Finding a reliable prop trading firm in India requires careful consideration.
With the country’s fast-growing financial markets and increasing interest in proprietary trading, more firms than ever are emerging into India with various funding models, payout structures, and trading conditions.
But all that glitters is not gold.
The right firm can provide access to significant capital, helping traders scale their strategies while minimizing personal financial risk. However, not all firms offer the same advantages, so knowing what to look for is essential.
In this guide, we’re breaking down what to look for in the best prop firm in India: Falcon Funded.
The Growth of Prop Trading Firms in India
Prop trading has expanded significantly in India, providing traders with access to international capital and reducing the need for personal risk. It means more access to potentially lucrative trades and financial growth, as long as you choose the right trading firm for you.
As the financial sector develops in India, firms are competing by offering higher capital, better profit-sharing agreements, and more lenient trading rules. While this presents new opportunities, it also requires traders to carefully assess which firm aligns with their needs.
Prop Trading Firms in India: Key Considerations for Traders
There are a few things affecting trade rules in India that you need to consider before choosing a firm.
Regulations and Market Access
The Securities and Exchange Board of India (SEBI) enforces strict trading rules, which impact leverage, derivatives trading, and forex access.
Some international prop firms offer forex trading, but Indian traders must ensure compliance with RBI and SEBI regulations to avoid legal complications. Additionally, not all firms provide access to NSE, BSE, or MCX, so traders looking to operate in Indian markets should check availability before signing up.
Leverage, Taxation, and Withdrawals
Leverage restrictions in India can differ from international markets, so make sure to verify what’s allowed under SEBI guidelines. Also consider tax—profits from prop trading can be taxed as business income or capital gains, depending on the structure.
Another key factor is payout methods; some prop firms in India operate in foreign currencies, meaning traders may face conversion fees when withdrawing funds.
Profit Sharing and Withdrawal Terms
Understanding how earnings are distributed after trades is crucial. Some firms (like Falcon Funded) allow traders to retain up to 90% of their profits, while others offer lower profit splits but provide additional benefits such as lower evaluation costs or quicker withdrawals. It’s important to review payout cycles and whether the firm imposes restrictions on when and how funds can be withdrawn.
Evaluation Process and Funding Access
Most prop trading firms in India require traders to complete an evaluation (known as a prop firm challenge) before providing access to capital. Some firms have a single-phase challenge, while others require multiple steps to assess consistency. If you’re looking for a streamlined process, opt for firms that offer a fair and efficient path to funding without excessive restrictions.
Profit Targets and Risk Limits
Every prop firm enforces specific targets and drawdown rules to regulate risk. A reasonable profit target ensures traders have an achievable goal, while drawdown limits protect accounts from excessive losses.
If a firm sets unrealistic targets, it may not be the most suitable option, particularly for newer traders. Look for firms that balance opportunity with risk control.
Trading Conditions and Flexibility
Trading conditions can vary significantly between prop firms in India, so it’s important to read up before joining.
Take a look to see all accepted strategies, as some firms may restrict things like holding overnight positions, impose limits on specific instruments, or prevent certain strategies like scalping or news trading. A good prop firm should allow diverse trading approaches, enabling traders to apply their strategies effectively.
Technology and Customer Support
A stable trading platform is essential for order execution and strategy implementation. Delays, platform outages, or poor execution speeds can impact your trading results and even contribute to significant losses.
It’s also essential to choose a prop firm with responsive customer support. You need to know there’s a team on hand (when you need them) who can assist in resolving technical issues and answering funding-related queries.
Why Should Indian Traders Choose Falcon Funded?
As one of the leading prop trading firms available to Indian traders, Falcon Funded stands out as a top choice. The prop firm offers fair profit targets, competitive earning potential, and strong support. Key benefits include:
- A realistic 7.5% profit target
- Up to 90% profit share
- An 11% maximum drawdown
- A streamlined two-phase evaluation process
- High leverage up to 1:100
- Expert guidance and responsive support
Final Thoughts
Selecting the right prop firm can shape your trading journey. When it comes to selecting the best prop firm in India, traders need to consider regulation compliance, target profitability, and things like time zone restrictions and currency trading.
With achievable profit targets, trader-friendly conditions, and a strong support system, Falcon Funded provides an excellent opportunity for Indian traders. If you’re looking for a firm that prioritizes trader success, offers flexibility, and ensures seamless payouts, consider starting your trading journey with Falcon Funded.
Get started with Falcon Funded today to start building your portfolio.
