Funded Trading: What Is a Prop Firm?

A prop (proprietary trading) firm gives skilled traders a funded account — you trade the firm's capital and keep a large share of the profits, typically 80%+.

How it works

  1. You pay for an evaluation (a "challenge") — a one-time fee for a simulated account with profit targets and loss limits.
  2. You prove consistency — hit the target without breaking the risk rules.
  3. You get funded — trade the firm's capital (often $10k–$200k) and split the profits.

Who this is for — and who it isn't

It IS for you if: you've been consistently profitable on your own account for months, you follow your risk rules without exceptions, and your problem is capital, not skill.

It is NOT for you if: you're new to trading. Most challenge fees are lost by traders who weren't ready — the firms profit from that. If you're at the start, take the free course, practise on the demo, and come back to this page in a few months. It'll still be here.

The firm we use: Blue Guardian

We're partnered with Blue Guardian — evaluations from $10k to $200k accounts, up to 85% profit split, and clear rules. As with everything on this site: it's an affiliate partnership (disclosed below), and it doesn't change the advice above — don't buy a challenge you're not ready for.

Explore Blue Guardian funded accounts →

Prop firm vs your own account

The skills are identical — risk management wins in both. That's why the path is: course → demo → small real account → then, if consistent, a funded challenge.

Affiliate disclosure: if you sign up through the link above, Blue Guardian pays us a commission at no extra cost to you.