What Is A Prop Firm?
Learn what a prop firm is, how it differs from trading with your own money, and why thousands of traders use firms like Albatrix Funded.
What It Means
A prop firm (short for proprietary trading firm) is a company that provides traders with capital to trade with. Instead of using your own money, you trade the firm's capital. In exchange, you share a percentage of the profits you make — typically keeping 80% to 95% of what you earn.
Most prop firms, including Albatrix Funded, use an evaluation system. You first pass a challenge to prove you can trade profitably while managing risk. Once you pass, you receive a funded account with real buying power. The firm takes on the financial risk, and you earn a split of any profits.
How It Differs From Personal Trading
When you trade with your own money, you keep 100% of the profits — but you also take 100% of the losses. You need a large account to make meaningful returns, and every loss comes out of your own pocket. With a prop firm:
- Capital: You trade the firm's money, not yours. A small challenge fee gives you access to a large account.
- Risk: You can only lose your challenge fee. If you lose the firm's capital during the challenge, you simply fail the challenge.
- Profit split: You share your profits with the firm, but the firm provides the platform, infrastructure, and capital.
Benefits Of Trading With A Prop Firm
There are several reasons why traders choose prop firms over funding their own accounts:
- Access to large capital: For a small one-time fee, you can control accounts up to $100,000 or more. Building that capital yourself would take years.
- No personal risk: Your downside is limited to the challenge fee. You are not risking your life savings.
- Profit split up to 95%: You keep the vast majority of what you earn. The firm takes a small percentage for providing the capital and infrastructure.
- No monthly fees: At Albatrix Funded, there are no subscriptions or recurring costs. Pay once and trade.
- Fast payouts: You can request a payout at any time on a funded account, not just at the end of the month.
How Albatrix Funded Fits In
Albatrix Funded is a prop firm that follows the standard evaluation model with a few key differences. We offer five account sizes, a simple two-phase challenge with no time limits, real-time tracking of your progress, and payouts in cryptocurrency. Our profit split goes up to 95%, and we focus on transparency — every rule is explained clearly before you buy.
Our goal is to make funded trading accessible to everyone, regardless of their account size. Whether you are a complete beginner or an experienced trader, you can start with a challenge that fits your budget and skill level.
Real World Comparison
Think of a prop firm like a partnership. You bring the trading skills and the firm brings the money. You both share the profits, but the firm takes the financial risk. If you lose the capital, you just lose the challenge fee — not your savings.
