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A Prop Firm is a company that allows traders to trade using the firm's capital and share a percentage of the profits they generate.
Usually, you don’t need a large amount of your own capital. However, many firms charge a small fee to start the evaluation process.
They earn by taking a percentage of the profits generated by the traders, such as 80/20 or 90/10 profit splits.
Most Prop Firms have an evaluation phase where you must meet certain profit targets and follow rules using a demo or challenge account. Once passed, you get a live funded account.