Learn prop trading
Start here.
Prop firms fund skilled traders with real money. The trader risks a small fee rather than personal savings. This page explains the vocabulary and the decision path, and the rest of the site provides the numbers. Traders who are new to the model can start with the guide to how funded trading accounts work.
Five decisions before a first challenge
Pick a market
Forex and indices are traded at CFD firms. CME futures on NinjaTrader or Tradovate are traded at futures firms. BTC, ETH and altcoins are traded at crypto firms. The header switch re-themes the whole site around the market you choose.
Pick a program type
2-step challenges are the cheapest route for a consistent trader. 1-step challenges cost more but end sooner. Instant funding skips the test entirely, at a premium price. The right choice depends on your win rate and your patience.
Start with a small account
A $10K to $25K account costs a fraction of a $100K one, and the skills transfer fully. Most traders fail their first challenge, so keep the first fee small. Scale up after you have passed one.
Read the rules before you pay
Check the drawdown type (trailing or static), news-trading restrictions, EA and copy-trading policies, and consistency rules. Two firms with identical prices can be different products. The comparator shows these rules side by side.
Apply a discount code
An active code exists for most firms. Every price on this site already includes the best code PropFirmTrading has verified. If a firm's page here shows a code, use it before buying direct.
Lessons on the numbers
The ideal bet size on a prop account
The Kelly criterion, half-Kelly, and why 1% risk per trade is often still too much.
Calculate an ideal risk profile
How to work backwards from the daily limit, the drawdown and the streak math.
How traders stack $1M+ in funding
The copy-trading multiplier, allocation caps and the realistic math.
The first payout roadmap
Payout clocks, minimum days and first-payout caps in a month-one plan.
Every prop firm rule, explained
The full dictionary: drawdown types, consistency, fees, payout caps and the fine print that voids profits.
CFD, futures or crypto prop firm?
Prices, drawdown types, hours, leverage, rules and payouts compared across the three markets, with the current numbers.
Eight terms to know
Challenge / evaluation
The paid test a trader takes before funding. The trader reaches the profit target without breaking the risk rules, and the firm then funds the account. Formats are 1-step (one phase), 2-step (two phases, usually cheaper), 3-step, or instant funding (no test, higher fee).
Profit target
The percentage gain that passes a phase, commonly 8-10% for phase one and 5% for phase two. Lower targets are easier to reach but often come with tighter risk rules.
Daily loss limit
The most a trader may lose in a single day, usually 4-5% of the account. Crossing it, even briefly at some firms, ends the account. This rule ends more challenges than any other.
Max drawdown
The overall loss limit, usually 8-12%. A static drawdown is measured from the starting balance. A trailing drawdown follows the equity up as profits grow, which leaves less room. Traders should check which type a firm uses.
Profit split
The trader's share of profits once funded, typically 80% or better. Many firms raise it to 90-100% as the account grows.
Payout cycle
How often a funded trader can withdraw: on-demand, weekly, bi-weekly or monthly. A faster cycle with a low minimum can justify a slightly higher fee.
Consistency rules
Some firms cap how much of the total profit may come from a single day, or require a minimum number of trading days. These rules suit steady traders and hinder traders whose profit comes in bursts.
Scaling plan
Many firms increase the allocation as the trader reaches milestones, for example +25% every three profitable months. For a trader who plans to stay long-term, the scaling plan matters more than the entry price.
Most traders fail their first evaluation, and passing one shows discipline rather than promising an income. Trading involves substantial risk of loss. Traders should treat challenge fees as money they can afford to lose.
Ready to compare firms?
The table ranks the strongest current deals. Prop AI can narrow the list down for you.