Are Prop Firms Legit? How to Spot Scams

The prop firm industry has attracted some bad actors. Here's how to protect yourself from scams.

Red Flags to Watch

• No verifiable payout history: Real firms have documented payouts
• Unrealistic promises: "100% profit split" or "guaranteed funding"
• No contact information: Missing address, phone, or support
• Brand new with no reviews: Wait for others to test first
• Pressure tactics: "Buy now or miss out forever"
• No clear terms: Vague or hidden rules

How to Verify a Firm

1. Check Trustpilot reviews (look for patterns)
2. Search for payout proof on social media
3. Join trader Discord/Telegram communities
4. Look up company registration
5. Test customer support before buying

Trusted Firms

The following firms have long track records and verified payouts:

• FTMO (since 2015)
• The 5%ers (since 2016)
• FundedNext (since 2022, $20M+ paid)
• E8 Markets (verified payout history)