The Prop Firm Business Model, Explained
Where the money comes from, how the evaluation model works, and why the margins beat a brokerage.
Where the money comes from
Challenge fees
Traders pay upfront to attempt a funded-account evaluation. Your primary, high-margin revenue.
Resets & retries
Failed traders buy resets to try again — recurring revenue from the same audience.
Subscriptions
Monthly plans, premium tiers, and add-ons create predictable recurring income.
Trade-copying
Copy your best evaluated traders to liquidity providers and profit from real market edge.
How the evaluation model works
Trader buys a challenge
Picks an account size and challenge type from your store and pays the fee.
Trades the evaluation
They trade on a simulated account against your rules — no client capital at risk for you.
Passes the rules
Your risk engine validates drawdown, consistency, and strategy in real time.
Gets funded & paid
Funded traders earn a profit split; you copy the strongest to LPs. Everyone wins on real skill.
Prop firm vs. brokerage economics
Run this model on one platform
Execurve handles challenge sales, evaluations, risk, payouts, and copy-trading end to end. Let's walk through your numbers.