Happy Monday Traders!
Wanted to reach out and discuss one of the biggest challenges for traders, especially those just starting out, is the lack of sufficient capital. Without adequate funds, it’s nearly impossible to trade larger contracts or achieve the scale needed to see meaningful gains. This is where proprietary trading firms (prop firms) come into play.
Prop firms like Apex Trader Funding and Earn2Trade provide traders with a unique opportunity to leverage other people's capital. By passing an evaluation, you can gain access to a fully funded trading account ranging from $25,000 to $300,000 or more. What’s even more appealing is that the financial risk is borne by the firm, not you. With a relatively low startup fee, traders can focus on perfecting their strategy without the fear of losing significant amounts of personal capital.
How Prop Firms Work:
Prop firms operate by offering various evaluation programs to test a trader’s skills. Think of it as a simulation: you pay a fee, agree to follow their rules, and attempt to meet specific profit and risk management targets. If you succeed, the firm provides you with a funded account that allows you to trade with real capital and keep a share of the profits.
For example:
Apex Trader Funding: Known for its flexibility and fast evaluations, Apex offers 100% of the first $25,000 in profits, with scaling options to grow into even larger accounts. They support multiple trading platforms, including Rithmic and Tradovate, making it easy to find the right fit for your trading style.
Earn2Trade: They offer programs like the Trader Career Path and The Gauntlet Mini™, which cater to different skill levels. With the Trader Career Path, you can start small and scale up to a $400,000 funded account as you hit targets, while The Gauntlet Mini™ is perfect for short-term traders looking to pass in as little as 10 days.
The Advantages of Using Prop Firms:
Low Capital Requirement
You don’t need to put down tens of thousands of dollars to start trading large accounts. Most evaluations range from $100 to $300, allowing you to gain access to capital that would otherwise be unattainable for the average retail trader.Reduced Financial Risk
Because you’re trading with the firm’s money once you pass, your personal risk is minimized. You aren’t putting your own capital on the line—making this a risk-controlled way to dial in your strategy.Accelerated Learning Curve
Prop firms often have stringent rules around max drawdowns, daily loss limits, and profit targets. Adhering to these rules forces traders to refine their risk management and develop the discipline needed to become consistent. If you can pass a prop firm evaluation, you’re building the foundational skills that can serve you for years to come.Scale-Up Opportunities
Successful traders can grow their funded accounts over time, reaching hundreds of thousands of dollars in capital. With such large account sizes, the potential for high six-figure or even seven-figure returns becomes realistic—without having to commit large amounts of personal capital upfront.
Using Prop Firms to Dial In Your Strategy
One of the biggest benefits of using a prop firm is that it allows you to test and refine your trading strategy under real market conditions but with simulated risk. This is where I always tell people in my trading room, “If you can’t pass a prop firm exam, then you really shouldn’t be trading with real money yet.”
Prop firms force you to follow strict rules around:
Position sizing
Daily loss limits
Drawdown restrictions
These constraints are not easy to navigate. But if you can play by their rules and pass, you’re proving that you have the discipline and skill set to survive the trading business for the long term. In a way, these evaluations are like training wheels for the professional trading world.
Developing Long-Term Trading Skills:
Many traders who start with prop firms end up transitioning into full-time trading careers because the skills they learn are directly applicable to real-money trading. The evaluation process teaches you how to stick to a trading plan, avoid emotional decisions, and respect your risk limits—all of which are critical if you want to be a trader for more than a few months.
Huge Upside if You Pass:
Passing a prop firm evaluation means you’ve demonstrated the ability to trade consistently while managing risk—a rare skill. Once you have a funded account, the potential is enormous:
Higher Profit Splits:
Most prop firms offer traders 80-90% of the profits. This means you’re making money from someone else’s capital while only risking the initial evaluation fee.No Limits on Withdrawal:
Many firms like Apex Trader Funding and Earn2Trade allow you to withdraw your profits multiple times a month, offering flexibility that is hard to match.Access to Larger Capital Pools:
As you build a track record, you can move into higher-tier accounts with more capital and potentially lower risk parameters. With some firms, you can even manage multiple accounts simultaneously, allowing you to grow exponentially.
Is a Prop Firm Right for You?
If you’re struggling to grow a small account or find yourself taking too much risk, a prop firm might be the perfect solution. It allows you to focus on refining your strategy and building consistency without the worry of blowing up your own account. The prop firm’s risk management rules teach you discipline and patience, which are the real keys to long-term success.
Ready to Start?
Here are my recommended prop firms with exclusive discounts for our community:
Apex Trader Funding: CLICK HERE & use Code: VICI at check out for 50% - 80% off the evaluation fee.
Earn2Trade: CLICK HERE to get started on your path to a funded account with an additional 10% - 50% off.
If you’re serious about trading and want to do it with minimal personal risk, this is the path I recommend. Start with a prop firm, prove your strategy, and then scale up. If you can pass their rules, you’re not just ready to trade—you’re ready to conquer the markets.
Until next time—trade smart, stay prepared, and together we will conquer these markets!
Ryan Bailey
VICI Trading Solutions