What Is Prop Trading? A Beginner’s Guide to Getting Funded

🧠 What Is Prop Firm Trading?

Proprietary trading, or “prop trading,” is when a trader uses a firm’s capital to trade financial markets. Instead of risking their own money, traders are funded by the firm and share profits based on performance.

• 💰 Firm-funded capital: No need to risk personal savings.
• 📊 Profit split: Traders earn a percentage of the profits.
• 🛠️ Tools & platforms: Access to premium trading software.
• 🧑‍🏫 Mentorship: Many firms offer coaching and community support.

🏦 How Do Prop Firms Work?

Prop firms evaluate traders through challenges or simulations. Once a trader proves they can manage risk and generate returns, they receive a funded account.

1. Sign up for a challenge (e.g., 1-step or 2-step evaluation)
2. Trade within rules (drawdown limits, profit targets)
3. Get funded if successful
4. Earn payouts based on performance

 

 

🚀 Why Prop Trading Is Great for Beginners

• Low barrier to entry: Start with as little as $50–$200 for a challenge.
• No personal risk: You’re not trading your own money.
• Structured growth: Learn discipline through firm rules.
• Career potential: Many traders go full-time after getting funded.

🔍 What to Look for in a Prop Firm

Feature	Why It Matters
Evaluation Rules	Affects your strategy and risk profile
Profit Split	Determines your earnings
Platform Access	Impacts your trading experience
Support & Community	Helps you grow and stay accountable

💡 Pro Tip: Start Small, Think Big

Choose a firm with beginner-friendly evaluations and clear rules. Focus on consistency, not big wins. Journaling your trades and sticking to a strategy will help you pass evaluations faster.

✅ Ready to Get Funded?

Explore top-rated prop firms, compare evaluations, and start your journey at PropFirmStore.com. Whether you’re just starting or looking to scale, we’ve got the tools to help you succeed.