Wouldn't a leveraged account of 1:500 or 1:1000 be the same as a prop firm?

[Ariel5735]

I know highly leveraged accounts can make you lose money but suppose you have proper risk management wouldn't it be the same thing as a prop firm account?

[Darrellsox]

If you put $1000 on a 1:1000 leverage account, and risk 1% of your account ($10), and make 3% ($30) back, you still only made $30.

All leverage does is allow you to use higher lot sizes for your balance. It doesn't give you extra money.

[LynsFoos30]

Any profitable trader will suffice with less than 1:100.

With a capital of 10k on 1:500 you have a buying power of 5m, that is 50 lots, which is $500 per pip or 5%. What kind of proper risk management would you risk 5% or even 10% per pip?

Definitely any strat higher than TF seconds needs at least some SL seed.

2 losses and you'll start contemplating life

But to answer, yes, it is somewhat the same and you get a better spread and commission.

The psychological side is the problem though. Personally, I feel it's easier to play with $1k on a $10k account than a $150 prop challenge than spending $1k of my own.

so $1k prop money > $1k own money.