# PropExecutor prop firm FAQ

> 554 questions on starting and running a prop firm, each with a short answer. The full answer is at each question's URL.

HTML version: https://www.propexecutor.com/resources/faq

## Starting a prop firm

### [Starting a prop firm](https://www.propexecutor.com/resources/faq/starting-a-prop-firm)

What a prop firm is, how the challenge model works and the first decisions a founder makes before launch.

- [What is a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-a-prop-firm): A prop firm (proprietary trading firm) evaluates traders and rewards the ones who trade well. Most online prop firms today sell a paid evaluation, often called a challenge, on a simulated account, and pay successful traders a share of the profits they make afterwards.
- [What is a proprietary trading firm, and how is it different from a broker?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-a-proprietary-trading-firm-and-how-is-it-different-from-a-broker): A broker executes clients' orders on the market and earns from spreads, commissions or client losses. A proprietary trading firm does not take client deposits for trading; it evaluates traders and pays a share of profits to those who pass, using its own capital or simulated accounts.
- [How does a modern online prop firm work?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-does-a-modern-online-prop-firm-work): A trader buys an evaluation, trades a simulated account under fixed rules, and either breaches a rule or reaches the profit target. Traders who pass receive a funded account and a share of the profits it makes. The firm earns from evaluation fees and manages the cost of paying traders who succeed.
- [What is the difference between a traditional prop firm and a challenge-based prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-the-difference-between-a-traditional-prop-firm-and-a-challenge-based): A traditional prop firm hires or backs traders to trade the firm's own capital in real markets, often in an office. A challenge-based prop firm sells paid evaluations online, usually on simulated accounts, and pays traders who pass a share of the profits they make.
- [How do I start a prop firm from scratch?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-do-i-start-a-prop-firm-from-scratch): Decide your market and model, form a company, take legal advice on where you can sell, choose a trading platform, design your challenge rules, set up a website with checkout and a payment provider, prepare KYC and payout processes, and launch with a small range of account sizes before expanding.
- [What are the first steps to launching a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-are-the-first-steps-to-launching-a-prop-firm): Start with three decisions: which market you will offer (forex, futures or crypto), which countries you will sell to, and what your first challenge looks like. Then register a company, get legal input, pick a platform and payment provider, and write your rules and terms before building the website.
- [How long does it take to launch a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-long-does-it-take-to-launch-a-prop-firm): With a ready-made platform, the technical setup can take days rather than months. Most of the calendar time goes to company formation, legal review, payment provider approval and the website. A realistic range for a first launch is a few weeks to three months, depending mainly on payments and legal work.
- [Do I need trading experience to start a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/do-i-need-trading-experience-to-start-a-prop-firm): It helps but it is not required. You need to understand drawdown, leverage, lot sizes and how traders behave under rules well enough to design fair challenges and spot abuse. Many founders without deep trading experience hire or consult an experienced trader or risk manager for rule design.
- [Can I start a prop firm on my own, or do I need a team?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/can-i-start-a-prop-firm-on-my-own-or-do-i-need-a-team): You can launch alone if you use ready-made technology and keep the product simple. A solo founder typically handles marketing and operations personally and outsources legal work, website development and some support. A team becomes necessary once support volume, payouts and risk review take more time than one person has.
- [What roles does a prop firm need in its first year?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-roles-does-a-prop-firm-need-in-its-first-year): In year one most prop firms need someone covering marketing and partnerships, customer support, risk and payout review, and finance and compliance, plus the founder making product decisions. Many of these start as part-time or outsourced roles and become full-time as trader numbers grow.
- [What does a prop firm need on day one to accept its first trader?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-does-a-prop-firm-need-on-day-one-to-accept-its-first-trader): On day one you need a registered business, terms and a refund policy, a website with checkout and a working payment method, a trading platform that can create an account and deliver login details, rules that are enforced automatically, and a way to answer support questions.
- [Should I start a forex, futures or crypto prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/should-i-start-a-forex-futures-or-crypto-prop-firm): Choose the market your audience already trades and the one your technology and payment options support. Forex and CFD firms are the most common and need a CFD price feed and simulator. Futures firms need futures data and platforms. Crypto firms appeal to a narrower audience but often have easier payment options.
- [What is the difference between a CFD prop firm and a futures prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-the-difference-between-a-cfd-prop-firm-and-a-futures-prop-firm): A CFD prop firm offers contracts for difference on forex, metals, indices and other markets through a simulated broker-style feed. A futures prop firm offers exchange-traded futures contracts and uses exchange market data. They differ in instruments, platforms, data costs, trading hours and typical rule structures.
- [Is starting a prop firm a good business in 2026?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/is-starting-a-prop-firm-a-good-business-in-2026): It can be, but it is competitive and has a high failure rate. Firms that last tend to have clear rules, reliable payouts, controlled costs and a distinct audience. Low technology costs make entry easier, which also means more competitors. Treat it as a risk business, not easy money.
- [Why do so many prop firms fail?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/why-do-so-many-prop-firms-fail): Most prop firm failures come from a few causes: payouts that exceed revenue, losing access to a trading platform or payment processor, weak marketing, high fixed costs before revenue, and loss of trust after delayed or denied payouts. Many are business model problems, not technology problems.
- [What are the most common mistakes new prop firm founders make?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-are-the-most-common-mistakes-new-prop-firm-founders-make): Common mistakes are launching too many account sizes, copying another firm's rules without modelling them, spending heavily on technology and ads before testing demand, having no payout reserve, writing vague rules that cause disputes, and relying on a single payment processor or platform.
- [How do I write a business plan for a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-do-i-write-a-business-plan-for-a-prop-firm): A prop firm business plan should cover your target traders, product and pricing, expected pass and payout rates, customer acquisition plan and cost, technology and payment providers, legal structure, team, monthly costs, a payout reserve policy and a 12-month financial model with best, expected and worst cases.
- [How do I choose a name for my prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-do-i-choose-a-name-for-my-prop-firm): Pick a short name that is easy to spell, available as a domain and on social platforms, not confusingly similar to existing firms, and free of words regulators treat as restricted, such as "bank" or "capital" in some countries. Check trademarks before you commit.
- [Do I need a registered company before I launch a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/do-i-need-a-registered-company-before-i-launch-a-prop-firm): Yes, in practice. Payment processors, banks, KYC providers and most technology vendors require a registered business, and a company separates your personal assets from the firm's obligations to traders. Where to register depends on your markets and should be decided with a lawyer or accountant.
- [Which type of business entity suits a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/which-type-of-business-entity-suits-a-prop-firm): Most prop firms use a limited liability company, such as a UK Ltd, a US LLC or a UAE free zone company, because it limits personal liability and is accepted by payment providers. The right entity depends on your residence, tax position and target markets, so confirm it with a local accountant or lawyer.
- [What is a funded trader program?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-a-funded-trader-program): A funded trader program lets traders qualify for a firm-provided account by passing an evaluation, then earn a share of the profits they make on it. The trader risks only the evaluation fee, while the firm sets the rules, the account size and the profit split.
- [What is an evaluation (challenge) account?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-an-evaluation-challenge-account): An evaluation or challenge account is a trading account a trader pays for to prove their skill under fixed rules. It usually has a starting balance, a profit target, a daily loss limit, a maximum loss limit and sometimes minimum trading days. Passing it leads to a funded account.
- [What is the difference between a one-step and a two-step challenge?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-the-difference-between-a-one-step-and-a-two-step-challenge): A one-step challenge has a single evaluation phase: hit the target once and you are funded. A two-step challenge has two phases, usually a higher target first and a lower one second. Two-step programs are slower for traders but give the firm more evidence before funding.
- [What is an instant funding prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-is-an-instant-funding-prop-firm): An instant funding prop firm sells a funded account directly, with no evaluation phase. The trader can request payouts from the start, subject to loss limits and payout rules. Prices are usually higher than challenges because the firm takes on payout risk immediately.
- [Can I start a prop firm as a side business?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/can-i-start-a-prop-firm-as-a-side-business): Yes, many founders start part-time, especially with self-serve technology and a small product range. The demanding parts are support and payouts, which need timely responses. Plan who answers traders while you are working elsewhere, and keep the first launch small.
- [What should I have ready before I talk to a technology provider?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/what-should-i-have-ready-before-i-talk-to-a-technology-provider): Before contacting platform providers, know your market and instruments, account sizes, rule set, expected number of accounts in the first year, budget, target launch date, and what you will build yourself, such as the website and checkout. This lets you compare quotes and features on equal terms.
- [How do I validate demand before launching a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-do-i-validate-demand-before-launching-a-prop-firm): Validate demand by building an audience first: a waitlist, a community or a trading channel, then test interest with pre-launch pricing, a free trial account or a limited first batch of challenges. Measure sign-ups and conversion before committing to large marketing or technology costs.
- [How do I choose a niche for a new prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/how-do-i-choose-a-niche-for-a-new-prop-firm): Choose a niche by combining an audience you can reach with a product angle larger firms ignore: a region and language, a trading style, a market such as indices or gold, a price point, or a rule style such as no time limits. A clear niche makes marketing cheaper and comparisons easier.
- [Can a trading educator or signal community launch its own prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/can-a-trading-educator-or-signal-community-launch-its-own-prop-firm): Yes, and an existing audience is a strong advantage because customer acquisition is the largest cost for most prop firms. The educator still needs a company, payment processing, clear rules and a trading platform, and must keep the education and the evaluation clearly separate to avoid conflicts of interest.
- [Can an existing forex broker add a prop firm offering?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/can-an-existing-forex-broker-add-a-prop-firm-offering): Yes, many brokers have added evaluations as a separate product, often through a separate company. A broker brings liquidity, payments and compliance experience, but must check that its licence and regulator allow the activity and must keep prop marketing separate from regulated brokerage marketing.
- [Can an introducing broker or affiliate start a prop firm?](https://www.propexecutor.com/resources/faq/starting-a-prop-firm/can-an-introducing-broker-or-affiliate-start-a-prop-firm): Yes. Introducing brokers and affiliates already know how to acquire traders, which is the hardest part of the business. They need to add a company, payment processing, rules, payout operations and a platform, and should check that existing partner agreements do not restrict launching a competing product.

### [Costs and budget](https://www.propexecutor.com/resources/faq/costs-and-budget)

What it costs to launch and run a prop firm: technology, payments, legal, marketing, support and the reserve you need for payouts.

- [How much does it cost to start a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-it-cost-to-start-a-prop-firm): The total depends mostly on four lines: trading technology, payments and legal setup, marketing, and a reserve for trader payouts. Technology can range from a one-time payment of a few hundred dollars to thousands per month. Marketing and the payout reserve are usually the largest amounts.
- [What is the minimum budget to launch a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-is-the-minimum-budget-to-launch-a-prop-firm): The technology can cost very little: PropExecutor starts at $129, paid once. The true minimum also needs company registration, legal documents, a website, a payment provider and a payout reserve. The reserve is the line you should not skip, because traders who pass must be paid on time.
- [What are the one-time costs of launching a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-are-the-one-time-costs-of-launching-a-prop-firm): One-time costs usually include company formation, legal drafting of terms and policies, website design and checkout setup, logo and branding, payment provider onboarding fees and any platform setup fee. Some platforms charge a large setup fee; others, such as PropExecutor, charge a single plan price and nothing else.
- [What are the monthly running costs of a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-are-the-monthly-running-costs-of-a-prop-firm): Monthly costs usually include platform fees, payment processing, KYC checks, support staff, marketing and affiliate commission, software subscriptions such as a help desk and email tools, accounting, and trader payouts. Payouts and marketing normally dominate; platform fees can be zero with a one-time-payment platform.
- [How much does prop firm software cost?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-prop-firm-software-cost): Prop firm software is priced in four main ways: a setup fee plus monthly licence, a revenue share, a per-account fee, or a one-time payment. Published prices run from a few hundred dollars once to several thousand dollars a month. Many vendors do not publish prices at all.
- [How much does a white-label trading platform cost per month?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-a-white-label-trading-platform-cost-per-month): Published white-label prices for prop firms vary widely. Match-Trader lists $2,500 a month for its basic white label and $4,000 for a turnkey package with a prop CRM. Many vendors, including cTrader and MetaTrader providers, do not publish prices. Some platforms, such as PropExecutor, have no monthly fee.
- [What hidden costs should a new prop firm budget for?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-hidden-costs-should-a-new-prop-firm-budget-for): Commonly overlooked costs are payment processor reserves and chargebacks, KYC checks before payouts, affiliate commissions, refunds, platform overage fees above account limits, revenue shares, currency conversion, accounting and legal updates, and the extra support needed after a promotion or a market event.
- [How much does it cost to build a prop firm website?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-it-cost-to-build-a-prop-firm-website): A prop firm website can cost little with a template and a hosted checkout, or much more for a custom design with account dashboards and integrations. The main cost drivers are custom design, checkout and payment integration, automatic account creation after purchase, and multilingual content.
- [How much should a prop firm budget for marketing in its first three months?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-should-a-prop-firm-budget-for-marketing-in-its-first-three-months): There is no standard figure; it depends on your channels and audience. A useful approach is to set a test budget per channel, measure cost per sale, and only scale channels that pay back within your payout assumptions. Many firms rely on affiliates first because they pay only on sales.
- [How much does payment processing cost a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-payment-processing-cost-a-prop-firm): Prop firms are usually classed as high risk, so card processing tends to cost more than for ordinary online stores, with higher percentage fees, possible rolling reserves and chargeback fees. Crypto processors usually charge lower percentages. Exact pricing depends on the provider, your volume and your history.
- [How much capital should a prop firm keep in reserve for payouts?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-capital-should-a-prop-firm-keep-in-reserve-for-payouts): There is no fixed rule, but a reserve should cover your expected payouts for at least a few months even if sales drop, plus a buffer for a cluster of strong traders. Model it from your funded accounts, average payout and payout frequency rather than from a percentage of revenue alone.
- [How much do company formation and legal work cost for a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-do-company-formation-and-legal-work-cost-for-a-prop-firm): Costs depend on the country and the lawyer. Company registration in many jurisdictions is inexpensive, while bespoke legal work, such as terms reviewed for your target markets, advice on regulation and marketing claims, costs more. Budget for an initial review and for updates as rules change.
- [How much does KYC verification cost per trader?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-kyc-verification-cost-per-trader): KYC providers usually charge per verification, with the price depending on the checks included (document, liveness, address, sanctions screening) and your volume. Many prop firms verify only at the first payout rather than at purchase, which keeps the number of paid checks close to the number of funded traders.
- [How much does customer support cost for a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-customer-support-cost-for-a-prop-firm): Support cost depends on ticket volume, hours covered and whether you hire, outsource or use part-time staff. Volume is driven by unclear rules, breach disputes, payout questions and login issues. Clear rules and a dashboard traders can read themselves are the cheapest ways to reduce it.
- [How much does a prop firm CRM cost?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-a-prop-firm-crm-cost): Prop-specific CRMs are often sold inside turnkey packages; for example, Match-Trader lists a turnkey white label with a prop CRM at $4,000 a month. Firms can also use a general CRM or helpdesk with integrations. The right choice depends on how much of checkout, KYC and payouts you want in one system.
- [How much does market data cost for a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-market-data-cost-for-a-prop-firm): Market data cost depends on the market. Futures data from exchanges carries licensing fees for real-time display. Forex and CFD prices usually come bundled with the trading platform or a broker feed. With an all-in-one platform you often pay nothing separately for data.
- [What is the cheapest way to start a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-is-the-cheapest-way-to-start-a-prop-firm): The cheapest route combines a one-time-payment platform, a template website with a hosted checkout, a payment provider without large setup fees, a small product range and affiliate-led marketing. PropExecutor's Starter plan costs $129 once and includes 50 trading accounts, the terminal, rule engine and dashboard.
- [Can I start a prop firm with $1,000?](https://www.propexecutor.com/resources/faq/costs-and-budget/can-i-start-a-prop-firm-with-1-000): Technically yes, if you do most of the work yourself and use low-cost tools, but $1,000 leaves little for legal review, marketing or a payout reserve. Treat it as a test launch: a small audience, a single product and a platform without monthly fees, with clear limits on how many funded accounts you can afford.
- [Can I start a prop firm with $5,000?](https://www.propexecutor.com/resources/faq/costs-and-budget/can-i-start-a-prop-firm-with-5-000): Yes, $5,000 allows a lean but credible launch: company formation, reviewed legal documents, a template website with checkout, a one-time platform plan, some marketing and an initial payout reserve. Keep fixed costs low and most of the money available for marketing tests and payouts.
- [Can I start a prop firm with $10,000?](https://www.propexecutor.com/resources/faq/costs-and-budget/can-i-start-a-prop-firm-with-10-000): Yes. $10,000 supports a launch with professional legal review, a more polished website, a meaningful marketing test across several channels and a stronger payout reserve. It also allows a higher platform tier with full branding and more rules, while keeping room for the first months of operation.
- [What can I launch with under $500 of software spend?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-can-i-launch-with-under-500-of-software-spend): Under $500 of software can cover a trading platform, rule engine and trader dashboard (PropExecutor Starter is $129 once, Basic $499 once), a template website, a hosted checkout, a help desk on a free or entry plan and email tools. Payments, legal work and a payout reserve sit outside this figure.
- [Is a one-time-payment platform cheaper than a monthly subscription over a year?](https://www.propexecutor.com/resources/faq/costs-and-budget/is-a-one-time-payment-platform-cheaper-than-a-monthly-subscription-over-a-year): Usually, yes. A one-time plan is paid once, while a subscription repeats every month whether you sell or not. Compare total cost over 12 and 24 months at your expected account volume, including setup fees, overage charges and any revenue share, and check what each price includes.
- [How do per-account fees compare with flat monthly platform fees?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-do-per-account-fees-compare-with-flat-monthly-platform-fees): Per-account pricing makes platform cost proportional to sales: each account you sell costs a known amount. A flat monthly fee is cheaper per account at very high volume but expensive when volume is low or uneven. For a new firm, per-account or one-time pricing is usually lower risk.
- [Which costs can I delay until after my first sales?](https://www.propexecutor.com/resources/faq/costs-and-budget/which-costs-can-i-delay-until-after-my-first-sales): You can usually delay a custom website, a trader CRM, automated account delivery, a mobile app, paid advertising at scale, full-time staff and advanced analytics. Do not delay legal documents, a working payment method, rule enforcement or a payout reserve, because those protect traders and the firm from day one.
- [What should I never cut corners on when launching on a budget?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-should-i-never-cut-corners-on-when-launching-on-a-budget): Never cut corners on paying traders on time, clear and precise rules, accurate rule enforcement, legal documents, data security and honest marketing. These protect your reputation, and in a business built on trust a single public dispute or late payout can cost more than everything you saved.
- [How do I calculate the break-even point for a prop firm?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-do-i-calculate-the-break-even-point-for-a-prop-firm): Break-even is the number of challenge sales per month at which revenue covers fixed costs, variable costs and expected payouts. Calculate contribution per sale (price minus payment fees, platform cost per account, affiliate commission and expected payouts per sale), then divide monthly fixed costs by it.
- [How many challenge sales do I need to cover my monthly costs?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-many-challenge-sales-do-i-need-to-cover-my-monthly-costs): Divide your monthly fixed costs by the contribution each sale makes after payment fees, commissions, platform cost and expected payouts. A firm with low fixed costs and a healthy contribution per sale needs far fewer sales. Lowering fixed costs is often easier than raising sales.
- [What does it cost to run a prop firm with 100 traders?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-does-it-cost-to-run-a-prop-firm-with-100-traders): At 100 traders, costs are mainly payment fees, platform cost per account, support time, marketing and any payouts. On PropExecutor, 100 accounts fit within the Basic plan's 250 included accounts, or Starter's 50 accounts plus a 100-account pack, with no monthly charge.
- [What does it cost to run a prop firm with 1,000 traders?](https://www.propexecutor.com/resources/faq/costs-and-budget/what-does-it-cost-to-run-a-prop-firm-with-1-000-traders): At 1,000 traders, payouts, marketing and staff dominate the budget, while platform cost depends heavily on the pricing model. On PropExecutor, the Growth plan includes 1,250 accounts for $1,799 once. A monthly-licensed platform at this volume often costs thousands per month.
- [How much does it cost to switch platform providers later?](https://www.propexecutor.com/resources/faq/costs-and-budget/how-much-does-it-cost-to-switch-platform-providers-later): Switching platforms costs development time, trader communication, possible downtime and any exit terms in your contract. The hardest part is moving active traders mid-challenge. Choosing a platform with an API and clear data access, and avoiding long lock-in contracts, keeps future switching costs low.

### [Launching on a budget](https://www.propexecutor.com/resources/faq/launching-on-a-budget)

How to launch a prop firm with little capital: the leanest stack, what to do yourself, what to delay, and how to grow without overspending.

- [How do I launch a prop firm on a tight budget?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/how-do-i-launch-a-prop-firm-on-a-tight-budget): Keep fixed costs near zero: a one-time-payment platform, a template website with a hosted checkout, one or two payment methods, template legal documents reviewed if possible, and community or affiliate marketing paid per sale. Launch one product, protect a payout reserve, and grow from revenue.
- [What is the leanest technology stack for a new prop firm?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/what-is-the-leanest-technology-stack-for-a-new-prop-firm): The leanest stack is a trading platform that includes the terminal, rule engine and trader dashboard, a template website, a hosted checkout, a free or entry-level help desk, email for sending credentials, and a pay-per-use KYC provider. PropExecutor covers the whole trading side from $129 once.
- [Which jobs can a founder do alone instead of hiring early?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/which-jobs-can-a-founder-do-alone-instead-of-hiring-early): A founder can usually handle product and rules, website setup with templates, account provisioning, first-line support, social media and community, partner outreach and basic bookkeeping. Get professional help early for legal documents and, as soon as volume allows, for support coverage and payout reviews.
- [Can I launch with crypto payments only to save on processing fees?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/can-i-launch-with-crypto-payments-only-to-save-on-processing-fees): Yes, many small firms start with crypto-only checkout because fees are usually lower, there are no card chargebacks, and onboarding with a crypto gateway can be fast. The trade-off is a smaller audience and lower trust among newer traders. Plan to add card payments once revenue allows.
- [Should a new prop firm start with a single account size?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/should-a-new-prop-firm-start-with-a-single-account-size): Usually yes, or with two at most. A single account size makes pricing, marketing, support and payout modelling simpler, and lets you learn your pass and payout rates quickly. Add sizes once you have data. With one rule set shared across sizes, adding them later is quick.
- [How small can a prop firm's first launch be?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/how-small-can-a-prop-firms-first-launch-be): A first launch can be very small: a few dozen challenges sold to an existing audience, one account size, one rule set and a modest payout reserve. Small launches are a good way to test rules, pricing and operations before spending on marketing. Starter's 50 accounts cover a first launch of this size.
- [Can I use free tools to build my prop firm's website?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/can-i-use-free-tools-to-build-my-prop-firms-website): Yes. Many website builders offer free or low-cost plans that are enough for a launch: a landing page, pricing, rules, FAQ and legal pages, with a link to your payment provider's hosted checkout. Upgrade for a custom domain, better performance and integrations once sales start.
- [How do I avoid long-term contracts as a small firm?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/how-do-i-avoid-long-term-contracts-as-a-small-firm): Prefer suppliers with no minimum term: one-time purchases, monthly plans you can cancel, and pay-as-you-go services. Avoid multi-year platform contracts and setup fees that only make sense over a long term. Read notice periods and exit terms before signing anything.
- [When should a budget prop firm upgrade its software?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/when-should-a-budget-prop-firm-upgrade-its-software): Upgrade when a limit costs you more than the upgrade: when you need a rule your plan does not include, when full branding would lift sales, when per-account savings on a higher plan exceed the price difference, or when manual work is slowing operations. Upgrade from revenue, not ahead of it.
- [How do I grow from 50 to 500 accounts without overspending?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/how-do-i-grow-from-50-to-500-accounts-without-overspending): Grow in steps funded by revenue: buy top-up packs as accounts run out, upgrade when a higher plan's rate saves money or unlocks rules you need, automate account delivery when manual work becomes the bottleneck, and add staff for support and payout review before quality slips.
- [What is a sensible first-month goal for a budget prop firm?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/what-is-a-sensible-first-month-goal-for-a-budget-prop-firm): A sensible first-month goal is learning, not profit: sell a first batch of challenges, deliver every account smoothly, answer every support question quickly, and collect data on pass rates and questions. Financially, aim to cover first-month costs and start building the payout reserve.
- [How do I fund trader payouts when starting small?](https://www.propexecutor.com/resources/faq/launching-on-a-budget/how-do-i-fund-trader-payouts-when-starting-small): Set aside part of every challenge sale into a separate payout reserve from day one, size it for the funded accounts you could realistically have, and cap the number or size of funded accounts until the reserve grows. Never rely on next month's sales to pay this month's payouts.

### [Business model and economics](https://www.propexecutor.com/resources/faq/business-model)

How prop firms make money, how pass rates, profit splits and payouts interact, and how to price challenges that stay sustainable.

- [How do prop firms make money?](https://www.propexecutor.com/resources/faq/business-model/how-do-prop-firms-make-money): Most challenge-based prop firms make money from evaluation fees, resets and add-ons. Their main cost is paying traders who pass and then trade profitably on funded accounts. A firm is profitable when fee revenue, after marketing and operating costs, exceeds the payouts it makes.
- [Does a prop firm's revenue come from challenge fees or from trading profits?](https://www.propexecutor.com/resources/faq/business-model/does-a-prop-firms-revenue-come-from-challenge-fees-or-from-trading-profits): For most online prop firms, revenue comes mainly from challenge fees, not from trading. Evaluation and often funded accounts are simulated, so trader profits are paid out of the firm's revenue. A minority of firms also trade the strategies of their best traders in real markets.
- [What is a profit split, and how is it usually structured?](https://www.propexecutor.com/resources/faq/business-model/what-is-a-profit-split-and-how-is-it-usually-structured): A profit split is the share of a funded account's profits that the trader receives when they request a payout. Many firms advertise splits between 70% and 90% for the trader, sometimes rising with consistent performance. The firm keeps the remainder, although with simulated accounts that remainder is not trading income.
- [What percentage of traders pass a prop firm challenge?](https://www.propexecutor.com/resources/faq/business-model/what-percentage-of-traders-pass-a-prop-firm-challenge): Pass rates vary by firm and by rules, and most firms do not publish audited figures. Industry commentary consistently describes pass rates as low, with only a minority of buyers passing and fewer still receiving a payout. Your own rate depends on profit targets, loss limits, time limits and your audience.
- [How do prop firms afford to pay funded traders?](https://www.propexecutor.com/resources/faq/business-model/how-do-prop-firms-afford-to-pay-funded-traders): Payouts are funded from challenge fees, resets and add-ons. Because most buyers do not pass, and not every funded trader becomes profitable, fee revenue normally exceeds payouts. Firms that stay solvent price challenges with cautious assumptions and hold a reserve for months when more traders profit.
- [What is a payout ratio, and why does it matter?](https://www.propexecutor.com/resources/faq/business-model/what-is-a-payout-ratio-and-why-does-it-matter): A payout ratio usually means total payouts to traders divided by revenue over a period. It shows how much of each dollar of sales goes back to traders. A rising payout ratio is an early warning that pricing, rules or trader behaviour need attention before the business becomes unprofitable.
- [What is a healthy pass rate for a prop firm challenge?](https://www.propexecutor.com/resources/faq/business-model/what-is-a-healthy-pass-rate-for-a-prop-firm-challenge): A healthy pass rate is one where the firm stays profitable while skilled traders can genuinely pass. There is no universal number. Set rules a disciplined trader can meet, then check that expected payouts from that pass rate leave a margin after all costs. Rules designed so almost nobody passes damage reputation.
- [How should I price my challenges?](https://www.propexecutor.com/resources/faq/business-model/how-should-i-price-my-challenges): Price challenges from the costs up: expected payouts per sale, payment fees, affiliate commission, platform cost and overheads, plus a margin. Then check the price against competing firms for the same account size and rules. A price that only works if nearly everyone fails is too low.
- [How do challenge fees, resets and add-ons affect revenue?](https://www.propexecutor.com/resources/faq/business-model/how-do-challenge-fees-resets-and-add-ons-affect-revenue): Challenge fees are the main revenue. Resets let a trader who breached try again at a discount, which adds revenue from people already engaged. Add-ons such as higher profit splits or no time limits increase revenue per sale but usually increase payout cost too, so price them on expected cost.
- [What is a refundable challenge fee, and should I offer one?](https://www.propexecutor.com/resources/faq/business-model/what-is-a-refundable-challenge-fee-and-should-i-offer-one): A refundable challenge fee is returned to the trader, usually with their first payout from a funded account. It is a marketing promise that reduces the trader's risk if they succeed. Offer it only if your model can afford the refund on top of the profit split for every trader who reaches a payout.
- [Should a prop firm offer a free retry?](https://www.propexecutor.com/resources/faq/business-model/should-a-prop-firm-offer-a-free-retry): A free retry gives a trader a new attempt, often if the account ended in profit but did not hit the target within a time limit. It is a goodwill feature that improves reviews. It costs you a new account and another chance to pass, so restrict it to clearly defined cases.
- [How do account sizes affect prop firm economics?](https://www.propexecutor.com/resources/faq/business-model/how-do-account-sizes-affect-prop-firm-economics): Larger account sizes command higher fees but also create larger payouts, because the same percentage profit means more money. Smaller sizes attract newer traders and more volume. Price each size on its own payout risk, and keep platform cost per account flat if you can.
- [What is the lifetime value of a prop firm customer?](https://www.propexecutor.com/resources/faq/business-model/what-is-the-lifetime-value-of-a-prop-firm-customer): Lifetime value is the total revenue a trader brings over their relationship with the firm, minus the payouts and costs they cause. Many traders buy several challenges, resets and add-ons over time, so lifetime value is usually higher than a single fee. Payouts to successful traders reduce it.
- [What is a reasonable customer acquisition cost for a prop firm?](https://www.propexecutor.com/resources/faq/business-model/what-is-a-reasonable-customer-acquisition-cost-for-a-prop-firm): A reasonable customer acquisition cost is one below the contribution a customer makes over their lifetime after payouts and variable costs. There is no industry-wide benchmark that holds for every firm. Calculate your own limit per channel and stop channels whose cost per sale exceeds it.
- [How do discount codes affect prop firm margins?](https://www.propexecutor.com/resources/faq/business-model/how-do-discount-codes-affect-prop-firm-margins): Discounts cut the fee while the payout liability per account stays the same, so a 30% discount can remove a large share of your margin. Discounts also attract price-sensitive buyers and can create a pattern where customers wait for sales. Use them deliberately and model their effect on contribution per sale.
- [Should a prop firm offer a scaling plan?](https://www.propexecutor.com/resources/faq/business-model/should-a-prop-firm-offer-a-scaling-plan): A scaling plan increases a funded trader's account size after consistent profitable payouts. It rewards and retains your best traders, but it increases your largest payout liabilities. Offer one with clear criteria, such as a number of profitable payouts and a maximum drawdown, and cap the maximum size.
- [How does a scaling plan affect payout liability?](https://www.propexecutor.com/resources/faq/business-model/how-does-a-scaling-plan-affect-payout-liability): Scaling increases the balance a trader's percentage returns are applied to, so payouts rise in proportion. A trader making 4% a month on $100,000 earns more in payouts after scaling to $200,000. Liability concentrates in your most successful traders, which your reserve must reflect.
- [What add-ons do prop firms sell, and which ones work?](https://www.propexecutor.com/resources/faq/business-model/what-add-ons-do-prop-firms-sell-and-which-ones-work): Common add-ons include a higher profit split, faster or more frequent payouts, removal of the time limit, a free retry, higher leverage, weekend holding and news trading permissions. They raise average order value. The best ones are those whose extra payout cost you can estimate and price.
- [Should I sell challenges as monthly subscriptions or one-time fees?](https://www.propexecutor.com/resources/faq/business-model/should-i-sell-challenges-as-monthly-subscriptions-or-one-time-fees): Most CFD prop firms sell one-time fees per challenge. Some futures firms use monthly subscriptions while the evaluation is active. One-time fees are simpler and easier for traders to understand; subscriptions produce recurring revenue but can feel like paying for time rather than for a chance to qualify.
- [What is the difference between simulated capital and real capital in a prop firm?](https://www.propexecutor.com/resources/faq/business-model/what-is-the-difference-between-simulated-capital-and-real-capital-in-a-prop-firm): Simulated capital is a virtual balance on an account whose orders are filled by a simulator against live prices; no money is placed in the market. Real capital is money held at a broker or exchange with orders executed in the market. Most challenge-based prop firms use simulated capital for evaluations and often for funded accounts.
- [Do prop firms give traders real money to trade?](https://www.propexecutor.com/resources/faq/business-model/do-prop-firms-give-traders-real-money-to-trade): Usually not directly. Most online prop firms give traders a simulated account and pay real money as a share of the simulated profits. Some firms copy selected traders' positions to a real brokerage account, but the trader still trades the firm's simulated account. Terms should say this clearly.
- [What happens to a trader's challenge fee when they fail?](https://www.propexecutor.com/resources/faq/business-model/what-happens-to-a-traders-challenge-fee-when-they-fail): In most prop firms the fee is not refunded when a trader breaches a rule. The fee paid for the evaluation itself. Some firms offer a discounted reset, and a few refund the fee with the first payout, but only to traders who pass. Your terms should state the policy plainly.
- [How do I model prop firm revenue for the first year?](https://www.propexecutor.com/resources/faq/business-model/how-do-i-model-prop-firm-revenue-for-the-first-year): Build a monthly model with sales by account size, average price after discounts, resets and add-ons, then subtract payment fees, commissions, platform cost, expected payouts and fixed costs. Use a cautious pass rate and payout assumption, and run best, expected and worst cases.
- [How do I forecast trader payouts?](https://www.propexecutor.com/resources/faq/business-model/how-do-i-forecast-trader-payouts): Forecast payouts from your funded accounts: number of funded accounts, share requesting a payout each cycle, average profit at payout and the profit split. Start with cautious assumptions, then replace them with your own data as soon as you have a few payout cycles.
- [What margins do prop firms typically operate on?](https://www.propexecutor.com/resources/faq/business-model/what-margins-do-prop-firms-typically-operate-on): There are no reliable published industry averages, because most prop firms are private. Margins depend on pricing, pass rates, payout terms, marketing efficiency and fixed costs, and they can swing sharply from month to month. Model your own and track the payout ratio as your main early warning.
- [How do market conditions affect prop firm revenue?](https://www.propexecutor.com/resources/faq/business-model/how-do-market-conditions-affect-prop-firm-revenue): Volatile markets tend to bring more interest in trading and more challenge purchases, but they also create larger moves that can produce bigger wins and faster breaches. Quiet markets may reduce sales and slow how quickly traders hit targets. Both affect payouts and support volume.
- [Which metrics should a prop firm founder review every week?](https://www.propexecutor.com/resources/faq/business-model/which-metrics-should-a-prop-firm-founder-review-every-week): Review weekly sales by product and channel, cost per sale, pass rate, breach reasons, funded accounts and their open profit, payouts requested and paid, payout ratio, refunds and chargebacks, and support volume and response time. Together they show whether growth is healthy or hiding risk.

### [Launching in a specific country](https://www.propexecutor.com/resources/faq/launching-by-country)

Country-specific questions for India, the United States, the United Kingdom, Canada, the UAE and Pakistan, and how to choose where to register.

- [Can I start a prop firm in India?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-start-a-prop-firm-in-india): Founders in India do run prop firms, usually serving international traders, but the setup needs care. Indian residents dealing in forex on unauthorised overseas platforms risk action under FEMA, and the RBI publishes an Alert List of such platforms. Structure, target markets and payments should be planned with an Indian lawyer and chartered accountant.
- [What legal points should an India-based prop firm founder consider?](https://www.propexecutor.com/resources/faq/launching-by-country/what-legal-points-should-an-india-based-prop-firm-founder-consider): Consider FEMA and RBI rules on forex trading by residents, which customers you will serve, where the operating company sits, how foreign payments reach India, GST on services, income tax, and marketing rules. The RBI's Alert List and its warnings about unauthorised forex platforms are a key reference.
- [Can Indian residents pay for a forex prop firm challenge?](https://www.propexecutor.com/resources/faq/launching-by-country/can-indian-residents-pay-for-a-forex-prop-firm-challenge): This is legally uncertain and risky. Indian residents are permitted to trade forex only through authorised persons and within FEMA rules, and the RBI has warned that dealing on unauthorised overseas platforms can lead to legal action. Many firms restrict Indian residents from forex evaluations or take specific legal advice first.
- [How can an India-based prop firm accept international payments?](https://www.propexecutor.com/resources/faq/launching-by-country/how-can-an-india-based-prop-firm-accept-international-payments): Options include an overseas entity with its own payment processor, a high-risk card processor that accepts prop firms, crypto payment gateways, and merchant-of-record services where they accept the business. Money flowing into India from abroad is export income with banking and reporting requirements, so plan the flow with a chartered accountant.
- [What does the RBI Alert List mean for forex trading platforms in India?](https://www.propexecutor.com/resources/faq/launching-by-country/what-does-the-rbi-alert-list-mean-for-forex-trading-platforms-in-india): The RBI Alert List names entities that are not authorised to deal in forex under FEMA or to operate electronic trading platforms for forex. The RBI warns that residents dealing with such platforms may face action under FEMA. The list is not exhaustive: an entity not on it is not necessarily authorised.
- [How is income from a prop firm taxed in India?](https://www.propexecutor.com/resources/faq/launching-by-country/how-is-income-from-a-prop-firm-taxed-in-india): For an Indian company or resident founder, prop firm profits are normally taxed as business income under the Income-tax Act, and services may carry GST depending on the customer and place of supply. Payouts to traders are usually treated as business expenses. Use a chartered accountant, as treatment depends on structure.
- [Can I start a prop firm in the United States?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-start-a-prop-firm-in-the-united-states): Yes, many prop firms are US-based, particularly futures evaluation firms. They operate as evaluation businesses, buy licensed exchange data and keep marketing conservative. CFD products are not offered to US retail clients by regulated US brokers, which shapes product choices. US counsel is strongly recommended.
- [Should a US prop firm offer futures or forex?](https://www.propexecutor.com/resources/faq/launching-by-country/should-a-us-prop-firm-offer-futures-or-forex): Most US-based firms that serve US traders focus on futures, because exchange-traded futures are the familiar product for US retail traders and CFDs are not offered to US retail clients by regulated US brokers. Firms serving international traders from the US may offer forex and CFDs to non-US customers.
- [Why did some prop firms stop accepting US traders?](https://www.propexecutor.com/resources/faq/launching-by-country/why-did-some-prop-firms-stop-accepting-us-traders): In early 2024, MetaQuotes, the maker of MetaTrader 4 and 5, acted against prop firms using its platforms with US clients, reportedly over regulatory concerns. Brokers providing MetaTrader access to prop firms were pushed to withdraw it, and several firms paused trading or stopped accepting US traders.
- [Which US regulators are relevant to a prop firm?](https://www.propexecutor.com/resources/faq/launching-by-country/which-us-regulators-are-relevant-to-a-prop-firm): The CFTC and NFA oversee futures and commodity derivatives, the SEC oversees securities, the FTC and state attorneys general enforce consumer protection and advertising rules, and FinCEN and OFAC set money-laundering and sanctions obligations. Futures exchanges such as the CME Group also license market data.
- [Can I start a prop firm in the United Kingdom?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-start-a-prop-firm-in-the-united-kingdom): Yes. UK private limited companies are quick to form and widely accepted by payment providers, and many prop firms operate from the UK. You must still consider FCA rules on financial promotions, consumer law, advertising standards, data protection under UK GDPR, and tax. Take UK legal advice on your exact model.
- [What does the FCA expect from prop firm marketing in the UK?](https://www.propexecutor.com/resources/faq/launching-by-country/what-does-the-fca-expect-from-prop-firm-marketing-in-the-uk): The FCA expects promotions of regulated financial products to be clear, fair and not misleading and to be approved by an authorised firm. Whether a prop evaluation is a financial promotion depends on its features. In any case, avoid earnings claims, explain simulated accounts, and control what affiliates and influencers say.
- [Does a UK prop firm need FCA authorisation?](https://www.propexecutor.com/resources/faq/launching-by-country/does-a-uk-prop-firm-need-fca-authorisation): Not usually, if it only sells evaluations on simulated accounts and does not carry on a regulated activity such as dealing in investments, arranging deals or managing client money. If any part of the business involves real trading for clients or holding client funds, authorisation may be required.
- [Can I start a prop firm in Canada?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-start-a-prop-firm-in-canada): Yes. Canada has no specific prop firm licence, and evaluation businesses operate there, but securities regulation is provincial, and regulators coordinate through the Canadian Securities Administrators. CFD offerings to Canadian residents are regulated, so take Canadian legal advice on your product and marketing.
- [Which Canadian regulators are relevant to a prop firm?](https://www.propexecutor.com/resources/faq/launching-by-country/which-canadian-regulators-are-relevant-to-a-prop-firm): Securities and derivatives are regulated by provincial authorities, such as the Ontario Securities Commission, the British Columbia Securities Commission and Quebec's AMF, coordinated by the Canadian Securities Administrators. CIRO oversees investment dealers. FINTRAC handles anti-money-laundering, and the Competition Bureau polices misleading advertising.
- [Can I start a prop firm in the UAE?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-start-a-prop-firm-in-the-uae): Yes, the UAE is a popular base for prop firms, typically through a free zone or mainland company whose licensed activities match the business, such as technology or educational services. Financial activities are regulated by the SCA, the DFSA in DIFC and the FSRA in ADGM. Corporate tax applies under the UAE regime introduced in 2023.
- [Should I set up my prop firm in a UAE free zone?](https://www.propexecutor.com/resources/faq/launching-by-country/should-i-set-up-my-prop-firm-in-a-uae-free-zone): Many founders do, because free zones offer full foreign ownership, straightforward setup and potential tax advantages for qualifying income. The choice of free zone and licence activity matters: it must describe your business accurately, and some banks and processors look closely at prop firms.
- [Which licences are relevant for a prop firm in Dubai?](https://www.propexecutor.com/resources/faq/launching-by-country/which-licences-are-relevant-for-a-prop-firm-in-dubai): Most prop firms in Dubai hold a commercial or professional licence for activities such as IT services, software or education rather than a financial services licence, provided they only sell evaluations on simulated accounts. Activities involving real trading or client money need authorisation from the SCA, DFSA or FSRA.
- [Can I start a prop firm in Pakistan?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-start-a-prop-firm-in-pakistan): A Pakistan-based founder can run a technology business serving international customers, but the regulatory picture is strict: the State Bank of Pakistan has prohibited residents from buying products of offshore forex trading platforms, and the SECP has warned about illegal trading platforms. Structure and customer choices need Pakistani legal advice.
- [How can a Pakistan-based prop firm accept international payments?](https://www.propexecutor.com/resources/faq/launching-by-country/how-can-a-pakistan-based-prop-firm-accept-international-payments): Founders typically use an overseas company with its own payment processor, crypto payment gateways, or merchant-of-record services that accept the business. Bringing income into Pakistan follows SBP rules on foreign receipts, and export-of-services documentation applies. Plan the money flow with an accountant before launch.
- [What should a Pakistan-based founder know about SECP and SBP rules?](https://www.propexecutor.com/resources/faq/launching-by-country/what-should-a-pakistan-based-founder-know-about-secp-and-sbp-rules): The State Bank of Pakistan has stated that residents buying products from offshore forex trading platforms, and remitting money to them, violates the Foreign Exchange Regulation Act 1947, and it instructed banks to block such payments. The SECP has warned the public about illegal offshore trading platforms. Both shape what a local firm can offer.
- [Which country is best to register a prop firm in?](https://www.propexecutor.com/resources/faq/launching-by-country/which-country-is-best-to-register-a-prop-firm-in): There is no single best country. Founders commonly choose the UK, the US, the UAE or established offshore centres based on where they live, where customers are, banking and payment access, tax and reputation. The best choice is the one where you can bank, get a payment processor and operate transparently.
- [Can I run a prop firm from one country and serve traders worldwide?](https://www.propexecutor.com/resources/faq/launching-by-country/can-i-run-a-prop-firm-from-one-country-and-serve-traders-worldwide): Yes, most prop firms do. You still need to respect the laws of the countries you sell into, especially sanctions, consumer protection and any local bans on trading products, and to restrict countries where serving residents is risky. Your terms, checkout and KYC should enforce those restrictions.
- [Do I need a bank account in the country where my prop firm is registered?](https://www.propexecutor.com/resources/faq/launching-by-country/do-i-need-a-bank-account-in-the-country-where-my-prop-firm-is-registered): Usually it is easiest, and some jurisdictions expect it, but many founders use international business banking or electronic money institutions. What matters is that your payment processor can settle to an account in the company's name and that you can pay traders and suppliers from it.
- [Can a non-resident register a prop firm company in the UAE or the UK?](https://www.propexecutor.com/resources/faq/launching-by-country/can-a-non-resident-register-a-prop-firm-company-in-the-uae-or-the-uk): Yes. Non-residents can form a UK private limited company and a UAE free zone company. The UK requires a registered office address in the UK and identity verification of directors. UAE free zones allow foreign ownership and offer visa options. Banking is often the harder step for non-residents.
- [Should I register my prop firm offshore, for example in Saint Lucia or Seychelles?](https://www.propexecutor.com/resources/faq/launching-by-country/should-i-register-my-prop-firm-offshore-for-example-in-saint-lucia-or-seychelles): Offshore jurisdictions such as Saint Lucia or Seychelles offer low cost and fast setup, and some prop firms use them. The trade-offs are harder banking and payment processing, lower trader trust, and the reality that customer-country laws still apply. Some offshore regulators also license financial activities, so check what yours covers.

## Rules, risk and operations

### [Challenge design and trading rules](https://www.propexecutor.com/resources/faq/challenge-design)

Designing evaluations: loss limits, profit targets, trading days, consistency, behaviour rules, and changing rules fairly.

- [How do I design a prop firm challenge?](https://www.propexecutor.com/resources/faq/challenge-design/how-do-i-design-a-prop-firm-challenge): Start with the trader you want to attract, then set account sizes, a profit target, a daily loss limit, a maximum loss limit and minimum trading days. Add behaviour rules only where they protect the firm, model the payout cost, and write every rule so a trader can tell exactly when it applies.
- [Which rules should a prop firm challenge have?](https://www.propexecutor.com/resources/faq/challenge-design/which-rules-should-a-prop-firm-challenge-have): Most challenges combine a profit target, a daily loss limit, a maximum loss limit and minimum trading days. Common additions are a trailing drawdown, a consistency rule, lot size or position limits, weekend holding restrictions and news trading restrictions. Fewer, clearer rules usually produce fewer disputes.
- [What is a daily loss limit?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-daily-loss-limit): A daily loss limit is the maximum a trader may lose within one trading day, usually a percentage of the starting balance or of the day's opening balance or equity. Crossing it ends the evaluation. It stops a trader from losing a large share of the account in a single bad session.
- [How should a daily loss limit be calculated?](https://www.propexecutor.com/resources/faq/challenge-design/how-should-a-daily-loss-limit-be-calculated): Measure it on equity, so open losses count, against a daily reference set at a fixed reset time. The fairest and safest reference is the higher of balance and equity at the reset, which stops a floating loss carried overnight from giving the trader a fresh allowance measured from an already depressed level.
- [What is a maximum loss limit?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-maximum-loss-limit): A maximum loss limit is the overall loss an account may never exceed, usually a percentage below the starting balance. With a static limit, a $100,000 account with a 10% limit can never fall below $90,000. Crossing it ends the account, whatever happened on any single day.
- [What is the difference between static and trailing drawdown?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-the-difference-between-static-and-trailing-drawdown): Static drawdown measures loss from a fixed point, usually the starting balance, so the floor never moves. Trailing drawdown measures loss from the highest equity reached, so the floor rises as the account makes new peaks. Trailing is stricter, because profits raise the floor.
- [What is a trailing drawdown that locks at break-even?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-trailing-drawdown-that-locks-at-break-even): It is a trailing floor that follows peak equity upward until it reaches the starting balance (break-even), then stops moving. After that the trader cannot lose the original balance, and gains above it are protected from the trailing rule. It is a common compromise between static and pure trailing drawdown.
- [What is a profit target, and how high should it be?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-profit-target-and-how-high-should-it-be): A profit target is the gain, as a percentage of the starting balance, that a trader must reach to pass. Common targets are around 8% to 10% for one-step and first phases, and around 5% for second phases. The right level balances your payout cost against whether skilled traders can realistically pass.
- [What are minimum trading days?](https://www.propexecutor.com/resources/faq/challenge-design/what-are-minimum-trading-days): Minimum trading days require a trader to place trades on a set number of different days before they can pass or request a payout. They discourage passing with one lucky trade and give the firm more evidence of skill. Common minimums range from a few days up to around ten.
- [Should a challenge have a time limit?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-challenge-have-a-time-limit): Time limits are less common than they were, because traders dislike them and they encourage over-risking near the deadline. Many firms now offer unlimited time or sell no time limit as an add-on. If you use one, make it generous and decide what happens to accounts that reach it in profit.
- [What is a consistency rule?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-consistency-rule): A consistency rule stops one exceptional day from making up most of a trader's profit. A typical version says no single day's profit may exceed a set percentage, often 30% to 50%, of total profit. It discourages passing on one high-risk trade and is common before payouts.
- [Should a prop firm allow news trading?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-prop-firm-allow-news-trading): Policies vary. Some firms allow news trading freely, some restrict opening or closing trades within a few minutes of high-impact releases, and some sell it as an add-on. Restrictions protect against spikes and gaps, but they require an economic calendar and are a common source of disputes.
- [Should a prop firm allow positions to be held over the weekend?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-prop-firm-allow-positions-to-be-held-over-the-weekend): Many firms allow weekend holding on swing-style accounts and ban it on intraday accounts, sometimes selling it as an add-on. Weekend gaps can move prices past stops, so holding raises risk. If you ban it, set a clear Friday cutoff time and say what happens to open positions.
- [Should a prop firm allow overnight positions?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-prop-firm-allow-overnight-positions): Most CFD prop firms allow overnight positions, because many strategies hold for more than a day. Some intraday-focused programmes require positions to be closed before the end of the day. If you restrict it, define the cutoff time clearly and decide how open positions are handled.
- [What leverage should a prop firm offer?](https://www.propexecutor.com/resources/faq/challenge-design/what-leverage-should-a-prop-firm-offer): CFD prop firms commonly offer leverage between about 1:30 and 1:100 on forex, often lower on indices, metals and crypto. Higher leverage lets traders take larger positions relative to equity and increases the chance of large swings. Many firms set leverage by asset class.
- [What maximum lot size should a challenge allow?](https://www.propexecutor.com/resources/faq/challenge-design/what-maximum-lot-size-should-a-challenge-allow): Set maximum lot size relative to account size and your loss limits, so a single order cannot risk an extreme share of the account. Many firms cap lots per order or total open lots per account. The cap should still allow normal position sizing for the strategies you want to attract.
- [What is a maximum open positions rule?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-maximum-open-positions-rule): A maximum open positions rule limits how many positions an account can hold at once, for example five. It prevents a trader from spreading risk across many simultaneous positions that together exceed sensible exposure, and limits some grid and martingale strategies.
- [What is a minimum holding time rule, and why use one?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-a-minimum-holding-time-rule-and-why-use-one): A minimum holding time rule requires trades to stay open for at least a set time, such as 60 seconds. It discourages tick scalping and latency strategies that exploit simulated execution rather than market skill. Firms usually flag or exclude such trades rather than ending the account immediately.
- [Should a prop firm restrict trading hours?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-prop-firm-restrict-trading-hours): Trading hours restrictions are useful for specific programmes, for example to avoid illiquid periods or rollover spreads, or to keep intraday accounts within a session. For most general challenges they are not needed. If you use them, state the window in UTC and say what happens to orders outside it.
- [Should a prop firm allow hedging within one account?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-prop-firm-allow-hedging-within-one-account): Hedging within one account means holding a long and a short on the same instrument at once. Some firms allow it, since it is a legitimate risk tool; others ban it because it can be used to game rules or offers no real exposure. Hedging across different accounts is a separate and usually prohibited issue.
- [Which instruments should a challenge allow?](https://www.propexecutor.com/resources/faq/challenge-design/which-instruments-should-a-challenge-allow): Allow instruments your audience trades and your price feed covers well: major forex pairs, gold, main stock indices and often oil and Bitcoin. Restrict thinly traded or very volatile instruments, or put them on a separate account type with tighter leverage.
- [Which account sizes should a new prop firm offer?](https://www.propexecutor.com/resources/faq/challenge-design/which-account-sizes-should-a-new-prop-firm-offer): Most firms offer a ladder such as $5,000, $10,000, $25,000, $50,000, $100,000 and sometimes $200,000. A new firm can start with two or three sizes to test demand, adding more later. Price each size on its own payout risk.
- [How do I make a challenge fair to traders and still profitable?](https://www.propexecutor.com/resources/faq/challenge-design/how-do-i-make-a-challenge-fair-to-traders-and-still-profitable): Use rules that skilled traders can meet with sensible risk, define them precisely, enforce them identically and immediately, and protect profitability through pricing, payout terms and abuse controls rather than hidden traps. Fair challenges build reputation, which lowers acquisition cost over time.
- [Should a daily loss limit be measured on balance or equity?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-daily-loss-limit-be-measured-on-balance-or-equity): Equity is more protective because it includes open losses: a trader cannot sit on a large floating loss without consequence. Balance-based limits only count closed trades. Most firms measure the limit on equity, and the best approach measures equity against a day reference that does not reward overnight floating losses.
- [What happens when a trader breaches a rule?](https://www.propexecutor.com/resources/faq/challenge-design/what-happens-when-a-trader-breaches-a-rule): For loss limits, the account normally ends immediately: trading stops, the account is marked as failed and the trader is told which rule was broken. For order-level rules, the order is usually refused instead. For behaviour rules, the firm may flag the account for review rather than end it.
- [Should a rule violation end the account or only reject the order?](https://www.propexecutor.com/resources/faq/challenge-design/should-a-rule-violation-end-the-account-or-only-reject-the-order): Use account-ending breaches for loss limits, where the damage has already happened, and order rejection for rules that can be prevented before the trade, such as lot size, instruments or position count. Use flags for behaviours that need a human decision. Matching the action to the rule feels fairer to traders.
- [What is an inactivity rule?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-an-inactivity-rule): An inactivity rule ends or flags an account that has not traded for a set number of days, for example 30. It clears abandoned accounts, keeps funded accounts active, and replaces a hard time limit with a softer requirement. The period and the consequence should be stated clearly.
- [How do I change challenge rules without affecting existing traders?](https://www.propexecutor.com/resources/faq/challenge-design/how-do-i-change-challenge-rules-without-affecting-existing-traders): Apply new rules only to accounts sold after the change, and leave existing accounts on the rules they bought. The cleanest way is a platform that versions rule sets and freezes each account to the version in force when it was created, so a change cannot reach running accounts.
- [How should a prop firm communicate rule changes to traders?](https://www.propexecutor.com/resources/faq/challenge-design/how-should-a-prop-firm-communicate-rule-changes-to-traders): Announce changes in advance, state exactly what changes and from which date, confirm that existing accounts keep their current rules, and update the rules page with the version and date. Explain the reason briefly. Surprises are what turn a rule change into a reputation problem.
- [How do I write rules that traders cannot dispute?](https://www.propexecutor.com/resources/faq/challenge-design/how-do-i-write-rules-that-traders-cannot-dispute): Define every term (equity, trading day, reset time), give the exact calculation, include a worked example, state the consequence of breaking each rule, and make the platform enforce the rules exactly as written. Show traders their live position against each rule so nothing comes as a surprise.
- [What are the most common rule disputes between traders and prop firms?](https://www.propexecutor.com/resources/faq/challenge-design/what-are-the-most-common-rule-disputes-between-traders-and-prop-firms): The most common disputes involve how daily loss is calculated (balance or equity, reset time), breaches caused by price spikes or wide spreads, consistency rules blocking payouts, prohibited strategy decisions, and rules that changed after purchase. Most are avoided by precise definitions and transparent data.
- [What is the difference between a breach and a flag?](https://www.propexecutor.com/resources/faq/challenge-design/what-is-the-difference-between-a-breach-and-a-flag): A breach ends the account because a rule was broken. A flag records that a rule was tripped without ending the account, so the firm can review it later, typically before a payout. Flags suit behaviours that need judgement, such as very short trades, where context matters.
- [Should I copy another prop firm's rules?](https://www.propexecutor.com/resources/faq/challenge-design/should-i-copy-another-prop-firms-rules): Using established firms' rules as a starting point is reasonable, because traders recognise them. Copying them exactly without their pricing, audience and payout data is risky, since rules only work together with pricing and payout terms. Adapt them, model them, and make sure your platform calculates them the same way.

### [Risk management](https://www.propexecutor.com/resources/faq/risk-management)

Payout liability, A-book and B-book, hedging, exposure monitoring and reserves: how a prop firm manages the risk of paying traders.

- [What is risk management for a prop firm?](https://www.propexecutor.com/resources/faq/risk-management/what-is-risk-management-for-a-prop-firm): Risk management for a prop firm means keeping the cost of paying funded traders below the revenue from fees. It combines rule design, real-time enforcement, monitoring exposure across funded accounts, detecting abusive strategies, holding a payout reserve, and deciding whether to hedge or copy successful traders into real markets.
- [What are A-book and B-book in prop trading?](https://www.propexecutor.com/resources/faq/risk-management/what-are-a-book-and-b-book-in-prop-trading): In brokerage, A-book means passing client trades to the real market, and B-book means keeping them internal and taking the other side. In prop trading the terms describe whether funded traders' positions are mirrored into real markets (A-book) or kept simulated, with payouts funded from revenue (closer to B-book).
- [Should a prop firm hedge funded traders' positions?](https://www.propexecutor.com/resources/faq/risk-management/should-a-prop-firm-hedge-funded-traders-positions): Hedging can reduce payout risk from your best traders, but it needs capital, a broker relationship and careful execution, and it exposes the firm to market risk and slippage. Many small firms do not hedge and rely on pricing and reserves; larger firms often hedge selectively.
- [What does it mean to copy funded traders into a live account?](https://www.propexecutor.com/resources/faq/risk-management/what-does-it-mean-to-copy-funded-traders-into-a-live-account): It means automatically replicating a funded trader's simulated trades in a real brokerage account, usually scaled down. If the trader is profitable, the real account earns too, offsetting the payout. It turns a pure payout liability into a trading strategy, with real market risk and execution costs.
- [How do I protect my firm from a run of profitable traders?](https://www.propexecutor.com/resources/faq/risk-management/how-do-i-protect-my-firm-from-a-run-of-profitable-traders): Hold a reserve sized for a strong month, cap concentration with scaling limits and payout caps, monitor open profit across funded accounts daily, enforce rules strictly in real time, check for correlated or copied strategies, and consider hedging your largest traders. Pricing with cautious assumptions is the first line of defence.
- [How much reserve capital should a prop firm hold?](https://www.propexecutor.com/resources/faq/risk-management/how-much-reserve-capital-should-a-prop-firm-hold): Hold enough to pay expected payouts for at least a few months without new sales, plus a buffer for a stress month in which many funded traders profit at once. Size it from your funded accounts, average payout and payout frequency, and review it monthly as the funded book grows.
- [What is payout liability?](https://www.propexecutor.com/resources/faq/risk-management/what-is-payout-liability): Payout liability is the amount the firm may owe funded traders: the profit share on their current and future profits under the firm's terms. At any moment it can be estimated from funded accounts' open and realised profit. It is the largest financial risk a prop firm carries.
- [How do I monitor exposure across all funded accounts?](https://www.propexecutor.com/resources/faq/risk-management/how-do-i-monitor-exposure-across-all-funded-accounts): Aggregate open positions across funded accounts by instrument and direction, total floating profit and loss, and the largest single accounts. Review it daily and in volatile markets. Concentrated, same-direction exposure means a single market move could create a large payout cycle.
- [What is correlated exposure, and why does it matter?](https://www.propexecutor.com/resources/faq/risk-management/what-is-correlated-exposure-and-why-does-it-matter): Correlated exposure occurs when many funded traders hold positions that move together, such as long several US indices or long gold across many accounts. One market move then produces large profits, and payouts, across many accounts at once. It turns many small risks into one large one.
- [How do I identify consistently profitable traders worth backing with real capital?](https://www.propexecutor.com/resources/faq/risk-management/how-do-i-identify-consistently-profitable-traders-worth-backing-with-real): Look for several payout cycles of profit, controlled drawdowns, steady risk per trade, reasonable holding times, no dependence on one big day, and strategies that could survive real execution. Avoid choosing on raw profit alone, which favours lucky high-risk traders.
- [What is toxic flow in prop trading?](https://www.propexecutor.com/resources/faq/risk-management/what-is-toxic-flow-in-prop-trading): Toxic flow is trading that profits from weaknesses in the setup rather than from market skill: latency arbitrage, exploiting delayed or wrong prices, tick scalping, coordinated hedging across accounts, or copying the same signal across many funded accounts. It produces payouts that real markets would not.
- [How do I set risk limits per trader?](https://www.propexecutor.com/resources/faq/risk-management/how-do-i-set-risk-limits-per-trader): Set limits through the account type a trader receives: loss limits, lot and position caps, leverage and instruments. For funded or scaled traders, use a separate account type with tighter or looser limits. Avoid one-off manual limits that are hard to track and apply consistently.
- [Which reports should a prop firm risk team review daily?](https://www.propexecutor.com/resources/faq/risk-management/which-reports-should-a-prop-firm-risk-team-review-daily): Review new breaches and their reasons, passes awaiting funding, funded accounts by open profit, net exposure by instrument, flagged behaviours, payout requests in progress, unusual trading patterns (identical trades, very short holds), and any platform incidents. A short daily review prevents expensive surprises.
- [How do real-time rule checks reduce risk compared with end-of-day checks?](https://www.propexecutor.com/resources/faq/risk-management/how-do-real-time-rule-checks-reduce-risk-compared-with-end-of-day-checks): Real-time checks breach an account the moment a limit is crossed, so losses cannot run past it. End-of-day or periodic checks let a trader continue trading after crossing a limit, sometimes recovering, sometimes losing far more, and both outcomes cause disputes and payout errors.
- [What happens if a price data glitch causes a false breach?](https://www.propexecutor.com/resources/faq/risk-management/what-happens-if-a-price-data-glitch-causes-a-false-breach): A bad price can breach accounts unfairly. A good firm detects the glitch, identifies accounts breached during the affected window, reviews them against reliable prices, and reinstates accounts that would not have breached. A written policy for erroneous prices avoids arguments later.
- [How should a prop firm handle a sudden price spike?](https://www.propexecutor.com/resources/faq/risk-management/how-should-a-prop-firm-handle-a-sudden-price-spike): Treat genuine market spikes as part of trading, since traders choose their risk, but investigate spikes that look like feed errors. Publish your policy in advance: genuine moves stand, clearly erroneous prices are reviewed. Encourage traders to use stop losses and sensible position sizes.
- [How do I handle traders who exploit platform latency?](https://www.propexecutor.com/resources/faq/risk-management/how-do-i-handle-traders-who-exploit-platform-latency): Latency exploitation means trading on prices before the simulator updates, for example using a faster external feed. Defend with a fast, reliable feed, minimum hold time rules, review of very short profitable trades, and clear terms that prohibit exploiting price delays, with the right to remove such profits.

### [Abuse, fraud and prohibited strategies](https://www.propexecutor.com/resources/faq/abuse-and-fraud)

Copy trading, account sharing, latency arbitrage, cross-account hedging and the policies and evidence that keep payouts fair.

- [What types of trading abuse do prop firms face?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-types-of-trading-abuse-do-prop-firms-face): Common abuse includes copy trading one signal across many accounts, account pooling or sharing, paid passing services, hedging opposite positions across accounts or firms, latency arbitrage, tick scalping that exploits simulation, and exploiting price errors. Each produces payouts that real trading skill would not.
- [What is copy trading abuse in prop firms?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-is-copy-trading-abuse-in-prop-firms): Copy trading abuse occurs when the same trades are copied across several funded accounts, often belonging to different people, so that one strategy collects many payouts. It concentrates risk, since a profitable signal pays out many times. Most firms prohibit copying third-party signals across funded accounts.
- [How do prop firms detect copy trading across accounts?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-do-prop-firms-detect-copy-trading-across-accounts): They compare trades across accounts for matching instruments, directions, sizes and entry and exit times within seconds, and cross-check with identity data such as KYC, payment details and IP addresses. Clusters of near-identical trades on unrelated accounts are the strongest signal.
- [What is group trading or account pooling?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-is-group-trading-or-account-pooling): Group trading or account pooling is when several people share one funded account, or one person trades accounts held in other people's names, to get around per-person limits or to combine resources. It breaks the link between the verified trader and the trading, which most firms prohibit.
- [What is latency arbitrage?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-is-latency-arbitrage): Latency arbitrage exploits the delay between a fast price source and a slower one: the trader sees a price move on a faster feed and trades on the slower platform before it updates, capturing near risk-free profit. In a simulated environment it exploits the simulator, not the market, so most firms prohibit it.
- [What is cross-account or cross-firm hedging?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-is-cross-account-or-cross-firm-hedging): Cross-account hedging means opening opposite positions on two accounts, at one firm or at two different firms, so that one account is likely to pass or profit while the other breaches. The trader effectively guarantees a pass at the cost of a fee. Firms prohibit it because it is not trading skill.
- [What is tick scalping, and why do firms restrict it?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-is-tick-scalping-and-why-do-firms-restrict-it): Tick scalping means trading for very small price moves over seconds, sometimes many times a minute. In simulated environments it can exploit fill assumptions that real markets would not honour, such as always filling at the quoted price. Firms restrict it with minimum hold times or by reviewing such profits.
- [How do prop firms handle martingale and grid strategies?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-do-prop-firms-handle-martingale-and-grid-strategies): Many firms restrict martingale and grid strategies because they increase position size after losses or add positions without stops, producing smooth equity until a sudden large loss. Restrictions usually come through rules on lot size, open positions, risk per trade and mandatory stop losses rather than a vague ban.
- [Should a prop firm ban expert advisors?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/should-a-prop-firm-ban-expert-advisors): It depends on your platform and audience. Some firms allow expert advisors (EAs) and bots but ban specific strategies; others ban third-party or purchased EAs because many traders run identical copies. Write a precise policy rather than a blanket statement, and check what your platform supports.
- [How do I detect multiple accounts belonging to one person?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-do-i-detect-multiple-accounts-belonging-to-one-person): Match identity data across accounts: KYC results, payment cards and wallets, payout destinations, email patterns, devices and IP addresses, plus trading similarity. Many firms allow several accounts per person but cap total allocation, so detection is about enforcing limits rather than banning multiple purchases.
- [How do I prevent account sharing and paid passing services?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-do-i-prevent-account-sharing-and-paid-passing-services): Prohibit third-party trading in your terms, verify identity before payouts, compare trading behaviour between evaluation and funded stages, watch for login patterns from different places, and rotate credentials when sharing is suspected. Paid passing services often show sudden style changes between phases.
- [What is a pass-for-hire service, and how do firms stop it?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-is-a-pass-for-hire-service-and-how-do-firms-stop-it): A pass-for-hire service is a third party that trades a buyer's evaluation to pass it for a fee, then hands over the funded account. It breaks the purpose of the evaluation and usually leads to fast breaches or abuse later. Firms stop it with identity checks, behaviour comparison and terms that void such accounts.
- [How should a prop firm handle VPNs and location masking?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-should-a-prop-firm-handle-vpns-and-location-masking): VPNs are common and often legitimate, so most firms do not ban them outright. They matter where they hide residence in a restricted country or link multiple accounts. Use KYC to confirm residence before payouts, and treat a VPN as one signal among several rather than proof of abuse.
- [How do I write a prohibited strategies policy?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-do-i-write-a-prohibited-strategies-policy): List each prohibited strategy by name with a plain definition and an example, state how it is detected and what happens (profit removed, account closed, payout denied), and explain the appeal process. Prefer objective, measurable rules over vague phrases such as "unfair trading".
- [What evidence should a prop firm keep before denying a payout?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/what-evidence-should-a-prop-firm-keep-before-denying-a-payout): Keep the full trade history with timestamps, the rule or policy relied on, the analysis that links the trades to the prohibited behaviour, identity and connection data where relevant, and the decision record. Evidence must be strong enough to show the trader, a payment provider in a chargeback, or a regulator.
- [How do I balance abuse prevention with a fair trader experience?](https://www.propexecutor.com/resources/faq/abuse-and-fraud/how-do-i-balance-abuse-prevention-with-a-fair-trader-experience): Target specific behaviours with clear, measurable rules, enforce them automatically and consistently, flag grey areas for human review instead of punishing them automatically, explain decisions with evidence, and keep normal trading unrestricted. Traders tolerate strict rules that are clear; they resent vague ones applied after the fact.

### [Trader operations and support](https://www.propexecutor.com/resources/faq/trader-operations)

Onboarding traders, delivering credentials, KYC, support, bulk account management and the day-to-day running of a prop firm.

- [How do I onboard a new trader?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-onboard-a-new-trader): After payment, create or assign a trading account for the purchased size, attach it to a trader record, send the login details with a short welcome guide and your rules, and point the trader to support. Fast, accurate delivery is the first impression of your firm.
- [How do I deliver login credentials to a trader securely?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-deliver-login-credentials-to-a-trader-securely): Send credentials only to the email the trader used to buy, avoid posting them in public channels, keep the password separate from the account number where possible, and rotate the password immediately if it is exposed. A prefilled login link is convenient, but it carries the password and should be treated as a credential.
- [What should a trader's welcome email include?](https://www.propexecutor.com/resources/faq/trader-operations/what-should-a-traders-welcome-email-include): Include the login details (Account Number, Password and Server), a link to the terminal and app, the account size and rules with a link to the full rules page, how to read the dashboard, payout terms in brief, support contact and hours, and a reminder not to share credentials.
- [When should a prop firm run KYC on a trader?](https://www.propexecutor.com/resources/faq/trader-operations/when-should-a-prop-firm-run-kyc-on-a-trader): Most firms run KYC before the first payout, not at purchase, because most buyers never reach a payout and checks cost money. Some run it when a trader passes, so payouts are not delayed. High-risk jurisdictions or large accounts may justify earlier checks.
- [Which documents are needed for trader KYC?](https://www.propexecutor.com/resources/faq/trader-operations/which-documents-are-needed-for-trader-kyc): Typically a government photo ID (passport, national ID or driving licence), a selfie or liveness check, and sometimes proof of address such as a recent utility bill or bank statement. Requirements depend on your KYC provider, payment providers and jurisdiction.
- [How do I handle a trader who has forgotten their password?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-handle-a-trader-who-has-forgotten-their-password): Verify the request comes from the account's holder, usually by replying from the email on file, then reset or rotate the password and send the new one to that email. Do not send passwords to a different address or chat account without verification.
- [How do I move an account from one trader to another?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-move-an-account-from-one-trader-to-another): Unassign the account from the current trader, rotate the password so the previous holder can no longer log in, then assign it to the new trader and send the new credentials. Reassigning alone may leave the old password valid, so rotation is the step that actually cuts off the former holder.
- [How should support handle tickets about breaches?](https://www.propexecutor.com/resources/faq/trader-operations/how-should-support-handle-tickets-about-breaches): Respond quickly, state the exact rule that was broken with the time and figures, show how it is calculated, and explain options such as a reset. Stay factual and consistent. If the trader suspects a platform or price error, investigate before replying definitively.
- [How do I explain a breach to a trader?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-explain-a-breach-to-a-trader): Name the rule, give the time, show the numbers (the limit, the reference value and the equity at breach), and explain the calculation in one sentence with an example. Avoid jargon and keep a neutral tone. Traders accept a breach far more readily when they can check it themselves.
- [What response time should prop firm support aim for?](https://www.propexecutor.com/resources/faq/trader-operations/what-response-time-should-prop-firm-support-aim-for): Aim to answer within a few hours during your published support hours, and faster for urgent issues such as login problems during market hours or disputed breaches. Publish your hours and response targets, then meet them consistently. Speed of support strongly affects reviews.
- [Does a prop firm need 24/7 support?](https://www.propexecutor.com/resources/faq/trader-operations/does-a-prop-firm-need-24-7-support): Not necessarily. Many firms cover the main trading sessions, offer weekend email support, and publish their hours. Around-the-clock live support is costly and mainly needed at scale or for crypto, which trades all weekend. Reliable responses within published hours matter more than 24/7 coverage.
- [How do I manage hundreds of trader accounts efficiently?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-manage-hundreds-of-trader-accounts-efficiently): Use bulk provisioning instead of creating accounts one by one, standard account types and rule sets instead of individual settings, automatic rule enforcement, trader records that hold all of a person's accounts, an API for repetitive tasks, and filters and search to find accounts quickly.
- [How do I provision trading accounts in bulk?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-provision-trading-accounts-in-bulk): Choose an account type and create many accounts at once, unassigned, then assign them to traders as sales arrive. Bulk creation keeps delivery instant and avoids manual setup per sale. Check your platform's per-request limit and how each account is billed.
- [How do I give a trader who passed a funded account?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-give-a-trader-who-passed-a-funded-account): Confirm the pass (all objectives met, no violations), run KYC if you require it at this stage, then create or assign a funded-stage account with the funded rules and send new credentials. Keep the evaluation account closed and linked to the same trader for history.
- [What should a trader see on their account dashboard?](https://www.propexecutor.com/resources/faq/trader-operations/what-should-a-trader-see-on-their-account-dashboard): A trader should see balance and equity, progress to the profit target, daily loss and maximum loss headroom in money and percentage, trading days completed, open positions and history, and basic statistics. The figures should match exactly how the rule engine judges the account.
- [How do traders track how close they are to a rule limit?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-traders-track-how-close-they-are-to-a-rule-limit): Through a dashboard or terminal panel that shows each limit as headroom remaining, updated live as prices move. Showing the numbers continuously prevents surprise breaches and support tickets. The panel must use the same calculation as the rule engine, or it misleads traders.
- [How do I issue certificates to traders who pass?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-issue-certificates-to-traders-who-pass): Many firms send a branded PDF or image certificate when a trader passes or receives a payout, often shared on social media. Generate it from the pass record with the trader's name, account size and date. It is a marketing tool, so make it easy to share and consistent with your brand.
- [What should a prop firm's FAQ for traders cover?](https://www.propexecutor.com/resources/faq/trader-operations/what-should-a-prop-firms-faq-for-traders-cover): Cover how to buy and log in, each rule with examples, how breaches are decided, trading days and reset times, allowed instruments and strategies, how to pass and get funded, payout timing and KYC, refunds, platform and app access, and how to contact support.
- [How do I run a trading competition?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-run-a-trading-competition): Run a competition by giving each entrant an identical free or low-cost account with the same rules, a fixed time window, and a ranking by profit or a risk-adjusted measure. Publish the rules and prizes, check winners for prohibited strategies, and use it to attract traders to paid challenges.
- [How do I offer a free trial account?](https://www.propexecutor.com/resources/faq/trader-operations/how-do-i-offer-a-free-trial-account): Create a trial account type with a small balance and your normal rules or simplified ones, give it to anyone who signs up, and limit it by time or by one per person. Trials let traders try your platform and rules before paying and are a strong conversion tool.

## Money, law and trust

### [Payments and trader payouts](https://www.propexecutor.com/resources/faq/payments-and-payouts)

Taking challenge fees, choosing processors, reducing chargebacks, and paying funded traders reliably and safely.

- [How do prop firms accept payments?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-prop-firms-accept-payments): Prop firms usually take challenge fees through a card processor that accepts high-risk merchants, a crypto payment gateway, or both, often adding local methods in key markets. The checkout sits on the firm's website, and a successful payment triggers creation of the trader's account and delivery of login details.
- [Why do card processors treat prop firms as high risk?](https://www.propexecutor.com/resources/faq/payments-and-payouts/why-do-card-processors-treat-prop-firms-as-high-risk): Processors see prop firms as high risk because chargeback rates can be high, the product is linked to trading, refunds and disputes after failed challenges are common, several firms have closed suddenly, and the regulatory position varies by country. High-risk status means higher fees, reserves and closer monitoring.
- [Does Stripe work with prop firms?](https://www.propexecutor.com/resources/faq/payments-and-payouts/does-stripe-work-with-prop-firms): In practice, prop firms have found Stripe unreliable for this business. Stripe stopped supporting a number of prop firms, and many founders report that accounts are closed once the business model is reviewed. Most firms use processors that explicitly accept prop trading, plus crypto gateways.
- [Which payment processors accept prop firms?](https://www.propexecutor.com/resources/faq/payments-and-payouts/which-payment-processors-accept-prop-firms): Prop firms generally use high-risk card processors that state they work with trading or prop businesses, crypto payment gateways, and in some cases merchant-of-record services that accept the model. Acceptance changes over time and depends on your jurisdiction and history, so get written confirmation before integrating.
- [Should a prop firm accept cryptocurrency payments?](https://www.propexecutor.com/resources/faq/payments-and-payouts/should-a-prop-firm-accept-cryptocurrency-payments): Many prop firms accept crypto because it reaches traders whose cards are declined, avoids card chargebacks, and settles quickly. Downsides are a smaller audience of traders who hold crypto, price volatility unless you use stablecoins, and compliance checks. Offering crypto alongside cards is common.
- [What are the pros and cons of crypto-only checkout for a prop firm?](https://www.propexecutor.com/resources/faq/payments-and-payouts/what-are-the-pros-and-cons-of-crypto-only-checkout-for-a-prop-firm): Crypto-only checkout is cheaper and removes chargebacks, and it can be quick to set up. It also limits your audience to traders who already hold crypto, can reduce trust among newer traders, and may cause problems with banks and some regulators. Many firms start crypto-only and add cards later.
- [How do I reduce chargebacks on challenge fees?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-i-reduce-chargebacks-on-challenge-fees): Reduce chargebacks with clear terms accepted at checkout, a recognisable billing descriptor, fast delivery of login details, visible rules, quick support responses, a fair refund policy for unused accounts, and evidence that the service was delivered, such as account creation and login records.
- [What chargeback rate is safe for a prop firm?](https://www.propexecutor.com/resources/faq/payments-and-payouts/what-chargeback-rate-is-safe-for-a-prop-firm): Card networks monitor merchants with chargeback ratios in the region of 1% of transactions, and processors often set stricter internal limits. Exceeding thresholds can lead to fines, monitoring programmes or account closure. Aim to stay well below 1%, and track the ratio monthly.
- [What is a merchant of record, and does a prop firm need one?](https://www.propexecutor.com/resources/faq/payments-and-payouts/what-is-a-merchant-of-record-and-does-a-prop-firm-need-one): A merchant of record is the company legally selling to the customer, responsible for payment processing, sales tax and refunds on your behalf. It simplifies tax and compliance, but many merchant-of-record services do not accept prop trading evaluations. A prop firm can operate without one if it has its own processor.
- [How do prop firms pay funded traders?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-prop-firms-pay-funded-traders): Funded traders submit a payout request, the firm checks the account against its rules and runs KYC if needed, calculates the trader's share of profit, and pays by bank transfer, a payment platform or cryptocurrency. Many firms pay on a fixed schedule, such as every 14 days, after a minimum number of trading days.
- [Which payout methods do traders expect?](https://www.propexecutor.com/resources/faq/payments-and-payouts/which-payout-methods-do-traders-expect): Traders commonly expect cryptocurrency (often stablecoins), bank transfer, and international payment platforms. Speed and reliability matter more than the number of options. Offer at least one fast global method, and pay only to accounts or wallets in the verified trader's name.
- [How fast should a prop firm process payouts?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-fast-should-a-prop-firm-process-payouts): Speed is one of the main things traders judge a firm on. Many firms aim to pay within a few business days of approval, and some advertise 24-hour processing. Publish a target you can always meet, then beat it; a firm that misses its own promised timeline loses trust quickly.
- [How often should a prop firm offer payouts?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-often-should-a-prop-firm-offer-payouts): Common schedules are every 14 days or every 30 days, with some firms offering weekly or on-demand payouts, sometimes as a paid add-on. More frequent payouts attract traders but increase operational work and cash flow pressure. Choose a cycle you can sustain and state it clearly.
- [What is a payout cap, and should I set one?](https://www.propexecutor.com/resources/faq/payments-and-payouts/what-is-a-payout-cap-and-should-i-set-one): A payout cap limits how much a trader can withdraw in one payout or one period, for example a maximum percentage of the account size. It protects the firm from a single very large payout and from strategies that exploit unusual market moves. Disclose any cap clearly before purchase.
- [How do I verify a trader before paying them?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-i-verify-a-trader-before-paying-them): Verify identity with a KYC provider (document and liveness check), screen the person against sanctions lists, confirm the name matches the payment destination, check the account for rule breaches and prohibited strategies, and confirm the trader agreed to your terms. Keep a record of each check.
- [What is a payout denial, and how should disputes be handled fairly?](https://www.propexecutor.com/resources/faq/payments-and-payouts/what-is-a-payout-denial-and-how-should-disputes-be-handled-fairly): A payout denial is the firm refusing some or all of a requested payout, usually for a rule breach or prohibited strategy. Handle disputes fairly by citing the exact rule and the trades involved, sharing the evidence, allowing an appeal, and applying rules identically to everyone. Unexplained denials damage reputation fast.
- [How should a prop firm handle refunds for challenge fees?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-should-a-prop-firm-handle-refunds-for-challenge-fees): Most firms refund an evaluation only if it has not been used, for example within a set period and before the first trade. After trading starts or after a breach, fees are usually non-refundable. State the policy at checkout, apply it consistently, and refund quickly when it applies, since a refused refund often becomes a chargeback.
- [Should I use separate processors for collecting fees and paying traders?](https://www.propexecutor.com/resources/faq/payments-and-payouts/should-i-use-separate-processors-for-collecting-fees-and-paying-traders): Often, yes. Collecting challenge fees and sending payouts are different risk profiles, and many processors that accept payments cannot make mass payouts. Using separate providers also means one frozen account does not stop both sales and payouts at the same time.
- [What happens if my payment processor freezes my account?](https://www.propexecutor.com/resources/faq/payments-and-payouts/what-happens-if-my-payment-processor-freezes-my-account): A freeze can stop new sales and lock existing funds for months. Contact the processor to understand the reason, provide the documents they request, switch sales to a backup provider, and keep paying traders from your reserve. Firms with a second processor and a separate payout fund recover with far less damage.
- [How do I accept payments from traders in India, Pakistan or Nigeria?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-i-accept-payments-from-traders-in-india-pakistan-or-nigeria): It depends on the country's rules and your product. India and Pakistan have central bank positions restricting residents' payments to offshore forex trading platforms, so many firms restrict or treat those markets with caution. Where allowed, firms use crypto gateways, international cards and local payment methods. Get legal advice for each market.
- [Can a prop firm use PayPal?](https://www.propexecutor.com/resources/faq/payments-and-payouts/can-a-prop-firm-use-paypal): PayPal's acceptable use policy restricts several trading-related and high-risk activities, and prop firms report accounts being limited. Do not build your checkout around PayPal unless you have explicit written approval for your business model. Even then, keep another payment method live.
- [How do local payment methods improve challenge conversion?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-local-payment-methods-improve-challenge-conversion): Traders are more likely to complete a purchase with a method they already use, such as local bank transfers or wallets, especially where international cards are often declined. Offering the right local method in a key market can noticeably lift checkout completion, provided it is legal for your product there.
- [Which currency should I price challenges in?](https://www.propexecutor.com/resources/faq/payments-and-payouts/which-currency-should-i-price-challenges-in): Most prop firms price in US dollars because trading accounts are denominated in USD and traders worldwide understand it. Some firms show local currency prices or offer euro pricing for European traders. Keep the account balance currency and the price currency consistent to avoid confusion.
- [How do I reconcile challenge sales with payouts each month?](https://www.propexecutor.com/resources/faq/payments-and-payouts/how-do-i-reconcile-challenge-sales-with-payouts-each-month): Reconcile by matching each sale to a trading account and a trader, each payout to an approved request and a funded account, and both to your processor and bank statements. Track refunds, chargebacks and fees separately. A monthly reconciliation also produces your payout ratio, a key health metric.

### [Legal, regulation and compliance](https://www.propexecutor.com/resources/faq/legal-and-compliance)

Licences, regulation, terms, data protection, sanctions and marketing claims: the legal questions to settle before selling challenges.

- [Is it legal to start a prop firm?](https://www.propexecutor.com/resources/faq/legal-and-compliance/is-it-legal-to-start-a-prop-firm): In most countries, selling trading evaluations on simulated accounts is not prohibited as such, and many prop firms operate openly. Legality depends on where you are based, where your customers are, how you describe the product and whether any part of it counts as a regulated financial service.
- [Do I need a financial licence to run a prop firm?](https://www.propexecutor.com/resources/faq/legal-and-compliance/do-i-need-a-financial-licence-to-run-a-prop-firm): Many challenge-based prop firms operate without a financial services licence because they sell evaluations on simulated accounts and do not hold client money or execute trades. Whether that holds for you depends on your jurisdiction, your customers' countries and your exact model, so get legal advice.
- [Are challenge-based prop firms regulated?](https://www.propexecutor.com/resources/faq/legal-and-compliance/are-challenge-based-prop-firms-regulated): Generally, challenge-based prop firms are not regulated as brokers or investment firms in most jurisdictions, because they sell evaluations on simulated accounts. Ordinary business law still applies: consumer protection, advertising standards, data protection, tax and anti-money-laundering obligations where relevant. Regulators in several countries are looking more closely at the model.
- [Why do most prop firms describe themselves as education or evaluation companies?](https://www.propexecutor.com/resources/faq/legal-and-compliance/why-do-most-prop-firms-describe-themselves-as-education-or-evaluation-companies): Because that describes what they sell: an evaluation of trading skill on a simulated account, with rewards for traders who pass. The description separates them from brokers and investment firms, which hold client money and execute real trades. The label must match the actual product; wording alone does not change how a regulator sees a business.
- [What does simulated trading mean legally for a prop firm?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-does-simulated-trading-mean-legally-for-a-prop-firm): Simulated trading means orders are filled by software against market prices without being placed in a real market. Legally, it usually means the firm is not executing client trades or holding client funds for trading, which is a key difference from a broker. It also creates a duty to describe accounts and payouts honestly.
- [What did the CFTC case against My Forex Funds mean for prop firms?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-did-the-cftc-case-against-my-forex-funds-mean-for-prop-firms): In August 2023 the US CFTC sued Traders Global Group, the company behind My Forex Funds, and froze its assets. In May 2025 a federal judge dismissed the case with prejudice and sanctioned the CFTC for misleading the court. The dismissal did not settle whether challenge-based prop firms fall under US commodities law.
- [Do US regulators oversee futures prop firms?](https://www.propexecutor.com/resources/faq/legal-and-compliance/do-us-regulators-oversee-futures-prop-firms): There is no specific US licence for challenge-based futures prop firms, and most operate as evaluation businesses. The CFTC oversees commodity futures and has shown willingness to act against firms it considers fraudulent, and the futures exchanges and data vendors set their own rules on data use. Take US counsel before serving US traders.
- [How is the FCA approaching prop firm marketing?](https://www.propexecutor.com/resources/faq/legal-and-compliance/how-is-the-fca-approaching-prop-firm-marketing): In the UK the FCA controls financial promotions and has acted against unauthorised promotion of financial products, including by social media influencers. Whether a prop firm's marketing is a financial promotion depends on what is offered. UK-facing firms should avoid earnings promises and have their marketing reviewed.
- [What disclosures should a prop firm make to traders?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-disclosures-should-a-prop-firm-make-to-traders): At minimum, disclose that accounts are simulated, every rule and how it is measured, how payouts are calculated and when they are paid, what disqualifies a payout, refund terms, KYC requirements, restricted countries, the company's legal name and address, and that trading results are not guaranteed.
- [What should a prop firm's terms and conditions include?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-should-a-prop-firms-terms-and-conditions-include): Terms should cover eligibility and restricted countries, what the fee buys, that accounts are simulated, all rules and prohibited strategies, payout conditions and KYC, refunds and chargebacks, the firm's right to review accounts, data use, intellectual property, limitation of liability, governing law and how disputes are handled.
- [Do I need a lawyer to start a prop firm?](https://www.propexecutor.com/resources/faq/legal-and-compliance/do-i-need-a-lawyer-to-start-a-prop-firm): You are not always required to use one, but it is strongly advisable. A lawyer who knows the prop industry can review your structure, terms, payout policy and marketing, and tell you which countries to avoid. The cost is usually small compared with a dispute, a frozen payment account or a regulator's enquiry.
- [What are the risks of operating a prop firm from an offshore jurisdiction?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-are-the-risks-of-operating-a-prop-firm-from-an-offshore-jurisdiction): Offshore companies can be cheaper to form and lightly regulated, but they can make banking and payment processing harder, reduce traders' trust, and do not remove obligations in the countries where your customers live. Some processors and banks are cautious with offshore entities.
- [Can a prop firm accept customers from the United States?](https://www.propexecutor.com/resources/faq/legal-and-compliance/can-a-prop-firm-accept-customers-from-the-united-states): Some prop firms do and many do not. Since 2024, MetaQuotes restricted MetaTrader access for prop firms with US clients, and several firms stopped accepting US traders as a result. US customers also bring US consumer, data and commodities law into play. Decide with legal advice and with your platform and payment providers.
- [Can a prop firm accept customers from every country?](https://www.propexecutor.com/resources/faq/legal-and-compliance/can-a-prop-firm-accept-customers-from-every-country): No. Most firms restrict countries under sanctions, countries where offering trading products to residents is prohibited or risky, and countries their payment providers cannot serve. The restricted list should be in your terms and enforced at checkout and KYC.
- [Which countries should a prop firm consider restricting?](https://www.propexecutor.com/resources/faq/legal-and-compliance/which-countries-should-a-prop-firm-consider-restricting): Start with countries under comprehensive sanctions by the UN, US, UK or EU, then add countries whose regulators prohibit residents from using offshore trading platforms, countries your payment provider excludes, and countries where your platform licence does not allow service. Many firms also restrict the United States.
- [What sanctions screening does a prop firm need?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-sanctions-screening-does-a-prop-firm-need): A prop firm should screen anyone it pays, and ideally anyone it sells to, against the main sanctions lists, including OFAC (US), OFSI (UK), the EU consolidated list and UN lists, and block sanctioned countries. Most KYC providers include sanctions screening, often with ongoing monitoring.
- [Do anti-money-laundering rules apply to prop firms?](https://www.propexecutor.com/resources/faq/legal-and-compliance/do-anti-money-laundering-rules-apply-to-prop-firms): Whether a prop firm is formally covered by anti-money-laundering law depends on its jurisdiction and activities, but in practice payment providers require AML-style controls: KYC before payouts, sanctions screening and monitoring for suspicious patterns. Payouts are the main money-laundering risk in the model.
- [What data protection rules apply to a prop firm's trader data?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-data-protection-rules-apply-to-a-prop-firms-trader-data): Data protection law depends on where you and your traders are. If you serve people in the EU or UK, GDPR or UK GDPR applies; many other countries have similar laws. They govern how you collect, store, share and delete personal data, including identity documents from KYC.
- [Does a prop firm need to comply with GDPR if it accepts European traders?](https://www.propexecutor.com/resources/faq/legal-and-compliance/does-a-prop-firm-need-to-comply-with-gdpr-if-it-accepts-european-traders): Usually yes. GDPR applies to businesses outside the EU when they offer goods or services to people in the EU, under its territorial scope rule. Selling evaluations to EU residents generally brings you within it, along with the UK's equivalent for UK residents. You may also need an EU representative.
- [How is a prop firm's revenue taxed?](https://www.propexecutor.com/resources/faq/legal-and-compliance/how-is-a-prop-firms-revenue-taxed): A prop firm's revenue is normally taxed as business income in the country where the company is resident, after deductible costs such as payouts, marketing and software. Sales taxes such as VAT may apply to digital services sold to consumers in some countries. Rules differ widely, so use a local accountant.
- [How are payouts to traders treated for tax?](https://www.propexecutor.com/resources/faq/legal-and-compliance/how-are-payouts-to-traders-treated-for-tax): For the firm, payouts are usually treated as a business expense, though the classification can vary. For traders, payouts are generally taxable income in their country of residence. Firms typically do not withhold tax for overseas traders, but rules differ, and some countries require reporting. Take local tax advice.
- [Should payouts be described as rewards, profit splits or performance fees?](https://www.propexecutor.com/resources/faq/legal-and-compliance/should-payouts-be-described-as-rewards-profit-splits-or-performance-fees): Many firms use "reward" or "profit split" because the trader is paid a share of simulated profits under the firm's terms rather than receiving investment returns. The right wording depends on your legal structure and should match your terms and tax treatment. Avoid wording that suggests the trader's own money was invested.
- [Which marketing claims can get a prop firm into regulatory trouble?](https://www.propexecutor.com/resources/faq/legal-and-compliance/which-marketing-claims-can-get-a-prop-firm-into-regulatory-trouble): Risky claims include guaranteed funding or income, unrealistic success rates, describing simulated accounts as real capital or "managing" funds, fake payout proof, undisclosed paid endorsements, and urgency tactics that mislead. Regulators and advertising authorities focus on whether a claim is true and how a typical customer would understand it.
- [Can a prop firm advertise "funding" when accounts are simulated?](https://www.propexecutor.com/resources/faq/legal-and-compliance/can-a-prop-firm-advertise-funding-when-accounts-are-simulated): Many firms use "funded account" as an industry term, but it can mislead if a customer believes real money is placed in the market. The safer approach is to define the term clearly: a simulated account on which the trader can earn payouts. Some regulators have focused on exactly this distinction.
- [What is a regulated prop firm structure, and when is it worth it?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-is-a-regulated-prop-firm-structure-and-when-is-it-worth-it): A regulated structure means operating under a financial licence, for example as an investment firm or alongside a licensed broker, often with real execution for funded traders. It brings credibility and access to some markets, but it is expensive, slow and comes with capital, reporting and compliance duties. It suits larger or broker-affiliated firms.
- [How do I keep a prop firm compliant as regulation changes?](https://www.propexecutor.com/resources/faq/legal-and-compliance/how-do-i-keep-a-prop-firm-compliant-as-regulation-changes): Assign someone to monitor regulators and industry news in your main markets, review terms and marketing at least twice a year, keep your restricted-country list current, document your rules and payout decisions, and keep a lawyer on call. Choose vendors that can adapt without long contracts.
- [Does a prop firm need a privacy policy and a refund policy?](https://www.propexecutor.com/resources/faq/legal-and-compliance/does-a-prop-firm-need-a-privacy-policy-and-a-refund-policy): Yes. A privacy policy is legally required in most countries where you collect personal data, and payment providers require both a privacy policy and a refund policy before approving a merchant. Clear policies also reduce chargebacks and support disputes.
- [What should a prop firm's risk disclosure say?](https://www.propexecutor.com/resources/faq/legal-and-compliance/what-should-a-prop-firms-risk-disclosure-say): A risk disclosure should explain that trading involves significant risk, that most traders do not pass evaluations, that accounts are simulated, that past or demonstrated results do not guarantee future results, and that the evaluation fee may be lost. It should be easy to find, not buried.

### [Trust and reputation](https://www.propexecutor.com/resources/faq/trust-and-reputation)

What makes traders trust a prop firm, why firms lose that trust, and how to build a reputation that lasts.

- [How do traders decide whether a prop firm is trustworthy?](https://www.propexecutor.com/resources/faq/trust-and-reputation/how-do-traders-decide-whether-a-prop-firm-is-trustworthy): Traders look at payout history and speed, reviews and community feedback, clear rules, company details, how long the firm has operated, the platform used, and how support handles disputes. A firm earns trust through consistent behaviour over time rather than through marketing claims.
- [What makes traders think a prop firm is a scam?](https://www.propexecutor.com/resources/faq/trust-and-reputation/what-makes-traders-think-a-prop-firm-is-a-scam): Warning signs for traders include delayed or denied payouts without clear evidence, rules changed after purchase, vague prohibited-strategy clauses, breaches they cannot verify, missing company details, unrealistic promises, and support that stops replying. Several of these together quickly earn a firm a public scam label.
- [How do I prove that my prop firm pays out?](https://www.propexecutor.com/resources/faq/trust-and-reputation/how-do-i-prove-that-my-prop-firm-pays-out): Publish verifiable payout evidence with traders' consent: payout certificates, anonymised transaction records, on-chain transaction links for crypto payouts, and video testimonials. Pay consistently and on schedule, and let traders talk publicly. Independent reviews from paid traders are the strongest proof.
- [Should a prop firm publish payout proofs?](https://www.propexecutor.com/resources/faq/trust-and-reputation/should-a-prop-firm-publish-payout-proofs): Yes, with traders' consent and protecting their personal data. Payout proofs reassure new buyers, but they must be real and representative. Show a range of payouts, not only the largest, and avoid implying that typical traders earn those amounts.
- [How transparent should a prop firm be about its rules?](https://www.propexecutor.com/resources/faq/trust-and-reputation/how-transparent-should-a-prop-firm-be-about-its-rules): Fully. Publish every rule with its exact calculation, reset time and consequence, plus prohibited strategies with examples and payout conditions. Transparency reduces disputes, support load and chargebacks, and it is one of the main reasons traders choose one firm over another.
- [Why have some prop firms shut down suddenly?](https://www.propexecutor.com/resources/faq/trust-and-reputation/why-have-some-prop-firms-shut-down-suddenly): Sudden closures have followed loss of platform access (such as the 2024 MetaQuotes restrictions), regulatory action (such as the 2023 CFTC case against My Forex Funds, later dismissed), payment processor problems, and payouts exceeding revenue. Firms dependent on one supplier or with thin reserves are most exposed.
- [How do I make a prop firm last beyond its first year?](https://www.propexecutor.com/resources/faq/trust-and-reputation/how-do-i-make-a-prop-firm-last-beyond-its-first-year): Firms that last keep fixed costs low until revenue is proven, price challenges on cautious payout assumptions, hold a reserve, pay on time, keep rules stable and precise, diversify payment providers, control their platform relationship and invest steadily in community and support.
- [Which red flags do traders look for in a new prop firm?](https://www.propexecutor.com/resources/faq/trust-and-reputation/which-red-flags-do-traders-look-for-in-a-new-prop-firm): Traders worry about firms with no company details, unclear or changing rules, unusually generous offers, no payout history, anonymous founders, no clear platform information, aggressive discounting and slow support. A new firm cannot fix its lack of history quickly, so it must be strong on everything else.
- [How should a prop firm respond to negative reviews?](https://www.propexecutor.com/resources/faq/trust-and-reputation/how-should-a-prop-firm-respond-to-negative-reviews): Respond quickly, politely and factually, acknowledge the problem, explain what happened without sharing private data, offer a resolution where appropriate, and move detailed discussion to private support. Readers judge the response as much as the complaint. Never threaten reviewers.
- [Why do traders prefer firms that use well-known platforms?](https://www.propexecutor.com/resources/faq/trust-and-reputation/why-do-traders-prefer-firms-that-use-well-known-platforms): A known platform signals reliability and fair execution, removes the learning curve, and suggests the firm is not controlling prices itself. However, the 2024 MetaTrader restrictions showed that a well-known name does not guarantee access. Traders ultimately care about stable execution, clear rules and payouts.
- [How does a branded trading terminal affect trader trust?](https://www.propexecutor.com/resources/faq/trust-and-reputation/how-does-a-branded-trading-terminal-affect-trader-trust): A branded terminal makes the firm look established and in control of its product, and it keeps the trader's experience consistent from website to trading. Traders associate the firm with the tool they use every day. A terminal carrying another company's brand can make a firm look like a reseller.
- [Should a prop firm publish its legal company name and address?](https://www.propexecutor.com/resources/faq/trust-and-reputation/should-a-prop-firm-publish-its-legal-company-name-and-address): Yes. Publishing the legal entity name, registration number and address is expected by traders, required by many consumer laws for online sellers, and requested by payment providers. Anonymous firms are viewed with suspicion and struggle with banks and processors.

### [Marketing and growth](https://www.propexecutor.com/resources/faq/marketing-and-growth)

Finding your first traders, affiliates and influencers, SEO and community, promotions that do not destroy margins, and measuring what works.

- [How do prop firms get their first customers?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-prop-firms-get-their-first-customers): Most first customers come from an existing audience: a trading community, a Discord or Telegram group, an educator's students, or partners and affiliates who already reach traders. Launch offers, a free trial and clear, fair rules help convert them. Paid advertising usually comes later, once conversion is measured.
- [Which marketing channels work for a new prop firm?](https://www.propexecutor.com/resources/faq/marketing-and-growth/which-marketing-channels-work-for-a-new-prop-firm): Channels that commonly work are affiliates and trading influencers, community platforms such as Discord and Telegram, YouTube, search content, trading competitions and comparison sites. Paid social and search ads can work where policies allow, but often restrict trading-related promotions. Test a few channels and measure cost per sale.
- [How do affiliate programmes work for prop firms?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-affiliate-programmes-work-for-prop-firms): Affiliates promote your challenges with tracking links or discount codes and earn a commission on sales they generate, usually a percentage of the sale price. You need tracking software, clear terms, marketing guidelines, a payment schedule for commissions, and fraud checks such as self-referral detection.
- [What commission should a prop firm pay affiliates?](https://www.propexecutor.com/resources/faq/marketing-and-growth/what-commission-should-a-prop-firm-pay-affiliates): Affiliate commissions in the prop industry are usually a percentage of each sale, often somewhere in the 10% to 20% range, with higher tiers for top partners. Set yours from your own contribution per sale after expected payouts, payment fees and platform cost, not from what competitors advertise.
- [Should a prop firm work with trading influencers?](https://www.propexecutor.com/resources/faq/marketing-and-growth/should-a-prop-firm-work-with-trading-influencers): Influencers can drive large volumes quickly because their audiences trust them, but they carry risk: exaggerated claims, undisclosed promotion and audiences that churn. Work with influencers who trade, give them approved wording, require paid-promotion disclosures, and pay on performance where possible.
- [How do I market a prop firm on YouTube?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-market-a-prop-firm-on-youtube): YouTube works through creator partnerships, educational content and transparent walkthroughs: challenge attempts on your platform, explanations of your rules, payout proof with consent, and trading education. Long videos build trust, Shorts build reach. Disclose sponsorships and avoid income claims.
- [How do I market a prop firm on Instagram and TikTok?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-market-a-prop-firm-on-instagram-and-tiktok): Short-form video works for awareness: quick rule explanations, behind-the-scenes, trading tips, and payout moments with consent. Platform ad policies often restrict financial and trading promotions, so organic content and creator partnerships usually matter more than ads. Keep claims accurate and disclose partnerships.
- [Can prop firms advertise on Google and Meta?](https://www.propexecutor.com/resources/faq/marketing-and-growth/can-prop-firms-advertise-on-google-and-meta): Sometimes, with restrictions. Both Google and Meta have policies for financial products and services, and trading-related ads may need certification, may be limited by country, or may be rejected. Many prop firms rely more on organic channels, affiliates and creators. Check current ad policies for each country before spending.
- [How do I build a Discord community for a prop firm?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-build-a-discord-community-for-a-prop-firm): Create a server with clear channels for announcements, rules, support, trading discussion and payout celebrations, moderate it actively, and add value through education, live sessions and competitions. A community lowers acquisition cost and improves retention, but it needs consistent moderation and honest communication.
- [How can SEO grow a prop firm?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-can-seo-grow-a-prop-firm): SEO brings traders who are already searching for prop firms, rules or trading questions. Target searches such as your brand, "best prop firm for" specific styles, rule explanations and comparisons, with clear, accurate pages that answer them. It is slow to start but compounds, lowering acquisition cost over time.
- [How do I get listed on prop firm comparison sites?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-get-listed-on-prop-firm-comparison-sites): Comparison and review sites list firms that have a track record, clear rules and some way to verify payouts. Contact them with your rules, pricing, platform and payout evidence, and expect some to charge for listings or work on affiliate terms. Accurate information and real reviews matter more than paid placement.
- [How do I collect Trustpilot reviews legitimately?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-collect-trustpilot-reviews-legitimately): Invite every customer to review after a meaningful moment, such as a payout or a support resolution, using the platform's own invitation tools, without filtering for happy customers, offering incentives or writing reviews yourself. Respond to every negative review professionally. Fake or incentivised reviews breach platform rules and consumer law.
- [Which discount strategy works for a prop firm launch?](https://www.propexecutor.com/resources/faq/marketing-and-growth/which-discount-strategy-works-for-a-prop-firm-launch): Launch discounts work best when time-limited, clearly ended and aimed at first purchases or resets, not stacked with affiliate codes and add-ons. Model every discount against expected payouts, because the payout liability of a discounted account is the same as a full-price one.
- [How do I run a launch promotion without hurting margins?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-run-a-launch-promotion-without-hurting-margins): Discount where the payout risk is low: resets, smaller account sizes, or bundles of evaluations. Keep the promotion short, cap it, exclude add-ons, pay affiliates on the discounted price, and check that each promoted sale still has positive contribution after expected payouts.
- [What makes a prop firm website convert?](https://www.propexecutor.com/resources/faq/marketing-and-growth/what-makes-a-prop-firm-website-convert): Clear prices and rules on the first screens, trust signals (company details, payout proof, reviews, platform screenshots), a simple checkout with familiar payment methods, an FAQ that answers payout and rule questions, and fast pages on mobile. Visitors buy when they understand exactly what they get and believe they will be paid.
- [How do I keep traders after they fail a challenge?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-keep-traders-after-they-fail-a-challenge): Offer a discounted reset at the moment of breach, explain clearly why the account ended so the trader feels treated fairly, share education relevant to the rule they broke, and stay in contact with useful content. Most repeat purchases come from traders who failed but trusted the process.
- [How should a prop firm use email marketing?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-should-a-prop-firm-use-email-marketing): Use email for onboarding (credentials, rules, dashboard), milestones (pass, payout), retention (reset offers, education) and announcements (rule changes, new products). Segment by stage, send only what is relevant, include unsubscribe options for marketing, and keep transactional emails separate from promotions.
- [How do I measure marketing performance for a prop firm?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-do-i-measure-marketing-performance-for-a-prop-firm): Track cost per sale by channel, conversion rate from visit to purchase, average order value, refund and chargeback rates by channel, repeat purchase rate, and the payout ratio of traders from each channel. Some channels bring buyers who cost more in payouts or refunds than they bring in.
- [What should a prop firm's landing page include?](https://www.propexecutor.com/resources/faq/marketing-and-growth/what-should-a-prop-firms-landing-page-include): A headline stating the offer, account sizes and prices, the key rules with numbers, payout terms, the platform traders will use, proof such as payouts and reviews, company details, an FAQ and a clear call to action. Keep it fast and readable on mobile, where much of the traffic arrives.
- [How does a new prop firm compete with large established firms?](https://www.propexecutor.com/resources/faq/marketing-and-growth/how-does-a-new-prop-firm-compete-with-large-established-firms): Compete on a specific audience, a better experience or fairer terms rather than on size: a region and language, a trading style, a price point, faster payouts, transparent rules or better support. Large firms are slower to change; a focused new firm can serve a niche they ignore.

## Technology and platforms

### [Technology and trading platforms](https://www.propexecutor.com/resources/faq/technology-and-platforms)

The software a prop firm runs on: terminals, rule engines, dashboards, price feeds and the questions to ask a technology provider.

- [What technology does a prop firm need?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-technology-does-a-prop-firm-need): A prop firm needs a trading terminal for traders, a back office to create and manage accounts, a rule engine that enforces limits in real time, a price feed, a trader dashboard, a website with checkout, a payment provider, KYC for payouts and a support tool. Most firms license the trading parts rather than build them.
- [What is the core software stack of a prop firm?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-the-core-software-stack-of-a-prop-firm): The core stack is a trading platform with simulated execution, a rule and risk engine, an account administration panel, a trader dashboard, a website with checkout, payment and payout providers, KYC, and support tools, connected by APIs and webhooks. The trading platform is the hardest part to build.
- [What does "trading platform" mean for a prop firm?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-does-trading-platform-mean-for-a-prop-firm): For a prop firm, the trading platform is the software traders use to trade and the server side behind it: the terminal with charts and an order ticket, the execution engine that fills orders against market prices, and account management. In most prop firms the execution is simulated rather than sent to a market.
- [What is a prop firm dashboard?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-prop-firm-dashboard): A prop firm dashboard shows a trader their account's progress against the challenge rules: balance, equity, profit target progress, daily and maximum loss headroom, trading days and statistics. Some firms build a separate web portal for it; some platforms include it in the terminal.
- [What is a prop firm CRM, and do I need one?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-prop-firm-crm-and-do-i-need-one): A prop firm CRM manages traders as customers: purchases, KYC status, account history, payout requests, support and affiliate attribution. It becomes valuable as volume grows. At launch, a help desk plus your platform's trader records and a spreadsheet can be enough.
- [What is a risk engine in a prop firm?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-risk-engine-in-a-prop-firm): A risk engine is the software that evaluates each account against its rules: it calculates equity and loss levels as prices move, ends accounts that breach, refuses orders that break limits, and flags behaviour for review. In a prop firm it decides pass or fail, so its accuracy and timing are central.
- [How do MT5, cTrader, Match-Trader, DXtrade and TradeLocker differ for prop firms?](https://www.propexecutor.com/resources/faq/technology-and-platforms/how-do-mt5-ctrader-match-trader-dxtrade-and-tradelocker-differ-for-prop-firms): MetaTrader 5, cTrader, Match-Trader, DXtrade and TradeLocker are established trading platforms used by prop firms, sold through licences or white labels, with different prop features, price models and access rules. MetaTrader access for prop firms has been restricted since 2024. Most of them do not publish prices.
- [Why did MetaQuotes restrict MetaTrader access for prop firms?](https://www.propexecutor.com/resources/faq/technology-and-platforms/why-did-metaquotes-restrict-metatrader-access-for-prop-firms): In early 2024 MetaQuotes acted against prop firms using its platforms, reportedly over regulatory concerns about US clients. Brokers that had shared MetaTrader licences with prop firms were made to stop, and several firms halted trading or moved to other platforms. MetaQuotes did not publish a detailed public explanation.
- [Can a new prop firm still get MetaTrader 5?](https://www.propexecutor.com/resources/faq/technology-and-platforms/can-a-new-prop-firm-still-get-metatrader-5): Possibly, but access for prop firms has been tightly controlled since 2024 and typically requires a direct arrangement with MetaQuotes or a broker licensed to provide it for prop use, with restrictions on serving US clients. Ask the provider directly, in writing, whether prop evaluation use is permitted.
- [What is a grey label, and why is it risky for a prop firm?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-grey-label-and-why-is-it-risky-for-a-prop-firm): A grey label is when a company uses a trading platform under another company's licence, typically a broker sharing its MetaTrader server with a prop firm, rather than holding its own white label. It is cheaper and faster, but the prop firm depends entirely on the licence holder, who can withdraw access at any time.
- [What is a trading bridge?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-trading-bridge): A trading bridge connects a trading platform to liquidity providers, routing orders from the platform to external markets and returning fills. Brokers use bridges for A-book execution. A simulation-only prop firm does not need one, because orders are filled internally against market prices rather than routed.
- [Does a prop firm need a liquidity provider?](https://www.propexecutor.com/resources/faq/technology-and-platforms/does-a-prop-firm-need-a-liquidity-provider): Not for simulated accounts. A liquidity provider supplies real prices and executes real trades, which a simulation-only prop firm does not need. You do need a reliable live price feed. A liquidity provider becomes relevant if you decide to copy successful traders into real markets.
- [Does a prop firm need a broker?](https://www.propexecutor.com/resources/faq/technology-and-platforms/does-a-prop-firm-need-a-broker): Not necessarily. Many prop firms run entirely on simulated accounts and need only a trading platform with a live price feed. Some firms partner with a broker to obtain a platform licence, or to place real trades for selected funded traders. A broker is a choice, not a requirement of the evaluation model.
- [What is a demo server, and can a prop firm run on one?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-demo-server-and-can-a-prop-firm-run-on-one): A demo server is a trading platform server set up for practice accounts with virtual money. Some early prop firms ran challenges on brokers' demo servers. It works technically, but demo servers often lack prop rule enforcement and dashboards, and access depends on the broker's terms.
- [How is a simulated fill different from a real fill?](https://www.propexecutor.com/resources/faq/technology-and-platforms/how-is-a-simulated-fill-different-from-a-real-fill): A real fill comes from a market or liquidity provider and depends on available volume, so large orders can move price or partially fill. A simulated fill is calculated by software from the current quoted price, usually at the bid or ask. Good simulators use live prices and real spreads so results stay realistic.
- [How should a prop firm simulate spreads and slippage?](https://www.propexecutor.com/resources/faq/technology-and-platforms/how-should-a-prop-firm-simulate-spreads-and-slippage): Use the live bid and ask from a reliable feed, so the spread is the market's own spread, and avoid adding a markup. Model slippage conservatively or not at all, and apply the same logic to every trader. Inflated spreads or artificial slippage make challenges harder in ways traders notice and resent.
- [Which price feed should a prop firm use?](https://www.propexecutor.com/resources/faq/technology-and-platforms/which-price-feed-should-a-prop-firm-use): Use a feed from an established source with continuous coverage of your instruments, realistic spreads and good uptime, for example a major platform's feed, a broker or a market data vendor. Check symbol coverage, trading hours, history for charts, and whether the feed's licence permits prop use.
- [Should I build my own prop firm software?](https://www.propexecutor.com/resources/faq/technology-and-platforms/should-i-build-my-own-prop-firm-software): Usually not at launch. Building a terminal, execution simulator, rule engine, admin panel and dashboard takes a skilled team months and ongoing maintenance, and correctness problems become payout disputes. Buy the trading core, build what differentiates you (website, community, CRM), and revisit building once you have scale.
- [How long does it take to build prop firm software in-house?](https://www.propexecutor.com/resources/faq/technology-and-platforms/how-long-does-it-take-to-build-prop-firm-software-in-house): Building a production-quality prop trading platform in-house typically takes an experienced team many months, and ongoing work never stops. A minimal version can be faster, but the risk is in correctness and reliability, which appear only under real traders and fast markets.
- [What uptime should a prop firm platform deliver?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-uptime-should-a-prop-firm-platform-deliver): Aim for a platform that is available whenever your markets are open, with monitoring, alerting and a plan for outages. Downtime during market hours prevents traders from managing positions and creates disputes. Ask providers about their architecture, monitoring and incident history rather than relying on a headline percentage.
- [What happens to traders if the platform goes down?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-happens-to-traders-if-the-platform-goes-down): During an outage, traders cannot open, modify or close positions, and their risk is frozen in place while the market moves. A good firm communicates quickly, reviews affected accounts, and reinstates or compensates traders whose accounts were harmed by the outage rather than by their own trading.
- [Do prop firm traders need a mobile app?](https://www.propexecutor.com/resources/faq/technology-and-platforms/do-prop-firm-traders-need-a-mobile-app): Many traders want to check positions and close trades from a phone, so mobile access matters. A responsive web terminal covers much of this; a native app is better for frequent mobile users and notifications. Most firms find a good browser terminal plus at least one mobile app sufficient.
- [Do traders expect TradingView-style charts?](https://www.propexecutor.com/resources/faq/technology-and-platforms/do-traders-expect-tradingview-style-charts): Most traders are used to TradingView-style charts: candlesticks, multiple timeframes, smooth scrolling and drawing tools. A prop terminal should offer fast candlestick charts with common timeframes and enough history. Advanced drawing and indicators matter more to some traders than others.
- [Can traders use expert advisors or bots on a prop firm platform?](https://www.propexecutor.com/resources/faq/technology-and-platforms/can-traders-use-expert-advisors-or-bots-on-a-prop-firm-platform): It depends on the platform and the firm's rules. MetaTrader supports expert advisors natively; many other platforms do not, or offer API trading instead. Firms that allow automation usually prohibit specific strategies such as latency arbitrage or high-frequency scalping, and some ban third-party bots entirely.
- [Which integrations does a prop firm website need?](https://www.propexecutor.com/resources/faq/technology-and-platforms/which-integrations-does-a-prop-firm-website-need): A prop firm website typically integrates a payment processor, a way to create or assign trading accounts and send credentials, email for receipts and onboarding, analytics, a help desk or chat, KYC at payout time, and affiliate tracking. The account creation link is the integration most worth automating.
- [How does a prop firm connect checkout to account creation?](https://www.propexecutor.com/resources/faq/technology-and-platforms/how-does-a-prop-firm-connect-checkout-to-account-creation): Usually through a webhook: when the payment provider confirms a sale, it notifies your server, which calls the trading platform's API to create or assign an account and then emails the login details. Without an API, someone does this manually from the admin panel.
- [How do I migrate traders from one platform to another?](https://www.propexecutor.com/resources/faq/technology-and-platforms/how-do-i-migrate-traders-from-one-platform-to-another): Plan the migration around active accounts: let traders finish evaluations on the old platform or move them with their current balance and remaining limits, recreate account types and rules on the new platform, send new credentials, and communicate dates clearly. Move new sales to the new platform first.
- [What should I ask a prop firm technology provider before signing?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-should-i-ask-a-prop-firm-technology-provider-before-signing): Ask about total cost at your volume (setup, monthly, per account, revenue share), contract length, which rules are supported and how each is calculated, how fast breaches are detected, what traders see, branding limits, API access, data ownership and export, uptime history, support, and what happens if the provider stops serving you.
- [What is a reasonable contract length with a platform provider?](https://www.propexecutor.com/resources/faq/technology-and-platforms/what-is-a-reasonable-contract-length-with-a-platform-provider): For a new firm, shorter is safer: month-to-month or a one-time purchase without a term, rather than multi-year commitments. Longer contracts can bring discounts but lock you in before you know your volumes. Read notice periods and what happens to your data at exit.
- [Who owns trader data when I use a white-label provider?](https://www.propexecutor.com/resources/faq/technology-and-platforms/who-owns-trader-data-when-i-use-a-white-label-provider): Typically the firm owns its customer data and the provider processes it on the firm's behalf, but this depends on the contract. Check data ownership, export rights, how long data is kept after you leave, and whether the provider can use your data for its own purposes such as marketing to your traders.

### [White-label prop firm solutions](https://www.propexecutor.com/resources/faq/white-label)

What white-label prop firm platforms include, what they cost, what you can brand, and how to avoid lock-in.

- [What is a white-label prop firm?](https://www.propexecutor.com/resources/faq/white-label/what-is-a-white-label-prop-firm): A white-label prop firm runs on technology licensed from a provider but presented under the firm's own brand. The provider supplies the trading terminal, account management and usually the rule engine; the firm supplies the brand, rules, pricing, marketing and customer relationship.
- [How does a white-label prop firm solution work?](https://www.propexecutor.com/resources/faq/white-label/how-does-a-white-label-prop-firm-solution-work): You license the provider's platform, configure your brand, account sizes and rules in an admin panel, and connect your website so purchases lead to accounts. Traders log in to a terminal showing your brand, while the provider runs the servers, price feed and execution in the background.
- [What is included in a white-label prop firm package?](https://www.propexecutor.com/resources/faq/white-label/what-is-included-in-a-white-label-prop-firm-package): Packages usually include a branded trading terminal, simulated execution against live prices, account administration, a rule engine and often a trader dashboard. Turnkey packages may add a trader CRM, checkout, KYC and payouts. Check exactly which parts are included, because two "white label" offers can differ greatly.
- [White label or in-house build: which is better for a new prop firm?](https://www.propexecutor.com/resources/faq/white-label/white-label-or-in-house-build-which-is-better-for-a-new-prop-firm): For a new firm, white label is almost always better: it is faster, far cheaper and avoids correctness problems in rule enforcement. Building in-house makes sense later, with scale, a technical team and a clear reason, such as features no provider offers.
- [What is the difference between a white-label and a turnkey prop firm?](https://www.propexecutor.com/resources/faq/white-label/what-is-the-difference-between-a-white-label-and-a-turnkey-prop-firm): A white label provides the branded trading technology; a turnkey solution provides the whole business stack, usually including the website, CRM, checkout, KYC and payouts, so the firm mainly adds marketing. Turnkey costs more and gives less control; white label gives more flexibility but needs more assembly.
- [Can I put my own brand on a white-label trading platform?](https://www.propexecutor.com/resources/faq/white-label/can-i-put-my-own-brand-on-a-white-label-trading-platform): Yes, that is the point of white label, but the depth varies. Some providers allow only a logo; others let you change colours, the login screen, favicon, support links and remove the provider's own badge. Check what is available on the plan you can afford, not on the top tier.
- [How long does a white-label prop firm take to launch?](https://www.propexecutor.com/resources/faq/white-label/how-long-does-a-white-label-prop-firm-take-to-launch): Technical setup ranges from the same day on self-serve platforms to several weeks where the provider runs onboarding calls and configuration. Your overall launch time is usually set by company formation, payment approval and the website rather than by the white label itself.
- [What should a white-label contract include?](https://www.propexecutor.com/resources/faq/white-label/what-should-a-white-label-contract-include): A white-label contract should cover price and how it can change, term and notice, service levels and support, which features are included, branding rights, data ownership and export, confidentiality, non-solicitation of your traders, liability, and what happens to live accounts if the contract ends.
- [What are the risks of depending on one white-label provider?](https://www.propexecutor.com/resources/faq/white-label/what-are-the-risks-of-depending-on-one-white-label-provider): The main risks are losing access if the provider changes policy or stops serving you, price increases, outages you cannot control, features you need but cannot get, and difficulty migrating active traders. Reduce them with clear contracts, data export, an API, and a migration plan.
- [Can I change white-label providers without losing my traders?](https://www.propexecutor.com/resources/faq/white-label/can-i-change-white-label-providers-without-losing-my-traders): Yes, if you plan it. Move new sales to the new platform first, let active traders finish on the old one or migrate them with their current balances, and keep your trader records and KYC in your own systems. Traders stay with you because they bought from your brand, not the provider's.
- [How customisable is a white-label prop firm platform?](https://www.propexecutor.com/resources/faq/white-label/how-customisable-is-a-white-label-prop-firm-platform): Customisation usually covers branding, account types, starting balances, leverage, instruments and rules, plus integrations through an API. Deeper changes to the terminal's layout or features are rarely available unless you pay for custom development. Check the rule catalogue and API most carefully, since those shape your product.
- [Do white-label providers take a share of revenue?](https://www.propexecutor.com/resources/faq/white-label/do-white-label-providers-take-a-share-of-revenue): Some do. Revenue shares appear as a percentage of gross sales or of net profit, sometimes alongside a setup fee. Others charge flat monthly fees, per-account fees or a one-time price. A revenue share grows as you grow, so calculate it at your target revenue, not your launch revenue.
- [What are setup fees in white-label prop firm deals?](https://www.propexecutor.com/resources/faq/white-label/what-are-setup-fees-in-white-label-prop-firm-deals): Setup fees are one-time charges for onboarding, configuration and branding, ranging from zero to thousands of dollars. Published examples include $1,500 to $6,000 at FXPropTech and $3,000 at PropAccount (checked October 2026). Some providers, such as PropExecutor, charge no setup fee.
- [Do white-label providers set my challenge rules?](https://www.propexecutor.com/resources/faq/white-label/do-white-label-providers-set-my-challenge-rules): No, you set your rules, but the provider determines which rules are possible and how they are calculated. If a rule you want is missing, or is calculated differently from how you describe it, you inherit that limitation. Review the rule catalogue and calculations before signing.
- [Can I use my own domain with a white-label platform?](https://www.propexecutor.com/resources/faq/white-label/can-i-use-my-own-domain-with-a-white-label-platform): Many providers offer a custom domain, sometimes only on higher tiers or for a fee. With PropExecutor, traders use the terminal with your firm's branding, and running it on your own domain is set up with the PropExecutor team. The login still needs your firm's server name.
- [What branding do traders see on a white-label terminal?](https://www.propexecutor.com/resources/faq/white-label/what-branding-do-traders-see-on-a-white-label-terminal): Traders typically see the firm's name, logo, colours and login screen, and sometimes the provider's name in a small badge or footer. The depth depends on the plan. Well-branded terminals feel like the firm's own product, which helps trust and retention.
- [Is a white-label platform suitable for a firm with fewer than 100 traders?](https://www.propexecutor.com/resources/faq/white-label/is-a-white-label-platform-suitable-for-a-firm-with-fewer-than-100-traders): Yes, if its pricing suits small volume. Monthly-licensed platforms can cost more per trader than a small firm earns, while per-account or one-time pricing scales down well. Check minimum terms and whether small plans still include the rules and branding you need.

### [Market data and simulated execution](https://www.propexecutor.com/resources/faq/market-data-and-execution)

Price feeds, spreads, fills, pending orders, stops, margin, lots and pips: how simulated trading works and what traders expect from it.

- [Where do prop firms get their price data?](https://www.propexecutor.com/resources/faq/market-data-and-execution/where-do-prop-firms-get-their-price-data): Prop firms get prices from their trading platform's feed, a broker or liquidity provider, or a market data vendor. For forex and CFDs the feed usually comes bundled with the platform. Futures firms license data from exchanges. The feed determines the spreads traders see and how realistic their fills are.
- [What is a live price feed?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-a-live-price-feed): A live price feed is a continuous stream of current bid and ask prices for each instrument, updated every time the market quotes a new price (a tick). Trading platforms use it to display prices, fill orders, trigger stops and calculate equity. In a prop firm it also drives the rule engine.
- [What is the cTrader Open API?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-the-ctrader-open-api): The cTrader Open API is the programming interface Spotware provides for cTrader, letting applications connect to a cTrader account to receive live prices, symbol details and history, and to trade. Third-party platforms can use it as a source of market data under Spotware's terms and the connected broker's.
- [Do traders in a simulated account see real market prices?](https://www.propexecutor.com/resources/faq/market-data-and-execution/do-traders-in-a-simulated-account-see-real-market-prices): In a well-built simulator, yes: the account shows live bid and ask prices from a real market feed, and orders fill at those prices. What is simulated is the execution and the money, not the prices. Some setups add markups or delays, which makes the experience less realistic.
- [What is the bid/ask spread, and how does it affect traders?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-the-bid-ask-spread-and-how-does-it-affect-traders): The bid is the price you can sell at and the ask is the price you can buy at; the spread is the difference. Every trade starts slightly negative by the spread, so wider spreads make every trade more expensive and loss limits closer. Traders compare spreads between firms carefully.
- [What is slippage in a simulated account?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-slippage-in-a-simulated-account): Slippage is the difference between the price a trader expected and the price they got. In real markets it happens when prices move or liquidity is thin between sending and filling an order. Simulators may model it or may fill at the current quoted price. Firms should state which approach they use.
- [How are pending orders triggered in a simulated environment?](https://www.propexecutor.com/resources/faq/market-data-and-execution/how-are-pending-orders-triggered-in-a-simulated-environment): Pending orders, such as buy limit, sell limit, buy stop and sell stop, wait at a set price and are converted into positions when the market reaches that level. In a simulator, each new price tick is checked against every resting order, and orders whose level is reached are filled at the live price.
- [How are stop loss and take profit executed in a simulator?](https://www.propexecutor.com/resources/faq/market-data-and-execution/how-are-stop-loss-and-take-profit-executed-in-a-simulator): A stop loss closes a position when the price moves against it to a set level; a take profit closes it when the price reaches a target in its favour. A simulator checks each new tick against these levels, using the bid for long positions and the ask for short positions, and closes the position at the live price.
- [What happens to open positions over the weekend?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-happens-to-open-positions-over-the-weekend): Most forex, metals and index markets close on Friday evening and reopen on Sunday evening (UTC). Open positions stay open, and their value does not change while prices are frozen. When markets reopen, prices can gap, which can trigger stops at worse levels and move equity sharply. Crypto usually trades through the weekend.
- [How is floating profit and loss calculated?](https://www.propexecutor.com/resources/faq/market-data-and-execution/how-is-floating-profit-and-loss-calculated): Floating, or unrealised, profit and loss is what an open position would make or lose if closed now. It equals the price difference between entry and the current closing price, multiplied by the position size and contract size, then converted into the account currency. Equity is balance plus floating profit and loss.
- [What is the difference between equity and balance?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-the-difference-between-equity-and-balance): Balance is the account value from closed trades only. Equity is balance plus the floating profit or loss of open positions, so it shows what the account would be worth if everything were closed now. Most prop firm loss limits are measured on equity, because it reflects risk that is already on the table.
- [What are margin and free margin?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-are-margin-and-free-margin): Margin is the amount of account equity set aside to hold open positions, based on their size and the account's leverage. Free margin is equity minus the margin in use: what remains available for new positions. If an order would need more margin than is free, it should be refused.
- [What is a margin call on a prop account?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-a-margin-call-on-a-prop-account): A margin call is the warning, and sometimes automatic action, when an account's equity is no longer enough to support its open positions. In prop accounts, margin calls are rare in practice, because loss limits such as the daily and maximum loss breach the account long before margin is exhausted.
- [What is a lot, and how is lot size calculated?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-a-lot-and-how-is-lot-size-calculated): A lot is a standard unit of trade size. In forex, one standard lot is 100,000 units of the base currency, a mini lot is 10,000 and a micro lot 1,000 (0.01 lots). Other instruments define a lot differently: one lot of gold is usually 100 ounces. Position value depends on the instrument's contract size.
- [What is a pip, and how is pip value calculated?](https://www.propexecutor.com/resources/faq/market-data-and-execution/what-is-a-pip-and-how-is-pip-value-calculated): A pip is the standard small price increment in forex: 0.0001 for most currency pairs and 0.01 for pairs quoted in Japanese yen. Pip value is how much money one pip is worth for a given position size. For a standard lot on a pair quoted in US dollars, one pip is worth $10.
- [How do contract sizes differ for gold, indices and crypto?](https://www.propexecutor.com/resources/faq/market-data-and-execution/how-do-contract-sizes-differ-for-gold-indices-and-crypto): Contract sizes vary by instrument: one lot of gold is commonly 100 ounces, so a $1 move is worth $100 per lot; index CFDs are often priced per point per contract; and crypto lots are often one coin. Traders must know each size to calculate risk correctly, especially when moving from forex.
- [How does leverage affect required margin?](https://www.propexecutor.com/resources/faq/market-data-and-execution/how-does-leverage-affect-required-margin): Higher leverage lowers the margin needed to open a position: at 1:100, a $100,000 position needs $1,000 of margin; at 1:30 it needs about $3,333. Leverage does not change profit or loss per pip, but it lets traders open larger positions relative to their equity, which increases risk.

### [Comparisons and switching](https://www.propexecutor.com/resources/faq/comparisons)

How PropExecutor compares with Match-Trader, cTrader, MetaTrader 5, TradeLocker, DXtrade and full-service prop vendors, with every competitor fact taken from the vendor's own published page.

- [How does PropExecutor compare with Match-Trader?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-match-trader): Match-Trader is a full trading platform with a turnkey prop package, published from $2,500 a month for its basic white label and $4,000 a month for the turnkey option with a prop CRM. PropExecutor is a one-time purchase from $129 focused on the terminal, rule engine, dashboard and API, without a CRM, checkout or payments.
- [How does PropExecutor compare with cTrader for prop firms?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-ctrader-for-prop-firms): cTrader, from Spotware, offers prop firms a full trading platform with native iOS and Android apps, a back office and risk features, and lists prop challenges on ctrader.com; it does not publish prices. PropExecutor publishes one-time prices from $129 and is built only for simulated prop evaluation, with its own terminal and rule engine.
- [How does PropExecutor compare with MetaTrader 5?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-metatrader-5): MetaTrader 5 is the most familiar trading platform to retail traders, licensed to brokers; MetaQuotes restricted prop firm use in 2024, and its broker licensing page does not mention prop firms or publish prices. PropExecutor is a prop-specific platform with its own terminal, published one-time pricing and a built-in rule engine.
- [How does PropExecutor compare with TradeLocker?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-tradelocker): TradeLocker offers a white-label trading platform for brokers and prop firms with a back office and 24/7 technical support, and does not publish prices. PropExecutor offers a branded terminal with a built-in prop rule engine and dashboard, sold as a published one-time payment from $129.
- [How does PropExecutor compare with DXtrade?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-dxtrade): DXtrade, from Devexperts, is a white-label trading platform with integrations for CRM, market data and liquidity providers; Devexperts' own blog cited a basic package at $5,000 without saying whether it is one-time or recurring. PropExecutor is a prop-specific platform at a published one-time price from $129.
- [How does PropExecutor compare with PropAccount?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-propaccount): PropAccount, per its own pricing page, charges a $3,000 setup fee plus 30% of gross sales on one plan or 50% of net revenue on others, and includes platform setup on MT5, cTrader or DXtrade, a risk engine, CRM, trader dashboard, payments and KYC integration. PropExecutor charges a one-time plan price with no revenue share.
- [How does PropExecutor compare with FPFX Tech?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-fpfx-tech): FPFX Tech offers a Prop Trading Tech Kit with e-commerce, account monitoring, trader dashboards, risk management, contests, payment, KYC and AML integrations across MT4, MT5, cTrader, DXtrade, TradeLocker, Rithmic and Match-Trader; it does not publish prices. PropExecutor is a narrower product at a published one-time price.
- [How does PropExecutor compare with YourPropFirm?](https://www.propexecutor.com/resources/faq/comparisons/how-does-propexecutor-compare-with-yourpropfirm): YourPropFirm, per its own page, offers an admin and CRM, a risk and rule engine, a white-label trader portal with challenges and payouts, KYC and sanctions screening, and many payment providers, integrating with MT4, MT5, cTrader, DXtrade and Match-Trader, with enterprise pricing not published. PropExecutor is a one-time, trading-focused platform.
- [What is the cheapest prop firm software?](https://www.propexecutor.com/resources/faq/comparisons/what-is-the-cheapest-prop-firm-software): Among platforms that publish prices, PropExecutor's Starter plan at $129 one-time, with 50 accounts, is among the lowest launch costs, with no setup fee, monthly fee or revenue share. Published alternatives range from monthly licences in the thousands to setup fees plus revenue shares. Compare the total over 12 to 24 months.
- [What is the best prop firm software for a small firm?](https://www.propexecutor.com/resources/faq/comparisons/what-is-the-best-prop-firm-software-for-a-small-firm): For a small firm, the best software keeps fixed costs low, includes core rule enforcement and a trader dashboard on the entry plan, is quick to set up without paid onboarding, and lets you grow without migrating. PropExecutor's Starter plan, $129 once for 50 accounts, is designed for that situation.
- [What is the best white-label prop firm platform?](https://www.propexecutor.com/resources/faq/comparisons/what-is-the-best-white-label-prop-firm-platform): There is no single best platform; it depends on your budget, the rules you need, how much of the business stack you want from one vendor, and your traders' platform preferences. Compare total cost, rule enforcement, trader experience, branding depth, API access and licence dependencies.
- [Which prop firm platforms charge no monthly fee?](https://www.propexecutor.com/resources/faq/comparisons/which-prop-firm-platforms-charge-no-monthly-fee): Among vendors that publish pricing, PropExecutor charges no monthly fee at all, only one-time plans and packs. Some others use alternatives to a monthly licence, such as a setup fee plus a revenue share (PropAccount, PropSuite) or a free tier up to a small number of accounts (Fintatech's Starter). Many vendors do not publish prices.
- [Can I use PropExecutor alongside another platform?](https://www.propexecutor.com/resources/faq/comparisons/can-i-use-propexecutor-alongside-another-platform): Yes. Many firms run PropExecutor for some programmes while keeping another platform for others, for example during a migration or to offer traders a choice. Accounts, rules and traders on PropExecutor are independent, and your website and CRM can route each sale to the right platform.
- [How do I move my traders to PropExecutor from another platform?](https://www.propexecutor.com/resources/faq/comparisons/how-do-i-move-my-traders-to-propexecutor-from-another-platform): Recreate your rule sets and account types on PropExecutor, switch new sales to it, then either let active traders finish on the old platform or move them with accounts whose starting balance matches their current position. Create accounts in bulk, assign them to trader records and send the new credentials.

### [Prop firm terms explained](https://www.propexecutor.com/resources/faq/glossary)

Plain definitions of the terms used throughout the prop trading industry, with examples and how each applies in practice.

- [What is a funded account?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-funded-account): A funded account is the account a trader receives after passing a prop firm's evaluation, on which they can earn payouts from profits under the firm's terms. In most challenge-based firms it is a simulated account: profits are calculated from live prices, and payouts are paid by the firm from its revenue.
- [What is a challenge fee?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-challenge-fee): A challenge fee is the price a trader pays a prop firm to attempt an evaluation. It buys an account of a set size with set rules for one attempt. The fee is usually not refunded if the trader breaches a rule, though some firms refund it with the first payout to traders who pass.
- [What is an evaluation phase?](https://www.propexecutor.com/resources/faq/glossary/what-is-an-evaluation-phase): An evaluation phase is the stage in which a trader must meet a profit target without breaking any rules to qualify for a funded account. One-step programmes have one evaluation phase; two-step programmes have two, usually with a lower target in the second. Each phase is typically a separate account.
- [What is a verification phase?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-verification-phase): A verification phase is the second stage of a two-step prop challenge. After passing the first phase, the trader must prove consistency by meeting a lower profit target, often around 5%, under the same loss limits. Passing verification leads to a funded account.
- [What is a reset in a prop firm?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-reset-in-a-prop-firm): A reset gives a trader a fresh attempt at a challenge, usually at a discount, after they breach a rule or want to start over. In practice it is a new account of the same size and rules. Resets are an important revenue stream and a way to keep traders who failed engaged.
- [What is a payout cycle?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-payout-cycle): A payout cycle is the regular period after which a funded trader can request a payout, such as every 14 or 30 days. Firms often set a waiting period before the first payout and may require minimum trading days or a minimum profit in each cycle. The cycle determines how often money leaves the firm.
- [What is a scaling plan?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-scaling-plan): A scaling plan increases a funded trader's account size after consistent results, such as several profitable payout cycles without a breach. It rewards and retains skilled traders, and for the firm it concentrates payout risk in its most successful traders. Clear criteria and a maximum size are essential.
- [What is a drawdown?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-drawdown): Drawdown is a decline in account value from a reference point, measured in money or percentage. In prop trading it usually means the loss from the starting balance, from the day's opening value, or from the highest equity reached. Drawdown limits are the main rules that end evaluation accounts.
- [What is equity drawdown?](https://www.propexecutor.com/resources/faq/glossary/what-is-equity-drawdown): Equity drawdown is a decline measured on equity, meaning the account balance plus the floating profit or loss of open positions. It captures losses on trades that have not been closed yet, which is why most prop firms measure their loss limits on equity rather than on balance alone.
- [What is a high-water mark?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-high-water-mark): A high-water mark is the highest value an account has reached. In prop trading it is the reference for trailing drawdown, whose floor sits a set distance below it, and in some payout models profit is only paid on gains above the previous high-water mark. It only ever moves up.
- [What is a breach?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-breach): A breach is a violation of a prop firm's hard rule, such as the daily or maximum loss limit, that ends the trading account. A breached account stops trading and cannot pass. Firms record the rule, time and figures involved, and often offer the trader a discounted reset.
- [What is the difference between a hard breach and a soft breach?](https://www.propexecutor.com/resources/faq/glossary/what-is-the-difference-between-a-hard-breach-and-a-soft-breach): A hard breach ends the account immediately, typically for loss limits. A soft breach is a rule violation that does not end the account but has a consequence, such as a refused order, profits removed from certain trades, or a review before payout. Firms use soft rules for behaviour that needs judgement.
- [What counts as a trading day in prop firm rules?](https://www.propexecutor.com/resources/faq/glossary/what-counts-as-a-trading-day-in-prop-firm-rules): A trading day is usually any calendar day on which the trader opened at least one trade, counted in a fixed time zone. Minimum trading day rules require a number of such distinct days before passing or requesting a payout. Some firms also require each day's activity to meet a minimum.
- [What is the daily reset time in prop firm rules?](https://www.propexecutor.com/resources/faq/glossary/what-is-the-daily-reset-time-in-prop-firm-rules): The daily reset time is the moment the trading day rolls over for day-based rules: the daily loss limit's reference is recalculated, daily counters restart and a new trading day begins. Firms usually use midnight in a fixed time zone such as UTC, or their server's time.
- [What is a challenge pass rate?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-challenge-pass-rate): A challenge pass rate is the share of evaluation attempts that end in a pass. It is one of the main numbers in a prop firm's economics, because it determines how many funded accounts, and therefore how much payout liability, each batch of sales creates. Few firms publish audited pass rates.
- [What is a prop firm affiliate?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-prop-firm-affiliate): A prop firm affiliate is a partner who promotes a firm's challenges and earns a commission on the sales they generate, usually tracked through links or discount codes. Affiliates include trading influencers, educators, communities and review sites. They are a major acquisition channel because they are paid only when they deliver a sale.
- [What is a broker-backed prop firm?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-broker-backed-prop-firm): A broker-backed prop firm is a prop firm owned by, or closely partnered with, a brokerage. The broker may provide the trading platform, the price feed, and sometimes real execution for funded traders. Traders sometimes see broker backing as a sign of stability, though it also brings the broker's regulatory constraints.
- [What is a B2B prop technology provider?](https://www.propexecutor.com/resources/faq/glossary/what-is-a-b2b-prop-technology-provider): A B2B prop technology provider sells software and services to prop firms rather than to traders: trading platforms, rule and risk engines, CRMs, trader dashboards, payment and KYC integrations, or complete turnkey stacks. Firms choose providers based on price model, features, flexibility and data access.

## PropExecutor

### [About PropExecutor](https://www.propexecutor.com/resources/faq/propexecutor-overview)

What PropExecutor is, what it includes and leaves out, who it suits, and how a firm goes from sign-up to its first trading account.

- [What is PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/what-is-propexecutor): PropExecutor is prop firm software: a white-label trading terminal your traders log into, a rule engine that checks every account on every price tick, a dashboard inside every account, and an admin panel and API for managing accounts and traders. It is sold as a one-time payment from $129.
- [Who is PropExecutor built for?](https://www.propexecutor.com/resources/faq/propexecutor-overview/who-is-propexecutor-built-for): PropExecutor is built for people launching or running a prop firm who want their own branded trading platform without building one: first-time founders, trading educators and communities, brokers and introducing brokers adding a prop product, and established firms leaving MetaTrader or an expensive monthly licence.
- [What does PropExecutor include?](https://www.propexecutor.com/resources/faq/propexecutor-overview/what-does-propexecutor-include): Every plan includes the branded trading terminal (browser and Android), simulated execution at raw spreads, the rule engine, a prop dashboard in every account, bulk account provisioning, trader records, credential rotation, a firm analytics view and API access. Plans differ in account count, rule catalogue, rule-set limits and branding depth.
- [What does PropExecutor not include?](https://www.propexecutor.com/resources/faq/propexecutor-overview/what-does-propexecutor-not-include): PropExecutor does not include a trader-facing website or checkout, trader payments, KYC, trader payouts, a trader CRM, real broker execution, licensing or legal services. Traders have no account on PropExecutor itself. A firm runs those parts with its own website and providers, and connects them through the API.
- [Is PropExecutor a broker?](https://www.propexecutor.com/resources/faq/propexecutor-overview/is-propexecutor-a-broker): No. PropExecutor is a simulator: it fills orders against live market prices in simulated accounts and never places orders on a real market. It does not hold client funds, offer real leverage or execute trades for anyone. It is software a prop firm uses to run evaluations and funded accounts.
- [Does PropExecutor execute real trades?](https://www.propexecutor.com/resources/faq/propexecutor-overview/does-propexecutor-execute-real-trades): No. Every order on PropExecutor is filled by its simulator against live prices from a cTrader feed. Nothing is sent to a broker or exchange. Prices, spreads and market movement are real; the fills, balances and positions exist only inside the firm's simulated accounts.
- [Does PropExecutor provide trading capital?](https://www.propexecutor.com/resources/faq/propexecutor-overview/does-propexecutor-provide-trading-capital): No. PropExecutor provides software, not capital. Accounts on the platform are simulated, with starting balances set by the firm, such as $10,000 or $100,000. The firm decides its own payout terms and pays traders from its own funds. PropExecutor never funds traders or pays them.
- [Does PropExecutor sell challenges to traders on my behalf?](https://www.propexecutor.com/resources/faq/propexecutor-overview/does-propexecutor-sell-challenges-to-traders-on-my-behalf): No. PropExecutor does not market or sell challenges, and it has no trader storefront or checkout. Your firm sells challenges on its own website with its own payment provider, then uses PropExecutor to create the trading account, enforce the rules and give the trader a branded terminal.
- [Does PropExecutor provide a trader-facing website or checkout?](https://www.propexecutor.com/resources/faq/propexecutor-overview/does-propexecutor-provide-a-trader-facing-website-or-checkout): No. PropExecutor has no trader website, checkout or trader sign-up. Traders only use the trading terminal, with the login details your firm gives them. Your firm's website handles marketing and payment, and connects to PropExecutor through its API when you want account delivery automated.
- [Can I launch a prop firm with PropExecutor alone?](https://www.propexecutor.com/resources/faq/propexecutor-overview/can-i-launch-a-prop-firm-with-propexecutor-alone): PropExecutor covers the trading platform, but a prop firm also needs a registered company, a website with checkout, a payment provider, terms and policies, KYC and a payout process. With those in place, PropExecutor provides everything that happens on the trading side, from account creation to rule enforcement.
- [What else will I need alongside PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/what-else-will-i-need-alongside-propexecutor): Alongside PropExecutor you need a registered company, a website with a checkout, a payment processor that accepts prop firms, terms and policies, a KYC provider for payouts, a way to pay traders, and a support channel. Optional additions include a CRM, affiliate tracking and email marketing tools.
- [How quickly can I go live on PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/how-quickly-can-i-go-live-on-propexecutor): The platform side can be ready the same day: sign up, choose a plan and pay, name your firm and its server, pick a rule template and account sizes, and create trading accounts straight away. Your overall launch date usually depends on company formation, payment approval and your website.
- [Can I try PropExecutor before buying?](https://www.propexecutor.com/resources/faq/propexecutor-overview/can-i-try-propexecutor-before-buying): Yes. The PropExecutor website offers a live demo that gives you a trading account on the real terminal, so you can place trades, watch the dashboard and see the rules in action. You can also book a consultation with the team to walk through the admin panel and your setup.
- [Is there a live demo of the PropExecutor terminal?](https://www.propexecutor.com/resources/faq/propexecutor-overview/is-there-a-live-demo-of-the-propexecutor-terminal): Yes. "Try the live demo" on the PropExecutor website gives you a practice account on the real trading terminal, running on a trial server with live prices. You can trade, use pending orders and stops, and watch the account's dashboard and rule headroom update in real time.
- [How do I sign up for PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/how-do-i-sign-up-for-propexecutor): Go to Get started on the PropExecutor website, enter your name and email, verify the email with a one-time code or Google sign-in, choose a plan and pay. Your account exists from the first step, so you are already signed in when you return from payment.
- [What happens after I pay for PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/what-happens-after-i-pay-for-propexecutor): Your organization becomes active as soon as the payment is confirmed, your plan's account credits are added, and you are taken to the setup wizard in the admin panel, already signed in. There you name your firm and server, choose a rule template and account sizes, and can start creating accounts.
- [How do I set up my firm after payment?](https://www.propexecutor.com/resources/faq/propexecutor-overview/how-do-i-set-up-my-firm-after-payment): Use the setup wizard: name your firm and choose its server name, pick a rule template, and choose the account sizes you will sell. Then brand the terminal, review your rule set in the rule builder, create accounts in bulk and test them before you start selling.
- [What is a server name in PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/what-is-a-server-name-in-propexecutor): The server name is your firm's identifier in the trading terminal login. Traders enter it with their Account Number and Password, and it tells the platform which firm the account belongs to. You choose it after payment, and it locks once your firm has created its first trading account.
- [Can I change my firm's server name later?](https://www.propexecutor.com/resources/faq/propexecutor-overview/can-i-change-my-firms-server-name-later): Only until you create your first trading account. After that the server name is locked, because it is part of every login you have issued, and changing it would stop all your traders from logging in. Your firm's display name and branding can be changed at any time.
- [Can I change my firm's name later?](https://www.propexecutor.com/resources/faq/propexecutor-overview/can-i-change-my-firms-name-later): Yes. Your firm's display name can be changed at any time in the admin panel, and the terminal shows the new name to traders. Only the server name, which traders type at login, is fixed once your firm has trading accounts.
- [Can I book a consultation before buying?](https://www.propexecutor.com/resources/faq/propexecutor-overview/can-i-book-a-consultation-before-buying): Yes. The PropExecutor website has a consultation page where you can request a time with the team. It suits founders who want to discuss their rules, migrating from another platform, how their website and payments would connect, or which plan fits their volume.
- [Where is PropExecutor hosted?](https://www.propexecutor.com/resources/faq/propexecutor-overview/where-is-propexecutor-hosted): PropExecutor's backend runs on Google Cloud, with accounts and trades in PostgreSQL, live prices in Redis, price history in ClickHouse, and branding assets in Google Cloud Storage. The public websites are served through a global hosting platform. Every firm's data is kept separate at the database level by row-level security.
- [Is PropExecutor suitable for a firm that is just starting?](https://www.propexecutor.com/resources/faq/propexecutor-overview/is-propexecutor-suitable-for-a-firm-that-is-just-starting): Yes, it is designed for it. Starter costs $129 once and includes 50 trading accounts, core rules, a branded terminal, a dashboard in every account and API access, with no monthly fee. A new firm can launch, sell its first challenges and only buy more capacity once sales prove demand.
- [Is PropExecutor suitable for an established prop firm?](https://www.propexecutor.com/resources/faq/propexecutor-overview/is-propexecutor-suitable-for-an-established-prop-firm): Yes. Established firms use PropExecutor to replace monthly platform fees with a one-time purchase, to leave MetaTrader dependencies behind, and to get tick-level rule enforcement. Growth includes 1,250 accounts, unlimited rule sets and custom rules, full branding and a dedicated account manager, and the API connects existing systems.
- [Can a broker use PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-overview/can-a-broker-use-propexecutor): Yes. A broker or introducing broker can use PropExecutor to run a prop evaluation product separately from its brokerage. PropExecutor is simulation-only, so evaluation accounts never touch the broker's real trading infrastructure. The broker should still check with its regulator how the prop product fits its licence.

### [PropExecutor pricing and billing](https://www.propexecutor.com/resources/faq/propexecutor-pricing)

Plans, account credits, top-up packs, upgrades, payment and refunds: how paying for PropExecutor works.

- [How much does PropExecutor cost?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/how-much-does-propexecutor-cost): PropExecutor has three one-time plans: Starter at $129 with 50 trading accounts, Basic at $499 with 250, and Growth at $1,799 with 1,250. There is no setup fee, no monthly fee and no revenue share. More accounts are bought as one-time top-up packs at your plan's per-account rate.
- [Is PropExecutor a one-time payment or a subscription?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/is-propexecutor-a-one-time-payment-or-a-subscription): PropExecutor is a one-time payment. You pay once for a plan, which includes a set number of trading accounts, and you never receive a monthly bill. If you need more accounts later, you buy a one-time top-up pack. Credits never expire, so there is nothing to renew.
- [Does PropExecutor charge monthly fees?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/does-propexecutor-charge-monthly-fees): No. PropExecutor has no monthly fee, no annual renewal and no hosting charge. You pay once for a plan and buy top-up packs only when you need more accounts. Your platform cost in a month with no new accounts is zero.
- [Does PropExecutor charge a setup fee?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/does-propexecutor-charge-a-setup-fee): No. PropExecutor has no setup fee, onboarding fee or branding fee. The plan price is the only payment needed to launch. Setup is self-serve: after payment you name your firm and server, choose rules and account sizes, and brand the terminal yourself in the admin panel.
- [What is included in the Starter plan?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/what-is-included-in-the-starter-plan): Starter costs $129 once and includes 50 trading accounts, the branded terminal in the browser and on Android, core rules (profit target, daily loss limit, maximum loss limit and related essentials), 3 rule sets with up to 6 rules each, minimum branding, a dashboard in every account, bulk provisioning, credential rotation and API access.
- [What is included in the Basic plan?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/what-is-included-in-the-basic-plan): Basic costs $499 once and includes 250 trading accounts, everything in Starter, the advanced rule catalogue, up to 5 custom rules per rule set, 15 rule sets with up to 15 rules each, full terminal branding, a mobile app, integration help and dev consultancy, and priority support.
- [What is included in the Growth plan?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/what-is-included-in-the-growth-plan): Growth costs $1,799 once and includes 1,250 trading accounts, everything in Basic, unlimited rule sets and custom rules, all branding including removal of the PropExecutor badge, a white-label-ready mobile app, full dev solutions, priority integration and a dedicated account manager.
- [Is there a custom or enterprise plan?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/is-there-a-custom-or-enterprise-plan): Yes, a custom tier exists for arrangements set up directly with the PropExecutor team, such as unusually large volumes, migrations or partnerships. It is not sold on the website; contact the team through a consultation or by email to discuss it. Most firms are well served by Starter, Basic or Growth.
- [What is an account credit?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/what-is-an-account-credit): An account credit is the unit you pay for on PropExecutor: one credit creates one trading account, of any size, for the life of that account. Plans and top-up packs add credits to a permanent pool. Remaining credits are the credits granted minus the accounts you have created.
- [Do account credits expire?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/do-account-credits-expire): No. PropExecutor account credits never expire. Credits from your plan, from top-up packs and from upgrades stay in your pool until you use them to create trading accounts, whether that takes a month or several years. Nothing resets, renews or runs out with time.
- [Do I get a credit back when an account breaches or is archived?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/do-i-get-a-credit-back-when-an-account-breaches-or-is-archived): No. A credit is used once when a trading account is created and is not returned when the account breaches, passes or is archived. This keeps the cost of each account fixed and simple. To give a trader a new attempt, you create a new account, which uses a new credit.
- [What happens when I run out of account credits?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/what-happens-when-i-run-out-of-account-credits): When your credits run out, PropExecutor refuses to create new trading accounts and tells you how many you have and how many you requested, with links to top-up packs and upgrades. Existing accounts keep trading normally. Buy a pack or upgrade, and creation works again as soon as the payment is confirmed.
- [How do top-up packs work?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/how-do-top-up-packs-work): Top-up packs add trading account credits to your permanent pool for a one-time price. Each plan has its own packs of 100, 500 and 1,000 accounts at that plan's rate, with lower per-account prices in larger packs. You buy them from the billing page in the admin panel.
- [Are larger top-up packs cheaper per account?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/are-larger-top-up-packs-cheaper-per-account): Yes. On every plan, the 500-account pack costs 20% less per account than the 100-account pack, and the 1,000-account pack costs 36% less. On Growth, the 1,000-account pack works out at $0.64 per account, the lowest rate PropExecutor offers.
- [How do plan upgrades work?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/how-do-plan-upgrades-work): An upgrade moves your firm to a higher plan for the difference in plan price and adds the difference in included accounts: Starter to Basic costs $370 for 200 more accounts, Starter to Growth $1,670 for 1,200, and Basic to Growth $1,300 for 1,000. Unused credits carry over, and new features unlock immediately.
- [Do unused credits carry over when I upgrade?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/do-unused-credits-carry-over-when-i-upgrade): Yes. Unused credits from your plan and from any top-up packs always carry over when you upgrade, and the upgrade adds the difference in included accounts on top. For example, a Starter firm with 10 credits left that upgrades to Basic ends with 210 credits.
- [How much does it cost to upgrade from Starter to Basic?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/how-much-does-it-cost-to-upgrade-from-starter-to-basic): Upgrading from Starter to Basic costs $370, the difference between the two plan prices ($499 minus $129). It adds 200 trading account credits (the difference between 250 and 50), keeps all your unused credits, and unlocks Basic's advanced rules, custom rules, full branding and mobile app.
- [Can I downgrade my plan?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/can-i-downgrade-my-plan): No. PropExecutor plans move up, not down: there is no downgrade purchase, and a firm's tier only drops if an upgrade payment is refunded or reversed. Because plans are one-time payments with no monthly fee, staying on a higher plan costs nothing extra once paid.
- [Which payment methods can I use to pay for PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/which-payment-methods-can-i-use-to-pay-for-propexecutor): PropExecutor purchases are paid through a Dodo Payments checkout, which acts as merchant of record. The payment methods offered depend on your country and on what Dodo supports there, typically including major cards. You see the available options on the checkout page before paying.
- [Who processes payments for PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/who-processes-payments-for-propexecutor): Dodo Payments processes PropExecutor purchases and acts as the merchant of record. That means Dodo handles the checkout, payment processing, applicable taxes and receipts. PropExecutor receives confirmation of what was bought and the paying email address, but never your card details.
- [Will I receive a receipt or invoice?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/will-i-receive-a-receipt-or-invoice): Yes. Receipts and invoices for PropExecutor purchases are issued through Dodo Payments, the merchant of record, as part of the checkout flow, usually by email to the address that paid. Your billing page in the admin panel also shows your purchase history.
- [What is PropExecutor's refund policy?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/what-is-propexecutors-refund-policy): Refund requests go to info@propexecutor.com. Because a plan grants credits and unlocks features immediately on payment, refunds are considered case by case and, where granted, are processed through Dodo Payments. When a purchase is refunded, the credits and any tier it granted are reversed at the same time.
- [How does the cost per account compare across plans?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/how-does-the-cost-per-account-compare-across-plans): Using included accounts, Starter works out at about $2.58 per account, Basic $2.00 and Growth $1.44. Top-up packs are cheaper again: from $2.00 down to $1.28 on Starter, $1.50 to $0.96 on Basic, and $1.00 to $0.64 on Growth. Every account costs the same credit whatever its size.
- [How much does one trading account cost on PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/how-much-does-one-trading-account-cost-on-propexecutor): One trading account costs one credit. Depending on your plan and how you bought the credit, that is between about $0.64 and $2.58. The price is the same for any account size, and covers the account for its whole life with no further charges.
- [Does PropExecutor take a share of my challenge revenue or payouts?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/does-propexecutor-take-a-share-of-my-challenge-revenue-or-payouts): No. PropExecutor takes no percentage of your challenge sales, your profits or your traders' payouts. You pay only the one-time plan, pack and upgrade prices. How you price challenges and what you earn from them is entirely yours.
- [Does PropExecutor charge per trader or per account?](https://www.propexecutor.com/resources/faq/propexecutor-pricing/does-propexecutor-charge-per-trader-or-per-account): Per account. You pay one credit for each trading account you create, not for each trader. A trader record costs nothing, and one trader can hold several accounts, each using its own credit. Reassigning an account from one trader to another does not use a new credit.

### [The PropExecutor trading terminal](https://www.propexecutor.com/resources/faq/propexecutor-terminal)

What your traders use: logging in, instruments, order types, charts, the built-in dashboard, mobile access and how sessions work.

- [What is the PropExecutor trading terminal?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/what-is-the-propexecutor-trading-terminal): The PropExecutor terminal is the trading platform your traders use, carrying your firm's branding. It runs in the browser and as an Android app, with a watchlist, candlestick charts, an order ticket, positions, history and a built-in dashboard that shows live headroom against the account's rules. Each login opens one trading account.
- [How do traders log in to the terminal?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/how-do-traders-log-in-to-the-terminal): Traders open the terminal in a browser or the Android app and enter three details from your firm: their Account Number, their Password and your firm's Server name. The session that opens covers that one trading account. Firms can also send a prefilled login link from the admin panel.
- [What are the Account Number, Password and Server?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/what-are-the-account-number-password-and-server): They are a trader's login details for one trading account. The Account Number is the account's 8-digit number, the Password is generated by the platform and can be rotated by your firm, and the Server is your firm's server name. Account Number and Server never change; only the Password does.
- [Can traders use the terminal in a web browser?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-traders-use-the-terminal-in-a-web-browser): Yes. The terminal runs in any modern browser on desktop, laptop, tablet or phone, with nothing to install. Traders open the terminal address, enter their Account Number, Password and Server, and trade. An Android app is also available for traders who prefer a native app.
- [Is there a mobile app for traders?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/is-there-a-mobile-app-for-traders): Yes, there is an Android app. Traders download it from the link shown in the terminal and on PropExecutor's download page, and log in with the same Account Number, Password and Server. There is no iPhone app at present; iPhone users can use the terminal in their mobile browser.
- [Is there an iPhone app?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/is-there-an-iphone-app): Not at present. PropExecutor offers an Android app and a browser terminal. iPhone and iPad users can trade through the browser terminal in Safari or another mobile browser, using the same Account Number, Password and Server, with the same charts, orders and dashboard.
- [Which instruments can traders trade?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/which-instruments-can-traders-trade): The default feed covers 28 major and cross currency pairs, exotic pairs including USD/MXN, USD/ZAR and USD/TRY, gold, silver and palladium, WTI and Brent crude, natural gas, twelve stock indices, Bitcoin and Ether. Each firm can restrict an account type to a chosen list with the allowed instruments rule.
- [Which forex pairs are available?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/which-forex-pairs-are-available): The default feed covers all 28 major and cross pairs formed from USD, EUR, GBP, JPY, CHF, AUD, CAD and NZD, plus seven exotic pairs against the US dollar: MXN, ZAR, TRY, SEK, NOK, SGD and CNH. Firms can limit any account type to a subset.
- [Are gold, silver, oil and stock indices available?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/are-gold-silver-oil-and-stock-indices-available): Yes. The default feed includes gold, silver and palladium, WTI and Brent crude oil, natural gas, and twelve stock indices: US30, US500, USTEC, UK100, GER40, FRA40, ESP35, NETH25, SWI20, EU50, JP225 and AUS200. Each uses its real contract size and, where needed, currency conversion.
- [Is cryptocurrency trading available?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/is-cryptocurrency-trading-available): Yes. Bitcoin and Ether against the US dollar (BTC/USD and ETH/USD) are available in the default feed, with one lot equal to one coin. Firms can include crypto in a rule set's allowed instruments, cap its leverage separately, or keep it for a dedicated account type.
- [Which order types does the terminal support?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/which-order-types-does-the-terminal-support): The terminal supports market orders and four pending order types: buy limit, sell limit, buy stop and sell stop. Every order can carry a stop loss and a take profit. Traders can modify or cancel pending orders, modify stops and targets on open positions, and close positions fully.
- [Can traders set a stop loss and a take profit?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-traders-set-a-stop-loss-and-a-take-profit): Yes. Traders can attach a stop loss and a take profit to market and pending orders, and add, move or remove them on open positions. Stops are tested against the side of the market a position closes on, the bid for longs and the ask for shorts, and close at the live price.
- [Can traders place pending orders?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-traders-place-pending-orders): Yes. Traders can place buy limit, sell limit, buy stop and sell stop orders, each with an optional stop loss and take profit. Pending orders wait for the live price to reach their level, then fill at the live price, after passing the same rule and margin checks as a market order.
- [Which chart timeframes are available?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/which-chart-timeframes-are-available): Charts offer seven timeframes: one, five, fifteen and thirty minutes, one and four hours, and daily. Candles update live with each price, and traders can scroll back through long history, which loads automatically as they move left.
- [How much chart history is available?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/how-much-chart-history-is-available): Forex pairs and metals have chart history back to 2000, and Bitcoin back to 2015. Other instruments have history from when PropExecutor's live feed began recording them. History loads automatically as traders scroll back, on every timeframe from one minute to daily.
- [Can traders see their rule limits in the terminal?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-traders-see-their-rule-limits-in-the-terminal): Yes. Every account's terminal includes a dashboard that shows the account's rules and live headroom: how much can still be lost today, the distance to the maximum loss floor, progress towards the profit target and trading days completed. The figures come from the exact rule version the account was created under.
- [Does the terminal show daily loss and maximum loss headroom?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/does-the-terminal-show-daily-loss-and-maximum-loss-headroom): Yes. The dashboard shows the daily loss limit's floor and remaining headroom, based on the day's opening value, and the maximum loss floor based on the starting balance, both updated live with equity. Traders can see exactly how much more they can lose before either limit is reached.
- [Does every account come with a built-in dashboard?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/does-every-account-come-with-a-built-in-dashboard): Yes. Every trading account on every plan includes a prop dashboard inside the terminal, created automatically from the account's type and rule set. Traders see balance, equity, profit target progress, daily and maximum loss headroom, trading days and statistics, with no separate portal for your firm to build.
- [Can a trader switch between their own accounts?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-a-trader-switch-between-their-own-accounts): Yes. If your firm assigns several accounts to the same trader email, the terminal's menu lists them and lets the trader switch between them without re-entering each password. Each switch opens a session for one account only. Reassigning an account to someone else removes it from the former trader's list.
- [Does the terminal support light and dark mode?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/does-the-terminal-support-light-and-dark-mode): Yes. Traders can switch between light and dark themes in the terminal. A firm's branding settings can also pin a theme preset so the terminal always matches the brand. The branding colours and logos adapt, with separate logo versions for light and dark backgrounds on Basic and above.
- [Can I send a trader a prefilled login link?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-i-send-a-trader-a-prefilled-login-link): Yes. From a trading account's drawer in the admin panel, "Connect to account" opens the terminal's login page with the Account Number, Password and Server filled in. You can send that link to the trader. The form does not submit itself; the trader clicks to log in.
- [Is a prefilled login link safe to share?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/is-a-prefilled-login-link-safe-to-share): Only with the account's trader. A prefilled link contains the account's password, so anyone who has the link can log in. The terminal removes the values from the address bar once it opens, but the link as sent is still a credential. Rotate the password if it reaches anyone else.
- [What happens to a trader's session when I rotate the password?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/what-happens-to-a-traders-session-when-i-rotate-the-password): Rotating a password generates a new one and revokes every session for that account, so the old password and every existing login stop working. Because terminal access tokens are short-lived, an already-open terminal loses access within at most 15 minutes, when it next needs to refresh. The trader then logs in with the new password.
- [Can traders run expert advisors or bots in the terminal?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-traders-run-expert-advisors-or-bots-in-the-terminal): No. The PropExecutor terminal does not run expert advisors, scripts or bots, and order placement through the public API is planned rather than available. Traders trade manually in the browser or Android app. Firms that require automated trading should take this into account.
- [Can traders reset their own password?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/can-traders-reset-their-own-password): No. There is no trader self-service on PropExecutor, including password resets, because traders have no account on the platform. If a trader forgets their password, your firm rotates it in the admin panel or over the API and sends the new one to the trader's registered email.
- [Does the terminal work on tablets?](https://www.propexecutor.com/resources/faq/propexecutor-terminal/does-the-terminal-work-on-tablets): Yes. The browser terminal works on tablets, including iPad and Android tablets, with the full watchlist, charts, order ticket, positions and dashboard. Android tablet users can also install the Android app. Landscape orientation gives the most room for charts.

### [Managing accounts and traders](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel)

The PropExecutor admin panel: account types, bulk provisioning, traders, credentials, breaches, history, analytics and team access.

- [What is the PropExecutor admin panel?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/what-is-the-propexecutor-admin-panel): The admin panel is where your firm runs PropExecutor: creating account types and rule sets, provisioning trading accounts in bulk, managing trader records, rotating credentials, reviewing breaches and trades, branding the terminal, buying credits, issuing API keys and viewing analytics. It is for your firm's staff, not for traders.
- [How do I create a trading account?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-create-a-trading-account): Choose an account type and create accounts from the Accounts page, either one at a time or up to 100 per request. Each account gets an 8-digit account number, a generated password and the account type's starting balance and current rule version. It can stay unassigned or be assigned to a trader straight away.
- [How many trading accounts can I create at once?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-many-trading-accounts-can-i-create-at-once): Up to 100 trading accounts per request, as long as you have enough credits. To create more, submit several requests. Each account uses one credit, and the request is refused as a whole if there are not enough credits for the quantity you asked for.
- [What is an account type?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/what-is-an-account-type): An account type is a product your firm sells, such as "$25K Standard" or "$100K Funded". It sets the starting balance and points at a rule set, and every trading account is created from one. Several account types can share the same rule set, and account types can be archived when you stop selling them.
- [How do I set the starting balance for an account?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-set-the-starting-balance-for-an-account): The starting balance comes from the account's type. Create an account type with the balance you want, such as $50,000, and every account created from it starts with that balance. To offer a different size, create another account type; several types can share one rule set.
- [How do I add a trader?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-add-a-trader): Open Traders and create a trader record with the person's name and email. You can then assign one or more trading accounts to that record. Traders do not sign up themselves, and a trader record is not a login: the trader logs in to the terminal with an account's credentials.
- [Do traders need to sign up on PropExecutor?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/do-traders-need-to-sign-up-on-propexecutor): No. Traders never create an account on PropExecutor. Your firm creates a trader record with their name and email and assigns them a trading account. The trader logs in to the terminal with that account's Account Number, Password and Server. There is no trader sign-up, profile or password reset on PropExecutor.
- [How do I assign an account to a trader?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-assign-an-account-to-a-trader): Open the account in the admin panel and choose the trader record to assign it to, or assign it while creating accounts. Over the API, `PUT /v1/accounts/{number}/trader` with a name and email assigns it and creates the trader record if needed. Then send the trader the account's credentials.
- [How do I reassign an account to a different trader?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-reassign-an-account-to-a-different-trader): Unassign it from the current trader, rotate its password, then assign it to the new trader and send them the new credentials. Reassigning ends live sessions, but the account number and server stay the same, so rotating the password is what stops the former holder from logging in again.
- [How do I rotate a trading account's password?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-rotate-a-trading-accounts-password): Open the account's drawer in the admin panel and choose to rotate the password, or call `POST /v1/accounts/{account}/credentials/rotate` over the API. A new password is generated and shown, and every live session for the account is revoked. Send the new password to the trader.
- [How do I cut off a trader's access immediately?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-cut-off-a-traders-access-immediately): Rotate the account's password, which revokes every session for it. For a stronger action, also unassign or archive the account. Open terminals are signed out at their next token refresh, within at most 15 minutes, and cannot log in again with the old password.
- [Can I breach an account manually?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-breach-an-account-manually): Yes. Firms can mark an account as breached from the admin panel, with a reason, for violations found outside the automatic rule checks, such as a prohibited strategy discovered in review. Manual breaches are recorded separately from automatic ones and do not replace the rule engine's checks.
- [Can I close or archive an account?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-close-or-archive-an-account): Yes. Archiving takes an account out of active use, revokes its sessions and hides it from your active lists, while keeping its history. Firms can also close open positions on an account from the admin panel. Archiving does not refund the account's credit.
- [How do I see why an account breached?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-see-why-an-account-breached): Open the account in the admin panel to see its status, the time it changed and the recorded reason, including which rule ended it. The same information is in the API's account report, where the rule that ended the account comes first in a list of breaches with observed and threshold values.
- [How do I see an account's trade history?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-see-an-accounts-trade-history): Open the account in the admin panel to see its trades, with instrument, side, size, open and close prices and times, and profit or loss. Through the API, the trades and report endpoints return every deal with its ticket number, plus open positions and pending orders.
- [Can I see all of my firm's trading activity in one place?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-see-all-of-my-firms-trading-activity-in-one-place): Yes. The admin panel's Analytics section summarises activity across your firm: an overview, trading activity, trader engagement with the terminal, quality measures, and a lookup for any single account. All views are limited to your own organization.
- [Does the admin panel include analytics?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/does-the-admin-panel-include-analytics): Yes. Every plan includes firm analytics in the admin panel: overview, trading, engagement and quality views, plus per-account lookup. They show how your accounts trade and how traders use the terminal, scoped strictly to your organization.
- [Can I add team members to the admin panel?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-add-team-members-to-the-admin-panel): Yes. The admin panel supports more than one user per firm, with owner and admin roles. Additional users are added by the PropExecutor team on request; contact the team with the person's email and role. Each person then signs in with their own email, using a one-time code or Google.
- [How do I sign in to the admin panel?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/how-do-i-sign-in-to-the-admin-panel): Sign in with your email address and a one-time code sent to it, or with Sign In With Google. There are no passwords for the admin panel. Your session stays signed in through a secure refresh cookie, and signing in from the PropExecutor website keeps you signed in on the panel too.
- [Can I sign in with Google?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-sign-in-with-google): Yes. The admin panel supports Sign In With Google alongside email and one-time code. Google verifies your email address, and you are signed in to the firm that email belongs to. It is also available on the PropExecutor sign-up page.
- [Does the admin panel have a setup wizard?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/does-the-admin-panel-have-a-setup-wizard): Yes. After your plan payment is confirmed, you land on a setup wizard that walks through the essentials: naming your firm, choosing its server name, picking a rule template and choosing the account sizes you will sell. Afterwards everything can be adjusted in the panel.
- [Can I export account data?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-export-account-data): Account data is available through the API, which returns full reports with every deal and position, equity series and analytics for each account, so firms can export to their own systems or spreadsheets. If access ever ends, PropExecutor's terms provide for an export of your organization's data on request within thirty days.
- [Can I create unassigned accounts in advance?](https://www.propexecutor.com/resources/faq/propexecutor-admin-panel/can-i-create-unassigned-accounts-in-advance): Yes. Accounts are created unassigned by default, so you can build inventory for each account size ahead of sales and assign accounts to traders when purchases arrive. Each account uses its credit when created, keeps its frozen rule version, and stays ready until assigned.

### [The PropExecutor rule engine](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine)

How PropExecutor enforces challenge rules: tick-by-tick checks, the rule catalogue, versioning, actions, custom rules and plan limits.

- [What is the PropExecutor rule engine?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/what-is-the-propexecutor-rule-engine): The rule engine is the part of PropExecutor that enforces your challenge rules. It judges every account on every price tick as it arrives, checks order limits inside the transaction that writes each order, decides passes and breaches, records flags, and stores the reason for every decision. Rules come from a visual builder and are versioned per account.
- [How quickly does PropExecutor detect a breach?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/how-quickly-does-propexecutor-detect-a-breach): On the price tick that causes it. Each account is judged against every new price as it arrives, and a breach is written before the next tick for that account is processed. There is no delay, batch or schedule between a limit being crossed and the account being marked as breached.
- [Are rules checked on every price tick?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/are-rules-checked-on-every-price-tick): Yes. Every rule that depends on equity, such as the daily loss limit, maximum loss limit, trailing drawdown, weekend holding and custom equity rules, is evaluated on each price tick in the order ticks arrive. Order-level rules are checked when an order is placed, modified or triggered.
- [Which rules can I configure?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/which-rules-can-i-configure): The core catalogue covers profit target, daily loss limit, maximum loss limit, minimum trading days, allowed instruments, maximum lot per order and maximum effective leverage. The advanced catalogue adds trailing drawdown, consistency, profitable days, position and exposure limits, risk per trade, mandatory stop loss, weekend holding, hold time, trading hours, hedging, orders per day, leverage by asset class and inactivity.
- [Can I build a custom rule?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-build-a-custom-rule): Yes, on Basic (up to 5 per rule set) and Growth (unlimited). A custom rule says: if a metric crosses a value, then breach the account, reject the order or flag it. Metrics include drawdown from peak, loss since today's open, loss from the starting balance, profit, open lots, open positions, trades today and the largest single loss.
- [What is the visual rule builder?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/what-is-the-visual-rule-builder): The visual rule builder is the admin panel's tool for creating rule sets: you add rules from a palette, set their parameters and actions, and see a plain-language summary of what the set will do. The server checks every rule and every plan limit when you save, and saving creates a new version.
- [What happens when I edit a rule set?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/what-happens-when-i-edit-a-rule-set): Saving an edit creates a new version of the rule set and makes it current. New accounts created from then on use the new version. Every existing account keeps the version it was created under, so its rules never change. Old versions are kept, never overwritten.
- [Do rule changes affect existing accounts?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/do-rule-changes-affect-existing-accounts): No. Every trading account is frozen to the rule set version in force when it was created, and that link never changes. Editing a rule set creates a new version for new accounts only. Existing accounts keep their original rules for life, including after plan changes.
- [What is a rule set version?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/what-is-a-rule-set-version): A rule set version is one immutable snapshot of a rule set: its numbers and rules at a moment in time, with a version number and date. Each save of a rule set creates a new version. Trading accounts are tied to exactly one version for life.
- [Can several account types share one rule set?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-several-account-types-share-one-rule-set): Yes. Rule sets are standalone, and any number of account types can point at the same one. For example, "$10K Standard", "$25K Standard" and "$50K Standard" can all use "Standard Rules", because rules are expressed as percentages of each account's starting balance.
- [How does PropExecutor calculate the daily loss limit?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/how-does-propexecutor-calculate-the-daily-loss-limit): It measures equity, including open positions, against the day's opening value, which is the higher of the account's balance and equity at the start of the UTC day. If equity falls by the set percentage below that value, the account breaches. The limit resets at 00:00 UTC each day.
- [When does the daily loss limit reset?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/when-does-the-daily-loss-limit-reset): At 00:00 UTC every day. At that moment the day's opening value is set to the higher of the account's balance and equity, and the daily floor is recalculated from it. The reset is the same for every account and every firm, so traders in any time zone can check it.
- [Is PropExecutor's maximum loss limit static or trailing?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/is-propexecutors-maximum-loss-limit-static-or-trailing): Static. The maximum loss limit is a fixed floor under the starting balance for the life of the account: 10% on a $100,000 account means equity may never fall below $90,000. Firms that want a floor that rises with profits add the separate trailing drawdown rule.
- [Does PropExecutor support trailing drawdown?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/does-propexecutor-support-trailing-drawdown): Yes, on Basic and Growth. The trailing drawdown rule breaches an account when equity falls a set percentage below its highest equity, and the floor follows every new peak until it reaches an optional lock level, then stops moving. It can breach the account or flag it for review.
- [Can a trailing drawdown lock at a profit level?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-a-trailing-drawdown-lock-at-a-profit-level): Yes. The trailing drawdown rule has an optional lock setting, given as a profit percentage on the starting balance. At 0% it locks at break-even; at 2% it locks once the floor reaches 2% above the starting balance. After locking, the floor no longer rises.
- [What actions can a rule take?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/what-actions-can-a-rule-take): Depending on the rule, it can breach the account, reject the order, flag the account for review, or hold back a pass. Loss limits breach; order limits reject the order or flag; behaviour rules flag or breach; objectives such as minimum trading days and consistency hold back a pass until they are met.
- [What is the difference between breach, reject order and flag?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/what-is-the-difference-between-breach-reject-order-and-flag): A breach ends the account. A rejected order is refused before it is placed, and the account keeps trading. A flag records that a rule was tripped without stopping anything, so your team can review it, typically before a payout. Each suits different kinds of rules.
- [Can I limit lot size per trade?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-limit-lot-size-per-trade): Yes. The maximum lot per order rule refuses, or flags, any single order larger than a set number of lots. It is in the core catalogue on every plan. For limits on total exposure, the advanced catalogue adds maximum total open lots and maximum risk per trade.
- [Can I limit the number of open positions?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-limit-the-number-of-open-positions): Yes, on Basic and Growth. The maximum open positions rule refuses an order that would open more positions at once than the limit, or flags it if you prefer. It is checked inside the transaction that writes the order, so simultaneous orders cannot exceed it.
- [Can I limit trading to certain hours?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-limit-trading-to-certain-hours): Yes, on Basic and Growth. The trading hours window rule accepts orders only between two UTC times, for example 07:00 to 20:00, and refuses (or flags) orders outside it. Windows that end before they start wrap past midnight, so overnight sessions are supported.
- [Can I block weekend holding?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-block-weekend-holding): Yes, on Basic and Growth. The no weekend holding rule sets a Friday cutoff in UTC: positions held past it trip the rule, which breaches the account by default or flags it, and new orders inside the weekend window are refused. It is checked on every tick.
- [Can I set a minimum holding time?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-set-a-minimum-holding-time): Yes, on Basic and Growth. The minimum hold time rule is judged on closed trades: a trade closed sooner than the set number of seconds after opening trips the rule. By default it flags the account for review, and it can be set to breach instead.
- [Can I restrict instruments per account type?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-restrict-instruments-per-account-type): Yes. The allowed instruments rule, in the core catalogue, limits a rule set to a chosen list of instruments, and orders on anything else are refused. Because account types point at rule sets, you can offer forex-only, gold-and-indices or crypto accounts as separate products.
- [Can I set a maximum leverage?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-set-a-maximum-leverage): Yes. Every account has a margin leverage that decides required margin, and two rules add caps: maximum effective leverage (core), which limits total open notional to a multiple of equity, and leverage by asset class (advanced), which sets separate caps for forex, metals, indices, energy and crypto.
- [Can I limit the number of orders per day?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/can-i-limit-the-number-of-orders-per-day): Yes, on Basic and Growth. The maximum orders per day rule refuses orders beyond a set number per UTC day, counting market orders and pending orders placed. It can flag instead of refusing. It discourages high-frequency strategies and overtrading after losses.
- [Does PropExecutor support a consistency rule?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/does-propexecutor-support-a-consistency-rule): Yes, on Basic and Growth. The consistency rule holds back a pass while the best single day's realised profit is more than a set share of total realised profit, for example 40%. It never breaches the account; the trader passes once other days bring the best day's share below the limit.
- [Does PropExecutor support news trading restrictions?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/does-propexecutor-support-news-trading-restrictions): Not as an automatic rule today. The news blackout rule is listed in the catalogue but marked unavailable, because enforcing it requires an economic calendar feed, which is not connected. Firms that restrict news trading handle it in their payout review using the account's trade timestamps.
- [Does PropExecutor support an inactivity rule?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/does-propexecutor-support-an-inactivity-rule): Yes, on Basic and Growth. The inactivity breach rule ends an account that has not traded for a set number of days. It is the one rule checked by a clock, through an hourly sweep, because inactivity has no price or order event to trigger it. It only ever moves an active account to breached.
- [Are pre-order checks enforced when orders arrive at the same time?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/are-pre-order-checks-enforced-when-orders-arrive-at-the-same-time): Yes. Every order path takes a per-account lock and runs the rule checks inside the same database transaction that writes the order, counting open positions from the database in that transaction. Two orders arriving at the same instant are therefore processed one after the other, and limits hold, even across server instances.
- [How many rules and rule sets does each plan allow?](https://www.propexecutor.com/resources/faq/propexecutor-rule-engine/how-many-rules-and-rule-sets-does-each-plan-allow): Starter allows 3 rule sets with up to 6 rules each, using the core catalogue and no custom rules. Basic allows 15 rule sets with up to 15 rules each, the advanced catalogue and 5 custom rules per set. Growth has unlimited rule sets, rules and custom rules.

### [Branding the terminal](https://www.propexecutor.com/resources/faq/propexecutor-branding)

What you can brand on the PropExecutor terminal on each plan: logos, colours, the login screen, support links, the badge and the domain.

- [Can I put my firm's logo on the trading terminal?](https://www.propexecutor.com/resources/faq/propexecutor-branding/can-i-put-my-firms-logo-on-the-trading-terminal): Yes, on every plan. Starter lets you set your firm's display name, a logo for dark backgrounds and an accent colour. Basic and Growth add a light-background logo, a favicon, a theme, the full login screen and support links. Logos are uploaded in the admin panel's Branding page.
- [Which branding options does each plan include?](https://www.propexecutor.com/resources/faq/propexecutor-branding/which-branding-options-does-each-plan-include): Starter includes display name, dark logo and accent colour. Basic adds light logo, favicon, terminal theme, login screen headline, text and background, support email and link, and a legal footer. Growth includes everything in Basic plus the option to hide the PropExecutor badge, so traders see only your brand.
- [Can I customise the login screen?](https://www.propexecutor.com/resources/faq/propexecutor-branding/can-i-customise-the-login-screen): Yes, on Basic and Growth. You can set the login screen's headline, supporting text and background, alongside your logos and accent colour. Starter shows your display name, logo and accent colour on a standard login layout. The login screen is the first impression traders have of your platform.
- [Can I set my firm's colours?](https://www.propexecutor.com/resources/faq/propexecutor-branding/can-i-set-my-firms-colours): Yes. Every plan lets you set an accent colour, used on buttons and highlights throughout the terminal. Basic and Growth also let you choose a terminal theme preset that fits your brand. Chart and data colours stay standard so profit, loss and price movement remain easy to read.
- [Can I remove the PropExecutor badge?](https://www.propexecutor.com/resources/faq/propexecutor-branding/can-i-remove-the-propexecutor-badge): Yes, on the Growth plan. Growth includes the option to hide the PropExecutor badge on the terminal, so traders see only your firm's branding. On Starter and Basic, a small PropExecutor badge remains visible alongside your branding.
- [Can I use my own domain for the terminal?](https://www.propexecutor.com/resources/faq/propexecutor-branding/can-i-use-my-own-domain-for-the-terminal): Traders currently reach every firm's branded terminal through PropExecutor's terminal address, with your logo, colours and login screen applied. Running the terminal on your own domain is arranged with the PropExecutor team rather than set up in the admin panel; contact the team to discuss it.
- [How long do branding changes take to appear?](https://www.propexecutor.com/resources/faq/propexecutor-branding/how-long-do-branding-changes-take-to-appear): Usually within minutes. When you save branding in the admin panel, the change is applied straight away, and traders see it the next time the terminal loads. Browsers may keep the previous logo or colours cached for a few minutes, so a trader with the terminal already open may need to reload.
- [What happens to my branding if my plan changes?](https://www.propexecutor.com/resources/faq/propexecutor-branding/what-happens-to-my-branding-if-my-plan-changes): Upgrading unlocks more branding fields immediately. If a firm's tier ever drops, for example because an upgrade is refunded, fields above the new plan's level stop showing on the terminal but stay saved, and they reappear if the firm moves back up.

### [API and integrations](https://www.propexecutor.com/resources/faq/propexecutor-api)

What the PropExecutor API offers today and what is planned: keys and scopes, rate limits, account reports, trader assignment and integration patterns.

- [Does PropExecutor have an API?](https://www.propexecutor.com/resources/faq/propexecutor-api/does-propexecutor-have-an-api): Yes. Every plan includes API access. The REST API under `/v1` lets your systems list accounts, read live balance, equity and positions, pull trades, analytics, equity series and full account reports, assign and unassign traders, and read and rotate credentials. The documentation marks every endpoint as available or planned.
- [What can I do with the PropExecutor API?](https://www.propexecutor.com/resources/faq/propexecutor-api/what-can-i-do-with-the-propexecutor-api): With the API you can automate account delivery from your checkout by assigning pre-created accounts to buyers, build your own trader dashboards from account analytics and equity data, pull full reports for payout review, sync accounts into a CRM, export data, and rotate credentials from your support tools.
- [How do I create an API key?](https://www.propexecutor.com/resources/faq/propexecutor-api/how-do-i-create-an-api-key): Open the Developer page in the admin panel, create a key, give it a name and choose its scopes. The full token is shown once at creation; copy it into your system's secret store immediately. You can revoke a key at any time, which stops it working straight away.
- [Which API scopes are available?](https://www.propexecutor.com/resources/faq/propexecutor-api/which-api-scopes-are-available): There are four scopes: `accounts:read` to read accounts, trades, positions, analytics and reports; `accounts:write` to assign and unassign traders; `credentials:read` to read and rotate account credentials; and `trading:write`, reserved for trading endpoints that are planned. A key carries only the scopes you select.
- [Is there a rate limit on the API?](https://www.propexecutor.com/resources/faq/propexecutor-api/is-there-a-rate-limit-on-the-api): Yes. Each API key may make up to 1,200 read requests and 120 write requests per minute. Limits are counted per key, so one runaway script cannot starve your other integrations. Requests without a valid key are limited per IP address. A request over the limit receives a 429 response with retry information.
- [Can I pull a full account report through the API?](https://www.propexecutor.com/resources/faq/propexecutor-api/can-i-pull-a-full-account-report-through-the-api): Yes. `GET /v1/accounts/{number}/report` returns one account's complete picture in a single response: identity, balance and equity history, monthly statement, indicators, streaks, long and short performance, results by instrument, every deal and position, and the frozen evaluation terms with any breaches.
- [Can I assign traders through the API?](https://www.propexecutor.com/resources/faq/propexecutor-api/can-i-assign-traders-through-the-api): Yes. `PUT /v1/accounts/{number}/trader` with a name and email assigns the account to that trader, creating the trader record if none exists for the email. `DELETE` on the same path unassigns it. Both revoke the account's live sessions when the holder actually changes.
- [Can I connect PropExecutor to my own website and checkout?](https://www.propexecutor.com/resources/faq/propexecutor-api/can-i-connect-propexecutor-to-my-own-website-and-checkout): Yes, through the API. The usual pattern is to create unassigned accounts in bulk in the admin panel, then have your checkout's payment webhook assign the next account to the buyer with `PUT /v1/accounts/{number}/trader`, read its credentials, and email them. Your website and payments stay entirely yours.
- [Can I build my own trader dashboard on the API?](https://www.propexecutor.com/resources/faq/propexecutor-api/can-i-build-my-own-trader-dashboard-on-the-api): Yes. The API provides per-account analytics, equity series and full reports, so you can build a trader page on your own website. Many firms do not need to, because every PropExecutor account already includes a dashboard inside the terminal; a custom dashboard is for firms that want everything in their own portal.
- [Can I connect PropExecutor to my CRM?](https://www.propexecutor.com/resources/faq/propexecutor-api/can-i-connect-propexecutor-to-my-crm): Yes, through the API. A CRM integration typically syncs accounts and their status, assigns accounts to traders on purchase, and pulls reports for payout workflows. Most CRMs support webhooks or scheduled jobs that can call the PropExecutor API with a key scoped to what they need.
- [Does PropExecutor send webhooks to my systems?](https://www.propexecutor.com/resources/faq/propexecutor-api/does-propexecutor-send-webhooks-to-my-systems): Not yet. Outgoing webhooks, which would notify your systems of events such as passes and breaches, are documented in the API reference with a planned status. Today, integrations poll the API on a schedule, for example listing accounts every few minutes to pick up status changes.
- [Can I create trading accounts through the API?](https://www.propexecutor.com/resources/faq/propexecutor-api/can-i-create-trading-accounts-through-the-api): Not yet. Account creation over the API is documented as planned. Today, accounts are created in the admin panel, in bulk of up to 100 per request, and your systems assign them to traders over the API. Pre-creating inventory this way gives instant delivery without API creation.
- [Where is the API documentation?](https://www.propexecutor.com/resources/faq/propexecutor-api/where-is-the-api-documentation): The API documentation is at /docs on the PropExecutor website. It covers authentication and scopes, errors, pagination, rate limits, each endpoint group, concepts and limits, and an availability page listing every endpoint as available or planned. Each page is also available as Markdown for AI tools.

### [Security, data and reliability](https://www.propexecutor.com/resources/faq/propexecutor-security)

How PropExecutor separates firms' data, secures trader and admin sessions, handles personal data and stays consistent under load.

- [How does PropExecutor keep each firm's data separate?](https://www.propexecutor.com/resources/faq/propexecutor-security/how-does-propexecutor-keep-each-firms-data-separate): Every firm's records carry its organization ID, and the database enforces row-level security: each request runs with the signed-in firm's context, and the database itself refuses rows from any other firm. Isolation does not depend on application code remembering to filter. Operator access uses a separate, dedicated database role.
- [Can one firm see another firm's data?](https://www.propexecutor.com/resources/faq/propexecutor-security/can-one-firm-see-another-firms-data): No. Firms are separated by database row-level security tied to each signed-in firm, and every API key and panel session is bound to one organization. Server names, account numbers and passwords never resolve across firms, and analytics are pinned to the requesting firm whatever the request asks for.
- [How are trader sessions secured?](https://www.propexecutor.com/resources/faq/propexecutor-security/how-are-trader-sessions-secured): Trader sessions are scoped to exactly one trading account, which is taken from the signed session token and never from the request. Access tokens last up to 15 minutes and are renewed with a refresh token that rotates on use. Rotating the password, reassigning or archiving the account revokes every session for it.
- [How long can a revoked session keep working?](https://www.propexecutor.com/resources/faq/propexecutor-security/how-long-can-a-revoked-session-keep-working): Up to 15 minutes. Revoking a session (by rotating the password, reassigning or archiving the account) cancels its refresh token immediately, but the short-lived access token already in an open terminal stays valid until it expires, which is at most 15 minutes. New logins with the old password fail at once.
- [How are admin sign-ins protected?](https://www.propexecutor.com/resources/faq/propexecutor-security/how-are-admin-sign-ins-protected): Admin panel sign-in uses a one-time code sent to the user's email, or Sign In With Google, with no passwords to steal or reuse. Sessions use short-lived access tokens and refresh tokens that rotate on every use, so a stolen refresh token that is replayed is rejected. API keys are separate, scoped and revocable.
- [Is trader data shared with third parties?](https://www.propexecutor.com/resources/faq/propexecutor-security/is-trader-data-shared-with-third-parties): PropExecutor stores only a trader's name and email and their trading activity, and does not sell or market to your traders. Traders have no relationship with PropExecutor. Data is processed by the infrastructure providers needed to run the platform, such as cloud hosting and email delivery, as described in the privacy policy.
- [What data does PropExecutor store about traders?](https://www.propexecutor.com/resources/faq/propexecutor-security/what-data-does-propexecutor-store-about-traders): For each trader, PropExecutor stores the name and email on the trader record, and for each trading account its balance, positions, trades, orders, rule flags and status history. It does not store identity documents, payment details, addresses or phone numbers, which stay with your own KYC and payment providers.
- [Does PropExecutor store card details?](https://www.propexecutor.com/resources/faq/propexecutor-security/does-propexecutor-store-card-details): No. PropExecutor never sees card details. Your firm's purchases from PropExecutor are paid through a Dodo Payments checkout, where card details are entered with Dodo, the merchant of record. Your traders' payments go through your own provider and never touch PropExecutor at all.
- [What happens if a PropExecutor server goes down?](https://www.propexecutor.com/resources/faq/propexecutor-security/what-happens-if-a-propexecutor-server-goes-down): The backend is designed to run as more than one instance behind a load balancer, with a reconciler keeping each instance's view of positions, orders and balances consistent with the database every 10 seconds. Write paths are safe across instances, and the service shuts down gracefully, finishing in-flight requests before stopping.
- [How does PropExecutor handle orders that arrive at the same time?](https://www.propexecutor.com/resources/faq/propexecutor-security/how-does-propexecutor-handle-orders-that-arrive-at-the-same-time): Each order takes a per-account lock and is checked and written inside one database transaction, with open positions read from the database in that transaction. Simultaneous orders on the same account are therefore processed one after another, and limits such as maximum positions hold, even across server instances.
- [Does PropExecutor have a platform-wide kill switch?](https://www.propexecutor.com/resources/faq/propexecutor-security/does-propexecutor-have-a-platform-wide-kill-switch): Yes. PropExecutor's operators have a platform-wide trading halt for emergencies, such as a price feed problem that would produce wrong fills. It stops new trading across the platform until the issue is resolved. It is an operator control, not something firms or traders can trigger.