Question 1

What is a prop firm?

Accepted Answer

A proprietary trading firm gives traders access to a trading account funded by the firm, usually after the trader passes an evaluation. The trader follows the firm's risk rules and receives an agreed share of any profit generated under those rules.

Question 2

Are prop firm accounts real money accounts?

Accepted Answer

Many programs operate on simulated accounts, while others route order flow to live markets. The model differs by provider and should be confirmed in the provider's own terms.

Question 3

How do prop firms make money?

Accepted Answer

Revenue typically comes from evaluation fees, subscription fees, and the firm's share of trading performance. Business models vary and are described in each provider's documentation.

Question 4

Is a prop firm the same as a broker?

Accepted Answer

No. A broker gives you access to markets with your own capital. A prop firm gives access to a firm-owned account under a set of program rules. PropFirm Scout is neither — it is an independent comparison site.

Question 5

How do I know if a prop firm is reputable?

Accepted Answer

Look at how long the firm has operated, how clearly its rules are written, how it handles disputes, whether payout terms are documented, and what independent trader feedback says over time.

Question 6

How should I compare prop firms?

Accepted Answer

Compare total cost, drawdown definition, profit target, time limits, permitted strategies, platform, payout schedule and profit split together. A low price with restrictive rules is not necessarily cheaper in practice.

Question 7

How do prop firm evaluations work?

Accepted Answer

An evaluation asks you to reach a profit target while staying inside defined drawdown limits and following the firm's rules. Some evaluations have one step, others have two or more.

Question 8

What is instant funding?

Accepted Answer

Instant funding skips the evaluation stage in exchange for a higher fee, tighter drawdown, or a reduced profit split. Terms differ significantly between providers.

Question 9

What account sizes are available?

Accepted Answer

Account sizes vary by provider and program. Across the firms we list, ranges run from about $2.5K up to $400K, with futures programs typically capped near $150K.

Question 10

Can I hold more than one funded account?

Accepted Answer

Some providers allow multiple accounts with a combined allocation cap. Check the current policy before buying a second evaluation.

Question 11

What happens if I break a rule?

Accepted Answer

Breaching a hard rule such as maximum drawdown usually ends the account. Soft rule breaches may lead to a warning or a withheld payout depending on the provider.

Question 12

Are evaluation fees refundable?

Accepted Answer

Some providers refund the fee with a first payout, others do not refund at all. This is provider-specific and should be verified in writing.

Question 13

What is maximum drawdown?

Accepted Answer

Maximum drawdown is the largest total loss permitted on the account before it is closed. It may be measured from the starting balance or from the highest balance reached.

Question 14

How do prop firms calculate daily drawdown?

Accepted Answer

Daily drawdown is usually measured from the day's starting balance or equity, and can include floating losses. The calculation method varies and materially affects intraday risk.

Question 15

What is a trailing drawdown?

Accepted Answer

A trailing drawdown moves upward as your account equity or balance makes new highs, so the loss limit tightens as you profit. Some firms stop the trail once a threshold is reached.

Question 16

What are consistency rules?

Accepted Answer

Consistency rules limit how much of your total profit can come from a single day or a single trade. They are designed to discourage one-off high-risk outcomes.

Question 17

Can traders trade during news?

Accepted Answer

Some providers restrict trading around high-impact news, others allow it. Restrictions may apply only to the evaluation stage or only to certain instruments.

Question 18

Can traders hold positions overnight or over the weekend?

Accepted Answer

Policies differ. Some programs require all positions to be flat before the weekend; others allow holding with adjusted margin or swap terms.

Question 19

Are Expert Advisors and automated strategies allowed?

Accepted Answer

Many providers allow EAs but prohibit latency arbitrage, tick scalping exploits, and copy trading across unrelated accounts. Read the prohibited-strategies list closely.

Question 20

Is copy trading permitted?

Accepted Answer

Copying your own accounts is often allowed; copying a third-party signal provider frequently is not. Confirm before you connect any copier.

Frequently Asked Questions

General Prop Firm Questions

Funding Questions

Trading Rules

Payout Questions

Affiliate Questions

Risk Questions

Frequently Asked Questions

General Prop Firm Questions

What is a prop firm?

Are prop firm accounts real money accounts?

How do prop firms make money?

Is a prop firm the same as a broker?

How do I know if a prop firm is reputable?

How should I compare prop firms?

Funding Questions

How do prop firm evaluations work?

What is instant funding?

What account sizes are available?

Can I hold more than one funded account?

What happens if I break a rule?

Are evaluation fees refundable?

Trading Rules

What is maximum drawdown?

How do prop firms calculate daily drawdown?

What is a trailing drawdown?

What are consistency rules?

Can traders trade during news?

Can traders hold positions overnight or over the weekend?

Are Expert Advisors and automated strategies allowed?

Is copy trading permitted?

Is there a minimum number of trading days?

Do rules differ between the evaluation and funded stage?

Payout Questions

How do payouts work?

What is a profit split?

How often can I request a payout?

How long do payouts take to arrive?

Can a payout be refused?

Are payouts guaranteed?

Affiliate Questions

Does PropFirm Scout earn commissions?

Does commission affect your rankings?

How do I identify an affiliate link?

Can a provider pay to be listed first?

How do I report an inaccuracy?

Risk Questions

Is prop trading risky?

Can I lose more than the evaluation fee?

Is prop trading a source of stable income?

Is any of this financial advice?

How can I reduce avoidable risk?

Do rules change after I buy?