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How Do Prop Firms Make Money?

Understanding how prop firms earn money helps you judge which firms are likely to keep paying.

Evaluation fees

The main revenue source for most retail firms is challenge fees, including failed attempts and resets.

Add-ons and subscriptions

Higher splits, extra drawdown, platform fees and monthly subscriptions at futures firms add revenue.

Their share of profits

Firms keep 10–20% of funded traders’ profits. Some also trade the strategies of consistent funded traders on their own account.

Why it matters to you

Firms relying heavily on new sales can struggle when sales slow, which is one reason dozens closed in 2024. Favour firms with long payout records, diversified revenue and transparent terms. See prop firms that shut down.

Prop firms we currently recommend

  1. 1

    FundedNext Best for MetaTrader users

    Max account
    $200,000 (up to $4M through scaling)
    Profit split
    80%, up to 95%
    Fee from
    $59.99 USD (confirm at checkout)
    Our rating
    4.4 out of 5
  2. 2

    SabioTrade Best for learning while you evaluate

    Max account
    $1,000,000
    Profit split
    80–90%
    Fee from
    $139 USD (confirm at checkout)
    Our rating
    4.0 out of 5

FAQ

How do prop firms make money?

Mostly from evaluation fees, resets and add-ons, plus a share of funded traders’ profits.

Do prop firms want traders to fail?

Failed fees are revenue, but reputable firms also need successful traders to attract customers.

How can I judge if a firm will keep paying?

Look for a long, verifiable payout record and transparent terms.