Are Prop Firms Worth It?


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Today, I’m in the mood for some debate. What do you think? If you were to take a side on this subject, are you going to support or oppose the motion. Oya come let us reason together. Bring forth your strong reasons, lol.
I’m going to share my opinion on both sides but in this article, I will be supporting the motion. If you are ready to find out why you should go for prop trading, continue reading…

Access to more capital…

Picture this. I have a $20,000 trading capital and you have a $500 trading capital. We both take the same trade with a 1% risk. We make 2% profit from the trade. This means that I made $400 while you made a whooping sum of $10, lol.
If you are Nigerian, what’s the current exchange rate? Convert $10 and $400 to Nigerian Naira and tell me what it amounts to in the comment section?
You see that the profit margin between both results is wide, right?
Now tell me, who is likely to scale up faster financially and enjoy the good things of life? Me of course! If you choose to continue trading with $100, $200 and the likes, you are on your own o. I am not saying that you cannot make money from trading a small account.
But Hey!, we need to buy Lambo na, build house, travel the world and chop better Suya, lol.
What I am saying in essence is that getting funded with a reputable prop firm will give you the opportunity to scale up financially and fast too.

Encourage Traders To Maintain Good Risk Management….Forex Money & Risk Management

If you are trading your personal account, you can do anyhow you like. You are free to risk whatever amount you like and trade as you like. That’s why some of you blow your account quickly because you do not set rules to guide you. Even when you set rules, you still break them because you are not accountable to anyone and nobody is watching you.
But when you are trading a Prop firm account, you dare not trade as you like. They understand that most traders are likely to misbehave, that is why they set strict rules that you MUST abide by if you want to last long with them. Daily drawdown rules, overall drawdown rules, minimum and maximum trading days and the likes. Some prop firms do not allow News trading and holding trades over the weekend.
Do not see these rules as a limitation, instead, see them as an opportunity that will help you improve your risk management discipline.
If you break any of their rules at any point in time, guess what? Once you open your mail, your ”Violation and termination lettter” will be waiting for you.
So you would be better off sticking to good risk management.

It Does Not Require A Lot Of Money To Start….

What these prop firms are looking for are traders who are skillful and experts in executing profitable trades. If you prove to them that you are equal to the task by passing the demo evaluation stage(s), they are willing to throw their millions of dollars at you. Imagine getting access to a $10,000 for an access fee of $100.
Let’s assume the exchange rate of the NGN at this time is N950 per $1.
$100 = N95,000
$10,000 = N9,500,000
Wow! See how much you have at your disposal to trade with. N9,500,000. Isn’t that a good deal? It is important that you convert this to your local currency. This will help you appreciate the value of the capital more. You will also be able to trade it more cautiously. But if you do not know the value of what you have, you will most likely lose it. You would not want to lose such an amount of money, would you? So think about it again.

You Take The Larger Percentage Of The Profit….

a man carrying a sack of money, big profit, extra income, business investment 23782310 Vector Art at VecteezyAfter making good profit from your trading account, you get to take the lion’s share. Isn’t that awesome?
Some prop firms will offer to pay you 80% of the profit while they keep 20%. This is a good deal if you ask me.
If for instance you make 10% profit from a $10,000, you get to keep $800 while the firm keeps $200.
Now convert $800 to your local currency again and tell me how much it amounts to in the comments section. Can that amount pay one or two bills for you? If it can then you should consider taking up a prop firm account. If you consistently make good profit, you will be chilling with the big boys like me in no time,lol.
Some of these prop firms offer scaling opportunities. They could offer you more funds as you consistently trade profitably.


For instance, you sign up for a $10,000 with a fee of $100. Depending on the rules set by the prop firm, when it is time to receive your first payout, you are likely to get a refund of your $100? You are also likely to get a percentage of the profit you made on your demo evaluation.
Wow! Isn’t that amazing?

Network With Other Traders….

Trading alone can be boring and lonesome. Prop firms provide platforms where traders can connect with one another. They share their trading ideas and find support from admin members of the community.
Webinars, workshops, trading tools are organized and provided by the prop firms to help their traders improve their knowledge and skill in analysing and executing trade ideas.

Free Trial….

Before you buy a car for instance, the car dealers could give you the chance to drive around in it for free at first. This would give you an idea of what it feels like to actually own and drive the car.
Same applies here. Quite a good number of prop firms offer free trial accounts. If you wish to trade a $50,000 live account for instance, you can test your ability with their free $50,000.

Unlimited Evaluation Period…

With this offer from some prop firms, you can now pass the evaluation stage at your pace. No more excuse of ” Oh I failed the challenge because I did not meet up with the 30 days time limit”
Now that you have an unlimited time to pass your evaluation, do not give yourself another excuse to fail.
Also there are offers from prop firms that allow one step process for the evaluation. This shortens the process for the evaluation and makes access to live funded accounts available within a short period of time.

Remote Working…

Trading with a prop firm gives you the chance to work from home or anywhere in the world. You may have seen traders on social media trading on a plane, at the beach, at a lounge and in other locations outside the four walls of an office setting.
There are no restrictions to locations because all you need is your phone or laptop and access to good internet.

Take some time to think of the benefits again. If there are more you think I have not added, kindly add to the comment section so we can learn from you too.

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