What is a prop firm in simple terms?

A prop (proprietary) trading firm gives traders access to simulated capital in exchange for a challenge fee, then splits real profits with traders who follow its risk rules. You never risk more than the fee.

How do prop firms make money?

Prop firms earn primarily from challenge fees paid by traders who don't pass, plus spread mark-ups and the firm's share (typically 10–20%) of profits from consistently profitable funded traders.

Is prop trading legit?

The category is legitimate; individual firms vary. Payout track record, transparent rules and independent reviews matter more than marketing. Every firm listed on PropFundHub carries an independent Trust Score.

How much does a prop firm challenge cost?

Entry-level challenges start around $29–$50 for smaller account sizes; $150–$300 is typical for a $100K account. Instant funding accounts skip the evaluation but cost $300–$800+ upfront.

What Is a Prop Firm? The 2026 Guide to Prop Trading

A prop trading firm gives traders access to simulated capital in exchange for a challenge fee, then pays a majority profit split to traders who pass and follow the risk rules. You never risk more than the fee, and you never trade the firm's real money directly.

How prop firms actually make money (failed fees, spread mark-ups, profit share)
Evaluation challenges vs instant funding — cost, drawdown, best-fit
Futures vs forex vs crypto prop firms compared side by side
The five rules every firm enforces, and how to choose your first firm

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