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How Do Prop Firms Make Money?
2:57 · 8 chapters · Forex lessons, part 79
What you'll learn
Most prop firms earn from challenge fees, not trading. Here's what that means for your payout, in under 3 minutes.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- The main revenue lines of a forex prop firm, roughly in order of size
- Key point 2
- The difference between A-book, B-book and hybrid prop firms
- Key point 3
- Why most funded accounts are simulated, and what backs your payout
- Key point 4
- How a prop firm can run short of money to pay traders
- Key point 5
- Five signals that a firm can keep paying out
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.