually ranges from 20% to 50%.
Customised Trading Arrangements
Companies can adjust trading conditions to their advantage. For example, enforcing higher commissions can reduce the profit margins on funded trader accounts. As a result, the company pays less out in disbursements while still benefiting from the margin.
Implementing Successful Strategies
B2Prop is efficiently integrated with B2Broker's potent copy trading platform, B2Copy, which reveals another possible revenue channel. Companies can alter the funding limits on trader accounts and opt to implement the strategies of successful traders into their own accounts. As a result, the company is able to earn extra profits without compensating those traders.
Comprehensive Turnkey Service: All Essential Components to Launch a Prop Firm
B2Broker's B2Prop Turnkey package offers an all-in-one solution for companies wishing to lay the foundations of a successful proprietary trading firm.
The package's cornerstone is the B2Core CRM, which serves as a one-stop platform for traders to join, purchase trading challenges, track their performance, and manage payments. Additionally, it facilitates growth by integrating payment services, KYC solutions, and IBs, among other things.
The package includes the white-label cTrader platform, which is tailor-made for proprietary trading firms. This platform marries cTrader's innovative features and broad applicability with a cost-effective business model. B2Prop also offers integration with MT4 and MT5 servers for companies that possess the licence.
Furthermore, the turnkey package includes B2BinPay, B2Broker’s blockchain platform, which can process cryptocurrency payments and allow clients to deposit various coins and stablecoins on eight different blockchain networks. Once their accounts are funded, clients can proceed to buy trading challenges, which offers greater flexibility in payments and attracts a wider spectrum of traders.
The package also boasts of B2Copy, a copy trading platform offered by B2Broker that enables firms to duplicate successful traders' strategies directly into their accounts, promising extra profits without the need to pay those traders.
The B2Prop turnkey solution offers three transparent monthly pricing plans:
$1000/month: B2Prop when added to an existing setup with B2Copy, B2Core, or White Label cTrader Prop.
$2000/month: B2Prop standalone.
$3000/month: B2Prop combined with B2Copy
All plans include free setup, no hidden fees (no module charges or volume fees), unlimited user and admin registrations, and no account-based charges. Additionally, there's a discount for annual packages if prepaid for 9 months.
Adjusting Trading Challenges in B2Prop through B2Core
B2Broker has incorporated B2Prop into its B2Core platform to enhance the management of prop trading challenges. Administrators can find the Prop Trading section under the Investment Platform menu on the admin panel. This newly added feature includes the Challenges List page, specifically designed to create and administer prop trading challenges with the utmost ease.
When setting up a new challenge, administrators provide a name and description and upload an image to represent the challenge on the front-end.
Next, they are tasked with specifying the challenge parameters like plans, steps, initial account settings, key performance metrics (minimum trading days, maximum loss limits, profit targets), fee amount, fee currency, trading account amount, and trading account currency. Rules are also set for disqualifying participants who exceed the daily loss limit.
The progress of participants is tracked via the admin panel. It lists active and past accounts and their current challenge status (started, successful, or failed). Administrators can then recognise successful participants and create funded accounts for them.
Traders can see a list of available challenges on their interface, complete with images and key metrics. Joining a suitable challenge is as easy as a single click, and the entry fee can be paid from their wallet if necessary.
While progressing, participants can monitor important metrics like equity, maximum drawdown, and number of trades. The platform also provides daily trading summaries with P&L and volume metrics.
Upon finishing a challenge, participants receive an email with details about their prop trading account. They can also check their past challenges and get comprehensive results and trading data for each account.
Setting the Standard for Prop Trading Technology with B2Prop
B2Broker, a notable player in the FinTech sector, is acknowledged for generating state-of-the-art technology and liquidity solutions. The company broadens its turnkey product inventory with B2Prop, a ready-to-use solution facilitating effortless start of prop trading undertakings for businesses.
B2Broker offers a comprehensive demo of B2Prop to encourage its clients to explore the product fully. The team is persistently improving the platform, with a range of enhancements currently being developed.
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