Are Prop Trading Accounts Worth It?
A Genuine Look at the Pros and Cons in 2025
Proprietary trading accounts—commonly known as prop accounts—have become increasingly popular with retail traders in recent years. Promising access to institutional capital, reduced personal risk, and a structured route to trading full-time, they have clear appeal. But they are not a shortcut to success.
This article takes an honest look at the benefits and drawbacks of prop trading accounts, including who they are best suited for, common pitfalls to be aware of, and how newer providers such as SabioTrade are attempting to address long-standing criticisms.
What Is a Prop Trading Account?
A prop trading firm allows you to trade using its capital rather than your own. In exchange, you typically share a portion of the profits—often between 10% and 50%—while being protected from personal loss.
Before you are given access to these funds, most firms require you to complete an evaluation phase or “challenge”, proving your consistency and ability to manage risk. This often includes fixed profit targets, drawdown limits, and time constraints.
Advantages of Prop Trading Accounts
✅ Access to Larger Capital
If you have a robust trading approach but limited personal funds, a prop account offers an opportunity to scale your strategy meaningfully. Instead of risking £1,000 of your own money, you could be trading accounts of £10,000, £100,000 or more.
✅ Limited Personal Risk
Once funded, you do not risk your own capital. The cost of failure is usually limited to the initial evaluation fee—typically a few hundred pounds. For many, this is a worthwhile exchange.
✅ Psychological Distance
Knowing you are not risking your own savings can ease emotional pressure, allowing for clearer decision-making. This can be especially beneficial in reducing fear-based or revenge trading.
✅ Built-In Risk Discipline
Prop firms impose strict limits on daily or overall losses, position sizes, and maximum exposure. These constraints can encourage stronger risk management habits and curb impulsive behaviour.
✅ Professional Progression Path
For those with consistent results, prop firms can provide access to larger accounts, scaling opportunities, and even potential career pathways within the trading industry.
Limitations and Risks to Be Aware Of
⚠️ High Failure Rates
Most traders fail their first evaluation. Unrealistic expectations, short timeframes, and strict drawdown rules mean only a minority succeed without multiple attempts.
⚠️ Cumulative Costs
While many firms advertise “no-risk” trading, repeated evaluations, data fees, and withdrawal conditions can result in meaningful out-of-pocket costs—particularly if you do not pass quickly.
⚠️ Restrictions on Trading Style
Prop accounts often limit trading around major economic news, prevent holding positions overnight or over weekends, or block specific assets (such as cryptocurrencies). This can hinder certain strategies.
⚠️ Payout Delays and Conditions
Profit splits (commonly 70/30 or 80/20) and delayed or conditional payouts are the norm. Some firms require minimum profits or active days before allowing withdrawals.
⚠️ Rule Ambiguity
Some traders report being disqualified for minor rule violations or encountering inconsistent enforcement. In the worst cases, firms may use technicalities to avoid honouring payouts.
Who Should Consider a Prop Trading Account?
Prop accounts work best for:
Experienced technical traders with an edge, looking to scale
Those with limited personal capital, but a proven trading methodology
Traders comfortable operating within clear rules and accepting third-party oversight
They may be unsuitable for:
New traders still developing their strategy or psychology
Highly discretionary traders who require full freedom
Individuals averse to structured risk limits or outside evaluation
The Prop Industry in 2025: Progress and Pitfalls
The rise of retail prop trading has created a boom in firms offering evaluations. Some focus on trader development and scaling; others appear to prioritise failed challenges as their main source of revenue.
A number of firms have come under criticism for inconsistent enforcement, hidden costs, or abrupt account closures. Others, however, have earned reputations for fairness, transparency, and strong community support. The difference between a fair opportunity and a frustrating experience often lies in the detail.
Where SabioTrade Positions Itself
SabioTrade, a partner of mine, is one of several new entrants responding to trader frustrations with the traditional prop model. Their focus is on:
Transparent rules, including clarity around economic news trading
No recurring monthly fees once funded
Payouts starting from the first profitable week
Ongoing support and account scaling opportunities
Their proposition may not suit every trader, but it appears designed with feedback from the trading community in mind, prioritising transparency, fairness, and growth potential.
Final Thoughts
Prop trading accounts are not a get-rich-quick scheme. They are a tool—and like any tool, they are only as effective as the person using them.
For skilled traders with discipline and patience, prop accounts offer a low-risk route to increased capital and professional development. For others, they can become an expensive cycle of repeated evaluation attempts and frustration.
Success in this space depends on clear expectations, self-awareness, and choosing a firm that aligns with your trading style. If approached wisely, a prop trading account can be a stepping stone—not a shortcut—to sustainable success.
If you’re interested in applying for a prop account with a quality broker such as SabioTrade, you can use my personal affiliate link (TRADEALL) below and also get a discount!
https://sabiotrade.com/lp/getfunded?aff=784432&aff_model=revenue&promo=TRADEALL&cp=25