Been seeing a lot of "which prop firm should I choose?" threads lately, and most of the answers are just people promoting whatever firm they're affiliated with. So I figured I'd share the framework I actually use when evaluating prop firms side by side. Hopefully this saves someone from wasting money on a bad challenge.


1. Don't just look at the headline price - calculate the real cost to get funded


A $100K challenge that costs $500 with a 10% pass rate effectively costs you $5,000 to get funded. A $350 challenge with a 20% pass rate costs $1,750. Most people fixate on the sticker price and ignore this completely. Always ask: what's the realistic cost before I'm actually trading live capital?


2. Compare the rules, not just the profit split


An 80% profit split means nothing if the firm has:


- Tight daily drawdown limits that reset overnight- Minimum trading day requirements that force overtrading- Restrictions on holding over weekends or during news


I've seen firms advertise 90% splits with rules so tight that almost nobody qualifies for a payout. The split is the last thing you should compare the rules are what determine if you'll ever see that split.


3. Check actual payout evidence, not just promises


Any firm can put "payouts within 24 hours" on their website. What matters is:


- Are there verified payout screenshots from real traders (not just testimonials on the firm's own site)?- How does the firm handle payout disputes?- Has the firm ever changed payout terms retroactively?- Reddit, Trustpilot, and threads right here on myfxbook are your best sources for this. If you can't find payout proof from real users, that's a red flag.


4. Look at the firm's track record and longevity


Multiple prop firms have shut down overnight in the past 2 years - some with traders' profits still unpaid. Before you hand over money, check:


- How long has the firm been operating?- Are they regulated or registered anywhere?- Have they had any major controversies or sudden rule changes?


5. Use a comparison tool to see the data side by side


Trying to compare 5+ firms across price, rules, drawdown, profit split, instruments, and platform by flipping between browser tabs is painful. I've been using propfirmscan.com for this - it lets you filter and compare firms side by side on the actual metrics that matter (challenge cost, drawdown type, profit split, payout speed, etc.). Saves a lot of time vs manually building your own spreadsheet.


6. Match the firm to YOUR trading style


This gets overlooked constantly. A scalper needs a firm that allows scalping and has no minimum hold time. A swing trader needs weekend holding and no daily drawdown reset. A news trader needs... well, good luck, but some firms do allow it. There's no "best prop firm" - there's only the best firm for how you actually trade.


7. Start with the smallest account size


Even if you can afford the $200K challenge, do the $25K or $50K first. Get familiar with the rules, the platform, and how the firm handles things. Scale up after you've proven the system works and you've actually received a payout.


Hope this helps someone avoid the mistakes I've seen repeated endlessly. Happy to answer questions if anyone's comparing specific firms.