Prop firm frequently asked questions

A proprietary trading firm gives capital to traders who prove they are profitable in an evaluation. In return, the trader keeps most of the profits, usually between 80% and 100%.

You pay for an evaluation (the challenge) on a demo account. If you hit the profit target without breaking the loss limits, the firm gives you a funded account. You then trade its capital and keep most of the gains, usually 80 to 100%.

Prop firms are not regulated like brokers: most funded accounts are simulated and payouts come from the firm itself. Reliability is judged on payout history, track record, clear rules and verified reviews. That is exactly what our score out of 10 measures.

No. Your risk is limited to the challenge fee. If you break a rule, you lose the account, never more than what you paid.

It depends on account size, your return and the profit split. Example: a 3% gain on a $100,000 account with an 80% split pays $2,400. Our simulator runs this for every firm. Keep in mind most traders do not pass their first challenge.

In our ranking, updated every month, the current top three is: Funding Pips (9.2/10) ; FTMO (9.0/10) ; FundedNext (9.0/10). The best firm mostly depends on your market (Forex or Futures), budget and style: our “Best firm for my budget” and “Which prop firm for me” tools point you in the right direction in a few clicks.

In our Futures ranking, Topstep, Lucid Trading and My Funded Futures lead the way. Compare the drawdown type (end of day or trailing), activation fees and payout rules, which vary a lot between firms.

If you trade currencies, gold or index CFDs on MetaTrader or cTrader, choose a Forex/CFD firm (Funding Pips, FTMO, FundedNext…). If you trade futures contracts (NQ, ES, GC) through Rithmic or Tradovate, choose a futures firm (Topstep, Lucid, Apex…).

The 2-step challenge is often cheaper with wider loss limits, but you have to pass twice. The 1-step is faster, with tighter rules (higher target or smaller drawdown). If you are consistent and patient, the 2-step is usually more affordable.

Several firms offer a funded account with no evaluation, including Lucid Trading, Tradeify, WeGetFunded and Top One Futures. It costs more and rules are stricter, but you trade right away. Filter “Instant” in the comparison to see them all.

Several Forex firms offer crypto CFDs, such as Funding Pips, FTMO, FundedNext and E8 Markets. Check the crypto leverage (often reduced) and weekend hours, which vary by firm.

With a small capital, a prop firm gives you a much bigger account for the price of a challenge, and your loss is capped at that price. With a large capital, your own money at a broker keeps 100% of the gains with no rules. Our live calculator compares both for your situation.

Yes, most Forex and Futures prop firms accept residents of France, Switzerland, Belgium and the rest of Europe. Each firm publishes a list of excluded countries in its terms: check it before paying, as a restricted country can block your payouts.

Static: the loss limit stays fixed. Trailing: it moves up with your gains in real time. EOD (end of day): it only moves up at the daily close. Static is the most comfortable, intraday trailing the most demanding.

On a $50,000 account, the maximum loss limit is usually around $2,000 to $2,500. It can be calculated at end of day or trail your gains in real time. Each firm's details are in our challenge listings.

Some futures firms bill the evaluation monthly until you pass, as they cover market data and the platform. Others charge a one-time fee. Compare the total cost: a cheap subscription can cost more if it takes you several months to pass.

MT5 is the most common at Forex prop firms and supports bots (EAs). cTrader offers depth of market and a modern interface. TradingView is popular for its charts. In Futures, you mostly find Tradovate, NinjaTrader and Rithmic. Pick a firm that offers the platform you already know.

It caps the share of your profits made on a single day, for example 30% or 40% of the total. It stops traders from passing on one big trade. Not every firm applies it: check it before choosing if you trade rarely but big.

It depends on the firm and account type. Many allow it during the challenge but ban trading a few minutes before and after major releases on the funded account. The exact rule is listed in each review.

Most pay every 1 to 4 weeks, sometimes on demand, by bank transfer, crypto or platforms like Rise. The first payout often comes after a minimum delay and sometimes a minimum number of trading days. We list each firm's payout frequency and real speed.

It increases your account size when you are consistently profitable, for example +25% every four months. It lets you reach several hundred thousand dollars of capital without another challenge. Each firm's maximum capital is in the comparison.

Be wary of promises that sound too good, vague rules added after the fact, slow payouts and very negative recent reviews. Favor a firm with several years of history, public payouts and clear terms. Our reputation score includes these signals.

Each firm gets a score out of 10 across five weighted criteria: payouts (30%), rules (25%), price (20%), support (15%) and reputation (10%). Data is checked every month on official sites, and no firm can buy its score.

We may earn an affiliate commission at no extra cost to you. It never affects our scores, which are based on five public criteria.

We are negotiating exclusive codes with each prop firm. Follow @yrfunding on Instagram to be notified when they launch.