So you’ve heard of Forex, right?

Now imagine someone says to you:

“Hey, you seem like a decent trader. I’ll give you money to trade and if you make profits, we’ll split it.”

That’s basically what a prop firm does.

They’re called “proprietary” firms because they let you trade using their capital — and that’s exactly why traders love them.

See, most people don’t lose in trading because they’re bad; they lose because they’re undercapitalized.

They’re trading $100, trying to grow it into $10,000.

Hence they take oversized risks, panic in drawdowns, and eventually burn out.

Prop firms change that.

They say, “Forget about the money. Show us you can trade and we’ll handle the capital."

But of course, they don’t hand over the money blindly.

You’ll first go through a challenge — think of it like a test.

Hit the profit target, follow their trading rules, avoid big losses, and you qualify for a funded account.

Once funded, you get to trade with, say, $5,000 to $100,000+ of their capital.

If you make a profit, you get to keep up to 90% to 100% of it.

And even if you blow the account, you might lose your chance but not your savings because you’re not risking your own money in the first place.

It’s a win-win for you.

What are the benefits of Trading with a Prop Firm?

So now you understand what a prop firm is.

But you know what’s actually the best about trading with a prop firm?

The mindset shift.

You're no longer trying to take wild risks to grow a tiny account.

You’re focused on consistency and discipline, because that’s what prop firms reward.

They actually want you to win.

Whereas, brokers don’t really care if you win or lose.

They just want you to keep trading, because they make money from spreads and commissions.

Prop firms, on the other hand, also make money if you’re profitable.

So it’s in their interest to filter out reckless traders and support the ones who can trade smart.

And that is also why they give you rules, targets, drawdown limits, and tests because they want traders who can treat this like a business.

What You Need to Pay to Get Started?

When you join a prop trading firm, one of the first things you'll encounter is the challenge fee.

This is a payment you make to take a trading test or “challenge” that proves your skills — think of it like an entry ticket to show the firm you can trade responsibly and profitably.

The fee varies depending on the firm and the size of the account you want to manage. Usually, it ranges between a few hundred dollars.

At FundedFirm, the challenge fees vary based on account size and the step you’re on:

$5,000 account → Step 1 costs $69, Step 2 costs $59

$10,000 account → Step 1 costs $99, Step 2 costs $89

$15,000 account → Step 1 costs $135, Step 2 costs $125

$25,000 account → Step 1 costs $225, Step 2 costs $199

$50,000 account → Step 1 costs $335, Step 2 costs $299

$100,000 account → Step 1 costs $549, Step 2 costs $499

As evident as it gets, the challenge fees are peanuts compared to the account sizes.

Passing this challenge is important because it unlocks access to real company capital for trading.

If you succeed, you get to trade with the firm’s money and share the profits.

For an in-depth look at this process, visit One-Step Evaluation Prop Firms — it explains how FundedFirm’s single-step model works.

Keep in mind, the challenge fee is typically non-refundable, so you should prepare well before signing up.

What are the benefits of Trading with a Prop Firm?

What You Need to Pay to Get Started?

Why do Prop Firms have Rules?

What are PropFirms?

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