What is an Evaluation Services Platform?

Evaluation Services Platform is a retail prop firm, short for "retail proprietary trading firm," is a financial business or company that provides trading capital and resources to individual traders, commonly known as retail traders. Unlike traditional prop firms that primarily cater to professional traders and institutional investors, retail prop firms focus on empowering retail traders by offering them access to proprietary trading capital and other support services.

Retail prop firms typically operate on a business model where they allocate a portion of their own capital to individual traders. These traders, also referred to as prop traders, use the firm's capital to engage in trading activities across various financial markets, such as stocks, options, futures, or foreign exchange (forex).

The key features of a retail prop firm include:

  • Capital Allocation: Retail prop firms provide traders with trading capital, allowing them to execute trades and potentially profit from the financial markets. The allocated capital is typically leveraged, which means traders can trade with a larger capital base than the amount of trading capital allocated to their own initial investment.
     
  • Reduced Risk: Retail prop firms often absorb a significant portion of the trading risk, protecting traders from substantial losses beyond a certain threshold. This risk-sharing arrangement enables traders to focus on their trading strategies without being overly burdened by potential losses.
     
  • Support and Resources: Retail prop firms offer various resources and support services to traders, including trading platforms, market data, research tools, educational materials, and mentoring programs. These resources are designed to enhance traders' skills, knowledge, and overall trading performance.
     
  • Profit-Sharing or Commission Structure: In return for providing trading capital and resources, retail prop firms typically adopt a profit-sharing or commission structure. Traders receive a percentage of profits generated from their trading activities, if any, while the prop firm retains a portion as compensation for providing the capital and support. 

Overall, retail prop firms aim to bridge the gap between individual retail traders and the opportunities available in the financial markets. By offering trading capital and a supportive environment, these firms enable retail traders to access markets with reduced cost and risk, providing them with the potential to generate profits and build a successful trading career.

Funded Copy Trader is an online Evaluation Services platform using demo accounts. We give traders the opportunity to complete our simulated challenge program and demonstrate their trading skills in an environment that poses no financial risk of loss to them. After passing the simulated evaluation phase, eligible traders are eligible to receive a share of net gains generated in their simulated funded accounts.

 

Still not finding an answer? We can help!

Open a ticket, and we will reply to you as soon as possible.