Question 1

What is a prop trading firm?

Accepted Answer

A proprietary (prop) trading firm gives skilled traders access to simulated capital — typically $10K to $400K per account — in exchange for an evaluation fee. You prove your trading skill by hitting a profit target while respecting strict risk rules (max daily loss, max overall drawdown). Once you pass, you receive a 'funded account' and keep 80–95% of the profits you generate. Firms like FTMO, FundingPips and FundedNext lead the industry.

Question 2

How does the evaluation process work?

Accepted Answer

Most firms use a 1-step, 2-step or 3-step evaluation. In a 2-step model (FTMO Challenge): Phase 1 — hit a 10% profit target within 30 days without breaching the 5% daily / 10% overall drawdown. Phase 2 — repeat with a 5% target and looser time limits. Pass both and you become a funded trader. 1-step models (FundingPips, Upcomers, FunderPro) have a single 8–10% target with stricter consistency rules. 3-step models (Blue Guardian Elite) spread smaller targets across three stages.

Question 3

What is the maximum drawdown and how is it calculated?

Accepted Answer

Maximum drawdown is the absolute floor your account balance (or equity) can never touch. Most firms set it at 8–10% of your initial balance. FTMO, FundingPips and Blue Guardian use a static (non-trailing) max drawdown — your loss limit stays fixed at 90% of starting equity. Others like older FundedNext rules use a trailing drawdown that follows your high-water mark until you reach a buffer (usually +10%). E8 Markets enforces a tight 8% overall drawdown, which is one of the strictest in the industry.

Question 4

What is the daily drawdown rule?

Accepted Answer

The daily drawdown caps how much you can lose from a single day's starting equity (typically 4–5%). It resets at midnight server time (usually 17:00 EST = NY close). It's calculated on equity, not balance — meaning open floating losses also count. The most common violation: holding a losing trade overnight that, combined with realised losses, breaches the daily cap.

Question 5

How long does it take to get funded?

Accepted Answer

FTMO allows up to 30 days for Phase 1 and 60 days for Phase 2, but most passing traders finish in 5–15 days per phase. E8 Markets advertises qualification in as little as 3 days. Upcomers and FundingPips have no minimum trading days on most plans, so disciplined traders can qualify in under a week. After passing, the funded account is issued within 1–2 business days.

Question 6

What profit split do prop firms pay?

Accepted Answer

Standard splits range from 80% to 95% of net profits. FTMO starts at 80% and scales to 90% via its Scaling Plan. FundedNext, FundingPips and Funded Trader Markets pay 80–95%. Upcomers offers up to 99% — the highest in the industry on top-tier plans. Most firms also offer a 'profit share on the challenge phase' (FundedNext Stellar pays 15% during evaluation).

Question 7

When and how do I get paid?

Accepted Answer

Most firms pay every 14 days from your first qualifying trade (FTMO, FundedNext, Blue Guardian, FundingPips). After several consistent payouts, many firms unlock weekly or on-demand cycles. FunderPro is the only firm offering true daily rewards after qualification. Upcomers processes payouts in as fast as 12 hours. Withdrawal methods include bank transfer, Wise, Rise, Deel, USDT (TRC-20/ERC-20) and PayPal in some regions.

Question 8

Are EAs, copy trading and news trading allowed?

Accepted Answer

Most modern firms allow Expert Advisors (EAs), copy trading and news trading on at least one challenge variant — but conditions vary. FTMO Swing accounts allow news and weekend holding. FundingPips, Blue Guardian and FundedNext allow EAs on most plans. Strictly forbidden across nearly every firm: latency arbitrage, tick scalping (closing trades in under 30–60 seconds repeatedly), reverse arbitrage, copy trading between accounts of different ownership, and HFT.

Question 9

What happens if I breach a rule?

Accepted Answer

If you breach max daily drawdown, max overall drawdown, or trade forbidden strategies, the account is immediately terminated and you forfeit the evaluation fee. Most firms refund the fee with your first payout once you're funded — so the only real cost of failing is starting over. Some firms (FTMO, FundedNext) offer a free retry if you breach during Phase 2 after passing Phase 1.

Question 10

Can I scale my funded account?

Accepted Answer

Yes — every major firm has a scaling plan. FTMO's plan adds 25% to your allocation every 4 months you achieve 10% profit (with no more than 2 losing months). FunderPro and Funded Trader Markets scale up to $5M and $600K respectively. Upcomers scales to $1.5M. FundedNext scales to $4M. Scaling rewards consistency over raw return.

Question 11

How much does a challenge cost?

Accepted Answer

Fees scale with account size. A $10K challenge starts at $33–59 (E8, FundingPips, Upcomers). A $100K challenge typically costs $400–600 (FTMO €540, FundingPips $399, FundedNext $499). $200K accounts run $900–1,200. All evaluation fees are refunded with your first payout once funded.

Question 12

Are these firms regulated?

Accepted Answer

Prop firms operate as B2B education/simulation companies, not regulated brokers — funded accounts trade on simulated/virtual capital, with the firm hedging or mirroring positions on its live book. That said, FunderPro is broker-backed (regulated infrastructure), and most leading firms (FTMO, FundingPips, FundedNext, Blue Guardian) hold corporate registrations in EU jurisdictions (Czech Republic, UAE, Cyprus) and pay millions in verified payouts. Always pick firms with a public payout proof and strong Trustpilot record.

Firm	Profit Split	Max Drawdown	Challenge Type	Action
FTMO	80–90%	10%	2-step Challenge	Details
FundingPips	80–90%	10%	1 / 2 / 3-step	Details
Funded Trader Markets	85–95%	10%	Stellar / Express	Details
FunderPro	80–90%	8–10%	1-step / 2-step	Details
WeMasterTrade	80–90%	10%	2-step Evaluation	Details
Blue Guardian	85%	10%	1-step / 2-step / 3-step	Details
E8 Markets	80–95%	8%	E8 / ELEV8 / E8 Track	Details
Upcomers	up to 99%	10%	1-step / 2-step	Details
FundedNext	up to 95%	10%	Stellar / Evaluation / Express	Details
City Traders Imperium	80%	10%	1-step / 2-step / Instant	Details

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Quick Comparison

FTMO

FundingPips

Funded Trader Markets

FunderPro

WeMasterTrade

Blue Guardian

E8 Markets

Upcomers

FundedNext

City Traders Imperium

How funded trader programs really work