What Is Prop Trading? A Complete Guide for 2026
Learn what proprietary trading is, how prop firms work, and how to get funded as a futures trader with no capital of your own.
What Is Proprietary Trading?
Proprietary trading — or “prop trading” — is when a firm trades financial instruments using its own capital rather than client funds. The firm takes on the risk and keeps the profits. In the modern prop trading model, firms like 10FOUR evaluate external traders and provide them with funded accounts to trade on behalf of the firm.
This means you don’t need tens of thousands of dollars to trade futures. You just need to prove you can trade consistently.
How Does a Prop Firm Work?
The typical prop firm model works in three stages:
- Evaluation — You trade a simulated account and meet specific profit targets while staying within risk limits (max drawdown, daily loss limits, etc.)
- Verification — Some firms require a second phase to confirm consistency. At 10FOUR, there’s no second phase — pass once and you’re funded.
- Funded Account — You trade with the firm’s capital. Profits are split between you and the firm (typically 80/20 or 90/10 in the trader’s favor).
Why Trade with a Prop Firm?
No Personal Capital at Risk
The biggest advantage is leverage without personal risk. Your evaluation fee is your only cost. If you blow the funded account, you don’t owe anything — you just lose access.
Scale Faster
Most retail traders are undercapitalized. A prop firm lets you trade with $50K, $100K, or even $150K in buying power from day one.
Professional Infrastructure
Funded traders get access to professional-grade execution, real-time data feeds, and risk management tools.
What Makes 10FOUR Different?
- No monthly subscriptions — Pay once for your evaluation, not every month
- No payout windows — Request your payout anytime, no waiting for a specific date
- 24-hour payout guarantee — Once approved, money hits your account within 24 hours
- One-phase evaluation — No redundant verification phase
How to Get Started
Getting started with prop trading is straightforward:
- Choose an account size ($25K, $50K, $100K, or $150K)
- Pass the evaluation by hitting the profit target within the rules
- Start trading your funded account
- Keep up to 90% of your profits
Ready to get funded? View our evaluation plans and start trading today.