What Are Prop Firms — And How to Know If You're Ready to Trade One
What Are Prop Firms — And How to Know If You're Ready to Trade One
A proprietary trading firm, or prop firm, provides traders with access to company capital to trade the markets. You don’t risk your own money — you prove your skill through an evaluation, and if you pass, you get a funded account and a profit split (often 70–90%).
Common in forex, futures, and crypto, prop firms are now accessible to retail traders globally.
Not all prop firms are created equal. Use these criteria:
Payout Terms: Look for frequent, fast payouts (e.g., biweekly or faster)
Profit Split: 80%+ is standard for top firms
Evaluation Rules: Avoid firms with hidden rules (e.g., time limits, consistency rules).
Reputation: Check Trustpilot, Reddit, and prop trading communities
Platform Support: MetaTrader, cTrader, TradingView integrations matter.
Assets Available: Some firms offer only forex, others add indices, crypto, or stocks.
🧩 Tip: Visit our Best Prop Firms for Low Capital Traders homepage to compare top-rated firms.
Before applying, ask yourself:
✅ Do you have a consistent trading strategy?
✅ Have you been profitable on a demo for at least 1–3 months?
✅ Are your losses well-managed with risk per trade under 1–2%?
✅ Do you avoid revenge trading and overleveraging?
✅ Do you understand the rules of the firm you're applying to?
If you answered "yes" to most, you may be ready. Otherwise, take more time to build consistency — or try a free challenge if available.