FP

Frequently Asked Questions

Everything you need to know about prop firms, funding and payouts.

General

What is a prop firm?

A proprietary trading ("prop") firm gives traders access to funded accounts. You typically pass an evaluation to prove your skill, then trade the firm's capital and keep a share of the profits.

How do prop firm evaluations work?

Most firms require you to hit a profit target without breaching drawdown or daily-loss limits. Evaluations come in one-step, two-step, three-step or instant-funding formats.

Are prop firm accounts real money?

Most firms fund you on a simulated (sim) account and pay real profits from their own capital. A few firms place you on live, real-money brokerage accounts instead.

Rules

What is the difference between trailing and end-of-day drawdown?

A trailing drawdown follows your highest balance (or equity) up, shrinking your buffer as you profit. An end-of-day (EOD) drawdown only updates once per day at close, and a static drawdown never moves — generally the most forgiving.

Payouts

How fast do prop firms pay out?

Payout speed varies widely. Some futures firms offer on-demand or sub-24-hour payouts, while many forex firms pay bi-weekly. Always check the minimum trading days and first-payout rules.

Pricing

Can I use a discount code on a prop firm evaluation?

Yes. Most firms run frequent discount codes that reduce the evaluation or activation fee. Futures firms often discount 50–90%, while forex firms typically discount 10–50%.