Prop firms for beginners: what are you actually buying?

FTC Community TeamStaff17 Sept 202614 views

Proprietary trading firms sell evaluations: pass their test and you trade their capital, keeping a share of profits. The industry is new, lightly regulated and full of firms that change their rules when too many people pass.

Prop firms for beginners: what are you actually buying? — risk-reward diagram — A risk-reward ratio of 1 to 2

For anyone considering it:

which firm and what the evaluation actually costs
the rules that made passing harder than expected
whether anyone here has received a real payout

Prop firms for beginners: what are you actually buying? — candlestick anatomy diagram — The parts of a candlestick: wick, body, open and close

The prop firm guide explains the model and the risks.

Background: How prop firm evaluations work, and the risks to know first

Proprietary trading firms sell challenges that promise a funded account. What you are actually paying for, the rules that end most attempts, and what to check before buying one.

Are prop firms regulated?

Many retail prop firms aren't regulated as brokers, because they sell evaluation services and don't hold client deposits for trading. Check the company behind the brand and its terms carefully.

Is a prop firm account real money?

In many retail prop models, evaluations and often funded accounts run on simulated trading, with payouts made by the firm under its terms. Read the agreement to see how your account works.

Read the full guide

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