What People Get Wrong About Prop Trading

Let’s face it — not everyone believes in prop firms.

Skepticism is common, especially in an industry where scams exist and misinformation spreads quickly. Some traders have heard horror stories. Others have had bad experiences. And many simply don’t understand how prop trading really works.

But the truth is, prop trading itself isn’t the issue — the confusion around it is.

In this article, we’ll explore the most common objections, explain where the doubt comes from, and share experience-backed insights to help you see the full picture.

Why Don’t Some People Believe in Prop Firms?

Skepticism often comes from misunderstanding — especially when money’s involved. Some people have heard horror stories or had a bad experience with a prop firm that didn’t have traders’ interests at heart. And like any industry, there are always a few companies that give the rest a bad name.

Others speak negatively because they tried to game the system and failed — using tactics like latency arbitrage or group hedging. But at FXIFY, with over two decades in the space, we’ve built safeguards to protect against abuse and maintain a high standard for serious traders.

As the prop trading space matures, the industry continues to foster a supportive environment for growing traders.

Common Objections to Prop Trading — And the Reality

Let’s break down the most frequent objections we hear, and how they stack up against the truth:

“The rules are too strict.”

The rules are in place to mimic institutional-level risk management—because that’s what real trading looks like at scale. Prop firms are for disciplined traders who want to build a sustainable career. The rules are there to protect both the trader and the firm. 

FXIFY offers various programs and account types, each with its own unique features and parameters such as – Instant Funding, no max daily drawdown, no time limits, etc.

“The challenge fees are too expensive.”

Compared to self-funding, challenge fees are a fraction of the capital you gain access to.

Most challenges cost less than a weekend trip or a few bad trades on a personal account. In return, you get access to upwards of $400,000 in funding. It’s not an expense—it’s leverage.

Moreover, you get a 100% fee refund¹ upon your first payout, and affiliates often have discount codes that you can use. 

Read: Prop Firms vs Self-Funded Trading: Which Model Fits You Best?

“Prop firms deny payouts.”

Not all prop firms are created equal—reputable ones pay reliably and transparently.

Just like any industry, there are good and bad players. Top-tier prop firms pay out consistently and have verifiable proof of trader success. If you’re working with a recommended firm and following the rules, your payout is secure.

Check FXIFY’s payouts here: https://fxify.com/payouts

“Prop trading is just a scam.”

Scams exist in every industry — that’s why due diligence is essential. Reputable prop firms are transparent, and have real traders getting paid daily. A scam doesn’t survive years in this industry with thousands of verified traders and public reviews. Trust is earned, and the best firms are easily verifiable.

Ready to Rethink Prop Trading?

Misconceptions stop too many traders from unlocking real opportunities. But the truth is clear: with the right prop firm, you can scale your strategy, keep up to 90% of your gains, and trade with confidence — without risking your own capital.

At FXIFY, we’ve paid out millions to real traders (+$30M to be exact), offer flexible account types to suit every style, and support you with a system built for long-term success — not quick wins.

200,000+ traders have already made the switch. Join them today and start your journey with funding that works for you.