Firm Capital Model

Funding Models

In the firm capital model, the firm allocates its own capital to a trader directly — no evaluation fee, no trader deposit.

The firm capital model has the prop firm allocate its own capital to a trader directly, without an evaluation fee or trader deposit. Compensation is a profit split on net P&L. The model is associated with traditional bank and standalone prop trading desks rather than retail evaluation firms.

Onboarding tends to be slower — interviews, references, performance history reviews, sometimes a working trial period — because the firm is putting real capital at risk. Once allocated, traders typically have higher size limits, no consistency-rule gymnastics, and direct support from a risk and operations team.

The model is rare in the retail evaluation-firm space because the unit economics are harder. Without an upfront fee pool, the firm needs the trader to generate trading profits that exceed the firm''s cost of capital and overhead. This filters the model toward proven professionals.

Keep going

Put this term to work