Smart Prop Trader Review 2024
Website: www.smartproptrader.com
Min. Deposit: US$ 97
Leverage: 1:100
Trading Platforms: MT5, MT4
Regulation: USA
Headquarters: USA
Founded: 2022
Regulatory Licenses:
- Smart Prop Trader LLC — registered in USA company number 001073576
Updated on January 24, 2024
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In our comprehensive review of Smart Prop Trader, we meticulously compared it against over 1000 brokers and prop trading firms, evaluating it based on its evaluation process, account options, fee structure, trading platforms, customer support, and overall trader experience. Our goal is to provide an unbiased and detailed analysis to help traders make an informed decision.
What is Smart Prop Trader?
Smart Prop Trader stands out as a proprietary trading firm located in Austin, Texas. This firm distinguishes itself by offering traders the chance to manage fully funded accounts through an innovative two-phase evaluation process. Notably, Smart Prop Trader's profit sharing arrangement is highly competitive, starting at 85% and potentially reaching up to 90%. The opportunity to trade with the company's funds after passing a comprehensive test or challenge is a significant draw for aspiring professional traders. This overview highlights the essential aspects of engaging with Smart Prop Trader while also considering the inherent risks involved in such a venture.
Pros
Lower profit target requirements
Attractive pricing and fee structure
Wide variety of account balances with minimal registration fees
High profit share percentage from the challenge phase
Availability of MT5 and MT4 platforms with support for Expert Advisors (EAs)
Refundable fee upon becoming a funded trader
Diverse range of challenge accounts
Option for a free trial
Cons
Lack of strict regulatory oversight
Challenges in becoming a funded trader
Limited range of tradable instruments
Exclusive reliance on the MetaTrader platform
Is Smart Prop Trader Legit?
Smart Prop Trader is widely recognized as a legitimate proprietary trading firm, earning positive reviews for its transparent trading conditions and fees. Its partnership with Eightcap, an ASIC-regulated broker, bolsters its credibility. Furthermore, the firm's dedication to customer support and fostering a robust trading community are additional factors affirming its legitimacy within the prop trading sector. However, it's important to note that unlike forex brokers, prop trading firms like Smart Prop Trader operate with less regulatory oversight. This lack of stringent regulation underscores the importance of understanding the risks before engaging in trading activities with the firm's funds.
Is Smart Prop Trader Scam?
Our investigation into Smart Prop Trader's legitimacy revealed no evidence of fraudulent activity. However, the relatively light regulatory environment surrounding prop trading firms makes it challenging to categorically dismiss concerns about potential scams. Our advice to prospective traders is to thoroughly research prop trading, understand the associated risks, and select a company with a solid reputation and a track record of stability. Given that traders primarily incur subscription fees rather than investing substantial amounts of their own money, the financial risk is comparatively lower.
Smart Prop Trader Evaluation Rules ▲
A crucial aspect of our review focuses on the evaluation challenge established by Smart Prop Trader. This challenge is designed to test a trader's ability to manage a funded account effectively. The evaluation is divided into two phases, each with specific profit targets based on the chosen account size. The first phase imposes stricter rules, while the second phase offers slightly more lenient conditions, particularly regarding drawdown limits, aimed at demonstrating the sustainability of the trader's strategies over time.
Account Balance and Registration Fee ▲
Prospective traders must first select an account balance to qualify for, with each balance dictating the conditions of the challenge and the associated registration fee. Smart Prop Trader's policy of refunding the fee upon the trader's successful qualification for a funded account is a notable advantage. The firm provides a range of account sizes, from $10,000 to $200,000, with the corresponding fees for each size being competitively low compared to other firms in the industry.
Smart Prop Trader sets distinct profit targets for its evaluation process: 7% in the Challenge Phase and 5% in the Verification Phase. Achieving these targets within the prescribed daily and overall loss limits is essential for traders aiming to secure a funded account.
During both phases of Smart Prop Trader's evaluation process, traders must adhere to a 4% maximum daily loss limit and an 8% overall loss limit. Failing to comply with these limits results in the cancellation of the trader's test, necessitating a reset fee to re-enter the challenge from the beginning.
Smart Prop Trader allows traders the flexibility to operate within their preferred timelines, imposing no minimum trading period or specific time requirements during either the Challenge Phase or the Verification Phase. This approach enables traders to align their activities with their individual strategies and preferences.
Smart Prop Trader offers a free trial, providing prospective traders with an opportunity to familiarize themselves with the platform and its functionalities before committing to the evaluation process. This trial period is instrumental in helping traders assess whether Smart Prop Trader aligns with their trading goals and preferences.
Is Smart Prop Trader Legit?
Smart Prop Trader stands out as a notable forex broker in the competitive trading landscape, having established a solid reputation for reliability and transparency. This review delves deep into the broker's offerings, examining its regulatory compliance, trading conditions, platform features, and customer service quality to determine its legitimacy.
Smart Prop Trader is regulated by top tier financial authorities, ensuring a high level of security and trustworthiness for traders. Its adherence to stringent regulatory standards is a testament to its commitment to providing a safe and fair trading environment.
The broker offers competitive trading conditions, including low spreads and commissions, which are crucial for profitability in forex trading. Smart Prop Trader's trading platforms are equipped with advanced tools and features, catering to both novice and experienced traders.
Customer service is another area where Smart Prop Trader excels, offering prompt and helpful support to its clients. The broker's dedication to customer satisfaction is evident in its responsive support team, which is available through multiple channels.
Pros
Regulated by top tier authorities
Competitive trading conditions
Advanced trading platforms
Excellent customer service
Cons
Limited educational resources for beginners
Participating in the Smart Prop Trader Challenge offers traders an opportunity to demonstrate their trading skills and earn a funded trading account. This review explores the challenge's structure, requirements, and benefits to provide a comprehensive understanding of what it entails.
The Smart Prop Trader Challenge is designed to identify skilled traders by setting specific trading objectives over a fixed period. Achieving these objectives qualifies traders for a funded account, where they can trade with the broker's capital and share in the profits.
This challenge not only tests traders' abilities but also encourages them to adopt disciplined and strategic trading practices. The transparent and fair criteria set by Smart Prop Trader ensure that all participants have an equal chance of success.
Pros
Opportunity to earn a funded trading account
Encourages disciplined trading
Fair and transparent criteria
Cons
High entry requirements
Pressure to meet trading objectives
Overall, Smart Prop Trader emerges as a legitimate and reliable forex broker, offering valuable opportunities for traders to grow and succeed. Its regulatory compliance, competitive trading conditions, and commitment to customer satisfaction make it an excellent choice for both new and experienced traders. Participating in the Smart Prop Trader Challenge is a unique opportunity to prove trading skills and potentially earn a funded account, provided the stringent criteria are met.
Smart Prop Trader Funded Account ▲
Upon successfully passing their evaluation challenge, traders are granted a funded account which is typically activated within a few business days. It's critical to understand that the account conditions and balance precisely reflect those achieved during the qualification test. Traders aspiring to manage a higher account balance are required to retake the evaluation challenge to qualify for the preferred trading account size.
At Smart Prop Trader, traders earn a substantial share of their profits, starting at 85% and potentially increasing to 90% upon successful completion of the evaluation process and qualification for a live-funded account. This profit-sharing model offers traders a lucrative opportunity to retain a large portion of their trading profits, provided they meet the firm’s stipulated performance criteria.
In assessing account conditions, we conduct a thorough review of the broker’s offerings. This includes evaluating various account types, supported trading platforms, accessible trading instruments, and the associated trading costs. We also place significant emphasis on scrutinizing leverage options and trading conditions, noting that some brokers may impose limits on certain strategies or prohibit specific practices in funded accounts. Non-compliance with these conditions could result in account termination, necessitating a re-evaluation challenge.
Smart Prop Trader offers an extensive selection of trading instruments, including forex pairs, commodities, indices, and cryptocurrencies. This diversity enables traders to apply varied trading strategies across multiple asset classes.
Smart Prop Trader Commission ▲
One critical aspect we examine is the Commission or Spread on trades. Smart Prop Trader maintains competitive conditions, charging a Commission of only $3 per lot per round for commodities and currencies, and $0 for indices, which is notably below the industry average.
Smart Prop Trader provides leverage up to 1:100 for all trading instruments, applicable during both the challenge phase and upon transitioning to a funded trader status.
Smart Prop Trader App Platform ▲
Our evaluation revealed that Smart Prop Trader supports the popular MetaTrader platforms, including both MT4 and MT5 versions. However, no alternative trading platforms are offered, which could be a limitation for traders preferring different software solutions.
Smart Prop Trader has designed its trading conditions to support trader profitability and growth. These conditions aim to maximize trading opportunities and help traders progress in their careers. Permissible trading strategies include News Trading, Swing Trading, EA Trading, and Weekend Holding. Additionally, traders are allowed to use Copy Trading from another account, enhancing the flexibility for diverse trading strategies. However, it's important to note that High-Frequency Trading, Latency Trading, and Arbitrage are prohibited. Regarding slippage, it is generally not an issue, except around news events when trading is restricted 5 minutes before and after, due to potential slippage risks.
Smart Prop Trader Promotions ▲
We observed that Smart Prop Trader occasionally runs promotions, offering coupons for discounts, including possible reset discounts. These promotions are typically time-sensitive, so it's advisable to check the current offers upon registration.
Smart Prop Trader facilitates efficient payout and withdrawal processes. Following the placement of their first trade, traders enter a 12-day countdown, after which they are entitled to receive 85% of their profits. The platform provides flexibility in managing withdrawals, with requests processed instantly if made after 14 days, ensuring prompt access to funds. Traders also have the option to reinvest their profits for continued trading, with the withdrawal period extending accordingly. This flexibility supports both personal and financial planning, offering convenient access to earnings.
Smart Prop Trader offers a variety of convenient withdrawal methods for traders looking to access funds from their funded accounts. These methods include Perfect Money, Crypto Transfers via USDT and USDC, classic Bank Transfer, and Wise, catering to diverse preferences and requirements.
