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Prop trading has become so popular lately that many new startups have started exploring this unique niche and the ways to enable even inexperienced investors to build successful brands. Prop trading was once a domain for large financial institutions and has become accessible to retail traders opening new opportunities for startups. This development is mainly driven by advancements in technology that power all these prop firms. Many props also operate white-label solutions by technology providers. Let’s discuss and explore the key technologies and platforms that enabled prop trading accessible to retail traders, including B2Broker, Quadcode, and YourPropFirm, as well as the role of leverage in retail prop trading.
The role of technology in proprietary trading
Prop trading platforms must be robust, reliable, and secure. Modern technologies such as powerful computers and smartphones enabled prop firms to use more complex trading software to power their platforms. Prop firms such as Rebelsfunding employ these advanced solutions such as white-label platforms to provide a seamless experience for their prop traders. White-label solutions enable prop trading with Rebelsfunding with fast trade execution speeds and low latency which is critical in prop trading. Let’s explore the most popular white-label solutions for prop trading.
Key white-label providers
Several companies are prominent players in the white-label solutions department. These firms enable even inexperienced startups to build and launch their prop trading platforms with ease.
B2Broker: wide range of white-label solutions
B2Broker is one of the leading white-label solutions providers. It offers solutions to both brokers and prop trading firms. The firm provides every needed solution including liquidity, trader’s room (B2CORE), crypto spot brokerage, prop trading turnkey solutions (B2BPROP), copy trading solutions, and more. Using B2Broker services, startups can launch prop firms and provide them with the necessary technology and liquidity to ensure seamless operations.
Quadcode: all-in-one solutions for prop firms
Quadcode is a ready-to-go white-label solution provider firm. The firm allows startups to launch their own brokerage firms by providing all necessary services and technology to power platforms. There is a full-scale back office supporting KYC solutions, ticket support systems, and more. Quadcode also provides liquidity to power trading of CFDs and offers its proprietary trading platform with advanced features. Investors can select between different tiers of products with different pricing. There are light, turnkey, and advanced solutions, each of them with increasing pricing and features. These solutions allow startups to kickstart their brokerage business within just 14 days.
YourPropFirm: custom solutions
If you are thinking about launching your own proprietary brand and wish to outsource almost 99% of the solutions needed and work, YourPropFirm might help you. The firm offers a unique opportunity to launch a prop firm in 10 days. However, it is not only new firms who can use these services, but existing ones as well. Firms who want to improve their services and features might also opt for employing YourPropFirm white-label solutions.
Innovations making prop trading more accessible
As technology evolved and smartphones and computers became cheaper and much more powerful, prop trading firms and brokers started to embrace them. One of the most important innovations is a cloud-based trading infrastructure, allowing firms to eliminate the need to operate their own servers. This effectively reduced the costs and complexity of launching prop firms and brokerage brands.
Cloud-based trading platforms
Removing the need to deploy and maintain expensive server infrastructure was a bit of innovation offered by cloud-based computing solutions. Server computers are expensive and require expert staff to maintain them and not all startups have enough resources to allocate it. Cloud-based trading platforms paved the way for startups to build prop firms by outsourcing expensive equipment and offering platforms that are connected to cloud servers. Traders can log in from any device and execute trades seamlessly, which makes it much easier for traders to buy and pass trading challenges.
AI-powered trading tools
Artificial intelligence (AI) is a new technology that has been changing the world as we know it. This technology can learn from data without explicitly being programmed for it and enables prop trading firms to offer advanced tools that can analyze vast amounts of market data in real time. AI-powered tools provide traders with insights and signals that would have been impossible to access if you were a retail trader a few years ago.
Leverage technology
Leverage is a critical component of prop trading and financial trading in general. It enables traders to control large amounts of trading positions with relatively small capital. This surely increases the chances for traders to have big profit potential together with increased risks. When used properly and with viable strategies, leverage can provide traders with a unique opportunity to become day traders with a small budget. All prop firms offer leverage and allow traders to increase their buying power to pass challenges faster.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Amr Adawi Co-Founder and Co-CEO at MetaWealth
25 November
Kathiravan Rajendran Associate Director of Marketing Operations at Macro Global
Vitaliy Shtyrkin Chief Product Officer at B2BINPAY
22 November
Kunal Jhunjhunwala Founder at airpay payment services
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