The short version
Proprietary trading — “prop trading” — is when a firm puts its own capital behind a trader and shares the profits. Modern online prop firms screen traders with a paid evaluation (sometimes called a “challenge”). If you hit the profit target without breaching the risk rules, you get a funded account and keep 80% of the profits you make.
How a prop firm actually works
- You buy an evaluation. You pick an account size (at Zero Funded, $3K, $5K, $10K, $15K, or $20K) and a One-Step or Two-Step challenge. The fee covers the firm's screening and infrastructure costs.
- You trade to a profit target. Typically 8% then 6% on a Two-Step, or 10% on a One-Step, on a simulated account with realistic feeds and spreads.
- You respect the risk rules. Daily drawdown, maximum drawdown, and a minimum number of trading days. Breach any of them and the account fails.
- You get funded. Once you pass, the firm allocates capital. You keep trading the same plan, with the same rules, and request payouts on a fixed cycle.
The rules that actually matter
The maximum loss allowed in a single trading day, measured from the day’s starting equity. Usually 4–5% of the account size.
The overall loss limit from the highest balance you’ve reached. Usually 8–10%. Funded accounts often trail this dynamically.
The percent gain required to clear a phase. 8% then 5% is the most common 2-step setup; 1-step accounts target 10%.
A floor on how many distinct days you traded — typically 4. Prevents single-trade gamblers from passing.
A serious firm also publishes its inactivity rule, quick-trade limits, and lot-size caps openly — so you can plan around them from day one.
Who prop trading is for
- You already have a tested edge but lack the capital to scale it.
- You can take prescribed risk and walk away when daily DD says stop.
- You journal trades and treat the evaluation as a job interview, not a slot machine.
If you don't have a strategy with a known win-rate and R:R, no funded program will save you. Build the system on a demo first.
How to pick a firm
Ready to try it?
Zero Funded runs One-Step and Two-Step evaluations from $3K to $20K, with an 80% profit split and USDT payouts on funded accounts — built to support traders who can't afford huge account sizes and want reliable, on-time payouts.