PropFirmHub - Compare Top Prop Trading Firms 2025

A prop firm account is your gateway to trading with professional capital instead of your own money. If you've ever wanted to trade forex or futures but lacked the capital to make meaningful profits, proprietary trading firms (prop firms) offer an attractive solution. But what exactly is a prop firm account, and how does it work?

Quick Answer

A prop firm account is a funded trading account provided by a proprietary trading firm after you successfully pass their evaluation process. You trade the firm's capital, keep 70-90% of the profits, and the firm manages the risk. It's how skilled traders access large capital without risking their own money.

Understanding Prop Firm Accounts

A proprietary trading firm account (prop firm account) is a professional trading account funded by a trading company. Unlike a standard brokerage account where you trade your own capital, a prop firm account gives you access to the firm's money—often ranging from $10,000 to $2,000,000 or more.

The concept is simple: It's a mutually beneficial relationship where the firm provides the funding, and you provide the trading expertise. In return, you split the profits according to a predetermined agreement. skilled traders need capital, and prop firms have capital but need skilled traders.

How Do Prop Firm Accounts Work?

Getting a prop firm account involves several key stages. Here's the complete process:

The Prop Firm Account Journey

1. The Evaluation Phase

You pay a one-time challenge fee (typically $100-$1,000) to enter an evaluation. During this phase, you must demonstrate your trading skills by hitting profit targets (usually 8-10%) while staying within strict risk parameters (daily drawdown limits of 5% and max drawdown of 10%).

2. Verification Phase (Optional)

Some firms require a second evaluation phase with similar or slightly easier targets. This ensures consistency and weeds out traders who got lucky in phase one.

3. The Funded Account

Pass the evaluation(s), and you receive your prop firm account with real capital. You keep 70-90% of all profits, can request regular payouts (weekly, bi-weekly, or monthly), and some firms even scale your account size as you prove consistency.

4. Ongoing Trading

You continue trading with the funded account while following the firm's rules. Many firms have relaxed rules once you're funded compared to the evaluation phase, but you still need to maintain professional risk management.

Types of Prop Firm Accounts

Not all prop firm accounts are created equal. Understanding the different types helps you choose the right firm for your trading style:

Traditional Prop Firms

These firms (like SMB Capital or Jane Street) operate physical trading floors and hire traders as employees. You trade the firm's actual money in real markets. No evaluation fee, but extremely competitive to get in—often requiring interviews, trading tests, and sometimes advanced degrees.

Best for: Professional traders seeking full-time employment and willing to relocate.

Online Evaluation-Based Firms

The most popular type for retail traders. Firms like FTMO, The Funded Trader, or MyForexFunds offer remote prop firm accounts. You complete evaluations online, get funded remotely, and can trade from anywhere in the world. Most modern prop firms fall into this category.

Best for: Independent traders wanting flexibility and remote work opportunities.

Instant Funding Firms

These firms provide immediate account access without evaluations. However, they typically require higher upfront fees, have stricter ongoing rules, and offer lower profit splits. Examples include some programs by FundedNext or TopStep.

Best for: Confident traders who want to skip evaluations and start immediately.

7 Major Benefits of Prop Firm Accounts

1. Trade Large Capital Without Personal Risk

Access $100,000+ accounts while only risking a small evaluation fee. Your maximum loss is limited to the challenge cost, not your entire savings.

2. Faster Path to Profitability

Earn significant income without spending years building personal capital. A 5% monthly return on a $100k account = $5,000, keeping 80% = $4,000 profit.

3. Built-In Risk Management

Firm rules prevent catastrophic losses. The daily drawdown limits force discipline and protect you from emotional revenge trading.

4. Account Scaling Opportunities

Many firms increase your account size after consistent profitability. Start with $100k, grow to $200k or even $2M+ over time.

5. Professional Development

Trading with firm rules teaches discipline and consistency. Many prop firms offer educational resources, webinars, and community support.

6. Work From Anywhere

Online prop firm accounts allow complete location independence. Trade from home, cafes, or while traveling the world.

7. Lower Tax Complexity (In Some Cases)

Depending on jurisdiction, profits from prop firm accounts might be treated differently than personal trading gains. Always consult a tax professional.

Risks and Considerations

While prop firm accounts offer incredible opportunities, it's important to understand the potential downsides:

Upfront Evaluation Costs

You pay for evaluations regardless of whether you pass. Multiple failed attempts can add up quickly. Budget for 2-3 attempts when starting.

Strict Trading Rules

Even after getting funded, you must follow firm guidelines. Violations can result in account termination and forfeiture of profits.

Profit Split

You don't keep 100% of your profits—typically 70-90% depending on the firm. However, this is a fair trade-off for using their capital.

Firm Reliability

Not all prop firms are legitimate. Some delay payouts, change rules arbitrarily, or even shut down unexpectedly. Research thoroughly before choosing a firm.

Psychological Pressure

Trading with firm rules and the pressure of potentially losing access can affect decision-making. This is different from trading your own capital.

Who Should Get a Prop Firm Account?

Ideal Candidates

✓

Experienced traders with 6+ months of consistent demo or small live account profitability

✓

Disciplined traders who can follow strict rules without deviation

✓

Traders with proven strategies but limited personal capital to scale

✓

Those seeking accountability and structure in their trading

Not Ideal For

✗

Complete beginners with no trading experience or education

✗

Emotional traders who struggle with discipline and revenge trading

✗

Those looking for "quick money" without putting in preparation work

✗

Traders who can't handle strict risk management constraints

How to Choose the Right Prop Firm Account

With hundreds of prop firms available, choosing the right one is crucial. Here are the key factors to evaluate:

1. Profit Split & Payout Terms

Look for 70-90% profit splits with regular payout schedules (weekly or bi-weekly is ideal). Check minimum payout thresholds and withdrawal fees.

2. Evaluation Difficulty

Compare profit targets (8-12%), drawdown limits (5-10% daily), time limits, and number of evaluation phases. Find a balance between achievable targets and good terms.

3. Reputation & Track Record

Research reviews, trustpilot ratings, and community feedback. Check how long the firm has been operating and their payout history.

4. Trading Platforms & Instruments

Ensure they support your preferred platform (MT4, MT5, cTrader, etc.) and offer the markets you want to trade (forex, futures, indices, crypto).

5. Account Scaling Options

Look for firms that increase your account size as you demonstrate consistent profitability. This allows long-term growth potential.

6. Customer Support

Good firms offer responsive support via live chat, email, or phone. Test their support before committing to a challenge.

Frequently Asked Questions

Do I need experience to get a prop firm account?

While not technically required, having 6-12 months of consistent trading experience dramatically increases your chances of passing evaluations. Firms don't check your history, but the evaluation difficulty assumes you have skills.

Are prop firm accounts real money?

Most modern online prop firms use simulated accounts, but your profits are real cash. Traditional prop firms use actual capital. Either way, the money you earn and withdraw is 100% real.

How much does a prop firm account cost?

Evaluation fees range from $100 for small accounts ($10k) to $1,000+ for larger accounts ($200k+). Many firms refund your fee with your first payout. Traditional in-house prop firms are free but extremely competitive.

Can you lose money with a prop firm account?

Your maximum loss is limited to the evaluation fee. Once funded, you can't lose more than the firm's capital (which isn't yours). This makes prop trading much safer than using your own money.

How fast can I get a prop firm account?

If you're a skilled trader, you could get funded in 14-30 days (one evaluation phase). However, most traders need several attempts, making the realistic timeline 3-6 months.

What's the difference between challenge and funded accounts?

Challenge accounts are evaluations where you prove your skills (typically with stricter rules). Once you pass, you receive a funded account with real capital and often more relaxed rules.

Final Thoughts: Is a Prop Firm Account Right for You?

A prop firm account is one of the best ways for skilled traders to access significant capital without risking personal savings. It's not a shortcut to riches—you still need genuine trading skills, discipline, and preparation. But for traders who are ready, prop firm accounts offer a faster path to professional trading than building capital yourself.

The Bottom Line

If you have consistent trading results over 3-6 months, can follow strict rules, and want to trade with professional capital, a prop firm account is absolutely worth pursuing. Start with a smaller account size, choose a reputable firm, and treat the evaluation as a learning experience rather than a lottery ticket. The combination of limited risk, large capital access, and scalability makes prop firm accounts one of the smartest moves for serious traders in 2025.