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What is a prop firm?

How futures prop firms work today, how they make money and how they differ from a broker.

Firms we track
12
Account you trade
Usually simulated
50K evaluation
From $49/mo
Profit split
50% to 100%

Rules checked on · By helloweekends Editors

What is a prop firm? A prop firm, short for proprietary trading firm, is a company that trades with its own money. Most futures prop firms that sell to the public work differently: you pay for an evaluation on a simulated account, follow its rules and reach a profit target, then get a funded account, usually also simulated, that pays you a share of its profit.

How a futures prop firm works today

  1. You buy an evaluation. It is a paid service: a simulated account, often $25,000 to $150,000 in size, with rules. You pay a monthly subscription or a one-time fee.
  2. You trade under the rules. You must reach a profit target, $3,000 on a 50K account at most of the firms we track, without touching the maximum loss, usually $2,000 at 50K. Many firms add a daily loss limit, a consistency rule, a minimum number of trading days and a time by which you must be flat each day.
  3. You activate the funded account. Some firms charge an activation fee at this point, such as $149 on Topstep's Standard Path or $130 at Take Profit Trader.
  4. You request payouts. The funded account has its own rules: a profit split, how often you may ask for money, minimum and maximum amounts, and often a buffer you must build first.
  5. Some traders move to a live account. Topstep's Live Funded Account is by call-up only, Take Profit Trader's PRO+ is by invitation, and Apex Trader Funding's live program is invitation-only.

Four of the 12 firms also sell instant funding prop firm plans, which skip the evaluation: Alpha Futures, Bulenox, Lucid Trading and Tradeify.

What the numbers look like

Across the 12 futures firms we track, checked on September 26, 2026:

  • Billing. Seven firms sell one-time evaluations, three sell monthly subscriptions (Topstep, Take Profit Trader, Earn2Trade) and two sell both (Alpha Futures, Phidias).
  • Price. The cheapest confirmed 50K evaluation at each firm ranges from $49 a month (Topstep, plus $149 when you activate) to $192 one-time (Lucid Trading). Apex Trader Funding's 50K price could not be confirmed.
  • Profit split. From 50% at Earn2Trade, on withdrawals below a size-based threshold, to 100% of approved payouts on Apex Trader Funding's funded accounts. Alpha Futures, Lucid Trading, Topstep and Tradeify pay 90% on every funded plan.
  • Holding. Ten of the 12 firms require you to be flat every day on every account they sell. The5ers Swing may hold a small position overnight, and Phidias Premium may hold overnight and over the week.

The full side-by-side table is on the futures prop firms list.

How prop firms make money

A prop firm that sells evaluations earns from the fees traders pay. At the firms we track these include:

  • Evaluation fees, monthly or one-time.
  • Resets, which restart a failed evaluation. At Topstep a reset costs the same as the monthly price; at Take Profit Trader it costs $79 to $199 by size.
  • Activation fees when you pass, such as $149 to $169 on Phidias's monthly plans.
  • Data fees, such as $38 a month for Level 2 data at Topstep.

Because the funded account is usually simulated, a payout is a payment the firm makes under its own payout rules, not money withdrawn from trades in the market.

A prop firm is not a broker

A futures broker handles your orders and your money. The National Futures Association (NFA) defines a futures commission merchant as a firm that accepts orders and accepts money from customers to support them; an introducing broker accepts orders but not customer money. With a broker you trade your own money, and the gains and losses are yours.

With a prop firm evaluation you buy a service. You trade a simulated balance under the firm's rules, and your cost is the fees you pay. Some prop firms have registered affiliates: Topstep's affiliate Topstep Brokerage LLC is a CFTC-registered introducing broker and NFA member, while Topstep LLC, which runs the program, is not the registrant. Alpha Futures' terms say it is not registered with any US federal or state financial regulator. You can check any firm in the NFA's BASIC database. More on this in what is prop trading.

The risks

  • Most people do not pass. The evaluation fee is spent whether you pass or not.
  • Rules change. On March 1, 2026 Apex Trader Funding moved to one-time pricing and a 50% consistency rule. Topstep moved new traders to a 90/10 split on January 12, 2026. Earn2Trade changed its split for evaluations bought from July 6, 2026. We log changes in the rule change log.
  • Payouts have limits. Apex closes a funded account after its sixth payout, and FundedNext's Rapid Pro and Rapid Daily accounts end after the fifth reward.
  • Refunds are narrow. Take Profit Trader refunds an unused account within 72 hours, minus $75; Phidias gives no refunds.
  • Firms pause payouts or close. A funded balance is not a bank deposit.

If you still want to try, read how to pass a futures prop firm evaluation for the rules that fail accounts, and funded account for what comes after.

Know the riskA prop firm evaluation is a paid service with simulated trading. Most people who buy one do not pass it, and firms change their rules, pause payouts and close. Not investment advice.

Questions

What is a prop firm in simple terms?

A company that trades with its own money. Futures prop firms that sell to the public charge you for an evaluation on a simulated account and share profits with traders who pass.

Is a prop firm funded account real money?

Usually not. At most firms we track the funded account is simulated. A few firms move some traders to live accounts, such as Topstep's Live Funded Account and Take Profit Trader's PRO+.

How do prop firms make money?

From the fees traders pay: evaluations, resets, activation fees and data fees. Payouts on simulated accounts are paid by the firm under its payout rules.

Is a prop firm the same as a broker?

No. A broker handles your orders and, for a futures commission merchant, your money. A prop firm evaluation is a paid service on a simulated account.

Sources

All checked on .