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How do prop firms make money? A deep dive into the business model
- robocat 1y agoSummary: it turns out to be quite profitable for prop firms to charge prospective prop traders non-refundable "evaluation fees" to try and join the firm - which only a single digit percentage of traders will pass. Even if a trader passes the test, the firms can have charges and ongoing subscriptions and also may do dirty tricks to avoid paying out the prop trader's commissions (of the trading profits).