How to choose a prop firm
There are many parameters to consider before committing to a prop trading firm and beginning the process of attempting one of their challenges. Below is a list of aspects all traders should review before making a decision!
Make sure to also have a look at the evaluation method we use here at PropFirmBook.com to score each prop firm. Our methodology should provide a fair and balanced view of each prop firm, helping traders choose firms that can help them achieve their trading goals and align with their preferences. We consistently review and update our ranking, as we strive to provide relevant, up-to-date insights to support the decision making of our users.
1. Evaluate the Challenge Requirements
When you’re considering a challenge from a prop firm, pay attention to:
- Profit Targets – The percentage gain required to pass the challenge.
- Drawdown Limits– The maximum amount you can lose before failing.
- Trading Rules – Restrictions on lot sizes, holding trades overnight, or news trading.
- Time Limits – Some firms require passing the challenge within a set number of days.
Choose a firm with realistic and trader-friendly rules that align with your strategy.
2. Compare Profit Splits and Payout Conditions
One of the most important factors is how much of your trading profits you get to keep.
- Profit Split – Most firms offer 70%–90% profit splits, meaning you keep the majority of your earnings.
- Payout Frequency – Some firms allow bi-weekly withdrawals, while others have longer payout cycles.
- Withdrawal Methods – Ensure the firm offers convenient withdrawal options like bank transfers, crypto, or e-wallets.
3. Check the Firm’s Reputation and Reviews
- Look for Reviews – Check Trustpilot, Reddit, and trading forums for trader feedback.
- Watch for Red Flags – Avoid firms with excessive complaints about payout delays, hidden fees, or unfair rules.
- Check for Transparency – A reputable firm should clearly outline its rules, fees, and terms.
4. Assess the Cost and Refund Policy
Most prop firms charge a challenge fee, which varies based on the account size:
- Smaller accounts (e.g., $5,000) – Fees range from $50–$100.
- Larger accounts (e.g., $100,000 or more) – Fees can be $400+.
Some firms refund the challenge fee after you pass the evaluation, making it a lower-risk investment.
5. Consider Trading Instruments and Platforms
Make sure the firm supports your preferred trading style and instruments:
- Forex, stocks, indices, crypto, or commodities – Some firms restrict what you can trade. Choose a firm that offers the asset class you know
- MT4, MT5, cTrader, Matchtrade or Trade Locker – Choose a firm that offers a platform you’re comfortable using.
- Leverage & Execution Speed – Ensure the firm provides competitive spreads, fast execution and enough leverage.
6. Look for Strong Customer Support
- Live Chat, Email, or Phone Support – Fast response times are a must.
- Active Community – Some firms have Discord or Telegram groups where traders share insights.
- Educational Resources – Some firms offer trading tools, webinars, or coaching to help traders succeed.
Final Thoughts: Choosing the Right Prop Firm
The best prop firm for you depends on your trading style, risk tolerance, and goals. Look for a firm with reasonable challenge rules, high profit splits, and a solid reputation. By doing your research and selecting wisely, you can maximize your chances of success in the prop trading world.