A prop firm (proprietary trading firm) lets traders trade its capital and share the profits. Online prop firms made this open to anyone: instead of a job interview, you pass an evaluation.
1Buy challengeone-time fee
2Phase 1hit ~8–10%
3Phase 2hit ~5%
4Fundedsame risk rules
5Payoutkeep 80–90%+
How it works
- Buy a challenge for an account size, say $100,000, with a one-time fee.
- Hit the profit target without breaking the drawdown rules.
- Get a funded account and keep a profit split, commonly 80–90%.
- Many firms refund the fee with your first payout.
Example
You pass a $100,000 challenge and make 4% ($4,000) in your first funded month. With an 80% split, your payout is $3,200.
What to know
- Most funded accounts are simulated; payouts are real.
- The firm's main income is challenge fees, and most people fail.
- Rules can change and firms can close. Choose firms with a long payout record.
Wick says
Your maximum loss is the challenge fee, not your savings. That's a pretty good deal, if you treat it seriously.
Key takeaways
- Pay a fee, pass an evaluation, trade a funded account.
- Keep 80–90%+ of profits.
- Pick firms with a proven payout history.