FAQ - New Traders Please Review!
Futures trading 📈 is the practice of buying and selling contracts that represent the price of assets like the S&P 500, crude oil, or gold at a future date. Unlike stocks, futures are leveraged, expire regularly, and can be traded nearly 24 hours a day — allowing traders to profit from both rising and falling markets. Many traders today use prop firms (proprietary trading firms) 💼 to gain access to large trading accounts without risking their own money. A prop firm allows you to trade their capital — often $50,000 to $300,000 or more — and if you follow their rules and prove you're profitable, you get to keep a high percentage of the profits (usually 80–90%). In return, prop firms earn money from trader success, monthly subscriptions, one-time evaluation fees, and commissions or data fees.
The process typically starts with an evaluation account 🔍, where you must hit a profit target (like $3,000 on a $50K account) without violating risk rules like the daily loss limit or trailing drawdown. Once you pass, you're offered a funded account 💸, where you trade live capital and can request payouts weekly or monthly. Some firms charge monthly fees, while others only require a one-time payment for the eval and another fee when activating your funded account. Additionally, most traders pay a monthly data fee 📊 (usually $39–$130 depending on exchange access) and small commission fees per trade (like $3–$6 round trip). These costs vary, so always read the terms carefully.
Traders use platforms like ThinkorSwim, NinjaTrader, Rithmic, or TradeSyncer to enter trades, track market data, and manage risk. While the prop firm covers the capital, you’re expected to bring a clear strategy and discipline — because even one rule break (like trading during news or going over your drawdown limit) ❌ can get your account reset or terminated. That’s why many traders join communities like ORB Traders LLC to learn structured methods like the Opening Range Breakout (ORB) strategy and avoid expensive trial and error.
Many new traders ask, “Why not just trade my own money?” — and the answer is simple: prop firms allow you to scale risk-free. Instead of putting up $25,000 of your own capital, you might pay just $100–$300 for a chance to manage six figures in buying power. Plus, if you’re just starting out, it’s easier to learn using evaluations that force you to follow rules and stay disciplined.
Profits from trading futures are typically taxed under Section 1256, which means a 60/40 blend of long-term and short-term capital gains — often a better tax rate than stock trading 💰. But always consult a CPA to confirm your situation. Most prop firms let you trade major futures contracts like /ES (S&P 500), /NQ (Nasdaq), /CL (Crude Oil), and /GC (Gold), with the option to use micros or minis. Some even allow automated or copied trades 🤖, depending on their policies — TradeSyncer, for example, is popular for managing multiple accounts at once.
At ORB Traders LLC, we help you learn the strategy, pass evaluations, and stay consistent with daily levels, live streams, trade breakdowns, and community support. Whether you’re brand new or just tired of overpriced courses, we make it affordable to learn real trading. Ready to start? Join our Discord and let’s get to work 🚀.
🚨 Funded Account Reality Check: What You Really Get
Many prop firms advertise things like “Trade a $50,000 Account” or “Get Funded with $300,000 in Capital” — but let’s clear that up right now:
👉 You are NOT actually given full access to $50K, $100K, or $300K.
You’re trading with a simulated account that has a trailing drawdown, and that’s your real limit.
🧮 What is a Trailing Drawdown?
A trailing drawdown means the maximum your account can lose from its highest profit point, not the full account balance. For example, if your drawdown is $2,500 and you make $1,000 in profit, your buffer moves up — and you can’t let your account balance fall below that high-water mark minus $2,500. If it does? ❌ You fail.
So even on a “$50K” account, you might only really have $2,500–$3,000 of breathing room before disqualification. That’s your true “buying power buffer.” It’s not $50,000 of risk capital.
🎯 Why Do Prop Firms Market It This Way?
Because it sounds better. Would you rather click on a “$250K account” ad or one that says “we give you a $1,500 drawdown to work with”? Exactly. It’s marketing — and while it’s not a scam, it’s important to understand the structure behind the offer so you can plan accordingly.
🔍 So What Are You Actually Getting?
You’re getting:
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A chance to prove yourself within tight, rule-based limits (profit targets, drawdowns, etc.)
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Access to a simulated account with trade execution that mimics live trading
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A path to payouts if you follow the rules and stay profitable
But you're not getting $50K in a brokerage account to freely lose or spend. You're working within the firm's risk parameters, and that’s what makes it sustainable for them.
📢 Final Word:
Funded trading is still an amazing opportunity to grow as a trader — just understand the game. At ORB Traders, we help you trade the real numbers, not the marketing fluff. You’ll learn to manage your actual buffer, stay within drawdowns, and pass these accounts with precision.