Why We Don't Sell Challenges
In the world of proprietary trading, the "challenge model" has become the standard approach for many firms. But at PropFirm.com, we've deliberately chosen a different path. Here's why we believe our approach offers a fairer, more sustainable funding solution for traders at all experience levels.
The Challenge Model Problem
The typical challenge-based funding model requires traders to pay a fee ($100–$500) to take a test on demo accounts under strict conditions. With success rates often below 10%, and issues like delayed payouts or sudden account bans common even after passing, this model fundamentally misaligns incentives between traders and firms.
Our Alternative Approach
PropFirm.com earns revenue by matching traders with Funded Account Providers, not by selling challenges. We evaluate trader performance over time based on real trades, not artificial tests. With no fees and no upfront costs, our platform focuses entirely on actual trading ability.
What is the Challenge Model?
Pay to Play
Traders pay a fee ($100–$500) for the opportunity to prove themselves
Demo Account Testing
Trading occurs on demo accounts under strict conditions (e.g., profit targets, drawdown limits)
Low Success Rates
Often fewer than 10% of traders pass these challenges
Post-Success Issues
Even after passing, issues like delayed payouts or sudden account bans are common
Why Most Challenges Set Traders Up to Fail
Unrealistic Parameters
Tight time limits and risk controls (e.g., make 8% in 30 days with <5% drawdown) create artificial pressure
Luck Over Skill
Short testing periods emphasize lucky trades rather than consistent strategy
Revenue from Failure
Many firms make money primarily from failed challenge fees
Misaligned Incentives
Firms profit more when traders fail, creating a fundamental conflict of interest