Pros and Cons of No Evaluation Prop Firms

When you’re trying to choose a prop firm, you might have one question – what is the “evaluation” process all about?  

If the thought of a test makes you shudder, you might be tempted to go for a “no evaluation” firm. But are no evaluation prop firms a good idea? And are they right for you? Here’s a look at what you should know before you make the call for yourself. 

What Is a Prop Firm?

Normally, traders use their own money, or assets, to pay for trades. There’s a high level of risk involved. If the trades don’t pay off, you lose your money!  

Prop firms are a little different. A prop firm uses its own capital to pay for trades made by traders who join the firm. So, you’re using the firm’s money to execute trades – not your own. And you can usually trade a whole range of assets, from Forex to gold.  

How Prop Firms Work 

The prop firm model is easy to understand – we promise. It’s like a partnership of sorts. 

• You sign up for – and pass – the prop firm challenges. This proves you have the skills to actually make profits on the platform.  
• The prop firm gives you access to simulated funds. You trade using real market conditions.  
• Whatever profits you make go straight into your simulated funded account.  
• The prop firm takes a percentage of the profits in exchange for giving you market access.  

See? We told you it was simple!  

The “Traditional” Evaluation Process 

Does the idea of a “test” make you clam up a little? We get it. The whole idea of a “test” to join a prop firm sounds scary. It sounds really formal.  

And a lot like passing a school exam.  

But it’s not as bad as it might seem. To make it less scary, here’s how it actually works.  

• Think of the evaluation as a challenge. It’s something you can prepare for. And something you can win! 
• The test is either one, two, or three steps long. One step is one challenge. Two steps are two challenges. Three steps are three challenges.  
• The “test” is just a trade. You choose the assets. The prop firm sets the conditions. You show you can make a profitable trade – that’s all there is to it!  
• Once you pass, the prop firm will double-check your identity. They will also check your result.  
• If your verification is okay, then congrats! You’re now a member of the prop firm. 

Evaluations help everyone. They help prop firms take less risks, for one thing. By only working with consistent traders, prop firms stay in business. This means they can support other traders and build communities.  

This sounds like a big plus point, right?    

An evaluation is like an interview. It helps to show whether you’re a good fit for the firm, and if they’re right for you. Truly, evaluations help everyone in the long run.   

What Is a No Evaluation Prop Firm?

Okay, so that’s how the test works. What do “no evaluation” prop firms do differently? 

Honestly, the clue is in the name. There’s no evaluation, meaning there’s no test or challenge to pass. Let’s break down what this means.  

• You can open an account at any time. There’s no need to prove you have trading skills or experience.  
• Once signed up, you get access to instant funding. But in exchange, you’ll pay higher fees. And you could earn less profits.  
• There’s no need for your performance to be consistent. In other words, you don’t need a risk management strategy.  
• New or less experienced traders could find the process overwhelming. There’s not as much support, or guidance, as you’ll get from an evaluation prop firm. 

Pros of No Evaluation Prop Firms

Okay, we’ll admit it. No evaluation prop firms do have some advantages!  

• It’s really easy to join a no evaluation prop firm.  
• Since there’s no challenge, you can – possibly – start earning faster.   
• The whole process is quicker than joining an evaluation prop firm.   

Traders seeking “quick gains” might like the sound of no evaluation firms. And, sure, they do work for some traders. Whether they’re right for you depends on your trading strategy, appetite for risk, and experience level.   

Cons of No Evaluation Prop Firms 

We get it. “No evaluation” sounds appealing. But it’s not all good news.  

• You might pay higher fees to trade without passing challenges. This protects the prop firm – not you!  
• You’re not learning the skills you need to become the best trader. Evaluations help you understand where you’re at, and where you should improve.  
• Payouts can be lower than if you pass challenges first.   
• Since there’s no need to be consistent, no evaluation prop firm trading is risky. It’s unstable. And this is bad news for traders looking to grow.  

We’re not telling you not to choose a prop firm without challenges. But bear these potential downsides in mind when you’re making the call. 

Is a Prop Firm with No Evaluation Right for you? 

When you’re looking for the best prop firm, “no evaluation” might seem tempting. After all, it sounds super easy to get an account without passing any challenges. But is this best for you?  

Well, we can’t say for sure. Only you can answer that. But remember, challenges aren’t obstacles. They help you.  

Think of it this way: if you can’t pass the challenge, you might not be ready to trade just yet. And that’s okay. Study hard and learn how to trade and you’ll pass challenges in no time.  

Here’s something else to think about. Prop firms that use challenges care about their traders. They care about consistency and reducing risk. And these are skills that the best traders have! 

Are you worried you can’t pass the trading challenge? Don’t stress. We give you unlimited time to pass. You can take your time – we want you to succeed!  

Honestly, the best “no evaluation” prop firm might not even exist. That’s because the best prop firms offer challenges to help traders improve. To help them succeed.  

And isn’t that the whole point of joining a trading platform? Again, only you can answer that question for yourself.  

Start Your Maven Trading Journey Today 

Evaluation processes can be tough. But there’s no reward without a challenge, right? That’s why we care about being an evaluation prop trading firm.  

We help traders learn to manage risk and reach their potential. And together, we can make profits!  

For traders looking to work with a leading prop firm, choose Maven Trading. Simply sign up for an account, pass our challenges, and join our community. And start trading as soon as the verification process is complete!  

Start your day trading journey today. Get a simulated funded account from Maven Trading now.