What Is Prop Trading?

Ecosystem Academy · Functional Guide

What Is Prop Trading? How Funded Accounts Actually Work

This is a working guide — not just definitions. You'll see how the MixFunded ecosystem is wired together: the three routes into funding (Evaluation, Instant Funded, Pay After Passing), the exact rules that keep an account alive, and how payouts land in your wallet every Monday.

12 min readUpdated 2026No prior experience required

1. What is prop trading, exactly?

Proprietary trading — usually shortened to prop trading — is when a firm trades markets using its own capital instead of client funds. In the modern retail sense, a prop firm recruits independent traders, gives them access to a funded account, and shares the profits.

You aren't managing anyone's savings. You aren't a licensed broker. You're a skilled trader executing a strategy on capital the firm provides — and keeping the majority of the upside.

2. How the MixFunded ecosystem works

MixFunded runs a simulated-capital ecosystem. Every account — whether you're evaluating or already funded — trades on the same live-priced simulated environment. The firm hedges real exposure on the back end, so your P/L is real cash to us, and payouts are real cash to you. The flow is straight-line:

01

Pick a route

Evaluation, Instant Funded, or Pay After Passing.

02

Trade the rules

Respect daily & max drawdown. Hit the profit target if your route has one.

03

Get funded

Same rulebook, now on a live-simulated funded account.

04

Weekly payout

80% split (scaling to 90%), paid in USDT every Monday.

3. Three routes into a funded account

Every MixFunded trader lands on the same funded account in the end. The difference is how you get there and where the risk sits at the start. All three routes offer account sizes from $10,000 to $100,000 in simulated buying power.

Route A

Evaluation Challenge

Classic one-phase evaluation. Hit the profit target within the drawdown rules, then flip to a funded account.

  • • Pay a small fee upfront
  • • No time limit — take as long as you need
  • • Min. 3 trading days per phase

Route B

Instant Funded

Skip the evaluation entirely. Buy the account, start trading, request your first payout after 3 trading days.

  • • No profit target
  • • Drawdown rules apply from trade one
  • • Fastest route to a payout

Route C · Signature

Pay After Passing

Zero upfront cost. Take the evaluation, and only pay the fee once you've passed and earned the funded account.

  • • $0 to start
  • • Fee deducted from first payout
  • • Fail = pay nothing, owe nothing

4. The rules that keep the account alive

The rulebook is intentionally short. It exists to enforce risk discipline — not to trip you up. The same rules apply to every route and every account size.

  • Daily drawdown. Equity can't fall more than the published daily percentage below the day's starting balance. Resets at 00:00 server time.
  • Max overall drawdown. Equity can never fall below the absolute floor, which trails to your highest closed-equity peak.
  • Minimum 3 trading days per evaluation phase and between payout requests.
  • No consistency rule. One big day can carry your entire month — every dollar is payable, as long as drawdown holds.
  • News trading allowed. No blackout windows, no lot restrictions around high-impact releases.
  • EAs and overnight/weekend holds allowed on every program.

Full details live in the Trading Rules rulebook.

5. How payouts work

Weekly, on Mondays

Request your payout; it's processed every Monday in USDT.

80% → 90% split

Start at an 80% profit split. Scale to 90% after 3 consistent payouts.

KYC once

KYC is required before the first payout above USD 1,000. One-time process.

Crypto rails

USDT settlement means no bank delays and no borders.

A worked example: on a $100,000 funded account, a 5% month returns $5,000. At the 80% split you take home $4,000; at 90% (post-scaling) you take home $4,500. Paid out over the following Mondays as you request.

6. Pay After Passing — a fairer model

Traditional prop firms charge a non-refundable evaluation fee before you take the challenge. Since most traders fail the first attempt, those fees become the firm's real revenue — not the trading itself. The incentive is misaligned.

Pay After Passing flips it. You take the evaluation with zero upfront cost. You only pay the fee after you've proven you can trade within the rules — deducted from your first funded-account payout. If you never pass, you never pay.

  Traditional prop firms Pay After Passing
Upfront feeYes — non-refundable$0
Fee if you failLostNothing owed
Firm incentiveSell more challengesFund real traders
Risk on traderHighRemoved

7. Getting started in 4 steps

  1. Pick your route on the Programs page — Evaluation for the cheapest entry, Instant Funded for speed, Pay After Passing for zero upfront risk.
  2. Choose your account size between $10K and $100K. Most first-time traders start at $10K–$25K to prove consistency before scaling.
  3. Read the rulebook once, end to end. Daily and max drawdown are the two numbers you must know cold.
  4. Trade like it's already funded. Small, repeatable edges compound. Hit the target (or the 3-day minimum on Instant Funded), then request your first Monday payout.

8. FAQ

Is prop trading legit?

Yes — reputable firms pay out on time and operate transparently. Look for verified payout proof, plain-English rules, and responsive support.

Do I need experience to try prop trading?

No formal license or experience is required, but you need a tested strategy and disciplined risk habits to pass an evaluation or survive on an Instant Funded account.

How much can a funded trader make?

A trader hitting a modest 5% monthly return on a $100K account with an 85% profit split takes home roughly $4,250 for that month. Scale account size and split as consistency grows.

What markets can I trade?

Crypto pairs, forex, indices, metals, and oil — with leverage up to 1:100 on Forex and 1:20 on Indices, Metals, Crypto, and Oil on Evaluation accounts.

When exactly do payouts arrive?

Payouts are processed every Monday in USDT once you've completed the 3-trading-day minimum since your last request.

Ready to try it?

Take a Pay After Passing evaluation

Start the challenge with zero upfront cost. Prove yourself first — pay only after you've passed and earned the funded account.