Comprehensive Guide
Proprietary Trading Firms
Trade with up to $400,000 capital and keep most profits - an honest guide to what you need to know
What is Prop Trading?
Prop firms give you capital to trade in exchange for a share of profits. You first need to pass an evaluation proving your skills.
$100K-$400K
Trading Capital
80-90%
Your Profit Share
5-15%
Evaluation Pass Rate
Common Evaluation Rules
Profit Target
Usually 8-10% in phase 1, 5% in phase 2
Max Drawdown
Between 5-12% of capital - cannot be exceeded
Trading Days
Minimum 4-10 trading days required
Daily Drawdown
Usually 4-5% max daily loss limit
Prop Firm Comparison
| Firm | Max Funding | Profit Split | Challenge Fee | Status |
|---|---|---|---|---|
| FTMO | $400,000 | 80-90% | $155-$1,080 | Active |
| The Funded Trader | $600,000 | 80-90% | $65-$549 | Active |
| Topstep | $150,000 | 90% | $49-$149/mo | Active |
| Funded Next | $200,000 | 80-90% | $32-$229 | Active |
| E8 Funding | $400,000 | 80% | $138-$988 | Active |
| MyForexFunds | - | - | - | ⚠️ Shut down in 2023 due to regulatory issues |
Prices and terms subject to change. Verify on each firm's official website.
Pros
- Trade large capital without personal risk
- Keep 80-90% of profits
- Professional trading environment
- Opportunity to prove your skills
Cons
- Evaluation fees usually non-refundable
- Strict rules may limit your style
- Psychological pressure to meet requirements
- Some firms are unreliable
Red Flags
⚠️Unrealistic promises (instant 100% funding)
⚠️No track record
⚠️Many complaints about non-payment
⚠️Vague or changing terms
⚠️Pressure to sign up immediately
Is Prop Trading Right for You?
Good fit if:
- You have a proven winning strategy
- You can follow strict rules
- You lack capital to trade
Not good if:
- You're a beginner without a strategy
- You can't afford to lose evaluation fees
- You need flexibility in trading style
Start with Practice First
Before paying evaluation fees, make sure your strategy works on a demo account.
Find a Broker for Practice