Owen.

Hub · Prop trading

How to start and scale a prop trading firm

A prop trading firm funds traders who pass an evaluation, then shares the profits they make on the firm's capital. The businesses that last are built on three things: a challenge that selects real skill, a payout desk traders trust, and platform infrastructure that scales. Owen co-founded FunderPro, which has paid traders over $22M, and TradeLocker, the platform more than 80 prop firms run on.

FAQs

What does a prop trading firm actually sell?
Access to capital. A trader pays an evaluation fee, proves they can trade within risk rules, and is then funded on a simulated or live account. The firm earns from evaluation fees and its share of funded-trader profits, and it lives or dies on how consistently it pays out.
How much does it cost to start a prop firm?
Far less than a broker. The main costs are the trading platform and data feeds, a risk and payout desk, marketing to reach traders, and legal structure in a jurisdiction that permits the model. Most new firms launch on an existing platform such as TradeLocker rather than building one.
Why do most prop firms fail?
Cash flow, not demand. Firms that treat evaluation fees as profit and under-reserve for payouts break when a good month for traders arrives. Firms that survive treat payouts as their product, build reserves before they scale marketing, and pick a platform partner that can handle volume.
Which platform do prop firms use?
TradeLocker is the platform Owen co-founded for prop firms and brokers: web-first, no download, TradingView charting, with more than 80 prop firms live on it. Firms also run MetaTrader, cTrader and DXtrade depending on the traders they target.
Is Owen's advice about starting a prop firm or trading with one?
Both, honestly. For most people the better move is to trade with an established firm such as FunderPro. The guides in this hub are for operators building or scaling a firm, and the offer page explains how to work with the ones in the portfolio.
How does a prop firm prove its payouts?
Independently. WhatProp, a portfolio company, turns every funded account and payout into a verifiable certificate, so a firm's payout claims can be checked rather than taken on trust. It has verified more than $21.9M in payouts.

Work with a prop firm

Trade with FunderPro, earn as an affiliate, or talk to Owen about building yours.