Navigating Futures Trading with Prop Firms: Your Definitive Handbook (2024)

FAQs

What percentage of people pass prop firms? ›

The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.

This is a popular way for traders to prove their skills and potentially secure funding from a prop firm. However, passing this challenge can be quite daunting and requires a lot of hard work and dedication.

To pass the FTP $5,000 account evaluation you need to make a minimum profit of $250 within 14 days while not exceeding a 20% max loss limit if trading forex pairs or 10% loss limit if trading other markets. If successful, traders keep 85% of all subsequent profits made.

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

Key Takeaways. Profitable trading is difficult and successful traders share specific rare characteristics. It is estimated that more than 80% of traders fail and quit.

It is estimated that only 4% of Forex traders succeed with prop firm challenges, and only 1% of traders can generate profits consistently without violating any rules.

In conclusion, it can take around 4-5 months to pass a prop firm trading challenge and become a funded trader.

When you are trading with a prop firm, your losses are usually limited to the foregone risk of your challenge/account fee. You are generally not liable for the prop firm's lost funds.

Which prop firm is the best? ›

The cheapest prop firm is The5ers, 2 step $5000 account, which costs traders just $39, making it the cheapest funding option on the market.

Funding Pips and Maven lead the rankings with the most frequent pay-outs, offering transactions every 5 days. Close behind, Traddoo and Funded Trading Plus offer weekly pay-outs. Smart Prop Trader, with its 12-day pay-out cycle, caters to those with a trading style that can accommodate less frequent access to funds.

FTMO (Funded Trader Millionaire Operator) is one of the largest and best known prop firms globally. They have funded over 60,000 trader accounts and have over $70 million in trading capital. FTMO offers funded accounts from $5,000 up to $100,000.

Understanding the Prop Firm Challenge

This is because some sources have the failure rate of prop trading challenges at 90%. So for every 10 traders that buy a challenge, 9 will fail. That can be a lot of money for a prop firm.

At Lux Trading Firm, our Elite Traders Club has the highest pass rate in the industry – so we know what we're talking about! The most common reasons traders fail prop firm challenges are simply overleveraging their trades, not understanding the rules, and not having a profitable trading strategy.

Upon successfully passing a Prop Firm Challenge, traders may be required to fund their trading accounts with an initial amount. The firm may also have scaling plans that determine how much capital traders can access based on their performance. Understanding these conditions is vital for your success in the challenge.

Yes, prop firms do pay. While there are some scams out there popping up everyday, reputable prop trading firms like True Forex Funds, FTMO,5%ers,FundedNext are legitimate and pay traders according to their profit-sharing agreements. As for True Forex Funds, I can vouch for their credibility.