Question 1

What is a prop trading firm?

Accepted Answer

A proprietary (prop) trading firm provides traders with funded accounts to trade financial markets. Traders pass an evaluation challenge, then trade the firm's capital and keep a share of profits (typically 75–100%). It's a way to trade with significant capital without risking your own money.

Question 2

How much does a prop trading challenge cost?

Accepted Answer

Prop trading challenges typically range from $17 to $500+ depending on the account size and firm. The cheapest options start around $17–$49 for smaller accounts ($5K–$50K), while larger accounts ($100K–$200K) can cost $150–$500+. Many firms offer frequent discounts of 20–90% off.

Question 3

Which prop firm has the highest profit split?

Accepted Answer

Several firms offer up to 90–100% profit splits. Apex Trader Funding offers 100% on the first $25,000 in profits. FundedNext offers up to 95%, The5ers and Funding Pips offer up to 100%, and Goat Funded Trader also offers up to 100% on their scaling plans.

Question 4

Are prop trading firms legitimate?

Accepted Answer

Yes, reputable prop trading firms like FTMO, Topstep, and Earn2Trade are legitimate businesses that have paid out hundreds of millions to traders. Always check reviews, payout history, company track record, and Trustpilot ratings before committing.

Question 5

What is the difference between 1-step and 2-step challenges?

Accepted Answer

A 1-step challenge requires you to hit a single profit target (usually 8–10%) to get funded. A 2-step challenge has two phases — typically a higher target in phase 1 (8–10%) and a lower target in phase 2 (5%). 1-step is faster but often has stricter rules; 2-step gives more room to prove consistency.

Question 6

What is max drawdown in prop trading?

Accepted Answer

Max drawdown is the maximum amount your account balance can decline before you fail the challenge or lose your funded account. It's typically 4–10% of the starting balance. Some firms use trailing drawdown (moves up with profits) while others use static/balance-based drawdown (fixed from initial balance).

Question 7

Can I trade crypto with a prop firm?

Accepted Answer

Yes! Several prop firms support cryptocurrency trading. Breakout specializes in crypto, while firms like FTMO and FundedNext offer crypto pairs alongside forex. Check each firm's instrument list to confirm which crypto assets are available.

Question 8

How fast can I get a payout from a prop firm?

Accepted Answer

Most prop firms process payouts within 1–14 business days after your first eligible payout period. Some firms like Topstep offer express payouts within 2 business days. Payout frequency varies — some firms pay bi-weekly, others monthly or on-demand.

Question 9

What happens if I fail a prop trading challenge?

Accepted Answer

If you violate the drawdown rules or fail to hit the profit target within the time limit (if any), you lose access to that challenge attempt. The evaluation fee is non-refundable for failed attempts, but many firms offer discounted retries or free resets if you didn't violate any rules.

Question 10

Is my prop firm evaluation fee refundable?

Accepted Answer

Many firms refund the evaluation fee once you successfully pass the challenge and receive your first payout as a funded trader. This is common with firms like FTMO, Goat Funded Trader, and The5ers. Always check the specific firm's refund policy before purchasing.

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