Definition
A proprietary trading firm (prop firm) gives traders who pass an evaluation challenge an account trading the firm's capital, and shares part of the profit with them. The trader pays for the challenge and, by following the rules, reaches a live or simulated-live funded account.
Common challenge rules
| Rule | Meaning |
|---|---|
| Profit target | Reach a set percentage of profit during the evaluation |
| Daily loss limit | A single day's loss must not exceed a set limit |
| Maximum loss | The drop from starting capital or the peak must not exceed a set limit |
| Minimum trading days | The number of days you must trade |
| Restrictions | Holding over weekends, trading during news, using robots |
Checking a prop firm
- Track record, time in business and transparent ownership.
- A history of actually paying profit shares to traders.
- The broker or technology behind the accounts.
- Clear rules that do not change after you buy.
- Payment and payout methods available to users in Iran.
The prop firms page on PAMM Iran shows each firm's details with sources.
For investors
A prop firm is not a place to invest. Buying a challenge pays for a test — it is not a deposit. If someone offers “investment in a prop account” with a guaranteed return, treat it as a red flag.
For prop firms
If you represent a prop firm, use presenting your company to set up an official profile.
Last updated: 2026-10-08
These guides are educational and are not investment advice. Trading and investing in financial markets can lead to the loss of some or all of your capital.