Consistency Rules: What They Are and Where They Apply
A consistency rule caps how much of total profit may come from one day or one trade. What varies most between firms is the stage at which it applies.
COMPARATIVE · 2460 wordsResearch library
A sourced reference
layer for an industry
that has none
How the mechanics of prop trading actually work, written from primary sources. Six clusters, published as they are finished, with the date each claim was checked.
- Published
- 30
- Clusters
- 6
- Sourcing
- primary documents only
- As of
- 2026-07-31
A
Rule mechanics
7 publishedCan Prop Firm Rules Change After You Buy?
Firms amended rules and splits on live accounts through 2025 and 2026. No firm reviewed binds a version of its rulebook to the account you bought.
INVESTIGATIVE · 2243 wordsDaily Loss Limits: What the Number Is Measured From
The daily-loss percentage is nearly standard across prop firms. The base it is measured from and the hour the day resets are not.
COMPARATIVE · 2194 wordsDoes Unrealised P&L Count Against Loss Limits?
At most prop firms the loss limit is measured on equity, so an open losing position can breach it. Some futures products trail on end-of-day balance.
INFORMATIONAL · 1905 wordsProp Firm Rules: What Can Close an Account
Eleven categories of rule can end an evaluation or a funded account. What each one measures, typical ranges across firms, and where each is published.
INFORMATIONAL · 2825 wordsTrailing vs Static Drawdown, Explained Properly
A static drawdown floor never moves. A trailing floor follows your peak upward. The difference decides most failed evaluations — and the details differ per…
INFORMATIONAL · 1994 wordsWhat Changes the Day You Get Funded
Passing an evaluation moves the account onto a different rulebook: new consistency tests, waiting periods, payout caps and verification steps.
COMPARATIVE · 2247 words
B
Payouts and firm economics
7 publishedClaimed vs Independently Verified Payout Totals
No payout total a prop firm publishes about itself is audited, and the independent trackers alongside it are not counting the same events.
INVESTIGATIVE · 1931 wordsHow Prop Firm Payout Ratios Are Actually Calculated
One prop firm in the industry files audited accounts. They show a payout ratio of 54.6% — roughly double the 25–40% every public revenue estimate assumes.
INVESTIGATIVE · 1811 wordsFee Refunds: Who Refunds, When, and on What Condition
The evaluation fee is widely described as refundable. In the published terms it is a credit attached to a payout — the first, third or fourth one.
COMPARATIVE · 1937 wordsPass Rates and Payout Rates: Every Number That Exists
Only one independent dataset measures prop firm pass rates. Here is every published number, its sample, its publisher, and what it cannot show.
INFORMATIONAL · 1629 wordsWhat “Up to 100% Profit Split” Actually Means
Headline splits of 90–100% are real but conditional: on payout cadence, on paid add-ons, on account size, on months of scaling. Realised splits sit around…
INVESTIGATIVE · 1879 wordsWhen a Prop Firm Payout Can Be Denied — What the Terms Say
Every major prop firm’s terms contain at least one clause allowing profit to be cancelled on a judgement call. No firm publishes how often those clauses are…
INVESTIGATIVE · 2336 wordsWhere Prop Firm Revenue Comes From
Prop firm revenue is evaluation fees; the largest cost is trader payouts. The one audited set of accounts in the category shows the whole structure.
INFORMATIONAL · 2472 words
C
Regulation and legal status
5 publishedAre Prop Firms Regulated? A Jurisdiction Map
No country has created a licensing regime for prop-trading challenges. Here is what each regulator has actually said, and what it means for the person…
INFORMATIONAL · 2772 wordsCFTC v. My Forex Funds: What the Outcome Decided
Dismissed with prejudice on 13 May 2025 with Rule 11 sanctions against the CFTC. Whether the model is regulated activity was never reached.
INVESTIGATIVE · 2191 wordsOffshore Licences: What They Actually Are
The Comoros central bank calls the Anjouan and Mwali licensing bodies structures fictives. A sourced register of ten regimes and what each one covers.
INVESTIGATIVE · 2741 wordsThe Unregistered Commodity Pool Theory in US Suits
Three pending US suits argue that pooling trader fees into common trading capital is an unregistered commodity pool. No court has ruled on the merits.
INFORMATIONAL · 2226 wordsWhat Protection Does a Challenge Buyer Have?
Not investor compensation, not segregation, not an ombudsman. What remains is general consumer and payment law, and it varies by card, country and clause.
INFORMATIONAL · 2393 words
D
Operational and counterparty risk
5 publishedPrice Gaps, Platform Outages, and What the Rules Actually Say
If the market gaps through your stop or the platform goes down, most prop firm rule sets have no compensation mechanism. The documented record explains why…
INFORMATIONAL · 1954 wordsHow to read a prop firm’s terms: seven checks
Seven questions a prop firm’s published documents should answer, where each answer usually sits, and a quoted example of a complete one.
REFERENCE · 2405 wordsPlatform Dependency: February 2024 and After
In February 2024 MetaQuotes withdrew MetaTrader from prop firms. A software vendor’s decision reshaped the category faster than any regulator has.
INVESTIGATIVE · 2014 wordsProp firm closures, 2024–2026: the documented record
Of 376 prop firms in one industry database, 84 are recorded inactive and 30 show no sign of operating. A dated register of what was announced.
INVESTIGATIVE · 2393 wordsWhat Can Go Wrong That Is Not Your Trading
Platform vendors, firm closures, rule changes and country withdrawals ended more prop products than trading losses. The record, with dates.
INFORMATIONAL · 2632 words
E
Industry structure
3 publishedIs a Funded Account a Real Trading Account?
At the firms whose terms we read, the funded account is a simulated environment and no order reaches a market. One documented exception exists.
INVESTIGATIVE · 1922 wordsProp Firms and Brokers Are Converging
Five prop firms added regulated brokerage arms between May 2025 and March 2026, and brokers launched prop products. The documented map, both directions.
INFORMATIONAL · 2644 wordsThe Two-Entity Pattern, Explained
The company named in your evaluation contract and the company holding the licence are usually different. Here is what the firms’ own terms say about it.
INFORMATIONAL · 1876 words
F
Method and reference
2 publishedGlossary: Terms That Carry a Firm-Specific Definition
In prop trading, several core terms mean different things at different firms. This glossary gives the general meaning and flags where the definition varies.
REFERENCE · 791 wordsHow We Source Claims
Our sourcing standard: primary documents only, every figure dated, hypotheses excluded, and named uncertainty where sources disagree.
REFERENCE · 702 words
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Other
1 publishedThe 12 Ways an upme Account Can End
Every condition that can end an upme evaluation or funded account, from the rulebook and the payout refusal list. Rules 1–18, five refusal grounds, one…
INFORMATIONAL · 2979 words