Definition
What is Prop firm?
A prop firm (proprietary trading firm) is a company that evaluates traders with a paid challenge and gives those who pass a funded account, paying them a share of its profits.
Modern online prop firms work as evaluation businesses. You pay a one-time fee for a challenge, trade a simulated account under published rules and, if you pass, receive a funded account with a profit split.
The rules exist to measure risk control: a daily loss limit, a maximum loss limit, a profit target and conduct rules about news, automation and copy trading.
The fee is the cost of the evaluation, not a deposit. If you breach a rule you lose the attempt, not your own trading capital, which is why prop firms appeal to skilled traders with small savings.
Example
Example: a trader buys a $10,000 evaluation, reaches the 10% target ($1,000) without breaching the limits and is funded. A later $500 of withdrawable profit at an 80% split becomes a $400 payout before fees.
At a prop firm
Axora Funded is a prop firm with its own platform and simulated trading, offering 2-Step, 1-Step, Ascent, Spark, Pass, Bolt, Elite and futures programmes, a free $100,000 trial and payouts in USDT. Fees are non-refundable.
Frequently asked questions
Is a prop firm a broker?
No. A prop firm evaluates traders and pays rewards; it does not hold your money or execute trades on a real market for you.
Can I lose more than the fee?
No. Trading is simulated, so the most you can lose with Axora Funded is the fee you paid for the programme (plus the activation fee on Pass, if you chose to pay it).