Category: Business

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How Do Prop Firms Make Money? The Business Model Explained

Every smart trader eventually asks the same question. "Wait — if the prop firm gives me $100,000 and I keep 80% of the profits… how does the firm make any money?" It seems too...

Prop Firm Drawdown Rules Explained: Daily vs Max, Static vs Trailing

If prop firm challenges have a final boss, it is not the profit target. It is the drawdown rules. Ask any trader who failed a challenge what ended it. Almost every answer traces back to...

Why Most Traders Fail Prop Firm Challenges (The Real Reasons)

Here is a number the industry does not advertise loudly. The large majority of traders fail their prop firm challenge. Depending on the firm, estimates suggest that only a small percentage ever reach a...

How Prop Firm Challenges Work: Phase 1, Phase 2 & Funded

So you know what a prop firm is. You pay a fee, pass a test, and trade the firm's capital. But what actually happens inside that test? What are the targets? What are the rules? Moreover,...

What Is a Prop Firm? How Funded Trading Accounts Work

If you spend any time in trading communities, you have definitely seen the posts. "Just passed my $100K challenge!" "Got funded with $200,000!" For a beginner with a small account, this sounds almost unbelievable. How...
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