Been trading retail for a while and keep seeing prop firm ads everywhere. The concept seems interesting, but is it worth pursuing long term?
What’s the real deal with these firms? Are people making decent money, or is it just marketing hype?
Prop firms make most of their money from challenge fees. They’re more interested in collecting those fees than actually helping traders succeed.
Tried prop firms 3 years back - FTMO and MyForexFunds. The eval process sucks. You’ve got profit targets to hit while staying under drawdown limits.
Most traders bomb the challenge. Took me three tries to pass, then traded their money for 8 months. Payouts were decent but man, the stress was brutal. One rough week and you’re sweating bullets about max drawdown.
Profit splits? Not what they promise. After fees and cuts, you’re keeping maybe 70-80% of your profits.
Career-wise, it’s sketchy. These firms flip rules or disappear overnight. Watched several smaller ones fold.
Build your own account instead. Do prop challenges on the side if you want, but don’t depend on someone else’s capital and rules.
Prop firms can be useful if you see them as a side hustle, not your main way to earn. Challenge fees add up and failure rates are high with many struggling to pass.
Real profits come from managing larger accounts. This requires consistent performance over time, so don’t rush it.
Focus on building your own trading account first. Once you’re successful with your own funds, consider using prop firms to supplement your income.
Props pay bills but you need your own account first.
Been with prop firms for 3 years. Currently trading with 2 after blowing 4 others.
Money’s real but the business model’s brutal. They make bank from eval fees and failed traders. I’ve seen guys burn thousands on challenges they’ll never pass.
Treat it like a numbers game. Pick firms with reasonable rules and skip the massive account sizes. A 25k account you can actually handle beats a 100k that stresses you into bad trades.
Psychological pressure hits different than retail. You’re thinking about their rules instead of your setups. Some days I trade better on my personal account than with their money.
Career path? Forget it. These firms change rules, cut profit splits, or vanish. Use them for extra income while building your own capital. Real goal should be trading your own money at size.
Start with one challenge only when you’re already profitable. If you’re still learning to trade consistently, prop firms will just drain your wallet faster.
Prop firms provide capital after you pass their tests. You pay fees upfront and need to hit profit targets while staying within loss limits. They profit because most traders fail.
In terms of a career, it’s uncertain. You’re trading their money under their rules, and they can change terms or shut down anytime. One tough streak can wipe out your account.
Consider it like freelance work rather than a stable career. Focus on building your own account while attempting prop challenges on the side. Real trading careers come from your own funds or positions at legitimate firms.
Most prop firms are just selling courses and challenges. The failure rates are insane and they know it.
Better to just grow your own account slowly.