Proprietary trading firms ("prop firms") offer traders access to large accounts — often $100,000 or more — in exchange for passing an evaluation. Profits are split between trader and firm, typically 80–90% to the trader.
How a typical challenge works
- Buy a challenge — pay a one-time fee based on account size (e.g. $100k account for ~$500).
- Phase 1 — hit a profit target (often 8–10%) without breaking risk rules.
- Phase 2 (verification) — hit a smaller target (often 5%).
- Funded account — trade the firm's capital and request payouts.
Some firms offer one-step evaluations or instant funding with stricter risk limits.
The rules that matter
| Rule | Typical value | Why traders fail |
|---|---|---|
| Max daily loss | 4–5% | One bad day of over-trading |
| Max overall loss | 8–10% | Slow bleed without a plan |
| Minimum trading days | 3–5 days | Rushing to hit the target |
| Consistency rules | Varies | One huge winning day |
Also check whether news trading, weekend holding and EAs are allowed.
How to pass
- Risk 0.5–1% per trade — you need room for losing streaks.
- Treat the daily loss limit as a hard stop at half its value.
- Don't chase the target. There is usually no time limit.
- Trade your normal strategy — challenges reward consistency.
Compare rules, fees and payouts in our prop firm rankings, or find the cheapest prop firm challenges.