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Prop Trading Firm

A proprietary trading firm that provides funded capital to traders who pass an evaluation, allowing them to trade the firm's money and keep a share of the profits.

What is Prop Trading Firm in forex trading?

A proprietary trading firm that provides funded capital to traders who pass an evaluation, allowing them to trade the firm's money and keep a share of the profits. Prop trading firms (also called prop firms) have become a popular way for retail traders to access significant trading capital without risking their own money. Traders typically pay a one-time evaluation fee, pass a challenge by hitting a profit target while respecting drawdown limits, and then receive a funded account. The firm and trader split profits, with traders often keeping 80%–95%. Major prop firms include FTMO, FundedNext, and My Funded Futures.

What this looks like across the brokers we track

Across the 32 proprietary trading firms BrokerAnalysis tracks, the median advertised maximum profit split is 90%, ranging from 70% to 100%. 28 of them advertise 90% or more. These are advertised ceilings, usually reached at a scaling tier or bought as an add-on — not the rate a new account starts on.

Measured across 32 entities in the BrokerAnalysis dataset. See the full broker comparison

Detailed Explanation

Prop trading firms (also called prop firms) have become a popular way for retail traders to access significant trading capital without risking their own money. Traders typically pay a one-time evaluation fee, pass a challenge by hitting a profit target while respecting drawdown limits, and then receive a funded account. The firm and trader split profits, with traders often keeping 80%–95%. Major prop firms include FTMO, FundedNext, and My Funded Futures.

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