An Interview with The 5%ers Prop Firm (2024)

Podcast:

Podcast: Play in new window | Download

Signup For my Forex Masterclass

Find out more about Blueberry Markets – Click Here

Find out more about my Online Video Forex Course

Book a Call with Andrew or one of his team now

Visit The5%ers Website. Click here!

#530: An Interview with The 5%ers Prop Firm

In this video:
00:27 – There’s a lot of interest in prop firms right now.
01:37 – What makes a trader a successful prop firm trader.
03:50 – You must be able to trade first.
04:58 – Different account types with The 5%ers.
05:38 – What’s the payout performance ratio?
07:00 – What makes The 5%ers a better prop firm?
09:48 – Our clients have success with The 5%ers.
12:00 – Prop firms can remove emotions from your trading.
13:37 – Contacting The 5%ers.

Andrew Mitchem
Hi! Everybody. Andrew here at the Forex Trading Coach, welcome along to this week’s weekly video and podcast. Something different for you this week. I am joined by Saul who’s the manager of the firm called the 5%ers. Welcome along.

Saul Lokier
Yeah, thank you, Andrew. Thanks for having me.

There’s a lot of interest in prop firms right now.

Andrew Mitchem
Awesome to have you here! Yeah. Look, we’re getting a lot of people interested in prop firms. Now, I know you guys have been around since 2016, and I can see on your website, which is probably one of the oldest prop firms around. Could you just give everybody a bit of an overview of what you do, what a prop firm is for those who don’t know and how traders can take advantage of using a prop from.

Saul Lokier
Yeah, good start. So basically we are recruiting. We’re looking for traders, retail traders to get evaluated by us, you know, through our challenges, through our evaluation programs. And once they complete those challenges to come and start managing our capital. So you might be familiar with the old prop firms in which, you know, you have a few amount of traders managing very large amount of accounts of money.

Andrew Mitchem
Yes.

Saul Lokier
So we’re doing something similar. But instead of giving, you know, billions of dollars for management to a few traders, we have many, many traders. We have literally thousands of traders managing relatively small accounts. So so that’s the idea.

What makes a trader a successful prop firm trader

Andrew Mitchem
Yeah. Nice. And over those that time, what have you found is the right type of person to be more successful. Like, is it a trading style? Is it a money management thing? Is a mindset thing. What in general would sort of make the more successful person?

Saul Lokier
It’s the view that you answer me because, you know, back in the day before started managing the company, I, I used to spend a lot of time talking to our traders and talking to our higher funded traders. And I started doing a little bit of research what this traders had in common, because, you know, I saw some of them use indicators and some of the used some of them used to live in Australia and some of them live in the US.

Saul Lokier
So I wanted to understand what they were doing, you know, the same way. And amazing is very simple things that arbitrated and start doing. But these traders really do it. Okay, so the first thing is these traders master what they do. These traders know the strategies inside out. So I could ask them. “Andrew, what’s a poor quality set up for you?” and they could tell me I could ask them, when shouldn’t you be trading?

Saul Lokier
And they could answer. So they knew all the rules, all the, you know, all the parameters over the strategy, everything. And so so they really instead of jumping from a strategy to strategy or system to system, they really must, you know, what they did. So that’s number one.

Saul Lokier
The second is they they keep track. They really you know, they backtested, they they they journal what they do the journal these sales, they they journal their trades and they you know, they get all this learning process and insights from this recording and tracking and journaling

Saul Lokier
and lastly they deal with with losses so they wouldn’t you know, they knew how to cut those losses or take those losses and not going into revenge trading mode. Yeah. Or over-leveraging or all of that. So that’s one, two, three of these traders. And even though they were trading different strategies and different, you know, methods, they would have these three points in common. So so I guess that’s the that’s the answer.

You must be able to trade first.

Andrew Mitchem
That’s really interesting. So I suppose to summarize that also for people listening and watching that means prop firms are fantastic, but you still need to know what you’re doing first and you still need to be proven to or proved yourself on demo, on your own personal live account that you can trade consistently first before you then think about a prop firm.

Saul Lokier
Absolutely, Because otherwise you would be trying to pass our our evaluations and you will fail or you will you will succeed. And then once you start managing a real account, you were you will lose it. You will blow it because you’re not you’re not ready for that. You’re not emotionally ready for that. So you might you might you might pass the evaluation, for example, to something very, very common.

Saul Lokier
You pass evaluation, you feel overconfident and use that approach into the real trading and you start overleveraging, start trading, taking, you know, poor quality set ups and you blow their account, which is something we deal with that and we are, you know, we would take care of that on our risk department. But that’s something that’s a pattern we see in a lot of traders.

Different account types with The 5%ers.

Andrew Mitchem
Yeah. And in terms of that, then, so do you have different types of challenges that people can or different types of programs that people could choose to join?

Saul Lokier
Yeah, absolutely. So we have a one step a step, one step, a program, two step program, three step program. And you know, the three step program, I would say is that is that is that the most affordable and I would say is for beginners. You know the risk parameters is there very low leverage. You need to be very, very strict and the reward is high once you once you complete it and then we can go to the two step or one step, depending on your level of, you know, expertise.

What’s the payout performance ratio?

Andrew Mitchem
Right. And in terms of the the other end of the scale, when someone’s done really well in terms of payouts, like what’s your kind of ratio of your share for people who do well, then stop passing, prop them challenges.

Saul Lokier
Yeah. So it starts it starts at 75% for the trader and it can go all the way to 100% once they Yeah. Once they have proven consistently and through a lot of levels that they know what they doing, you know, we can take their trades and take it out of the market in times you know the amount we want we want.

Saul Lokier
So yeah if you’re you’re doing great Andrew you can take and you place one lot in your trade. We can take that out to the market instead of being one lot ten lots So, so we can, we can pay you your profit of one lot and then we can make money, you know, and we can give you 100% of your trade and you can make money with you.

Andrew Mitchem
Excellent. And then in terms of your trader, do have clients from all around the world that have joined you over the years.

Saul Lokier
Yeah, absolutely. So I guess like same as you with your students from all over the world. We have traders from Latin America, the US, Europe, UK, Africa, Asia, you name it.

What makes The 5%ers a better prop firm?

Andrew Mitchem
Yeah, nice and just it like in general for people watching and listening, obviously there’s a lot of prop firms, there’s a lot of choice now. And you know, you guys obviously one of the more well known companies, but what would you say? Maybe a couple of points that make you different than the vast majority of others? Like, why would someone choose to join you?

Saul Lokier
Yeah, I think that’s a great question because you go into you know, if you’re just starting in this industry and and you start, you know, you go to prop firms, you will see there’s hundreds of them and it can be overwhelming, you know, choosing the right one. Yes. So I would say you need to look for a you know, some things first, the you know, the reliability of the of the company.

Saul Lokier
You know, how long have you had have been in the market? Hard, harder liquid enough, solid enough. So we’ve been since 2016. We have you know, we’ve made all the mistakes in the past so we don’t do them again. Yes.

Saul Lokier
The second thing is making sure there’s a risk management in place, a risk department, department in place, because, you know, sadly, a lot of other companies, they’re not having any interaction with the market, which is very, very tough to say.

Saul Lokier
But that’s the reality. So they’re just relying on, you know, fees from traders for the challenges in order to pay the payouts, you know, the profits from the traders. And there’s no trading happening at all. And and that can be very, very, you know, very problematic because if there’s not enough sellings or enough sales, they will have no money to pay the traders.

Saul Lokier
So that’s why you want to make sure the company has trading activity and there’s trading, you know, going to the LPs or the broker or whatever they’re using. They’re not relying in the, you know, on fees in order to pay to the traders. So that and I’m yeah. And another thing we we always do is we try to stay realistic.

Saul Lokier
We don’t sell dreams. You know we we stay realistic with what we expect from the traders and the outcome that they can achieve. And, you know, we all we all will. We always supporting our traders. So we’ve created once our trade is going through their hubs into their dashboards, their users, their space, they will have tons of resources to help them succeed because we are aligned with that interested, you know, with that interest of traders, you know, doing well.

Saul Lokier
So we have a lot of education and coaching and mentoring and tools that we’ve developed for them and always trying to give them the, you know, the best commissions available and the best execution available. So really trying to to support the traders.

Our clients have success with The 5%ers.

Andrew Mitchem
Excellent. And you know, I know that one of our coaching clients called Ryo, who lives over in Singapore like he he did an interview with you back in February of 2022 And you know, he was and he still continues today to have great success through the prop firms and and I just from the coaching point of view, I’ve always seen it as, you know, the obvious question that people have is how long is it going to take me with your system, Andrew, to pay back the course fee.

Andrew Mitchem
And I’ve always had to try and go, Whoa, just hold on that. That’s I realize that’s important. But the most important thing is for you to learn how to trade properly first. And if you get that bit right, then the funds will follow. And Ryo and many other people who are now using prop firms have proven that. But they did their you know, they they did their homework first and they spent a year learning how to trade.

Andrew Mitchem
So it was really pleasing for me, you know, to see Ryo on your website with an interview saying, one, he’s doing incredibly well, two is using you guys. And three, he did it with our help. But yeah, and I suppose what I’m saying is it’s really nice to hear that. But also backing up what you said at the beginning about the the disciplines that those successful traders have and.

Saul Lokier
Absolutely. Yeah, absolutely. I mean, I remember Ryo, I remember his interview and and you know, in trading we always say or I always I believe you need to be focused on the process and not not the outcome of the train.

Andrew Mitchem
Absolutely.

Saul Lokier
And it’s the same you know when when trying when applying for on a prop for him, you need to be focused on that process. And eventually the process won’t bring the money or the outcome. The money will be like a byproduct of that process, right?

Andrew Mitchem
Yeah.

Saul Lokier
You pay the you know, and the mentoring, the course, the education, whatever it is.

Andrew Mitchem
That’s actually so I suppose it’s how prop firms, once you know what you’re doing, can massively help people who the obvious issue that so many people have is they don’t have sufficient funds or even if they do, they don’t want to put sufficient funds of their own into their own account.

Prop firms can remove emotions from your trading.

Andrew Mitchem
But also another thing I find with prop firms is it emotionally helps you as well, because if you’re trading your own money or you’re trading money for friends or family and years ago I did, That is really hard.

Andrew Mitchem
You know, it’s great when it’s going well and if it starts turning the wrong way, it’s horrible, depressing. And so I find that emotionally and psychologically, that prop firm money because it removes that emotion of the individual person, you must find that as as feedback as well.

Saul Lokier
Absolutely. Like two key points. You mentioned the fact that first, you don’t have to commit your own money so you can trade our capital with that. Once you once you grow our our you know, our on our accounts, you can withdraw money and keep your accounts. You can keep your balance or even get more to manage. When you’re managing your own account, you rebuild account and you grow.

Saul Lokier
You make money. You need to decide, do I withdraw or do I keep growing the accounts, right? That’s right. So so with our with our programs, with our aim, with a company, you don’t have to you don’t have that dilemma. You can work, make money we through and keep growing that account, which is amazing. And the second point is as as important, the first one, the fact that you’re not you can get rid of that stress that, you know, managing your own money or family money can cost.

Saul Lokier
So it really helps, you know, not knowing who’s that money you’re managing. It will free you from. That’s the house.

Contacting The 5%ers

Andrew Mitchem
Yeah, absolutely. That’s excellent. So also just to summarize, how can people like I’ll put a link to your website obviously on this video and podcast, but how can people get hold of you if they have questions? What’s the best next step for people?

Saul Lokier
Absolutely. So first, visiting the website, they will see the different programs we offer and depending on their level of expertise and if they need anything, just reach out, [emailprotected] and they will be super happy to have them.

Andrew Mitchem
Wonderful. Well, look, thank you very much for your time today and thanks for being my first guest ever in 530 videos and podcasts.

Saul Lokier
Another it is.

Andrew Mitchem
And we’ve we constantly hear great things about your company. So we look forward to having lots of our clients head to you as well.

Saul Lokier
Hopefully. Thank you very much. Andrew.

Andrew Mitchem
Thanks. Saul! Bye for now.

Episode Title: #530: An Interview with The 5%ers Prop Firm

Signup For my Forex Masterclass

Find out more about Blueberry Markets – Click Here

Find out more aboutmy Online Video Forex Course

Book a Call with Andrew or one of his team now

Visit The5%ers Website. Click here!

Podcast: Play in new window | Download