Getting Started with Prop Trading
Prop firm trading can be a great path to a funded account — but only if you understand the rules. This guide walks you through everything you need to know before spending a single dollar.
What is a Prop Firm?
A proprietary trading firm (prop firm) provides traders with simulated capital to trade financial markets. You pay an upfront evaluation fee, complete a trading challenge by hitting profit targets without exceeding loss limits, and receive access to a funded account where you keep 70–90% of profits. The firm keeps the rest. Most prop firm trading is done on simulated accounts — you are not trading real client money.
How to Use Prop Firm Audit
Understand the Model
Prop firms give you simulated capital to trade. You pay an evaluation fee, pass a challenge (hit profit targets without exceeding drawdown limits), and then trade a funded account keeping a share of profits.
Learn the Key Metrics
The three most important things to compare: Max Drawdown (how much you can lose overall), Daily Drawdown (how much you can lose per day), and Profit Target (what you need to hit to pass). These define how hard the challenge is.
Check the Trust Status
Our PFB Score (0–100) tells you how reliable a firm is. Trusted firms (67+) have clear rules and reliable payouts. Avoid High Risk firms until you understand the risks involved.
Compare Firms Side by Side
Use our comparison tool to stack up firms on profit split, drawdown, platforms, and coupon codes. Never choose based on one metric alone.
Read the Full Review
Each firm page has our full audit breakdown, score by category, audit points flagged by our team, and real trader reviews with image proof. Spend time here before paying for a challenge.
Use Your Coupon Code
Many firms offer discounts. Every firm page and listing card shows verified coupon codes. Copy them before visiting the firm's site — they often expire.
Important Warnings
Never fund an account with money you can't afford to lose — evaluation fees are typically non-refundable.
Read the firm's full terms before purchasing. Rules can be complex and violations cause instant account termination.
Be wary of firms offering very high profit splits (e.g. 95%+) with low drawdown requirements — this is often unsustainable.
Prop firm reviews can go stale. Always verify current rules directly on the firm's official website.
Drawdown limits are usually calculated on your starting balance or highest equity — understand which one applies.
Key Terms Glossary
Ready to Choose a Firm?
Browse our audited list of forex prop firms, compare them side by side, and find the one that fits your trading style.