What Is Prop Trading?
Proprietary trading — or prop trading — allows retail traders to access institutional-level capital without risking their own funds beyond an initial challenge fee. A prop firm fronts the capital; you trade it and keep a share of the profits.
The typical funded trader program follows three steps:
- Pay a challenge fee — a one-time cost (usually $80–$1,100) to enter a simulated evaluation account.
- Pass the challenge — hit a profit target (typically 8–10%) within a set timeframe while respecting drawdown limits.
- Trade funded capital & keep your split — once funded, you trade real capital and receive 75–90% of profits, with the firm keeping the rest.
In 2026, prop firms have proliferated. This guide cuts through the noise to show you the best options, how they compare, and whether prop trading is right for you.
Top Prop Trading Firms Compared
| Firm | Max Funding | Challenge Fee | Profit Split | Leverage | Notable Feature |
|---|---|---|---|---|---|
| FTMO | $200,000 | $155–$1,080 | 80–90% | 1:100 | Industry pioneer since 2015 |
| The Funded Trader | $400,000 | $99–$799 | 80–90% | 1:200 | Large account sizes |
| Axi Select | $1,000,000 | Free (via Axi) | 85% | 1:400 | No challenge fee at all |
| Topstep | $150,000 | $165–$375/mo | 90% | Varies | Futures focus, subscription |
| MyForexFunds | $300,000 | $84–$999 | 75–85% | 1:100 | Multiple account phases |
FTMO — The Industry Standard
FTMO
Founded in the Czech Republic in 2015, FTMO is widely considered the gold standard of prop trading firms. With thousands of funded traders worldwide, it set the template that most other firms follow.
How the FTMO Process Works
- FTMO Challenge (Step 1): Hit a 10% profit target within 30 calendar days. Max daily loss: 5%. Max overall loss: 10%. Minimum 4 trading days.
- Verification (Step 2): Hit a 5% profit target within 60 calendar days. Same drawdown rules apply.
- Funded Trader: Trade real capital. No time limits. Profit split starts at 80% and scales to 90% with consistent performance.
Axi Select — No Fee, Maximum Potential
Axi Select
Axi Select stands out from every other program on this list: there is no challenge fee. Instead, you use your existing Axi live trading account and earn funding based on demonstrated performance over time.
Traders who already have a live Axi account and a consistent track record will find this path significantly less expensive to enter. The program scales qualifying traders up to $1,000,000 in funded capital — the highest ceiling of any firm in our comparison.
5 Tips to Pass Your Prop Challenge
Is Prop Trading Right for You?
Prop trading is an excellent fit if you have a proven, backtested strategy and want access to more capital than you personally own. It removes the need to risk large amounts of your own money to trade meaningful size.
Good candidate: You have 6+ months of profitable trading on a demo or small live account. You understand risk management and can follow rules under pressure.
Poor candidate: You haven't demonstrated consistent profitability yet, or you rely on guesswork and "gut feel" rather than a structured edge.
Many traders pay multiple challenge fees without ever passing. These fees are real costs. Before spending money on a challenge, ask yourself honestly: would you be profitable on a small live account over the past 3–6 months?
Treat the challenge fee as a business expense with an expected ROI — only spend it when you have a documented edge that works. Chasing a pass without a proven strategy is an expensive lesson.