Velaris Markets has combined its brokerage business and prop trading under one brand. The company announced the launch of a dual model. The announcement was released via GlobeNewswire on October 28 at 18:35 Moscow time.
In simple terms. Two different products now live under one brand: a regular account funded with your own money and an account that the company issues to a trader after selection.
Why this matters to a trader. These two accounts have different rules, even though there is now a single entry point into them.
What exactly has changed?
Previously, these were two different types of business with different operating logic.
- A broker is a company that provides access to the market. It earns on the spread and commission from your own money.
- A prop company is a company that itself issues a trading account to a trader after a paid selection process (a challenge) and shares a portion of the profit with them.
Why do they do this?
In a unified model, a trader goes through selection and trades a funded account in the same place where they can open a regular brokerage account.
- One infrastructure - execution, platform and personal account.
- No transferring of trading history between two different companies.
How the challenge and payouts work is covered in the academy.
What does this mean for a trader?
One question matters: where the brokerage account ends and the prop account begins.
- On your own account, the rules are dictated only by risk management.
- On a funded account, the rules are set by the company: drawdown limit, payout procedure, permission to trade during news.
The main point: one brand does not make the rules of the two accounts the same.
What happens next?
The specific parameters of the programs are disclosed in the company's own terms. These are account sizes, profit share, timelines and limits.
- Officially announced is the very fact of launching a dual model under one brand.
- There are no detailed figures on the challenges in the announcement.
You can compare the terms in the prop firm catalog.
A broker and a prop company are not the same thing
When one brand covers both the broker and the issuance of accounts, it is easy to assume that the rules are shared too. They are not shared. With your own money, no one will cut you off for exceeding a daily loss limit. On a funded account, that is grounds to close access. It is worth looking into the numbers of a specific program - drawdown, timeline, payout percentage, permission to trade during news. It is more convenient when such terms from different prop companies are laid out side by side and can be compared line by line.