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Prop trading basics: how prop firms work

A prop firm sells an evaluation: you trade a simulated account under fixed rules, and if you reach the profit target without breaking a loss limit, you get a funded account and a share of the profit it makes. These guides explain each step, which money is real and which is simulated, how firms earn, why identity checks come before payouts and how to try a firm for free.

6 guides on prop trading basics

  1. What Is a Prop Firm? How Evaluations and Funded Accounts WorkA plain-English guide to proprietary trading firms: the evaluation, the funded account, the profit split and what is simulated.6 min read ·
  2. How Do Prop Firms Make Money? Fees, Profit Share and RulesAn honest look at where prop firm revenue comes from, why the rules look the way they do, and what that means for you.6 min read ·
  3. Are Prop Firms Legit? How to Vet a Prop Firm Before You PayMost questions about legitimacy can be answered from documents a good firm publishes. Here is the checklist and the red flags.6 min read ·
  4. Are Prop Firm Funded Accounts Real Money? Simulated vs Live ExplainedMost funded accounts trade simulated balances, yet the payouts are real payments. Here is how the two fit together, and where live capital starts.6 min read ·
  5. Prop Firm KYC: Identity Verification Before Your First PayoutVerification is the step between an eligible payout and money in your account. Doing it early is the simplest way to avoid delays.5 min read ·
  6. Crypto Prop Firm Free Trial: Practise on the QATS Sandbox FirstA free trial is most useful as a rehearsal of the rules. Here is what the QATS sandbox offers and a method for testing a strategy against a trailing floor.6 min read ·

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Educational content, not investment advice. QATS evaluations and Funded accounts are simulated; Live Funded is real capital by separate review, and payouts depend on eligibility, verification and the applicable agreement.