As you know, prop firms are companies that make the dream of conquering the market come true for traders who have capital constraints. However, have you ever wondered how much is the minimum amount to join prop? Let’s understand all the costs that may arise when joining prop from the following article on “minimum prop firm amount” to effectively manage your trading account.
What is the minimum prop firm amount to start?
Most prop firms today operate on a challenge model. That is, you will pay a fixed minimum prop firm amount once, to take the exam to get a real trading account (funded account).
This fee depends on the account size you choose, for example:
| Account | Challenge fee (estimated) |
| $10,000 | $50 – $80 |
| $25,000 | $100 – $150 |
| $50,000 | $200 – $300 |
| $100,000 | $400 – $600 |
This is not trading capital, but a fee to join the program. If you pass the challenge, you will be given a real account to trade and share the profits.
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Are there any options that DON’T require an exam?
The answer is yes – and that option is called Instant Funding, also known as direct funding.
Unlike the usual model that requires going through 1 or 2 rounds of challenges (Challenge), with Instant Funding, traders only need to pay a fixed minimum prop firm amount and will be given a real trading account immediately, without having to take exams or wait.
Some Differences of Instant Funding:
- Higher cost: Because it does not go through a competency test, the cost to buy an Instant Account is often significantly higher. For example, a $10,000 Instant account can range from $200–$300, depending on the prop firm.
- Stricter policies: Since prop firms take on more risk when funding immediately, risk management rules are often stricter. You may encounter restrictions such as:
- Lower drawdowns
- No overnight holding
- No news trading
- Limited daily or weekly lots
- Who is it for: Instant Funding is not for everyone. This model is especially suitable for experienced traders who are confident in their trading system and want to skip the testing phase and go straight to making profits and sharing.
Hidden fees- The minimum prop firm amount traders need to know
Many traders often overlook the costs that arise during the trading process. These costs are not always emphasized in the introduction, so it is extremely necessary to read the terms carefully before participating to prepare the minimum prop firm amount.
Here are some things to keep in mind:
Account reset fee
If you fail a challenge, some prop firms allow you to retake the test but with a reset fee, sometimes close to the original test fee. This can add up to a significant total cost if you fail multiple times.
Profit withdrawal fee
Not all prop firms are free to withdraw. If you withdraw via PayPal or international wire transfer, some platforms will charge an additional transaction processing fee, which can range from 1–5% depending on the method.
International payment fee when registering
If you pay with a card that does not use USD, you may be charged a currency conversion fee by your bank. Although small, if you register multiple times or use an international credit card, this amount can increase significantly.
Additional service fee (add-on)
Some prop firms offer advanced features such as:
- Copy trade or copy account to MT5
- Intensive risk management service
- Buy additional sub-accounts
- Upgraded dashboard for multi-trader account managers
These services are not mandatory, but if you want to experience the full experience, you need to consider a separate budget for them.
How much should a trader prepare?
There is no exact specific number for all traders when starting with a prop firm, but you can absolutely plan your finances based on your level and goals. Here are some tips to help you choose the right initial investment level:
Beginner
If you are new to the prop trading model, your main goal should be to experience, learn and test your trading discipline.
- Recommended account: $10,000 or $25,000
- Challenge cost: about $50–$150 depending on the prop firm
This minimum prop firm amount is moderate, enough for you to participate in transactions safely, without too much psychological pressure when trading with real money.
Experienced traders
If you have traded on a personal account, or have tried prop firms before, you can consider a larger scale to optimize the profit sharing ratio and trading time.
- Recommended account: $50,000 or $100,000
- Challenge cost: around $200–$500
Large accounts usually yield higher % profits, and you have enough experience to handle large trading volumes in a controlled manner.
Professional Trader
If you are confident in your trading system and do not want to spend time overcoming the challenge, Instant Funding packages are a suitable choice.
Input cost: from $200–$1000+
Although the cost is higher, you are funded immediately, can withdraw profits early and avoid the risk of being eliminated from the challenge for small, unnecessary mistakes.
Conclusion
In summary, with just a few tens to a few hundred dollars, traders can access the opportunity to manage tens of thousands of dollars in accounts at prop firms. However, it is important that you carefully check the hidden costs and minimum prop firm amount before making a decision to have a good policy to manage your finances. Prioritize a clear cost platform to help you trade more securely.
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