What Is Prop Trading?

Prop trading, short for proprietary trading, is a trading model where traders operate using a firm’s capital instead of their own money. In return, profits are shared between the trader and the prop trading firm.

This model allows traders to access significantly larger trading capital while limiting personal financial risk. Prop trading has become especially popular in Forex, Futures, and index trading.

How Does Prop Trading Work?

Most prop trading firms follow a similar structure:

  1. Register with a prop trading firm

  2. Complete an evaluation or challenge phase

    • Maximum drawdown limits

    • Profit targets

    • Time or trading rules

  3. Pass the evaluation

  4. Receive a funded trading account

  5. Earn profit splits (commonly 70–90%)

Traders operate independently but must follow the firm’s risk and trading rules.

Advantages of Prop Trading

  • Access to large trading capital

  • Limited personal financial risk

  • Clear risk management rules

  • Ability to scale using multiple accounts

  • Professional trading environment

Disadvantages & Risks

  • Strict trading rules

  • Evaluation or monthly fees

  • Different payout structures per firm

  • Quality varies between providers

That’s why comparing prop trading firms is essential.

Prop Trading Firms Overview

This page serves as a central overview of prop trading providers.
In the submenu, you’ll find detailed reviews of individual prop firms, including:

  • Pricing & conditions

  • Trading rules

  • Payout systems

  • Platforms

  • Pros & cons

👉 Select a provider from the submenu to explore each firm in detail.

Who Is Prop Trading Suitable For?

Prop trading is ideal for:

  • Consistent and disciplined traders

  • Traders with strong risk management

  • Scalpers, day traders, and swing traders

  • Traders looking to scale capital efficiently