- Prop Firm Trading -
What Are Prop Firms
The Good, Bad & Ugly
What Are Prop Firms
A proprietary trading firm, or "prop firm," is a company that provides traders with capital to trade financial markets. Instead of using their own money, traders use the firm's funds to trade, and in return, they share a percentage of their profits with the firm. This allows skilled traders to access larger capital without risking their personal savings. Below is a list of prop firms I have either used or researched extensively to give an opinion on. I also have some ongoing challenges and funded accounts with a few of them.
The 5%ers Prop Firm
The 5%ers is a proprietary trading firm that funds traders with real capital, allowing them to trade forex and other financial instruments with minimal personal risk. They offer a structured evaluation process and a variety of funding programs suited for different trading styles.
- Instant Funding Model – Traders receive a funded account immediately after passing a simple assessment.
- Scaling Plan – Profitable traders can scale their accounts up to $4 million.
- Profit Split – Offers up to an 80% profit share for traders.
- Low Drawdown Limits – Risk management is strict, with a 4% to 6% maximum drawdown.
- Multiple Account Types – Includes aggressive and low-risk accounts to fit different strategies.
- No Time Limits – Unlike some prop firms, there is no time restriction to pass the challenge.
I currently have an ongoing challenge on 100k account and have previoulsy been funded with FX2 Funding
FX2 Funding Prop Firm
FX2 Funding is a proprietary trading firm that provides traders with the opportunity to manage funded accounts after completing an evaluation process. They offer competitive profit splits and scaling options, making them an attractive choice for forex and gold traders.
- Two-Step Evaluation Process – Traders must pass a Phase 1 and Phase 2 challenge to qualify for funding.
- Profit Split – Offers up to 90% profit share, one of the highest in the industry.
- Scaling Plan – Allows traders to grow accounts up to $2 million.
- No Time Limits – Traders can complete the evaluation at their own pace.
- Affordable Entry – Challenges start at a lower price compared to some competitors.
- Leverage Up to 1:100 – Provides high leverage for traders to maximize their strategies.
- Daily Drawdown Limit – Traders must stay within a 5% daily and 10% overall drawdown limit.
I have a live 25k funded account and have previously had a 100k funded account with Funded Next
Funded Next Prop Firm
FundedNext is a proprietary trading firm that offers traders a chance to access funded accounts after passing an evaluation phase. They provide flexible funding options and one of the best scaling plans in the industry, making them a popular choice among forex and gold traders.
- Two Funding Models – Offers both Evaluation and Express models, with different risk and reward structures.
- Profit Split – Starts at 60% and goes up to 90%, depending on performance.
- Scaling Plan – Traders can grow their accounts up to $4 million.
- Daily and Overall Drawdown – Traders must manage a 5% daily and 10% overall drawdown.
- Leverage Up to 1:100 – Allows traders to maximize their strategies with higher leverage.
- Refundable Challenge Fee – Traders get their challenge fee refunded once they pass the evaluation.
- Biweekly Payouts – Funded traders can withdraw profits every 14 days.
I am currently going through Phase 1 of a 100k challenge account. I will post ongoing videos blogs as I grow (or blow) the challenge.
Tiger Funded Prop Firm
Tiger Funded is a proprietary trading firm that offers traders a chance to access funded accounts through flexible evaluation models. They provide competitive profit splits, high leverage, and scaling opportunities, making them an appealing choice for forex and gold traders.
- Challenge Options – Traders can choose between 1-Step and 2-Step challenges, with account sizes ranging from $10,000 to $600,000.
- Profit Targets – The 1-Step Challenge requires a 10% profit target, while the 2-Step Challenge requires 8% in Phase 1 and 5% in Phase 2.
- Drawdown Limits –
- 1-Step Challenge: 6% max loss, 3% daily loss
- 2-Step Challenge: 12% max loss, 5% daily loss
- Profit Split – Offers up to 95% profit share for traders.
- Scaling Plan – Traders can scale their accounts up to $2 million by achieving 12% profit within a 3-month period.
- Leverage – Up to 1:100 for forex, 1:30 for indices/commodities, and 1:2 for crypto.
- Trading Flexibility – Allows news trading, weekend holding, and Expert Advisors (EAs).
- Payouts – Withdrawals are processed every 7 days.
Alpha Capital Prop Firm
Alpha Capital Group is a UK-based proprietary trading firm that offers traders the opportunity to manage funded accounts after completing an evaluation process. They provide various challenge models and competitive profit-sharing, aiming to cater to diverse trading styles.
- Challenge Options – Traders can select from 1-Step, 2-Step, and 3-Step challenges, with account sizes ranging from $5,000 to $200,000.
- Profit Targets –
- 1-Step Challenge: Requires a 10% profit target.
- 2-Step Challenge: Phase 1 requires an 8% profit target, and Phase 2 requires a 5% profit target.
- 3-Step Challenge: Involves progressively lower profit targets across three phases.
- Drawdown Limits –
- 1-Step Challenge: 6% maximum loss, 3% daily loss.
- 2-Step Challenge: 12% maximum loss, 5% daily loss.
- 3-Step Challenge: Similar drawdown parameters, adjusted per phase.
- Profit Split – Offers up to an 80% profit share for traders.
- Scaling Plan – Traders can scale their accounts up to $2 million by achieving consistent profitability.
- Leverage – Provides leverage up to 1:100 for forex, with varying leverage for other asset classes.
- Trading Platforms – Supports MetaTrader 5 (MT5), cTrader, and DXTrade.
- Payouts – Processes payouts biweekly or on demand, depending on trader preference.
- Caution – Some traders have reported concerns regarding payout denials and sudden account closures. It’s advisable to thoroughly research and consider these factors before engaging with Alpha Capital Group.
FTMO Prop Firm
FTMO is one of the most well-known proprietary trading firms, offering traders access to funded accounts after completing a two-phase evaluation process. With a strong reputation and industry-leading conditions, FTMO is a top choice for professional traders.
- Two-Step Evaluation – Traders must pass Phase 1 (Challenge) with a 10% profit target and Phase 2 (Verification) with a 5% profit target.
- Profit Split – Starts at 80% and can go up to 90% for consistent traders.
- Scaling Plan – Accounts can be scaled up to $2 million for profitable traders.
- Drawdown Limits – 5% maximum daily loss and 10% maximum overall loss.
- Leverage – Up to 1:100 for most instruments.
- Refundable Challenge Fee – The cost of the challenge is refunded once the trader qualifies for a funded account.
- Payouts – Profits can be withdrawn biweekly with no minimum payout limit.
- Trading Flexibility – Allows news trading, weekend holding, and EAs, but requires traders to follow FTMO’s risk management rules.
Blueberry Prop Firm
Blueberry Funded is a proprietary trading firm backed by Blueberry Markets, offering traders the opportunity to manage funded accounts after completing one of their evaluation challenges. They provide flexible challenge options, competitive profit splits, and access to a wide range of trading instruments, catering to various trading styles.
Challenge Options:
- 1-Step Evaluation: Requires a 10% profit target, with a 6% maximum total loss and 4% daily loss limits. There is no time limit to complete this challenge.
- 2-Step Evaluation: Phase 1 requires a 10% profit target, and Phase 2 requires a 5% profit target. This challenge has a 10% maximum total loss and 5% daily loss limits, also with no time limit.
- Rapid Challenge: Designed for quick evaluation, it requires a 5% profit target within a 7-day period, with a 4% maximum total loss and 3% daily loss limits.
Account Sizes: Challenges are available with account sizes ranging from $5,000 to $200,000.
Profit Split: Offers an 80% profit share, which can be scaled up to 90% for consistent traders.
Scaling Plan: Traders can scale their accounts up to $2 million by achieving a 10% net profit over three consecutive months and processing at least four payouts within that period.
Leverage: Provides leverage up to 1:30 for the 1-Step and Rapid challenges, and 1:50 for the 2-Step challenge.
Trading Instruments: Offers access to 128 financial instruments, including forex pairs, indices, commodities, and cryptocurrencies.
Trading Platforms: Supports MetaTrader 4 (MT4), MetaTrader 5 (MT5), and DXTrade platforms.
Payouts: Processes profit withdrawals every 14 days, with a minimum profit requirement of $100.
Trading Flexibility: Allows overnight and weekend holding, and the use of Expert Advisors (EAs). However, news trading is restricted, with a 10-minute window before and after high-impact news events during which trading is not allowed.
Prop Firm Trading For Beginners
Think of a prop firm like an investor who believes in your trading skills. Instead of putting up your own money, you take a challenge to prove you can trade responsibly and make profits. If you pass, the firm funds you with real money, and you get to trade a large account while keeping a big chunk of the profits – often 80% to 90%!
How Does It Work?
Most prop firms follow a simple process:
- Take a Challenge – You sign up for a trading challenge where you need to hit a profit target without breaking risk rules.
- Pass the Evaluation – Some firms have one-step challenges, while others have two steps. You usually need to make 5% to 10% profit while staying within drawdown limits.
- Get Funded – Once you pass, you receive a real trading account, and profits are shared between you and the firm.
- Scale Up – Many firms let you grow your account over time, even up to $2 million or more!
Why Trade with a Prop Firm?
Trading on your own can be tough, especially if you have a small account. Prop firms give you access to bigger capital, meaning you can trade larger positions and grow faster. Here’s why traders love prop firms:
✔ Low Personal Risk – You only pay a small fee for the challenge instead of risking your own money.
✔ Big Profit Potential – Keep up to 90% of the profits!
✔ No Pressure to Deposit – No need to risk thousands of dollars upfront.
✔ Scaling Plans – Grow your account as you prove your consistency.
✔ No Time Limits (With Some Firms) – Trade at your own pace with firms that allow unlimited time to pass.
Picking the Right Prop Firm
Not all prop firms are created equal! Some have strict rules, while others offer more flexibility. Here are some things to look for:
🔹 Profit Split – Does the firm offer 80-90% payouts?
🔹 Drawdown Rules – What’s the daily and overall loss limit?
🔹 Leverage – Can you trade with at least 1:50 leverage?
🔹 Payout Speed – Does the firm offer biweekly or even weekly withdrawals?
🔹 Trading Rules – Are you allowed to trade news, hold over weekends, and use Expert Advisors (EAs)?
At Pip Master FX, we review, test, and break down different prop firms so you know which one is legit and worth your time.