What is a futures prop firm?
A futures proprietary (prop) trading firm lets you trade a funded account after you prove you can follow its risk rules. Instead of depositing your own trading capital, you pay a fee for an evaluation. Pass it, and you trade a funded account and keep most of the profit.
Most funded accounts are simulated. Your payouts are real money, but your trades usually aren't routed to the exchange until you reach a live stage.
How an evaluation works
Every evaluation has three core numbers: a profit target (e.g. $3,000 on a 50K account), a maximum loss (e.g. $2,000) and a contract limit. Some firms add a daily loss limit, a minimum number of trading days or a consistency rule that caps how much of your profit can come from one day.
Understanding drawdown
Drawdown is the rule that fails most traders. A static drawdown sits at a fixed level. An end-of-day (EOD) trailing drawdown moves up with your closing balance. An intraday trailing drawdown moves up with your highest open profit, so giving back an open winner tightens your floor. Always check which type applies at each stage — many firms switch types after you pass. Read how trailing drawdown works for worked examples.
Profit splits and payouts
Most futures firms now pay 90% to the trader, and some pay 100% of an initial amount. Payout eligibility is just as important as the split: look at minimum winning days, buffers, caps per request and consistency rules. See prop firm payout rules explained.
Subscription vs one-time pricing
Some firms bill monthly until you pass; others sell a one-time evaluation with a time limit. Also check for an activation fee after passing — it can double the real cost. Compare both models in one-time vs monthly pricing, or run your numbers in the funding cost calculator.
How to choose your first firm
- Match the drawdown type to how you manage open trades.
- Compare the total cost to your first payout, not just the headline price.
- Confirm your platform is supported before you buy.
- Read the payout rules for the funded stage, not just the evaluation.
Find the right firm for you
Take the 5-question prop firm quiz, browse our prop firm rankings, and check current discount codes. Our free calculators help once you start trading.
Trading futures involves substantial risk. This guide is educational and not financial advice.
See prices, profit splits, drawdown rules and payouts side by side.