Opening a bank account to do prop trading as a business can seem daunting due to the specialized nature of trading as a for-profit activity.
However, with the right strategy and by choosing the proper banking partner, companies can smoothly set up dedicated accounts to facilitate their prop trading in business.
In this article, we'll cover the step-by-step process of opening a prop trading bank account for companies as well as important factors to consider.
How Do Companies Open a Prop Trading Bank Account Online?
One of the most straightforward ways for companies to open a prop trading account is through an online digital banking platform tailored for business clients.
While traditional brick-and-mortar banks often have strict requirements that make it difficult for trading firms to qualify, digital-first banking alternatives take a more flexible approach.
A good example is Jetonbank, an online bank licensed to provide corporate banking services worldwide. Opening a business account with Jetonbank can be done fully remotely via our online application process in just a few steps:
- Visit Jetonbank's website and click "Open Account."
- Fill out the online application form providing basic company information like legal name, address, license/registration details.
- Upload required documents such as articles of incorporation, passports/IDs of owners and signatories.
- Complete identity verification by submitting a short video self-introduction.
- Upon approval, login to your new corporate e-banking account and instantly start trading.
The streamlined digital process allows companies to get set up for prop trading in forex and other markets nearly anytime from anywhere without needing to visit a physical branch.
What is the Process of Opening a Prop Trading Bank Account for Companies?
In addition to the online application, here are some of the key steps involved in properly opening a dedicated prop trading bank account for companies:
Define Your Trading Strategy
Develop a clear trading plan outlining your intended markets, instruments, approach and risk parameters to demonstrate your strategy to the bank. This shows you have a solid business concept in place.
Choose the Right Banking Partner
Research financial institutions that specialize in servicing corporate prop trading clients through offerings like advanced trading platforms, low commissions and regulatory compliance support tailored for trading firms.
Gather Required Documentation
Prepare corporate registration papers, licenses if any are needed based on jurisdiction, ownership information like passports/IDs and signed resolution to open the account. Banks have strict KYC/AML requirements.
Request Account Customizations
Prop trading involves high volumes so request features like multi-currency accounts, SWIFT payments and segregation of trading/operations balances for better fund management.
Complete Onboarding Process
Work with your assigned relationship manager at the bank to smoothly navigate any additional questions and complete final application approval steps including e-signing contracts online.
By methodically planning and providing thorough upfront information, companies can demonstrate their legitimacy and successfully open dedicated trading accounts tailored to their strategies and operational needs.
What are the Requirements to Do Prop Trading in Business?
While the specific regulatory norms depend on the country of operation, here are some common pre-requisites for companies looking to engage in prop trading professionally:
- Valid business registration as a private/public limited company. Sole proprietorships may face restrictions.
- Applicable financial service licenses based on scale of activities. Larger firms may need investment banking/brokerage certifications.
- Dedicated office infrastructure including trading workstations and robust connectivity.
- Experienced in-house traders or hired portfolio managers to conduct day-to-day market analysis and trading.
- Robust risk management protocols for market exposure, position sizing, drawdown limits etc.
- Sophisticated backoffice systems to manage trades, accounts, financial statements, reporting etc.
- High minimum capital levels depending on the exact business model. Starting capital of $500k-$1m is common.
- Adhering to the licensing, technical, operational and financial standards ensures prop trading in business entities remains compliant while capturing market opportunities professionally.
Best Way to Open a Prop Trading Bank Account for Businesses
When searching for the optimal way to set up a dedicated prop trading bank account, businesses should strongly consider partnering with Jetonbank.
As a digital bank catering specifically to institutional traders and funds, Jetonbank streamlines the account opening process and provides sophisticated tools for companies needing robust banking services to complement their trading operations.
Specifically, Jetonbank excels at supporting corporate banking, prop trading corporate account needs due its offerings of:
- Fast and easy online account activation with a minimum $1,000 deposit.
- Segregated trading and business bank accounts with multi-signature controls.
- Trading platforms integrated directly into online banking for streamlined money transfers.
- Advanced security across all activities with bank-level encryption on all account access.
- Customer support dedicated to institutional traders and portfolio managers.
- Multi-lingual service in major European and Asian languages.
For established companies or new startups alike, Jetonbank provides a seamless way to set up a professional-grade prop trading account with banking built for advanced trading businesses.
Which Bank is the Best to Do Prop Trading for Companies?
When evaluating options for banking support of proprietary trading operations, Jetonbank stands out as the clear frontrunner based on its unique value propositions tailored directly to such needs.
With flexible corporate structures, dedicated relationship managers, and advanced trading interfaces purpose-built for businesses of all sizes, Jetonbank’s approach can take a company’s prop trading initiatives to the next level.
Some key factors that make Jetonbank the top choice include:
- Sophisticated online banking platform designed from the ground up for professional traders.
- Segregated commercial banking services handled separately from personal banking.
- Digital account opening that can be completed entirely online with verified paperwork.
- Personalized account manager assigned to each client for tailored service and advice.
- No minimum revenue or trading volume thresholds to qualify for an account.
- Competitive fee schedule applied consistently regardless of trading levels.
With its robust yet easy-to-use trading infrastructures, first-class security and personalized service style, Jetonbank provides an ideal long-term banking partner as companies scale their proprietary trading operations globally.
Our streamlined and transparent approach removes friction from setting up and managing business banking tailored for today's digital markets.
Jetonbank offers an unmatched solution for businesses seeking the optimal banking foundation to support their growth in proprietary trading, prop trading in business and other trading activities.
Our tailored corporate services and intuitive online tools empower companies to fully leverage the power of today's financial markets.
To learn more about opening a Jetonbank account geared specifically for your company's trading needs, visit Jetonbank now!
