Attract Capital – Proprietary Trading Firms Explained
Some providers advertise access to funded trading accounts (sometimes up to high notional buying power) after passing evaluations with strict risk rules. This page explains how those models work, their benefits and risks, so you can make an informed choice.
1. What is a Proprietary Trading Firm?
A proprietary trading firm funds eligible traders with the company’s capital. Profitable traders usually share a portion of gains (often 70–90%) while operating under predefined risk limits. Prop firms are not retail brokers; they typically do not hold client deposits, and trader participation is subject to each firm’s rules.
2. How the Evaluation Model Works
- Application / Fee — An evaluation fee (varies by plan) covers data, tech and risk monitoring. Fees are usually non-refundable unless stated otherwise.
- Challenge / Evaluation — You must meet profit targets under max/daily drawdown and trading-rule constraints. Passing is not guaranteed.
- Verification — Some providers run a second, lighter phase to confirm consistency.
- Funding — If approved, you receive a live account with rules for withdrawals, scaling and risk limits.
3. Common Prop-Firm Models
Two-Step Evaluation
Classic approach (e.g., FTMO). Two phases with profit targets (illustratively 10% then 5%) plus strict risk limits. Always review each firm’s exact rules and refund policy.
One-Step / Instant
Faster access with a single target or simplified rules. Fees can be higher and risk controls differ widely.
Monthly Subscription
Recurring fee model (popular in futures). Cancel anytime; check exchange data costs and withdrawal conditions.
4. Evaluation Tips (Risk-Aware)
- Trade a documented edge and use a written plan; avoid over-trading.
- Risk ≤ 1% per trade to preserve drawdown buffers.
- Avoid high-impact news if the provider restricts it; follow instrument-specific rules.
- Automation: use only strategies allowed by the provider; no guarantees of passing. Backtest and forward-test responsibly.
- Once you reach a daily goal, consider stopping; consistency beats speed.
5. Benefits & Risks
| Benefits | Risks |
|---|---|
| Access to company capital • Limited personal capital at risk • Structured risk rules • Potential scaling paths | Strict rules; breaching limits voids eligibility • Not an investment service or broker • Provider continuity risk • Fees may be non-refundable |
6. Featured Prop Firms (Information Only)
Below are third-party providers. We do not control their products. Verify rules, fees, payout procedures and availability in your country. Links may be affiliate links; we may receive compensation if you sign up.
7. Prop-Firm FAQ
Do prop firms affect my credit score?
No. They’re not lenders; you trade a company account, not borrowed cash.
Which markets can I trade?
Typically FX and indices; some include commodities, crypto or futures. Instruments and trading hours vary by provider.
Can I use automated strategies?
Only if expressly allowed. Passing or future performance is not guaranteed. Always test and follow provider rules.
Publisher: MyTradingToolkit.com • Contact: hello@mytradingtoolkit.com