Prop Firm vs Hedge Fund: Is Working for Prop Firm Better?

If you’re trying to decide between a prop trading firm or a hedge fund, here’s the brutal truth: prop firms get you in the door faster, but hedge funds offer fatter paychecks—if you can survive the process. Read on for an unfiltered, practical guide—funding, pay, risk, and career realities for traders.

What Is a Prop Trading Firm?

A prop trading firm (proprietary trading firm) funds you with company capital, not your own cash, and pays you a cut of profits.
Example: FTMO, FundYourFX, Audacity.

Key points:

• No clients—traders only risk the firm’s money.
• Profit splits range from 70%–90% for the trader (Maven, Alpha Capital, FXIFY).
• Instant funding models (no challenge): FundYourFX, Audacity.
• Lower barriers: Most accept global applicants, online-only.

Pro tip: You can open a funded account in days—no Wall Street CV needed.