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A proprietary (prop) trading firm funds traders with its own capital. Traders pass an evaluation to prove their skills, then trade a funded account and keep a percentage of the profits — typically 70–90%. The firm takes on the capital risk.
A 1-Phase evaluation has a single profit target to hit (e.g. 8–10%) before receiving a funded account. A 2-Phase evaluation has two stages — a higher target in Phase 1 (e.g. 8%) and a lower one in Phase 2 (e.g. 5%). 2-Phase accounts usually cost less but take longer to pass.
Several firms now offer 80–90% profit splits as standard, with some reaching 100% on initial payouts. Among the highest-rated firms, MyFundedFutures, TopStep, and Apex Trader Funding are consistently cited for competitive splits.
A static drawdown sets a fixed loss limit from your starting balance (e.g. max loss of $2,000 on a $50K account). A trailing drawdown follows your highest equity — so if your account grows to $52K, your floor rises to $50K. Trailing drawdown is stricter but protects against giving back profits.
Yes. Several firms specialize in futures trading — including TopStep, Apex Trader Funding, TradeDay, MyFundedFutures, and TakeProfitTrader. These firms typically offer accounts on CME futures (ES, NQ, CL, GC) via platforms like Tradovate, NinjaTrader, and Rithmic.
Some firms offer on-demand payouts (e.g. TakeProfitTrader), meaning you can request a payout at any time once eligible. Others offer daily payouts (e.g. TradeDay, MyFundedFutures Pro). Standard frequency is weekly or bi-weekly.
Most retail prop firms are not regulated in the traditional sense — they are structured as simulation or performance-based services, not brokerage accounts. No client funds are held. However, reputable firms operate transparently and many are registered businesses in the US, UK, or EU.
Consider: (1) the market you trade — futures, forex, or crypto; (2) your preferred evaluation style — 1-phase vs 2-phase vs instant funding; (3) drawdown rules that match your trading style; (4) profit split and payout frequency; and (5) Trustpilot ratings and community reputation.