If you’ve been anywhere near the trading world lately, chances are you’ve heard of prop firms. The idea of trading someone else’s money with little to no personal risk sounds almost too good to be true—and for some people, it is. But for others, it’s been a genuine game-changer. This article isn’t here to sell you a dream. Instead, let’s talk about the truth about prop firms—how they really work, what you’re up against, and what kind of rewards are actually possible.
We run Crypto Challenge Pass, and we’ve worked with hundreds of traders aiming to get funded. So, this isn’t theory—it’s what we’ve seen firsthand.
So, What Are Prop Firms?
At the simplest level, a prop firm (short for proprietary trading firm) gives you access to a funded trading account after you prove you can trade profitably. You usually go through a “challenge” phase first, hitting specific goals without breaking certain rules.
These firms aren’t just handing out free money. They want consistent traders who can grow capital without taking wild risks. In return, they let you keep most of the profits, usually around 70% to 90%.
There are tons of firms out there now. FTMO, MyForexFunds (well… until recently), The5ers, and plenty more. And then you’ve got platforms like Crypto Challenge Pass that help traders actually pass these challenges, or skip the process entirely with instant funded accounts.
The Rules Can Be Brutal
Here’s where a lot of traders get tripped up. Most of these firms have strict rules in place—some of them fair, others kind of frustrating.
You’ll see things like:
- A profit target, maybe 8–10%
- Daily drawdown limits (often 5%)
- Maximum loss caps
- A set number of minimum trading days
- Restrictions on news trading, holding over the weekend, or using copy-trading tools
The tough part? Even one small mistake—one bad day—can mean you fail the challenge or lose your funded account. Doesn’t matter if you were up 9.5% for the week. Break one rule, and it’s game over.
That’s why so many traders reach out to us at Crypto Challenge Pass. We’ve seen talented people lose over and over just because they didn’t fully understand the rules or weren’t mentally prepared for the pressure.
The Risks Nobody Tells You About
Let’s get honest here. The truth about prop firms isn’t just about the rules—it’s about the psychological and financial traps traders fall into.
You’ll hear success stories all over YouTube. But what you don’t always see are the dozens of failed attempts people go through before they finally get funded. That adds up: $100 here, $200 there, and suddenly you’ve spent more trying to pass challenges than you’ve ever earned.
Some firms are solid. Others? Not so much. There are companies with shady policies, surprise rule changes, and slow (or no) payouts. We’ve had clients come to us after getting burned and losing trust in the whole process.
Here’s what most people miss: passing a prop firm isn’t just about your strategy—it’s about your mindset, your discipline, and honestly, a bit of luck. Here are 5 common funded challenge mistakes traders make while passing the challenge.
The Real Rewards (If You Can Get There)
Now, that said… let’s not ignore the upside.
If you can pass a challenge and keep your funded account active, the rewards can be real. Imagine trading a $100K or $200K account and pulling out 10% a month. That’s thousands in profit, without risking your own capital.
We’ve seen clients go from struggling to making a steady monthly income through prop firms. Some start scaling up their accounts. Others build a routine, treat trading like a job, and stick to it long term.
And once you’ve got a few payouts under your belt, your confidence changes. You stop second-guessing your setups. You trust your system.
At Crypto Challenge Pass, we’ve worked with traders in all stages—first-time challengers, burnt-out veterans, and even people managing multiple six-figure funded accounts. The ones who succeed? They take it seriously. They prepare. And they don’t treat it like a lottery ticket.
Some Advice Before You Start
If you’re thinking of diving into the prop firm world, here’s what I’d say:
- Don’t rush. Take time to read every rule and understand the firm’s policies.
- Trade a demo first. Seriously. You need to feel how the pressure changes when rules are involved.
- Don’t just chase big wins. These challenges are about risk control more than flashy trades.
- If you need help, get it. Whether it’s mentorship, automation, or working with a platform like Crypto Challenge Pass, there’s no shame in stacking the odds in your favour.
Most importantly, respect the challenge. The truth about prop firms is that they’re legit, but they’re not easy. This is not a shortcut to fast cash. It’s a structure that rewards preparation and punishes carelessness.
Final Thoughts
Prop firms have changed the game for traders, no doubt about it. They offer a real shot at growing capital and building a trading career—but only if you understand what you’re walking into.
There are rules. There are risks. But there are real rewards too.
If you’re serious about trading with a prop firm, don’t go in blind. At Crypto Challenge Pass, we’re here to help—from passing funded challenges to managing funded accounts the smart way.
Take your time. Learn the game. And when you’re ready, play it like a professional.