Prop Trading or Brokerage Accounts: What’s the Better Starting Point for Beginners? | by Md. Rifat Kamal | Coinmonks | Jul, 2025

Every new trader faces this dilemma: whether to start with a traditional brokerage account or with a prop trading firm. This question is more than a matter of preference. This can define your trajectory as a trader. In 2025, with the rise of many prop firms, many are asking, which prop firm is the most reliable in 2025? And most importantly, what is the better starting point for someone who is just getting started as a trader?

When you start with a brokerage account, you are funding your own trading capital. This can be empowering. But at the same time, this can also be dangerous. Usually, most retail traders lose money within their first few months. This happens due to several factors such as a lack of professional structure, real-time performance tracking, over-leveraging, and emotional decision-making.

On the flip side, when you purchase a prop trading challenge account, it gives you a structure to maintain. You’re given a set of trading rules, and if you follow those, you can gain access to large funded accounts. Here, the risk is controlled because you’re not losing your personal capital. Instead, you’re being evaluated for discipline, consistency, and your ability to protect the account.

Because of all these, most new traders are choosing prop trading firms as their starting point.

The best prop trading firms for beginners in 2025 aren’t just offering you simulated capital, but they’re offering an ecosystem to develop profitable traders.

Top firms now provide

• Analytics dashboards
• Educational webinars and bootcamps
• Low-cost challenge accounts for both CFDs and Futures
• Community engagement through Discord and Twitter
• Fast-tracked payouts with flexible models

In this industry, everything moves so fast, and the firms that are forward-thinking are adapting quickly to traders’ feedback and optimizing their offerings. For example, FundedNext, one of the best prop trading firms for beginners, offers features such as a 24-hour payout, 24/7 customer support, and the ability to scale up account size up to $300,000.

But when you compare this to a traditional brokerage, the difference is clear.

A common misconception among traders is that prop firms are restrictive. However, this depends on the firm. The best forex-funded challenges offer flexible rules designed to simulate real-world trading without punishing short-term variance. These prop firms evaluate how well you follow your system, manage drawdowns, and handle trade execution.

So, if you’re asking, which trading challenge accounts are easiest to pass? I would say it depends on your strategy. For example, FundedNext allows for strategies ranging from scalping to swing trading. As long as you’re respecting the risk management and you have an edge over the market, any challenge should be easier to pass.

Now comes the most important question: how do you actually make money?

When you opt for a brokerage account, you’re fully exposed. Loses and profits, all are yours. Apart from these, you’ll have to bear all the trading costs, platform fees, commissions, and emotional strain.

Here, prop firms invert the equation. You’ll have to pay a one-time fee for a challenge account, and in return, you can access trading capital from $5K to $300K, depending on the model. Once you pass, you can keep 70–95% of the profits you make.

So, if you’re looking at the most profitable profit-split trading model among prop firms, you should consider not just the percentage, but also the structure of risk and consistency of payouts.

There is one advantage that prop firms offer but brokers cannot replicate at all, and this is the mindset framework. When you get a challenge account, to get into the funded phase, you’ll have to hit the profit targets, and when you do, it helps you build confidence. And in trading, when you’re confident about your setup, you become unstoppable. If you’re a new trader, this is what you need. A clear path, a chance to prove your edge, and a reward structure that doesn’t punish learning.

As there are so many prop firms in the market, sometimes it gets difficult to find a trustworthy prop firm. Look for these qualities when searching for one-

• Transparent rules
• Realistic expectations
• Strong community
• Reliable payouts
• Fair evaluation of trading style

I have done my research from my end and only found out that FundedNext checks all of these boxes. So, if you’re looking for one, you can try them out.

If you’re completely new to trading, there is no better starting point than a prop firm. It lowers the barrier to entry, protects your capital, and rewards consistency over risk-taking. However, traditional brokers still have a place, especially once you have mastered the market. But if you want to build skill, discipline, and confidence, the prop model is unmatched.