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Trading futures requires significant capital and carries high risk. If you trade your own money, you could lose thousands in a single bad session. With a Prop Firm, you pay a small fee (e.g., $40-$150) to trade their capital. If you fail, you only lose the evaluation fee, not your life savings. It is the smartest way to access high leverage (up to 20 contracts) with capped downside risk.
This is the most critical rule to understand.
Trailing Drawdown: Follows your highest unrealized profit during the trade. If you are up $500 but close the trade at $0, your drawdown limit still moves up by $500. It is harder to manage.
End-of-Day (EOD) Drawdown: Only updates based on your balance at the market close. This gives you much more breathing room for trades to fluctuate during the day. (Check the "Drawdown Type" column in the comparison table above to find EOD firms).
Once you pass the evaluation and get funded (Performance Account), you generally keep 90% of the profits, while the firm keeps 10%. Most firms have a "buffer zone" or a minimum number of trading days (e.g., 10 days) before your first withdrawal. Payouts are typically processed via bank transfer (Riseworks/Plane) or Crypto.
Most Futures Prop Firms use Rithmic or Cormand data feeds, which connect natively to NinjaTrader 8 (the industry standard). However, firms like Topstep and Take Profit Trader now offer integration with Tradovate, which allows you to trade directly inside TradingView. If you are a Mac user or prefer web-based charts, filter for "Tradovate" or "TradeLocker" in the table above.
If you hit your max loss limit, the account is liquidated, but you do not owe the firm any money. You simply lose the account eligibility. However, most firms allow you to "Reset" the evaluation for a fee (usually around $80) or simply purchase a new evaluation account. Since there are frequent sales (up to 90% off), buying a new account is often cheaper than resetting an old one.
Hypothetical or simulated performance results have inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Futures trading contains substantial risk and is not for every investor. An investor could lose all or more than the initial investment. Only risk capital should be used for trading. Past performance is not necessarily indicative of future results.