Advantages Of Collective2’s Compared To Typical Prop Firms
Prop firms require at least 5% growth in accounts being managed by traders and sometimes you can require more than that whereas Collective2’s just require the trader to outperform the S&P by 1% over 60 days net of fees.
Furthermore Collective2’s allow traders to hold trades for long periods which can be more than 24 hours or even hold a trade through the whole evaluation period. Whilst on the other hand Prop firms allow day traders only.
To add on, Prop firms have automated activity minimums whereby an account manager is limited to a certain number of daily trades however Collective2’s have no activity minimums.
More so Collective2’s charge a once off payment fee whereas Propp firms monthly fees.
In addition with Collective2’s a manager can trade stocks or futures without licensing whilst prop firms require a securities license inorder for a manager to manage stocks.
Moreover with Prop firms a trader profits in relation to ones’ performance as a percentage whilst Collective2’s have a guaranteed $1,000 monthly payment while certified and a subscriber income per month.
Furthermore with prop firms the traders performance is not published whereas Collective2’s build a certified track record which increase exposure in the Industry.
Lastly Collective2’s allow traders to use a wide range of platform whereas prop firm platforms are limited