The rise of proprietary trading has opened opportunities for many traders to access funded accounts and trade with significant capital. However, not all prop firms are legitimate. Some operate as scams, luring traders with promises of instant funding, high profit splits, or no-risk evaluations—only to withhold payouts, impose hidden fees, or disappear entirely. Knowing how to identify red flags and verify a firm’s credibility is crucial to protecting your money and time.

In this guide, we’ll cover the common warning signs of prop firm scams and provide actionable tips to safely navigate the world of funded trading. Table of Contents

How Reliable Are Prop Firms?

Red Flags to Watch for When Trading With Prop Firms

Unrealistic Profit Targets & Payouts

See All 16 Items

How Reliable

See Full Page