Propfirms are companies that allow you to trade on their account with their capital. However, for risk reasons, you will be trading a demo account and also do challenge(s) before you start trading a live account.

These firms are used by thousands of traders nowadays. It is suitable for those who don’t have much capital to run a personal account. You have to read their rules very well and try to understand them before you order an account. Think of what you want and your strategy and make a wise choice.

There are 3 types of programs you can get from a prop firm.
– A 1-Step also called 1-Phase account: If you choose this you will do 1 challenge and then get a funded/live account.
– A 2-Step also called 2-Phase account: If you choose this you will do 2 challenges before getting the funded/live account.
– A Direct Fund also called Instant Funded account: On this account, you won’t do any challenge, you will get a funded/live account straight.

The 2-Phase account is the most popular and cheaper of all. If you don’t have an issue with going through the 2 phases this is the best to choose because of the lower fee. The targets to achieve differ from company; it range between 6-10% for the first phase and 3-5% for the second phase. For the specific targets and rules check the website of the desired prop firm, please read the rules carefully.

The 1-Phase account gives you the opportunity to do only 1 challenge and then get your funded account, however, it’s most of the time expensive than the 2-step account. Also, the rules are a bit different and the target is most of the time 10%

On a Direct Funded account you won’t be doing any challenge, but it costs more than the other types of accounts. Also, the rules are stricter on the Instant Funded account. There is no challenge with a target to achieve, you trade, you earn you get paid. Make sure to read the rules carefully before picking any program.