Thinking about prop (proprietary) trading, or already deep into your first evaluation? Here are the questions we hear most from futures traders exploring prop firms—answered simply, without the jargon.
Prop trading basics
Prop trading lets a trader use a prop firm's capital after passing an evaluation, keeping a share of the profits—commonly 80% to 90% at futures firms—instead of risking their own money beyond the evaluation fee. See a full breakdown of what prop trading is and how it works.
A prop firm gives traders access to its capital in exchange for a share of the profits. Traders typically pass a performance-based evaluation and follow the firm’s risk rules to keep their account active. Get the full picture of what a prop firm is.
A funded trader has qualified for a prop firm’s capital—usually by passing an evaluation—and trades it under the firm’s rules in exchange for a share of the profits, rather than risking their own money.
You pass a prop firm’s evaluation, then trade a funded account—usually simulated—backed by the firm’s capital. You keep a share of the profits as long as you follow the firm’s rules, such as daily loss limits and maximum drawdown. New to all this? Start with our beginner’s guide to prop trading.
Simulated trading is based on hypothetical results and does not reflect actual trading. Emotional and psychological factors of real money risk are not replicated. Use simulated trading to learn the platform and markets—not as an indicator of live performance.
Getting funded: evaluations and requirements
A prop firm evaluation is a performance-based challenge that tests a trader’s profitability, risk management, and discipline in a simulated account. Passing it is how you qualify for a funded account.
Reach the prop firm’s profit target while staying within its drawdown and daily loss limits, and follow its consistency rules. Know every rule going in, trade a defined plan, risk a small percentage per trade, and stay patient rather than forcing trades.
It varies by trader and firm. Many prop firm evaluations allow several weeks, or even unlimited time, so your timeline depends on how quickly you meet the profit target while staying within the rules.
No prior funded experience is required, but you should understand futures, risk management, and the firm’s rules before you start. Practicing in a sim environment before paying for an evaluation can help improve your odds—our beginner’s guide to prop trading is a good place to start.
The main cost is the evaluation fee, which varies by firm and account size—commonly from around $100 to over $1,000. Smaller accounts typically cost less to attempt.
Money, payouts, and costs
Once funded and meeting requirements, you can withdraw a share of the profits you generate—commonly 80% to 90% at competitive futures firms. Each firm sets its own payout frequency, minimums, and consistency rules, so compare terms when you find a prop firm.
There's no guaranteed or typical income in prop trading; earnings depend on performance and the firm's profit split, many traders don't pass the evaluation, and futures trading involves substantial risk of loss. Review a firm’s risk settings before you start.
Prop firms earn mainly from evaluation and reset fees, plus a secondary share of funded traders’ profits. Some also earn from subscriptions, market-data fees, or partner arrangements—see what a prop firm is for the full picture.
A drawdown limit is the maximum loss your account can take before the evaluation or funded account fails—measured either from your starting balance (daily) or from your account’s peak (maximum or trailing). Firms set their own risk settings, so check the specifics before you trade.
Breaching a daily loss limit or maximum drawdown typically ends the account. Some firms allow a reset or retake for a fee. Following the risk settings matters just as much as hitting the profit target.
A scaling plan lets funded traders grow their account size over time, usually by hitting profit targets while staying within the firm's risk rules. As your track record builds, some firms increase your buying power or move you to a bigger funded account—giving you access to more capital without starting a new evaluation. Scaling terms vary by firm, so compare scaling rules when you find a prop firm.
Risk, rules, and is it worth it
It depends on your goals, discipline, and expectations. Prop trading can give skilled, consistent traders access to capital without risking their own money beyond the evaluation fee—but the rules are demanding, and many traders don’t pass. It rewards patience and risk control over quick wins. Our beginner’s guide to prop trading can help you decide if it’s right for you.
The main risks of prop trading are losing the evaluation fee, failing a funded account by breaching daily loss or drawdown limits, and the leverage inherent in futures trading. Leverage can magnify both gains and losses—review a firm’s risk settings before you trade.
Funded prop accounts are usually simulated: you trade a virtual account funded by the firm, with real-time data and execution powered by the NinjaTrader Prop platform. The profits you withdraw, however, are real and paid by the firm.
Platform and choosing a firm
Yes. NinjaTrader Prop is the platform many futures prop firms offer, letting traders keep the same tools and workflow when you switch or add firms—so you can manage multiple accounts from one interface. Not sure where to start? Here’s how to choose a prop firm.
Many leading futures prop firms offer NinjaTrader Prop, which includes integrated TradingView charts, advanced risk controls, order flow tools, and multi-account group trading. See the current lineup to find a prop firm.
Simulated trading does not represent actual trading and is based on hypothetical conditions. Actual trading results may differ significantly due to factors such as market conditions, liquidity, execution, and the emotional and psychological impact of risking real money. Simulated trading is provided for educational and platform-familiarization purposes only and should not be relied upon as an indication or expectation of results in a live trading environment.
General Trading Risk
Futures trading involves substantial risk and is not suitable for everyone. An investor may lose all or more than the initial investment. Trading should be undertaken only with risk capital—funds that can be lost without jeopardizing one’s financial security or lifestyle—and only by those who can afford such losses. Past performance is not necessarily indicative of future results. View Risk Disclosure Statement.
Business Disclosure — NT Technologies, LLC
NT Technologies, LLC is a technology company that licenses and supports technology relating to and including the NinjaTrader trading platforms. View Disclosures.
