Prop trading basics

A prop firm backs traders with its capital or, as with evaluation firms like ours, rewards traders for results on simulated capital. You bring the skill; the firm provides the account, the rules and the rewards.

A funded account is the stage after the evaluation. It has no profit target, the same kind of loss limits, and it lets you withdraw a share of the profit you make as a reward.

An evaluation is a test account with a profit target and loss limits. Reach the target without breaking a limit and you move on: to the next phase on Two-Step, or straight to funded on the one-phase programs.

From program fees, and by keeping a share of the profit funded traders make. Our incentive is to fund consistent traders who stay funded for a long time.

For a disciplined trader they cap the downside at the program fee while offering a large account. They are not worth it if you trade without a stop or a plan: the loss limits will close the account quickly.

Read the rules before the marketing: drawdown type, daily limit, consistency rules, payout frequency and how payouts are actually made. Check that you can verify payouts and that the support desk answers questions in writing.

A 1-step has one target and then you are funded. A 2-step splits the test in two smaller targets (8% then 6% on our Two-Step), which usually means looser limits per phase and a longer path.

Risk a small, fixed share per trade, always set a stop-loss, avoid trading through the daily limit, and treat the target as a by-product of good process. Our Academy and the Equity Simulator in the dashboard help you size trades before you take them.