As a funded trader, one question that often comes to mind is if you can trade for more than one prop firm at once.
Trading for multiple prop firms ideally diversifies your risk, since you’re no longer putting all of your eggs in one basket.
So is this possible and is it practical? Let’s find out.
Is it possible to trade for more than one prop firm?
Yes, you can trade for as many prop firms as you want. To the best of our knowledge, no prop firm prevents you from dealing with other prop firms. In fact, trading with multiple prop firms is a good way to compound your trading capital.
While many prop firms do let you take multiple challenges to compound your trading capital, it’s better to compound more capital and diversify at the same time. This way, if one prop firm goes under or fails to pay out for whatever reason, you’re still making money with the other(s).
How to trade with multiple prop firms
If you’re already making good money with one prop firm, you can take a shortcut by opening accounts with firms that offer direct funding models(My Forex Funds and City Traders Imperium).
Once you have access to multiple accounts, there are a couple of ways to go about your trading plan:
Use one broker as the master account and copy trade
Firms like FTMO and My Forex Funds allow copy trading, so you can simply trade one account as your master account and copy your positions from account A to B to C and so on.
In order for this to work, the trading platforms must be the same: you can’t use cTrader for one account and MetaTrader for the other, for example.
The main disadvantage with this is that your risk management must be spot on, otherwise you risk blowing all the accounts together by hitting the max loss.
If your strategy is taking small, quick positions, then you will have to copy trade as you may not have enough time to hop between platforms.
Trade each account independently
To further up your risk management and diversify, you can trade each account independently, too.
For example, if you see a setup forming on two different pairs, you can open a position on one pair with one broker and the second pair with the other.
This method has the added advantage of helping you stay within the rules of each prop firm, as you may inadvertently violate one firm’s rules when opening a position on another.
One of the best ways to diversify your risk capital and succeed in the prop firm market is to trade for multiple prop firms because it will limit your potential losses if one firm goes down while increasing your equity across the board.