Prop Firm Question

Prop Firms

I have a question about prop firms. It has likely been answered before, but I have had difficulty finding clear answers. The question is, how do prop firms pay you out? I have heard that they only payout from failed challenges, I have heard that they link accounts of profitable traders to live accounts to leverage investor capital, I have heard that some don’t payout at all… Also, what is an A-book prop firm, does that mean you are trading live funds? And finally, if I were to have a 500k account with The Funded Trader for example, what is the likelihood of me being paid out. I would like to know these things before investing in an expensive challenge.

Your answers are greatly appreciated.

they vary

some do exactly what they say and fund genuine, live accounts; many don’t

“only” is wrong - some are completely legitimate

some do that (e.g. Earn2Trade)

this is certainly right


i don’t know, but i wouldn’t try that one, myself

especially with the MFF litigation currently under way, it’s a big and complicated issue

the one certainty is that the futures funding companies are, overall, a FAR better and safer bet than the spot-forex/CFD ones

there’s more in these threads …

PS: they’re not really “prop firms” at all - they’re “funding companies”


Based on my honest opinion, but I of course don’t know for sure, is that they are paying you using those who has lose the challenge.

In other words, they are just B-book you. Hence, why they give you a “Simulation” live accounts after you have passed the challenge.

The chances of they A-book you is pretty low in my opinion. They might but the odds is very slim. Maybe they see your track record is good so they decided to A-book you, who knows. If they really do, very good.

Just think of prop firms as the modern bucket shops. I think it is still possible to make money out of it (Jesse Livermore did make his fortune out of bucket shops first). BUT, you MUST remember this is not a casino. The shortcut to get your jackpot. You MUST do your money management and don’t go all in at once. And also, if you already know what is your edge.

1 Like

some are; some aren’t

in some cases the people backing you and paying you out have no financial relationship with the people organizing the “challenges” and are not even in the same country

in some cases it’s very quick and easy to verify independently that you’re trading a real, funded account

this is among the many reasons why futures are, overall, a much safer, better bet than spot/CFD’s

sometimes it’s factual, not opinion

again, some do; some don’t

again, some do, right from the start, and that can quickly and easily be independently verified

the people (i’m not suggesting you’re one of them!!!) screaming that “they’re ALL scams and nobody’s really funded and nobody’s really paid out” are just conspiracy theorists with absolutely no idea at all what they’re talking about

it would clearly be crazy to pay to take a challenge/evaluation, if you don’t!!


This is so true. And sadly, the people who complained the most are those that think they have been scammed without their realizing their perfomance in general is poor. I saw many people trying to make 20% gain in 1 trade during their funding phase challenge and I really can’t understand why?

Again sadly, many people still did it anyway. They just done with 1 week course and go straight away to go fight the big fight. Sometimes it’s very funny and sad at the same time seeing people rushing to become rich overnight.

1 Like