Forex prop firm: how funded forex trading works
A forex prop firm lets you trade currency pairs with the firm’s simulated capital instead of your own. You pay a one-time evaluation fee, prove you can follow the risk rules, and earn a share of the simulated profits. Here is how it works at Capifront, which pairs you can trade, and the forex-specific rules worth understanding first.
What is a forex prop firm?
A forex proprietary trading firm evaluates traders on a simulated account and rewards the ones who trade profitably within its rules. Instead of depositing $10,000 or $100,000 of your own money with a broker, you pay a one-time fee for an evaluation of that size. If you hit the profit target without breaking the loss limits, you move to a funded (simulated) account and can earn up to 90% of the simulated profits as a performance reward.
Nearly every retail prop firm works on simulated accounts, Capifront included. That is normal — the firm should simply say so clearly, and it is the reason the only money you risk is the evaluation fee.
How it works at Capifront
- Choose a challenge — Two-Step, One-Step, Three-Step, Pro or Instant, from $3,000 to $200,000. See what each one costs.
- Pay with crypto and receive your MetaTrader 5 login (JustMarkets demo server).
- Trade forex, metals, indices and crypto within the profit target and loss limits. There is no time limit.
- Get funded and request a payout 14 days after the funded account becomes active, then every 14 days.
| Challenge | Profit target | Max daily loss | Max overall loss | Min. trading days | Fee from |
|---|---|---|---|---|---|
| One-Step | 10% | 5% | 10% | 4 days | $15 |
| Two-Step | 10% → 5% | 5% | 10% | 4 days | $10 |
| Three-Step | 6% → 6% → 6% | 5% | 10% | 3 days | $9 |
| Capifront Pro | 8% | 6% | 12% | — | $20 |
| Capifront Instant | No evaluation | 5% | 10% | — | $70 |
Which forex pairs can you trade?
The main pairs on Capifront are EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, NZD/USD, EUR/GBP, GBP/JPY and EUR/JPY, with leverage up to 1:100. Gold and silver, major indices (US30, NAS100, SPX500, GER40, UK100, JP225) and crypto are available on the same account. The full list is on the symbols page.
Forex rules to understand before you trade
Leverage and position size
One standard lot of EUR/USD controls 100,000 euros, and one pip is worth about $10. At 1:100 leverage the margin is roughly 1% of the position’s value. Leverage decides how big a position you can open; your loss limits decide how big it should be.
Example on a $10,000 account: the daily loss allowance is 5%, or $500. Risking 1% ($100) on a trade with a 20-pip stop means 0.5 lots ($5 per pip × 20 pips = $100). Five of those losses in a row would hit the daily limit, so many traders risk less.
The daily floor includes swaps and commissions
Your daily equity floor is set from equity at 00:00 broker server time, and equity includes open profit/loss, commissions and swaps. Overnight swap on a large position counts against you, and a floating loss that dips below the floor is a breach even if the trade recovers. The drawdown guide works through the numbers.
News and weekends
News trading and holding positions over the weekend are allowed. Weekend gaps can still open beyond your stop loss, so size positions you hold over the weekend accordingly. What is not allowed is trading only around high-impact releases to exploit the simulation’s spread, slippage or gap behaviour.
How to choose a forex prop firm
- Platform: MT5, MT4 or cTrader — use the one you already know.
- Drawdown type: static limits stay fixed; trailing limits move up with profit and are harder.
- Daily loss calculation: balance or equity, and when it resets.
- Trading permissions: news, weekend holding, EAs and any lot-size caps.
- Total cost: fee, add-ons, monthly or activation fees, and whether the fee is refunded.
- Payouts: schedule, method, fees and the first-payout conditions.
- Transparency: a registered company, public rules before you pay, and honest reviews.
Capifront accounts are simulated (demo) accounts with virtual funds. Capifront is not a broker and does not provide investment advice; no earnings are guaranteed.
Frequently asked questions
Is a forex prop firm the same as a forex broker?
No. A broker holds your deposit and executes your trades. A prop firm like Capifront charges a fee for a simulated evaluation and pays performance rewards on simulated profits. Capifront is not a broker.
What leverage do I get on forex at Capifront?
Up to 1:100 on forex pairs, on every account size.
Can I trade the news and hold trades over the weekend?
Yes, both are allowed within the trading rules. Trading only around high-impact releases to exploit spread, slippage or gaps in the simulation is prohibited.
Which forex pairs can I trade?
Major and cross pairs including EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, NZD/USD, EUR/GBP, GBP/JPY and EUR/JPY, plus metals, indices and crypto.
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All Capifront accounts are simulated demo accounts using virtual funds. This article is educational and is not financial or investment advice. Trading on margin carries a high level of risk.