Prop Firm Rules Checklist: What to Check Before You Buy a Challenge

30 September 2026 · 13 min read

Almost every "the prop firm cheated me" story starts with a rule that was published and not read. This is the list to work through before paying, in the order that matters. It takes about twenty minutes per firm and it is the highest-return twenty minutes in prop trading.

How to use this checklist

Answer every question from the firm's own rules document or dashboard — not from a comparison site, not from a review, and not from a YouTube summary, all of which go stale. If a question cannot be answered from published material, that is itself an answer: it means the rule is enforced from internal policy, which is the risk pattern described in prop firm red flags. Any term below that you have not met before is defined in the prop firm glossary. If you would rather see the whole process before the checklist, start with how to pass a prop firm challenge.

A. The firm itself

1. What is the legal entity name, and is it registered? Verify in the jurisdiction's registry, not on the firm's site.
2. How old is the domain? A firm selling large accounts on a very new domain is a different risk profile.
3. Can you find specific payout evidence with dates? Look for dispute patterns in forums, not average ratings.
4. Does the terms document allow rule changes? It almost certainly does. Note when a change can take effect and whether it applies retroactively.
5. Save a dated copy of the terms and rules today. This is the single most valuable thing you will do on this list.

B. The evaluation structure

6. How many phases, and what is the target in each?
7. Is there a time limit, an inactivity clause, or neither? Fixed windows interact badly with news restrictions and holidays — see challenge timelines.
8. What is the minimum trading-day requirement, per phase? And what counts as a trading day — is there a minimum hold time such as one minute? See minimum trading days.
9. Is there a consistency rule, and what percentage? Does it apply to the evaluation, the payout, or both? See the consistency rule.

C. The drawdown rules — the ones that fail accounts

10. What is the maximum drawdown, and is it static or trailing? Trailing is materially harsher. See drawdown types.
11. What is the daily loss limit, and is it measured on balance or equity? Equity includes floating loss; balance does not. The difference is enormous.
12. Is the daily limit measured intraday or at end of day? An intraday wick can breach a limit that an end-of-day measurement would ignore.
13. Does the trailing floor rise on unrealised profit? If yes, never treat an open winner as buffer.
14. Does the floor reset after a payout? If it resets to the post-withdrawal balance, a payout can shrink your drawdown cushion.
15. Is there a minimum balance or buffer requirement after a withdrawal?

D. Trading restrictions

16. Is weekend holding allowed? Does it differ by instrument, and does it change on the funded account? See weekend holding.
17. Is news trading restricted? Which tier of events, what window, and does it apply to opening, holding, or both? See news rules.
18. Are EAs and automated strategies allowed? Which techniques are prohibited, and does the policy change once funded? See EA and copy trading rules.
19. Is copy trading permitted, and copying between your own accounts? Is there a cap on the number of mirrored accounts?
20. Is third-party trading permitted at all? This is a separate clause from the EA policy and is the one that voids results most often.
21. Are there multi-account or hedging restrictions? Can you run the same strategy on two accounts at the same firm?

E. Payouts and money

22. When is your first payout eligible? Count from the funding date, plus any profit minimum, plus review time. See payout timing.
23. What is the profit split, and does it step up at a tier? And what is the scaling trajectory? See profit split and scaling.
24. What is the total cost to a first payout? Fee + expected resets + monthly platform fees + withdrawal fees. See challenge costs.

That is the full set. Twenty-four questions, and roughly five of them decide most outcomes: drawdown type, daily-limit measurement basis, consistency rule, payout eligibility, and third-party trading.

How to compare two firms like for like

A single table, filled in from each firm's own documentation, turns a marketing comparison into a decision:

The right-hand column is not universal — it assumes a typical intraday strategy. If you hold positions for days, or trade a strategy that depends on news, the "better" column changes and you should fill it in from your own requirements.

Terms and conditions: the clauses worth actually reading

You do not need to read all of it. These are the clauses that decide disputes:

• Amendment clause. Can rules change, with how much notice, and retroactively?
• Prohibited trading practices. Usually a list; this is where EA and copy-trading bans live.
• Third-party trading. Frequently a separate, strict clause.
• Payout conditions. Often a distinct set of conditions from the evaluation rules, and stricter.
• Breach consequences. Does a breach fail the account, void the payout, or both?
• Termination and jurisdiction. Which law governs, and where would a dispute be heard?

Pre-purchase sequence

1. Read the firm's rules page for the exact product, and save it.
2. Read the prohibited-practices and third-party clauses of the terms.
3. Fill in the comparison table for your shortlist.
4. Verify the legal entity and look for dispute patterns.
5. Buy the smallest account first, even if you intend a larger one. The cheapest possible test of whether a firm pays out is a small account and a real withdrawal.

Step five is the one people skip and the one that would prevent most regrets. If a firm will not pay out on a small account, it will not pay out on a large one either.

Once the account is yours, the equivalent of this list for the evaluation itself is the prop firm challenge checklist, which runs from day-one setup to the session before your first payout. Section C above summarises the drawdown questions; the firm-by-firm answers are in drawdown rules explained.

Two further checks are worth adding. First, whether the funded-account terms differ from the evaluation's — they usually do, and they are stricter (challenge vs funded rules). Second, whether your login pattern could look like account sharing, which is what IP checks exist to detect (VPN and IP rules). And when comparing specific firms, the consistency requirement is the parameter most often misreported: FundingPips is the clearest example, publishing different requirements across its own products.

Frequently asked questions

Do I need to check all 24 before buying?

If you want to be thorough, yes. If you only have time for a few, the five in the summary below cover most of the risk.

Where do firms publish these rules?

Usually a combination of a trading objectives page, an FAQ, and a terms-of-service document. The terms are the contract; the marketing pages are not. When they disagree, the terms win.

Can I ask support instead of reading?

You can, and it is worth doing for anything ambiguous — but keep the written reply. Support statements are useful evidence and are not a substitute for the contractual document.

How often do these rules change?

Frequently, and sometimes without notice. This is why the dated copy of the rules you saved matters more than any checklist: it is the only record of what you agreed to.

Summary

• Five items decide most outcomes: drawdown type, daily-limit basis, consistency rule, payout eligibility, third-party trading.
• Read the terms, not the marketing page. Save a dated copy.
• Compare firms on a filled-in table, not on advertised splits or prices.
• Check the funded-account rules separately — they are often stricter than the evaluation's.
• Start with the smallest account to test whether the firm pays.