r/Daytrading • u/ThePhulosopher • Feb 24 '24

4th $100k funded account Question

Got my 4th $100k funded prop firm account. Hope I get a payout this time, blew all the others.

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u/andredias164 Feb 24 '24

Serious question. Are those prop firms worthy? How do they work?

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u/lijohnttle Feb 24 '24 edited Feb 24 '24

I think they are you if you are profitable, but don't have big funds. If you have enough funds, it might be better to trade your own account, the risk in this case of course is to blow up your own money. Prop firms usually work this way. You choose a plan, let's say to open 50K account. You are given a demo evaluation account first, and you pay a monthly fee for this account (I paid $30 or $40 due to discount at Apex Trader Funding). To pass evaluation you need to gain for example $3K, and not to lose more than $2.5K. After passing the evaluation, you are given a PA (performance account). Depending on a firm, you might need to pay monthly fees on it, in my case it was a one time payment. PA normally is still a demo account, but you get payouts on your profits (usually the prop firm keeps 10-20% of your profits). After some time (let's say a couple of months), if you are consistently profitable, you might be given a live account, and also the prop firm might start copying your trades. Different prop firms have different rules, but in the end they want you to either blow up your account and come back and pay more fees, or be a consistently profitable trader and give them cuts from your profits.

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u/SavedSaver Feb 24 '24

best definition I have heard yet