Prop firm challenge

[Replicant]

Hi Everyone and thanks for having me in this forum,

I was wondering if any of the members can provide me with some guidance, I'm trying to build a prop firm challenge e-commerce website.

Our intention is to establish an educational company based in Hong Kong, focused on offering training and educational resources for aspiring traders. This company will primarily serve as a platform to teach trading strategies, techniques, and risk management principles to individuals seeking to enter the world of proprietary trading.

Simultaneously, we aim to establish a separate company for the actual proprietary trading firm. This entity will engage in live trading activities, utilizing the skills acquired by participants from the educational company, and potentially providing them with opportunities to manage proprietary funds under specific arrangements. It will be structured as financial support or sponsorship facilitated through legal agreements and specific arrangements. The intention behind this financial support is to give participants who have successfully completed the educational programs an opportunity to apply their acquired skills in real trading environments and potentially manage proprietary funds.

We will not onboard US, or European clients. We are seeking guidance on structuring the two companies in a manner that guarantees their independence, taking into account that the primary source of revenue will be traders purchasing evaluation challenges, the challenge evaluation process does not involve financial instruments in the traditional sense, as it is conducted using a demo account with virtual funds, however, upon successful completion of the challenge, the trader will transition to managing a real trading account within the proprietary trading firm.

What would be the recommended legal structures for both companies that would provide the necessary separation and comply with relevant offshore regulations?

Thanks in advance.

 

[BarleyMalt]

Hi, will you charge for the evaluation? Because your business model sounds a lot like this one:
https://www.reddit.com/r/CryptoCurrency/comments/x7zmbb

 

[Replicant]

Hi Barley,

Thanks for your reply.

The business model will resemble FTMO and other prop firms using a challenge evaluation. is my intention to operate a legitimate business, far removed from any fraudulent activities. The main challenge lies in determining the appropriate location to incorporate the proprietary firm in order to secure reliable payment service providers, given the nature of the business structure. It is a fact that around 80% of people will fail the initial challenge, however, that can not be considered a scam, Those who do manage to pass the challenge, primarily due to their effective risk management skills, will then be entrusted with trading the private capital of our proprietary firm. It is an optimal way to find good traders, we can argue that making revenue from people trying to get funded is not ethical, however is not illegal. We are committed to offering educational content designed to instruct participants on how to trade effectively by employing prudent risk management strategies.

I am unfamiliar with this lady's business model or operations, and there certainly are several scams operating in this way, as there are hundreds of them in the world of finance. I took the time to read your link, however, seems this lady, is creating a whitelist, people send crypto funds directly to her and she probably will send you a demo account from any broker, good luck getting paid or getting funded with a real account if you pass the challenge. I was not able to find any company name, or website other than some screenshots probably from another firm and a social media profile.