Prop Trading

    In-depth articles about the prop trading industry, business models, and how funded trading works.

    10 articles All Posts

    Prop Firm Payout Denials: Common Compliance Triggers and Appeals

    Prop firm payout denials are often triggered by IP overlaps, inconsistent risk parameters, or toxic trading patterns discovered during manual audits. Understanding these compliance red flags is essential for any trader looking to secure their withdrawal.

    Kevin Nerway 9 min

    Prop Firm Consistency Rules: Deciphering the 33% and 50% Profit Cap

    Prop firms use consistency rules to ensure trader success is repeatable rather than lucky. Understanding the 33% and 50% profit caps is essential to avoiding payout denials and account deductions.

    Kevin Nerway 8 min

    Prop Firm Add-Ons: Evaluating 90% Splits and Reset Discounts

    Prop firm add-ons like 90% profit splits and bi-weekly payouts often act as a hidden tax on traders. This guide breaks down the mathematical break-even point to help you decide if these upgrades actually increase your expected value.

    Kevin Nerway 9 min

    Prop Firm Account Merging: Strategic Consolidation vs. Risk Pooling

    Consolidating prop firm accounts reduces operational overhead but significantly increases concentration risk. Traders must weigh the benefits of streamlined execution against the safety of a distributed risk model.

    Kevin Nerway 8 min

    Funding for Non-US Residents: Navigating Restricted Jurisdictions

    The dream of managing six-figure capital is universal, but the regulatory reality of the prop trading industry is anything but. For traders in London, Dubai, or New York, the path to a [Funded Acco...

    Kevin Nerway 10 min

    Prop Firm Latency Arbitrage & High-Frequency Trading Policy Guide

    The dream of "risk-free" profits has led many traders down the rabbit hole of High-Frequency Trading (HFT) and latency arbitrage. In the world of retail prop firms, these strategies represent a leg...

    Kevin Nerway 9 min

    The Prop Firm KYC Process: Verification Documents and Privacy Risks

    For many traders, the journey from a demo account to a [Funded Account](/glossary/funded-account) feels like a purely technical battle against the markets. You master your [Position Sizing](/glossa...

    Kevin Nerway 9 min

    Prop Firm Hard Breach Rules: Hidden Violations and Account Recovery

    You’ve spent weeks grinding through an evaluation. You’ve mastered your [Max Daily Drawdown](/glossary/max-daily-drawdown) limits, your equity curve is trending upward, and you finally have that "F...

    Kevin Nerway 9 min

    Prop Firm Payout Policies: Understanding Minimum Days and Buffers

    Getting funded is only half the battle. For many traders, the real challenge begins the moment they see a profit balance in their [funded account](/glossary/funded-account). The industry is rife wi...

    Kevin Nerway 7 min

    Prop Firm Tax Guide: How to Report Your Funded Account Income

    Scaling a [funded account](/glossary/funded-account) to six figures is the dream of every retail trader, but the reality of that success comes with a sobering realization: the taxman wants his cut....

    Kevin Nerway 6 min