How to Succeed with Prop Firms (May 2025 Guide)

Ever dreamed of trading with big capital — but don’t have $100K to risk?

That’s exactly what prop firms offer.

They fund you to trade with their money, and if you’re profitable, you keep up to 90% of the gains.

But here’s the truth: most traders fail their first challenge.

This guide shows you how to get funded, stay funded, and withdraw profits — with less stress and smarter strategy.

What Exactly Is a Prop Firm?

A proprietary trading firm (prop firm) lets you trade their capital instead of your own.

But to access that capital, you need to pass an evaluation — a challenge designed to test your consistency, risk management, and profitability.

Here’s how it usually works:

• You pay a one-time challenge fee
• Hit a profit target (e.g. 10%) within a limited number of days
• Avoid breaching drawdown or daily loss limits
• If successful, you get funded and start receiving profit splits

These challenges aren’t easy. But with the right preparation, they’re absolutely winnable.

How to Choose the Right Prop Firm (Without Getting Burned)

Choosing the wrong prop firm can cost you more than money — it can waste your time and damage your motivation.

Some firms change rules mid-challenge.

Others delay payouts.

And too many fake their Trustpilot reviews to appear legit.

So how do you find a reputable firm?

Step 1: Use PropFirmMatch to Filter Based on Your Needs

Instead of blindly Googling “best prop firms,” go to PropFirmMatch.com. It’s a comparison engine built specifically for traders.

You can sort by:

• Trading platform (MT4, cTrader, TradingView)
• Evaluation type (1-step, 2-step, or instant funding)
• Account size, max drawdown, payout speed
• Allowed instruments (Forex, indices, crypto, more)

Think of it like TripAdvisor — but for funded traders.

Personally, I always filter for firms with at least 3 years in operation and the ability to trade indices.

Step 2: Avoid the Trustpilot Trap

A firm with 10,000 five-star reviews might sound great — until you realize many of those reviews were bought or traded for discounts.

Instead, do this:

1. Open X (formerly Twitter)
2. Search for the firm’s name
3. Look at organic trader feedback (avoid coupon-pushing affiliate posts)
4. Pay attention to:
   • Payout proof
   • Support response times
   • Slippage or unexplained bans

The real voices of traders are often buried under marketing noise. But they’re there — if you know where to look.

How to Pass a Prop Firm Challenge (Without Burning Out)

Passing a prop firm challenge isn’t about making the most money. It’s about making smart money, consistently, while respecting the rules.

That’s why many talented traders fail — they take good strategies and use them in high-stress, overleveraged environments.

Smart Risk Management

If you want to pass, you need to survive. That starts with risk.

Here’s what works:

• Stick to 15M, 1H, or 4H timeframes. Lower noise = better decisions.
• Avoid trading during high-impact news like NFP or FOMC.
• Use a minimum 1:2 risk-reward ratio. One win should cover two losses.
• Limit each trade to 0.5% risk. With tight drawdown rules, this keeps you safe.

You’re not trying to double the account. You’re trying to show consistency over a short window.

‍Develop A Trading Plan That’s Built for Passing Challenges

Here’s the exact plan we use — and that our clients follow — to pass their evaluations and stay funded.

The Strategy:

• Use our High-Probability Trade Indicator to identify setups
• Focus only on top-performing pairs (e.g. EUR/USD, GBP/USD)
• Trade during your most consistent session (London or NY open)
• Risk 0.5% per trade and aim for a 1:2+ reward
• Avoid stacking trades or overlapping correlated assets

Want to use the exact indicator we built for funded traders?

Scale funded accounts

Now that you're funded, you might think it’s smooth sailing.

Not quite. The rules don’t disappear — and the stakes get higher.

Your focus now shifts to protecting your account and withdrawing real money.

Scaling plan

Many firms offer scaling plans. That means if you trade consistently — without breaking rules — they’ll double or triple your account.

The bigger your account, the easier it is to make solid monthly income — without overtrading.

Run Multiple Accounts (The Smart Way)

Many traders use multiple prop firms at the same time.

Why?

• Diversifies your income
• Shields you from firm-specific rule changes
• Multiplies your profit potential with the same trades

Use a trade copier tool to sync your trades across all accounts. Just check that it's allowed by each firm’s TOS.

Use Automation to Protect Your Rules

You don’t need a robot to trade for you — but automation can help enforce discipline.

Advanced traders use:

• EAs (expert advisors) to manage exits and risk
• Auto-close scripts to shut down trades near drawdown limits
• Alerts for news events and correlated exposure

Small automations prevent big mistakes.