Trading looks glamorous on social media. You look through some charts, open trades, get your payouts, and earn big without having to work for someone else. And with the rise of proprietary trading firms (prop firms for short) now, becoming a trader is easier than ever but behind the freedom flexes and highlight reels is a question that matters far more: Can you really make money with prop firms? The short answer is yes, but not without risk. Let’s break down what a prop firm is, how payouts work, and the pitfalls you should know before starting.
What Are Prop Firms?
In essence, a prop firm gives traders access to capital in exchange for a share of the profits. So, instead of risking your own money or savings, you get to trade with the firm’s money. And if you perform well, you get a percentage of the returns.
Most modern firms, including Maven Trading, work online. You usually pay for an evaluation or challenge, prove you can trade profitably under the firm’s rules, and once you pass, you get a funded account where you trade with their capital so, the next time you find yourself wondering what is a prop firm, remember it as a bridge between aspiring traders and big trading capital with guardrails to protect the firm’s money.
The Payout Side
Most prop firms offer profit splits ranging from 70/30 to 90/10 in favor of the trader. This means if you earn $10,000, you could take home anywhere from $7,000 to $9,000 as your own earnings.
The withdrawal frequency can also vary depending on the firm. Some pay weekly, while others do bi-weekly or monthly payouts. And if you prove consistent, some firms might even increase your funded account size (which can also be done by paying for a bigger account yourself).
All of this sounds great in theory. You can trade six figures without ever putting up six figures of your own. But that’s not the whole story.
The Pitfalls
Trading with a prop firm is obviously not the same as trading your own account. But the things that really trip up traders are the firms’ strict rules. Most of them enforce tight risk management; going over your daily loss limit by even a dollar could get your account terminated.
Also, trading someone else’s money may seem less risky, but the stress is all the same. Most of the pressure comes from trying not to break rules.Many firms make money off failed challenges, and these require a one-time fee. So, if you don’t pass, you lose the fee, which can add stress.
Can You Make Money with It?
All in all, prop trading is a great way to make money if you’re disciplined enough to follow strict rules, already have a profitable strategy, and treat it like a serious business. For skilled traders, prop firms are an incredible opportunity to earn without risking personal savings. But for some, it can become an expensive lesson in discipline. The key is to know that the payouts come with pitfalls you should respect.
Conclusion
Prop firms may offer the capital, but it’s your discipline, strategy, and mindset that determine whether you’ll actually see payouts. The opportunity is real but so are the rules, the pressure, and the consequences of missteps. If you treat prop trading like a business, not a side hustle or a shortcut to fast cash, it can be a powerful way to scale your earnings without risking your own savings.
If you’re chasing highlight reels without mastering the fundamentals, the evaluation fees and account resets will quickly remind you that trading success isn’t bought; it’s earned. Respect the rules, refine your edge, and approach prop firms as partners in your growth, not just providers of capital.
