Experts explained are funded trading accounts worth it

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( — June 27, 2023) —

Forex trading is becoming extremely popular these days. Proprietary trading refers to the practice of trading using a firm’s own capital rather than client funds. In proprietary trading, the trading decisions are made by the firm’s traders or algorithmic trading systems with the goal of generating profits for the firm.

Traders Union experts explained what is proprietary trading, its pros and cons. Moreover, they answered the question “Are funded trading accounts worth it?”

Prop trading: pros and cons

TU experts defined the advantages and disadvantages of funded trading accounts.


  • Profit earning. First of all, funded trading is a great possibility to make money. In addition, prop firms often offer lower commissions than brokers.

  • Tools and software. Prop firms offer unique tools and software, such as high-end technology, multiple platforms, and high-quality information.

  • Perfect support. Prop firms usually have small teams, unlike brokers with millions of users. That is why prop firms provide excellent support.

  • Lower operating costs. Proprietary firms are less regulated. That is why they have lower operating costs than brokers.

  • Using firm’s capital and high leverage. A big advantage of prop trading is high leverage. Moreover, during funded trading you do not need your own capital.

  • Experience and knowledge. Funded trading is a great way to gain new experience. Many prop firms provide educational materials for novice traders.


  • Regulation. Prop firms are less regulated than brokers or not regulated at all. That puts you at higher risk, so you should be careful choosing a firm.

  • Business risks. Some proprietary firms may ask you for a deposit. You should only deposit money you can afford to lose.

  • Lack of flexibility. Most firms only offer day trading. That causes a lack of trading flexibility.

  • Costs. Fees related to prop trading are high. Prop trading comes with evaluation fees, withdrawal fees, subscription fees etc.

  • Emotional impact. Prop trading can be stressful because you trade a firm’s money instead of your own.

How much money can I make?

If traders are interested in earning money in prop firms, they need to understand clearly how these work. Your income depends on a prop firm you choose and its profit sharing ratio. 

Here are some advice to maximize your profit:

  • Use leverage. This can make your profit higher. However, the market can also go against you and you can lose not only yours but also borrowed money.

  • Devise trading strategies. They must be based on theory rather than instinct. 

  • Trade with money you can afford to lose. Novice traders should invest no more than $500 to $1,000.

  • Analyze all data with placing orders, including economic and political factors.

Best prop trading firms

Traders Union experts posted a list of the best prop trading firms to make your choosing easier.


Fidelcrest is a proprietary trading firm that offers funding and training programs for traders. Fidelcrest provides funding programs for traders who want to trade with the firm’s capital. Fidelcrest conducts a trading challenge as part of its evaluation process for traders. Traders are required to trade a demo account and meet certain profit targets and risk management criteria to qualify for the funded account.


Topstep is a proprietary trading firm that provides funding and evaluation programs for traders. Topstep offers a Trading Combine, which is an evaluation program designed to assess traders’ skills and discipline. Upon successful completion of the Trading Combine, traders can be eligible for a funded trading account with Topstep. Topstep places a strong emphasis on risk management and requires traders to follow specific risk parameters. Traders must demonstrate disciplined risk management practices, such as adhering to maximum daily loss limits and position sizing guidelines.


SurgeTrader is a well-known prop firm. The firm offers six packages for those who meet their criteria. With the Starter package you will get an account with $25000 and a 10% profit target for $250. If you are confident, then the Master package will be for you, with a $1,000,000 funding size and 10% profit target. The fee for the Master package is $6500.

On the Traders Union website you can find out what prop trading costs are. You can also read about various brokers and prop firms and check the reviews. Traders Union experts constantly analyze the market and post latest information about brokers and prop firms.