1. What is a prop firm?
A prop firm (proprietary trading firm) is a company that lends you its capital so you can trade on the financial markets. In exchange, you share the profits with them — generally you keep 80% of the gains.
Concretely, instead of risking your personal savings, you take a challenge (an evaluation) to prove your skills. If you succeed, you obtain a funded account ranging from 25,000 USD to 150,000 USD — or even more.
💡 In summary: A prop firm funds you to trade. You pay an entry fee (the challenge), you prove that you are profitable, then you trade with their capital and keep the majority of the profits.
The model has existed for decades in major investment banks, but thanks to the internet, it has become accessible to everyone. You don't need to be on Wall Street — just have a PC, an internet connection and a solid strategy.
2. Why trade with a prop firm?
Whether you are starting out in trading or already have experience, going through a prop firm presents considerable advantages compared to trading on your own account:
Limited risk: You only risk the price of the challenge (between 50 EUR and 500 EUR on average), not thousands of EUR of personal capital. If you fail, you lose the price of the challenge — not your savings.
Access to substantial capital: Even with a small budget, you can trade with 50,000 USD, 100,000 USD or 150,000 USD. Impossible to obtain this leverage with a classic personal account.
Imposed discipline: The drawdown rules and risk management force you to be disciplined. This is actually a huge advantage: prop firms force you to develop good trading habits.
Scalability: You can manage several funded accounts simultaneously. With 3 accounts of 100K USD and a gain of 3% per month, you generate around 7,200 USD/month — with 80% payout.
✅ Concrete example: A trader who regularly makes 3% per month on a 100K USD account earns approximately 2,400 USD/month net. With 3 accounts, that goes up to 7,200 USD/month — all without having invested more than a few hundred EUR at the start.
3. How it actually works
The process is simple and takes place in 3 steps:
Step 1: Registration and the challenge
You choose an account type (capital size, drawdown type) and pay for the challenge. You receive a simulation account with precise rules: a profit target to reach, a maximum drawdown not to exceed, and a minimum number of trading days.
Step 2: The funded account
If you succeed in the challenge while respecting all the rules, you obtain a funded account. You now trade with the firm's capital. The same risk management rules apply, but this time your profits are real.
Step 3: Withdrawals (payouts)
You can withdraw your profits according to the firm's conditions. With the best prop firms like Phidias, you receive 80% of the gains and withdrawals are fast and transparent.
💡 Good to know: Some prop firms like Phidias offer OTP (One-Time Payment) accounts: no additional activation fees after passing the challenge. You pay once, that's it.
4. The account types explained
When you choose a prop firm, you generally have several account options. Here are the main ones:
OTP Account (One-Time Payment)
The most popular. You pay once for the challenge. No subscription, no activation fees after success. It's the ideal choice for beginners: simple, clear, no bad surprises.
Evaluation Account (subscription)
Cheaper at initial purchase, but it's a monthly subscription. If you don't pass the challenge quickly, the cumulative cost can exceed that of an OTP. In addition, activation fees often apply after success.
Static Account
The drawdown is fixed (it doesn't track your gains). It's safer but more expensive. Ideal for traders who want an additional safety margin.
| Account type | Price | Drawdown | Ideal for |
|---|---|---|---|
| OTP (No Fees) | Average | EOD / Trailing | Beginners, simplicity |
| Evaluation | Cheapest (initial) | EOD / Trailing | Tight budget |
| Static | Most expensive | Fixed | Cautious traders |
5. How much does it cost?
The price of a challenge varies depending on the size of the account and the type chosen. Here is a rough idea:
| Account size | Average price (OTP) | With LUCAS code (-80%) |
|---|---|---|
| 25,000 USD | ~150 EUR | ~30 EUR |
| 50,000 USD | ~250 EUR | ~50 EUR |
| 100,000 USD | ~400 EUR | ~80 EUR |
| 150,000 USD | ~550 EUR | ~110 EUR |
✅ With the LUCAS code: You benefit from up to 80% off all Phidias Propfirm accounts. It's the best offer available on the market.
6. The prerequisites to get started
You don't need a finance degree or 10 years of experience. But there are some essential fundamentals:
A tested trading strategy: Before taking a challenge, you need to have a method that you have tested and validated, ideally on a demo account for at least 2-3 months. Never take a challenge to "learn" — learn first, challenge next.
Basics in risk management: You must understand the notions of stop loss, risk/reward ratio, position size and drawdown. It's the #1 skill that separates profitable traders from losers.
The right platform: To trade Futures, you will need a platform compatible with Rithmic or CQG. Sierra Chart, NinjaTrader or even TradingView work perfectly.
The right mindset: Patience and discipline count more than technical skills. Trading isn't a sprint, it's a marathon.
⚠️ Warning: Don't start a challenge if you aren't yet profitable on demo. You'll just waste your money. Take the time to train properly — it's an investment, not an expense.
7. Beginner mistakes to avoid
Here are the traps that the majority of beginners fall into (see also our detailed article on the mistakes that make 90% of traders fail):
Taking an account that's too big: A 150K USD account with a 3% drawdown is 4,500 USD of margin. It may seem like a lot, but with Futures at 12.50 USD/tick on the ES, it goes very fast. Start with a 50K USD to get familiar with the rules.
Wanting to go too fast: The 6% target is not to be reached in 2 days. Take 10 to 20 days minimum. Speed is the enemy of the funded trader.
Not respecting the drawdown: The drawdown is sacred. If you approach your limit, stop trading. Better to end the day flat than to blow your account.
News trading: Economic announcements (FOMC, NFP, CPI) create unpredictable volatility. As a beginner, avoid these moments or reduce your position size.
Challenge addiction: Failing, taking another challenge, failing again... If you fail 3 times in a row, stop and rework your strategy before starting again.
8. How to choose your prop firm
Not all prop firms are equal. Here are the essential criteria to check before committing:
Reputation: Check the reviews on Trustpilot, testimonials from real traders, the seniority of the firm. Beware of prop firms that appeared less than 6 months ago with zero history.
Transparency of rules: The conditions must be clear and public. No hidden rules, no obscure clauses in the T&Cs.
Withdrawal conditions: How long before the first withdrawal? What percentage of payout? At Phidias, it's 80% payout, fast withdrawals, no bad surprises.
Trading platform: Rithmic is the standard for Futures. Make sure the firm supports your favorite platform.
Customer support: Responsive and available support is crucial, especially when starting out. Test it before taking a challenge.
💡 My choice: After testing several prop firms, I use and recommend Phidias Propfirm on a daily basis. Transparent conditions, 80% payout, Rithmic platform, and responsive support in French.
9. How to start today
Here is your concrete action plan in 5 steps:
- Train yourself: If you are starting out, learn the basics of Futures trading. Join the Discord VIP for personalized support.
- Practice on demo: Trade in simulation for at least 2-3 months. Keep a trading journal. Validate your strategy.
- Choose your account: Start with a 50K USD OTP account to begin. Best risk/opportunity ratio.
- Use the LUCAS code: Up to -80% off all Phidias Propfirm accounts.
- Trade with discipline: Respect your plan, your risk management, and be patient.
If you are discovering the world of prop firms, check out our Start Here page which brings together all the essential resources to start your funded trader journey.
Also think about getting informed about prop firm taxation in France to anticipate your reporting obligations. And to compare the best options on the market, check out our prop firms comparison in 2026.
Ready to get started?
Use the LUCAS code to get up to 80% off Phidias Propfirm and begin your funded trader journey.
View available accounts →