Proprietary trading, or “prop trading,” is quickly becoming popular in the financial markets. Once a niche practice, the global prop trading industry, valued at USD 6.7 billion in 2020, is expected to grow at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2028. The increase in interest is evident, with even search demand for the term “prop firm” skyrocketing by 8,409% between January 2020 and March 2024.
The introduction of B2Prop is a response to the increasing interest in prop trading from traders and the need for specialised software from brokers. It is a comprehensive solution designed to assist companies in launching and growing their trading enterprises.
What is B2Prop?
B2Prop is a comprehensive challenge-based platform for various types of businesses—prop trading firms, crypto and FX brokers, and multi-asset brokerage houses—to expand their portfolio with a new product and reach a broader audience. The development process was based on best practices and with attention to the needs of all clients.
B2Prop allows businesses to create customised challenges that set specific metrics like profit targets, risk limits, and performance benchmarks. These challenges can be multi-step and support multiple currencies, allowing clients to trade in different currencies.
B2Prop doesn’t charge extra fees based on the number of challenges, accounts, or steps involved. Successful traders can access funded accounts with profit-sharing models, allowing them to retain 70-80% of their trading profits.
B2Prop integrates with popular platforms like MetaTrader 4, MetaTrader 5, and cTrader, with plans to add B2Trader, TradeLocker, and more. It offers powerful dashboards for tracking trader metrics from registration to funded accounts, ensuring effective and customer-centric solutions.
Where the Revenue Comes from
B2Prop presents businesses with multiple revenue opportunities:
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Challenge Fees
Companies generate revenue from the fees they impose on traders who want to join trading challenges. Traders often make multiple attempts to buy again and successfully complete the challenge. This assists the company in generating additional revenue.
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Profit Sharing
Only top-performing traders who complete the challenges gain access to funded accounts. The company provides the capital for these accounts while retaining a share of the profits generated through the traders’ activities, typically ranging from 20% to 50%.
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Tailored Trading Conditions
Businesses can tailor trading conditions, such as commissions, to their advantage. Companies can implement higher commissions, which reduces the profits on funded trader accounts, resulting in lower payouts for the company to make while still benefiting from the difference.
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Copying Successful Strategies
B2Prop is integrated with B2Broker’s B2Copy platform, enabling businesses to generate additional revenue. It allows adjustable funding limits for trader accounts, allowing companies to copy successful traders’ strategies into their own accounts, thereby generating additional profits without paying them.
A Complete Turnkey Package for Starting a Prop Firm
B2Broker’s B2Prop Turnkey package offers a comprehensive solution for businesses to establish a successful proprietary trading firm. It includes B2Core CRM, a platform where traders can sign up, buy challenges, track performance, and handle payments. The package also includes integrations for payment services, KYC solutions, and broker platforms.
The package includes a white-label cTrader platform tailored for prop trading firms, offering advanced features and cost-effective deployment. B2Prop can integrate with MT4 and MT5 servers if the company holds the license.
Additionally, B2Prop’s turnkey package includes B2BinPay, B2Broker’s blockchain platform. B2BinPay processes cryptocurrency payments and enables clients to credit their accounts using different coins and stablecoins on eight blockchain networks. With their accounts funded, clients can then purchase trading challenges. This flexibility in payments can attract a broader range of traders.
B2Copy is a copy trading platform from B2Broker that enables firms to replicate successful traders’ strategies directly into their accounts, resulting in extra profits without paying them.
The B2Prop turnkey package offers transparent pricing with three monthly plans:
How to Set Up Challenges in B2Prop via B2Core
B2Broker has integrated B2Prop seamlessly into the B2Core platform. Administrators can access the Prop Trading section under the Investment Platform menu in the admin panel. This dedicated area contains the Challenges List page, where admins can create new prop trading challenges as well as manage existing ones.
When creating a new prop trading challenge, first, administrators specify the challenge name, description, and upload a picture to showcase the challenge on the front-end.
Next, they define the challenge parameters such as 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. Admins can also set rules for disqualifying participants who breach the daily loss limit.
Once challenges are submitted, the admin panel allows you to monitor the performance of the participants. The list includes accounts that are currently active or inactive, as well as their current progress status (started, successful, or failed). Once the task is completed, administrators can tag accounts and establish funded accounts for the individuals involved.
On the front-end, traders can view the list of available challenges, complete with pictures and key metrics. They can easily join a suitable challenge with a single click and pay the entry fee from their wallet if required.
As traders progress, they can track important metrics like equity, maximum drawdown, number of trades, and more. The platform also provides day-by-day trading summaries with P&L and volume details.
Once the challenge is completed, participants receive an email notification containing details regarding their proprietary trading account. Additionally, traders can access their past challenges and comprehensive information regarding their performance and trading history for each account.
Improving Prop Trading Technology with B2Prop
As a company dedicated to developing leading technology and liquidity solutions for businesses in the FinTech industry, B2Broker is proud to expand its extensive lineup of turnkey products with B2Prop. This ready-made solution provides businesses with a convenient and speedy way to establish a prop trading firm from scratch.
Contact the B2Broker team to try the B2Prop demo and explore its capabilities.
