A common misunderstanding among aspiring traders is the belief that once funded by a proprietary trading firm, they own the capital in the account. In reality, you do not own the money in a prop account. Prop firms retain full ownership of the trading capital — what they offer is access to their funds under strict terms, in exchange for performance and compliance with their rules.

Why the confusion exists

1. “Your account” language
Marketing phrases like “get your $100,000 account” can give the impression that the funds belong to you. But this is a trading allocation — not a personal account.

2. Payout incentives
Profit splits (e.g. 80/20 or 90/10) suggest partial ownership. However, these payouts are profit-sharing arrangements, not rights to the underlying capital.

3. Lack of financial background
New traders unfamiliar with how institutional funding works may assume that being “funded” means holding ownership — much like a bank deposit or brokerage account.

What you actually get in a prop account

1. Trading access, not ownership
You are granted permission to trade the firm’s capital under specified conditions. The firm controls the funds, monitors performance, and reserves the right to revoke access at any time.

2. Performance-based payout rights
When you generate profits while adhering to all trading rules, you earn a share of those profits. You do not earn equity in the account or control the capital base.

3. Conditional continuation
You must maintain eligibility by meeting rules for drawdown, risk, and behaviour. Breaching them typically results in termination — with no recourse to the capital or profits not yet paid out.

What you don’t own

• The funded capital
• The full trading account
• Unpaid profits after a breach
• Access to the account beyond the firm’s permission

The prop firm owns and controls everything. You are a contracted trader — not a shareholder.

What this means for you as a trader

• Respect the rules: Since the money isn’t yours, strict discipline is required to maintain access.
• Manage expectations: Understand you’re trading for payout, not capital gain or asset control.
• Focus on consistency: The goal is to become a reliable revenue partner for the firm.
• Track payout terms: Only banked profits are yours — until they’re paid out, they belong to the firm.

Conclusion: Do you own the money in a prop account?

No — you don’t. The capital remains the property of the proprietary firm. As a trader, you’re given access to that capital under contract, and your income comes from earning a share of profits by trading responsibly and within defined rules. Treat the account with professionalism, not entitlement, and you’ll build trust — and income — over time.

Gain clarity on how prop firm models work and how to trade them successfully through our in-depth Trading Courses designed to prepare you for real-world performance, compliance, and long-term growth.