Frequently Asked Questions
26 answers about prop firm trading, risk management, and PropWise tools. Click any question to see the answer.
What is PropWise?
PropWise is a free collection of 10+ trading tools built specifically for prop firm traders. All tools are free, with no ads, no signup, and no data collection.
Is PropWise really free?
Yes, 100% free. No premium tier, no hidden costs, no email capture. Every tool works immediately with no account required.
What is a prop firm?
A proprietary trading firm that provides traders with capital to trade in exchange for a share of profits. Traders must pass an evaluation (challenge) first.
What is the best prop firm in 2026?
It depends on your priorities. FTMO is most established. FundedNext has the best value. The 5%ers has the best scaling. Topstep is the futures leader. Use our comparison tool to find your match.
How much does it cost to get funded?
The challenge fee is just the beginning. At a 10% pass rate with $300 fees, expect ~$3,000 total. Use the Challenge Cost Calculator for your personalized estimate.
What is risk of ruin?
The probability that your strategy will draw your account down to a level where you fail the evaluation. Even profitable strategies can have high ruin probability if position sizing is wrong.
How do I calculate position size?
Lot Size = (Account Balance × Risk%) / (Stop Loss in Pips × Pip Value). Use our Position Size Calculator with built-in presets for 12 prop firms.
What is a good risk per trade for prop firms?
0.5% to 1.0% per trade is recommended. At 1% risk on a 5% daily DD account, you can absorb 5 consecutive losses. At 2%, only 2.5 losses.
What is the average prop firm pass rate?
Industry estimates suggest 5-15% of traders pass evaluations. This varies by firm, account size, and trader experience.
How does the Position Size Calculator work?
Enter your account balance, risk percentage, and stop loss distance. The calculator computes exact lot sizes and checks against your prop firm's drawdown limits.
What are kill zones?
Specific time windows where institutional order flow creates high-probability setups. Main kill zones: London (07:00-10:00 UTC), New York (12:00-15:00 UTC).
What is revenge trading?
Trading impulsively to recover losses, typically with larger position sizes. It's one of the most destructive behaviors in prop trading.
How many trades per day should I take?
Most successful prop traders take 2-5 quality trades per day. More trades increase costs and exposure to drawdown limits.
Can I embed PropWise tools on my website?
Yes! Add one line of code to embed the Position Size Calculator. See propwise.site/embed for the code.
Which prop firm has the highest profit split?
The 5%ers offers up to 100% through scaling. FundedNext offers up to 95%. Topstep and Apex offer 90%.
Which prop firm is cheapest?
Maven Trading starts at $13. FundingPips at $36. The 5%ers at $39. For futures, Topstep at $49/month.
What is the maximum funded account size?
Lux Trading Firm scales to $10M. The 5%ers, FundedNext, and Blue Guardian scale to $4M. FTMO caps at $400K.
How is daily drawdown calculated?
It varies by firm. Some measure from start-of-day balance, others from peak equity during the day. Always verify your specific firm's method.
Should I start with a small or large account?
Start with the smallest account that matches your strategy. If you can't pass a $10K challenge, you won't pass a $100K one.
How long does it take to pass a prop firm challenge?
With no time limit (most firms), average passing traders take 15-30 trading days. Faster isn't necessarily better — consistency matters more.
What happens if I fail a prop firm challenge?
You lose the challenge fee and must purchase a new challenge to try again. This is why calculating expected total cost is important.
Can I trade news events on prop firms?
Depends on the firm. FTMO restricts news trading. FundedNext, The 5%ers, and most others allow it.
What is compound growth in prop trading?
Reinvesting profits through scaling plans. A $25K account at 5%/month with 80% split = $1,000/month. At $100K = $4,000/month.
How do I check if I'm ready for a prop firm?
Take the PropWise readiness quiz — 8 questions about your trading stats, habits, and psychology. Get a grade from A+ to F.
What is the profit factor?
Gross profits divided by gross losses. Above 1.0 = profitable. Above 1.5 = sustainable. Above 2.0 = strong.
What tools does PropWise offer?
10 core tools: Position Size Calculator, Challenge Cost Calculator, Risk of Ruin, Revenge Trade Calculator, Overtrading Detector, Session Timer, Compound Growth, Pip Calculator, Readiness Quiz, and Prop Firm Comparison. Plus 150+ programmatic pages.
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