
A proprietary trading firm (prop firm) is a financial institution that provides traders with access to significant capital to trade assets—such as stocks, forex, or commodities—using the company's own funds rather than client money. Traders undergo a evaluation process, or challenge, to prove their skill before managing firm funds. Profit-sharing typically ranges from 50% to 95%, with the trader keeping the majority of profits.
Proprietary trading firms (“prop firms”) allow traders to manage company capital, with popular types classified by evaluation methods and asset focus, such as one-step or two-step challenges, instant funding, and specialized,,futures-focused, or crypto-focused accounts. Top providers offer 80-100% profit splits, with key options including FTMO, FundedNext, Apex Trader Funding, and Topstep.
Main Types of Prop Firms & Structures:
Key Features and Variations:
Examples of popular firms include FTMO, E8 Markets, FundingPips, DNA Funded, and FunderPro.