Prop Firm vs Real Account: Which Is the Best Choice in 2026?
Prop Firm vs. Real Account - Challenges, Advantages, and Best Prop Firms
What is a Prop Firm? • Functioning • Challenge Prop Firm • Benefits • Real Account • Comparative • Best Prop Firms • FAQ • Conclusion
Proper firm vs. real account, which is the better choice? One prop firm Proprietary trading firms finance you to trade, while a live account uses your own capital. In this comprehensive guide, discover how proprietary trading firms operate, the advantages and disadvantages of each option, and how to choose based on your profile and objectives.
Key Figures
Prop Firm
Capital provided by the company
€10,000 to €400,000
Challenge
Average entry cost
100€ - 500€
Profit Split
Share of the profits for the trader
70% - 90%
Prop Firm: What is it? Definition
A prop firm (proprietary trading firm or proprietary trading company) is a company that makes its capital for qualified traders. The concept is simple: the company finances you, you trade, and you share the profits.
How does it work?
- 1. You pay a challenge (100-500€)
- 2. You are undergoing an evaluation (profit target 8-10%)
- 3. If successful, you will receive a account funded (€10K-€400K)
- 4. You keep 70-90% profits
- 5. The company retains 10-30% and assumes the losses
Prop Firm: How it Works
| Stage | Description | Duration |
|---|---|---|
| 1. Registration | Capital selection and challenge payment | Immediate |
| 2. Challenge Phase 1 | Objective: +8-10% profit, max -5% drawdown | 30 days |
| 3. Challenge Phase 2 | Objective: +5% profit, max -5% drawdown | 60 days |
| 4. Funded Account | Real trading with capital from the prop firm | Unlimited |
| 5. Payout | Withdrawal of profits (70-90% for you) | Monthly/Bi-monthly |
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Prop Firm Challenge: The Rules
Le challenge prop firm is the assessment you must pass to get a funded account. Each propfirm It has its own rules, but here are the standard criteria:
Profit Target
Phase 1: 8-10%
Phase 2: 5%
Achievable in 30-60 days
Maximum Drawdown
Daily: -5%
Total : -10%
If exceeded = challenge failed
Trading Days
Minimum: 5-10 days
No maximum limit
Regular trading required
Warning: Strict Rules
- - No trading during major news events (for some companies)
- - No overnight positions (according to the firm)
- - Strict adherence to daily and total drawdown
- - No martingale or prohibited strategies
Advantages and Disadvantages
Benefits
- + No capital needed - Trade with €10K-€400K
- + Limited risk - You only lose the challenge
- + Scaling possible - Increase your capital
- + 70-90% profits for you
- + Imposed discipline - Good habits
- + No complex taxation (depending on the country)
Disadvantages
- - Cost of the challenge - €100-500 per attempt
- - Strict rules - Drawdown, minimum number of days
- - Psychological pressure - Fear of losing the account
- - Profit sharing - 10-30% for the prop firm
- - Restrictions - News, overnight, etc.
- - Risk of scam - Choose a reliable prop firm
Which broker should I choose for trading?
Comparison of the best regulated CFD brokers - Spreads, bonuses, regulations
See the Brokers Comparison 2026Real Account Trading: Advantages and Disadvantages
In the debate Prop firm vs. real account, trade with a real account It means using your own capital. No challenge, no imposed rules, but all the risk is on you.
Advantages of Own Account
- + 100% profits for you
- + No rules - Total freedom
- + No challenge to pass
- + Permanent account - No risk of loss
- + Total flexibility - News, overnight, etc.
Disadvantages of Own Account
- - Personal capital required - €5000+ recommended
- - Risk of losing everything
- - Slow growth with small capital
- - Less discipline imposed
- - Taxation to manage yourself
Complete Comparison: Financing vs. Personal Equity
| Criteria | Prop Firm | Real Account |
|---|---|---|
| Capital needed | €100-500 (challenge) | €5000+ recommended |
| Traded capital | €10K - €400K | Your capital only |
| Share of profits | 70-90% | 100% |
| Maximum risk | Cost of the challenge | All your capital |
| Trading rules | Strict (drawdown, minimum days) | None |
| Flexibility | Limited | Total |
| Psychological pressure | High | Moderate |
| Earnings potential | Very high (large capital) | Limited by your capital |
| Ideal for | Profitable traders without capital | Traders with available capital |
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Concrete Example: Proprietary Firm vs. Real Account
You do 10% of profit in 1 month:
- Proprietary Firm (€100K) : 10% = €10,000 × 80% = €8,000 net for you
- Real Account (€5,000) : 10% = €500 net for you
In this comparison Prop firm vs. real account, The property firm brings you 16x more with the same percentage!
Best Prop Firms 2026
Here is our selection of best prop firms reliable and recognized for the trading prop firm :
| Prop Firm | Capital Max | Profit Split | Challenge | Notice |
|---|---|---|---|---|
| FTMO | 400 000€ | 80-90% | Starting from €155 | Market reference |
| Funded Next | 200 000$ | 80-90% | Starting from 32$ | Excellent value for money |
| The Funded Trader | 600 000$ | 80-90% | Starting from 65$ | Aggressive scaling |
| We Get Funded | 400 000€ | 80% | Starting from €89 | French Society |
| Funding Pips | 300 000$ | 80-90% | Starting from 59$ | Very popular |
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Without Challenge: Instant Funding
Some companies offer instant financing (instant fundingYou pay more but you get a funded account immediately.
Advantages Without Challenge
- + No stress from the challenge
- + Account funded immediately
- + Ideal for experienced traders
- - Higher cost (2-3x the price)
- - Rules that are sometimes stricter
FAQ - Frequently Asked Questions
What is a Prop Firm?
A prop firm (proprietary trading firm) is a company that lends you its capital to trade. You complete a challenge, and if you succeed, you trade with their money and keep 70-90% of the profits.
How does the FTMO challenge work?
Le FTMO challenge This is done in 2 phases: Phase 1 (10% profit in 30 days) and Phase 2 (5% in 60 days). Maximum drawdown of 10% total and 5% daily.
Which is the best one?
FTMO is the market benchmark with a high Trustpilot score. Funded Next offers the best value for money. We Get Funded is the best French company.
Is it possible to make a living from funded trading?
Yes, If you are profitable, with a €100K account and 5% of monthly profit, you earn approximately €4,000/month (80% of €5,000). Many traders live off their funded accounts.
What are the tax implications?
Taxation varies by country. In France, earnings are generally taxed as non-commercial profits (BNC). Consult an accountant regarding your specific situation.
Financing or real account: which to choose?
If you're profitable but lack capital, choose financing. If you have €10,000+ and want 100% of profits, opt for a live account. Ideally, you should combine both.
Our Final Verdict
Choose Financing if...
You are profitable but without capital
You want to trade big quickly
You accept the strict rules
Choose Real Account if...
You have available capital
You want 100% profits
You prefer total freedom
Our recommendation: Proprietary firm vs. real account Start with a challenge prop firm to prove your profitability with little risk. Once funded, gradually build your capital for your real account.
Warning : Trading involves a high level of risk. 74-89% retail accounts lose money. Past performance is not indicative of future results. Only invest what you can afford to lose.