A prop firm is an entity in which a trader is allocated a portion of the firm’s capital in order to have the trader employ their own market strategies and receive a portion of any profits made using that capital.

It is unrealistic to think that all prop firms are legitimate. This is because there are so many illegal prop funds that scam people of their hard-earned money. This is why a Forex trader needs to take their time and research about the prop firm they want to sign up with. It is for this reason we work almost exclusively with one Prop Firm. 

We currently work only with those wishing to open a $100,000 or larger account. There are a couple of reasons for this. First, we want you to make good money. Second, it is too costly for us to trade anything smaller than a $100,000 account.

Prop firms usually have evaluation stages during which traders have to prove to the trading firms that they have the right skill set, knowledge, and experience to trade with the firm’s funds. More often than not, a prop firm will start a trader with a simulator evaluation stage. This way, the firm protects itself from any losses in case they have some inexperienced traders that quickly blow their accounts away. At the same time, the prop firm will still collect the fees from these traders.

Other proprietary trading companies can also hire prop traders to trade on their behalf. To get to this type of arrangement, the trader will have to prove the requirements mentioned above and interview with the prop firm’s team members to get the position. If hired, the trader will be provided with a certain amount depending on their skill level. Depending on the agreement, the company will take a certain amount the trader earns.

The terms of the agreement between the company and traders can vary from one company to another. 

The split after traders gets funded can be from 60/40 to 80/20. This means traders get to keep up to 80% of their profits, and the prop firm takes remainder. Often, many Prop Firm’s will run specials to attract new traders.

The Prop Firm fee you pay will be refunded to you if and when you pass your challenge phases. It is uncommon for our traders to breach an account and fail a challenge, but it can happen. In the event your account would breach you would not be receive a refund from the Prop Firm on your fee paid to them.

As for our upfront fee you will not receive a refund on this fee. This amount helps to cover our traders time during the challenge phases. However, if your account breaches we will waive our fee for your next paid challenge. Please note though this waiver does not cover the cost of the challenge account at the Prop Firm. You will still be responsible for this fee. 

It is important that you only risk what you can afford to lose. Investing comes with risk and you should always do your own research when deciding how to invest your money and with whom to invest with.