In the world of finance, there are many entities, but none as unique as the prop firm and the network fund. While these two may appear similar at first glance, their distinct functions set them apart.
A prop firm, also known as a proprietary trading firm, provides traders with access to capital in exchange for a share of the profits. The firm evaluates potential traders using a simulated virtual market environment that offers zero risk to the firm. Successful candidates receive a funded account held by an independent broker, while failed candidates can repeat the test with additional fees.
The profitability interests of evaluation prop traders do not align with those of their simulated stage hosts, yet successful evaluation prop traders have full control over their trades. They can bet on financial instruments like stocks, forex, commodities, and futures using their own funds. This puts them in charge of their own destiny and allows them to maximize their returns.
In contrast, a network fund firm, also known as a hedge fund, generates returns for all equity investors by creating projects with equity fully donated from network or crowd-sourced investors. Unlike prop firms, hedge funds operate with a more long-term, crowd-sourced strategy. Network funds seek out experienced traders requiring funding and provide them with a non-critical evaluation process. Traders compete fairly on equal footing with others with different backgrounds, and successful traders stop paying fees from as little as month three.
The subscription model allows traders to prove their potential at their own pace, in their own time, and when they are in the zone to trade. Liquid markets have been pioneers of the subscription model for over a decade. They offer a full complement of trading subscriptions to suit any ambitious, competent trader who understands the benefit of other people’s instant funding. From high to low leverage, from scalpers to swing traders, Liquid has a plan for every trader.
In conclusion, the difference between prop firms and network funds is that the latter provides real accounts and real money to individuals. Prop firms provide tests and simulations, but network funds provide a fair and non-critical evaluation process. If you’re seeking to prove your fund manager potential and join a community of successful traders, come to Liquid. We invite you to experience the thrill of success and the joy of financial freedom.