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New to prop firms? Here’s how they work ⬇️

At my favorite futures prop firm (highest rated in the industry), you can pay $77 for a 50k evaluation on the core plan. If you pass the evaluation/test, then you become a funded trader and are given a trading account that is illegible for payouts. If you fail this funded account by hitting the maximum loss limit, you owe the firm nothing — they take that “loss.” In order to become funded again, you just have to pass another evaluation. And, if you earn money on a funded account, then you get to keep 80% of the profits (90% at some firms). It’s an incredible opportunity once you’re ready, but it’s a money pit if you start before you’re ready (just like ALL trading). There’s a free and full prop firm trading guide here. The only firms I work with are reliable and the highest rated — that full list is here.

Why do I personally trade through prop firms?

Easy answer. I paid $77 for the 50k core account, passed the evaluation, and made $5,000 on that account, which is now in my bank. Instead of dealing with the enormous pressure of trading a personal brokerage account and watching a position move up and down $100 every 5 seconds, I can trade risk-free knowing that it’s on the firm if I lose. The reduction of that stress allows me to execute my system without as much hesitation. If I make money, then I get to keep 80% of the profit (90% at some firms).

I would have to fail a prop firm account TWENTY SIX times with 0 payouts to spend the equivalent of losing 1 $2,000 deposit into a personal brokerage account. That is the true “leverage” and appeal of a prop firm. But what about all the rules that make it hard to get your payouts? The ones I use don’t have difficult rules. For me personally, prop firms remove a significant amount of pressure and allow me to trade position sizes that create meaningful returns (rather than being limited to 1 micro contract on a personal account). It’s an easy choice for me, but decide for yourself.

1. LESS PRESSURE

• It’s easier to trade meaningful size when the money being risked isn’t yours.

1. MONEY AND RISK

   • Since the only costs from you are paying to take the evaluation, you can’t lose anything beyond that.

2. CHEAP ACCESS TO MORE CAPITAL

   • Paying $77 for what is essentially a $2,000 trading account is an amazing opportunity, even if it takes a few tries to get funded.

Remember…

It doesn’t have to be one or the other. Many people I know have a personal brokerage account AND prop-firm funded accounts. Just like trading with real money before you’re ready, starting with prop firms too early is an almost guaranteed way to lose money. Start with the guide, and never risk what you can’t afford to lose. Additionally, you must decide for yourself on whether or not to even use firms. I personally do for the reasons already mentioned, but come to your own conclusion. Think for yourself!