Traders often ask for a "regulated prop firm". It's a fair question, but the answer surprises people: most retail prop firms aren't regulated the way brokers are.
Why most aren't
A broker holds your money and executes your trades, so regulators supervise it. A retail prop firm usually sells you an evaluation and pays you from a simulated account. You never deposit trading capital, and the firm isn't holding client funds in the same way, so most broker rules don't apply.
Some prop programs are run by regulated brokers. That can add some reassurance about the company behind it, but the evaluation and payout terms are still set by the program, not by the regulator.
What regulators have done
Regulators have stepped in when they believed firms misled customers. The best-known case involved My Forex Funds, which we cover on closed firms along with other shutdowns and what happened to traders.
How to lower your risk
- Check the company. Look for a registered company name and address in the terms, and that the terms are readable before you pay.
- Read the payout rules. Minimums, caps, first-payout waits and any consistency rule — these decide whether you get paid.
- Watch for sudden changes. Firms changing rules right before payouts is a warning sign. We log changes on prop firm news.
- Start small. A smaller account limits what you can lose if a firm stops paying.
- Withdraw regularly. Don't leave large profits sitting in a funded account.
Every firm page on PickMyFirm lists its sources and the date we checked them, so you can read the firm's own terms for yourself.