Tool
Prop Firm vs Broker
Should you trade with your own capital at a broker, or take a prop firm challenge and trade someone else's money? Enter your trading profile below and compare the estimated returns side-by-side.
Your Trading Profile
With a Broker
Using IC Markets
- Capital at Risk
- $10,000
- Monthly Trading Costs
- -$140
- Gross P&L
- +$570
- Profit Split
- 100% (you keep everything)
- Estimated Monthly P&L
- +$430
- ROI on Capital
- +4.3%
With a Prop Firm
Using FTMO
- Capital at Risk
- $345 (challenge fee only)
- Funded Account Size
- $50,000
- Monthly Trading Costs
- -$100
- Gross P&L
- +$470
- Profit Split
- 80% to you
- Estimated Monthly Payout
- +$376
- ROI on Challenge Fee
- +109.0%
Key Takeaway
With your current profile, trading with a broker gives you a higher estimated return of $430/month with full 100% profit retention, compared to $376/month from a prop firm after the profit split.
These calculations are estimates based on the inputs you provide. Actual results will vary based on market conditions, execution quality, and individual trading performance.
When Does Each Option Make Sense?
The right choice depends on your capital, skill level, and risk tolerance. Here is a general framework:
Choose a Broker If...
- ✓You have sufficient capital to trade
- ✓You want to keep 100% of your profits
- ✓You prefer no evaluation rules or time limits
- ✓You want full flexibility in your strategy
Choose a Prop Firm If...
- ✓You have limited capital but proven skill
- ✓You want to trade larger position sizes
- ✓You are comfortable with profit splits
- ✓You want to limit personal capital at risk
Important Considerations
Prop firm challenges are not free. If you fail the evaluation, you lose the challenge fee entirely. Many traders need multiple attempts before passing, which adds up quickly. Factor in the realistic pass rate when evaluating costs.
Trading with a broker puts your own capital at risk but offers complete flexibility. There are no daily loss limits, no trading day minimums, and no profit targets to hit within a deadline.
Risk Disclaimer
The figures shown are estimates only and do not guarantee any specific outcome. Both trading with a broker and using a prop firm carry significant financial risk. Past performance does not predict future results.
Trading forex and CFDs involves substantial risk of loss. Between 65-82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how these products work and whether you can afford the risk of losing your money.