A proprietary trading firm (prop firm) is a company that provides capital to skilled traders and takes a share of the profits in return. Rather than trading with your own money, you trade the firm’s money — after proving you can do it consistently under their rules.
How the Evaluation Works
- You pay a one-time fee (typically £100–£500) to access a funded demo account
- You’re given a profit target to hit within a set period (e.g. 10% profit in 30 days)
- You must stay within strict drawdown limits (e.g. no single day loss exceeding 5%)
- Pass the evaluation, and you receive a live funded account with real capital
- Profits are split between you and the firm — typically 70–90% in your favour
The appeal is clear: access to £50,000 or £200,000 in trading capital without risking your life savings. A 5% monthly return on a £100,000 funded account equals £5,000. On your own £5,000 account, the same percentage return is just £250.
Popular Prop Firms
Well-known names include FTMO, MyFundedFutures, TopStep (specialising in CME futures), Apex Trader Funding, and Earn2Trade. Each has different rules, fees, and payout structures — always read the terms carefully before committing.
The Honest Reality
Prop firm evaluations are deliberately challenging. Strict drawdown rules mean one bad day can fail your challenge. Many traders fail multiple evaluations before passing. Think of the evaluation fee as the cost of proving yourself — and make sure you have a consistent, tested strategy before attempting one.
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