Prop Firms Are Not All the Same — Know the 3 Models

Most traders choose a prop firm by "which one has the cheapest fee" or "which one everyone talks about" — and they choose wrong · because prop firms are not all the same · this chapter introduces the 3 main models, so you can choose one that fits you.

Axis 1 — the evaluation model

Model A — 2-Step Evaluation Two phases: Phase 1 (hit a big target) → Phase 2 (hit a smaller target) → pass both to get funded - Suited to: people who want to prove themselves fully · the fee is usually the cheapest - Downside: it takes longer, there are 2 phases to fail

Model B — 1-Step Evaluation One phase → pass → funded - Suited to: confident people who want funded fast · a mid-range fee - Downside: the single-phase target is usually higher than each phase of a 2-step

Model C — Instant Funding Pay and you get a funded account immediately, no exam - Suited to: people who do not want to spend time on an exam and already have a ready system · the entry cost is usually the highest - Downside: the payout / drawdown rules are usually stricter, because the firm takes on more risk

Axis 2 — the market traded

Forex/CFD prop firms — trade forex, gold, indices, crypto CFDs · the largest group · suited to general traders

Futures prop firms — trade futures contracts (ES, NQ, CL, etc.) through a dedicated platform · the rules and payouts differ from forex props · suited to people who specifically trade futures

Advice: choose a firm whose market matches what you already trade — do not change your market for a firm.

Axis 3 — size and trustworthiness

- A large, long-established firm — a clear payout history, many reviews, stable rules · the fee may be a little more expensive, but the "does not pay" risk is low - A new / small firm — some are genuinely good, some open just to collect fees then close · the fee is usually cheap, with big discounts — but the risk is higher

The thing to understand — "the cheapest" is not the only criterion

A fee that is $20 cheaper means nothing if you pass and the firm does not pay out · the correct choosing criterion is "good value + trustworthy," not "the cheapest."

> Before asking "which firm is cheap" — first ask "which model fits me" and "which firm actually pays" · these 3 axes are the correct framework for choosing

Next chapter — choosing a firm by your trading style