How to get funded by a prop trading firm
From choosing a firm to surviving your first payout cycle, this guide focuses on process and risk over hype.
1. Choose a firm you can actually follow
Getting funded is less about finding the "perfect" firm and more about matching clear rules with a realistic trading plan. Start with clear, written rules and a structure that fits your style. Use the full comparison table to filter by evaluation type, profit target, drawdown rules, and platforms.
- Prefer firms with transparent FAQs, examples, and clear definitions of drawdown and daily loss.
- Check whether news, weekend holding, and expert advisors are restricted.
- Look for realistic profit targets (e.g. 8–10%) and no hidden consistency rules.
If you are new to the space, read what prop firms are and how prop firm challenges work first.
2. Translate the rules into numbers
Before you place a single trade, convert the challenge terms into concrete daily and per-trade limits. Use your account balance, maximum drawdown, and daily loss limit to compute how much you can risk.
- Decide your max percentage risk per trade (for example 0.25–0.5% of the account).
- Set a personal daily stop that is smaller than the firm's official daily loss limit.
- Plan for the minimum trading days; avoid overtrading early just to hit targets quickly.
3. Build a simple challenge plan
A challenge plan is a lightweight document that defines when you trade, which pairs or instruments you focus on, and how you size positions. Keep it short and practical.
- Focus on one or two setups you already know, not new strategies.
- Define your trading sessions (for example London or New York) and avoid random times.
- Write down criteria for skipping trades: news, spreads, low liquidity, or poor conditions.
4. Execution and psychology during the challenge
Most traders fail funded challenges because of psychology, not technical skill. Respecting loss limits and avoiding revenge trading are often more important than optimising entries and exits.
- Accept that missing a move is better than breaking a rule.
- Pause after a losing streak; do not try to make it back immediately.
- Use smaller risk when you are close to a daily or overall loss limit.
For a deeper dive into risk, see the guide on risk management for prop traders.
5. After you pass the evaluation
The hardest part is often keeping the funded account. Many traders immediately increase size or relax their rules once they receive funding and quickly violate limits.
- Keep the same or slightly smaller risk per trade for the first payout cycle.
- Withdraw part of your first payout instead of compounding everything.
- Review performance monthly and adjust risk slowly, not after a single good week.
Where to compare firms
You can use the comparison page to scan all firms by rules and platforms, or browse the full list of firms.
Here are a few firms to explore from the directory: ATFunded, Alpha Capital, AquaFunded.
Frequently asked questions
How much should I risk per trade in a prop firm challenge? Many traders risk between 0.25% and 0.5% per trade, but the right number depends on your edge, drawdown rules, and experience.
How long does it take to get funded by a prop firm? Some traders pass in a single evaluation, others need several attempts. Focus on following your plan over several weeks or months rather than trying to pass in a few days.
Can I retry a prop firm challenge if I fail? Most firms allow you to buy a new challenge after a breach, and some offer discounted resets. Always check the firm's reset policy before you start.
Do I need a live track record before applying? A public track record is not required, but proving your strategy on a small personal or demo account first can make it much easier to pass.