If you’re a day trader ready to up your game, you might be thinking about joining a prop firm. But which is best: a “no evaluation” prop firm, or a prop firm with no testing involved? Well, although it’s tempting to choose the “no evaluation” option, here’s what you should know before you head down that road. 

What Is a Prop Firm Evaluation?

Before we cover no evaluation firms in any detail, here’s what a prop firm evaluation is. Just to be clear, we’re talking about prop firms in the context of firms that work with individual traders, not firms that have in-house traders, as Investopedia explains. 

Prop firm tests check if you have the skills – and discipline – you need to be a successful trader. You’ll make a trade (or a few trades) to show you can turn a consistent profit. In other words, your success was not a fluke. You really are ready to join the firm.  

Think of a prop firm evaluation as a chance to show off your skills. It’s nothing to worry about. You’ve got this.  

And if you don’t pass? Don’t stress. Try again once you’ve worked on your trading skills a little more.  

What You Don’t Know About No Evaluation Prop Firms 

If the idea of testing freaks you out, you’re not alone. But sometimes, those “no evaluation” firms can seem too good to be true.  

1. The Rules Can Be Restrictive

Sure, every prop firm has rules. But no evaluation firms can be super strict. This makes sense because they don’t “vet” traders before accepting them. So, one way these firms protect themselves is by controlling how you trade.  

Depending on your preferred trading strategy, you might find the house rules too harsh. They could hold you back from making progress.   

2. You Might Pay Higher Fees

It’s common for no evaluation firms to charge higher fees than evaluation firms. Why is this?  

Well, it’s all about risk, again. The firm has no idea how you trade, or what your trading strategy is. The result? You’ll pay more for instant access, without showing you have what it takes to trade consistently.     

3. There Is Less Sustainability

There are lots of new prop firms out there – and they’re not all going to survive. This is especially true for no evaluation firms. Since they’re not vetting traders, they could be losing money. And lots of it.  

In other words, prop firms without evaluations or tests are unsustainable.  

4. Profits Are Not Guaranteed

Profits are never guaranteed at any firm. But it’s common to think that you could make more money with instant funding from no evaluation firms. That’s all it is, though – a myth. Unless you have what it takes to trade well and consistently, you could be disappointed. 

And even if you do make a profit, there’s the profit split to think about. No evaluation firms often take higher profit splits than evaluation firms. Again, this is the price traders pay for seemingly “easy” access to a trading platform.  

5. Traders Are at Risk

This one’s a big one. Since you haven’t proven your skills, you could be out of your depth. You’re at risk of making bad decisions and losing confidence. You might find trading stressful rather than exciting, the way it should be.  

And remember, there’s also a higher risk of an instant funding prop firm failing. Should this happen, you could be left with no account. You’ll lose precious trading time. And you won’t get access to the capital you need.  

6. They Are Unsuitable for New Traders 

Be honest – how much experience do you have as a trader? If you’re fairly new to prop firm trading, then no evaluation firms aren’t ideal.  

You won’t get the support you need. You won’t learn risk management. And you could feel like you’re struggling rather than thriving. We can’t speak for you, but this doesn’t sound like a great deal – especially for new traders.  

Benefits of Choosing an Evaluation Prop Firm

Sure, testing helps prop firms like us. It stops us from taking on traders who aren’t a good fit, for one thing. And it helps to make sure we’re limiting our own losses. But the benefits don’t stop there.  

Choosing an evaluation prop firm helps you too. Here’s why.  

1. Risk Management

From trading rules to tough challenges, evaluation firms want to manage risk. They care about reducing their losses. And they’ll show their traders how to do this.  

So, if you join an evaluation firm, you won’t just get a simulated account. You’ll get some training in risk management, too. 

2. Support

Evaluation prop firms support their traders. They make sure they have access to the tools, support, and advice they need to reach their goals.  

At Maven Trading, we care about helping our traders succeed. And we care about building a community of like-minded traders who can all learn from each other. You almost never get this kind of community support from a no evaluation firm.  

3. Stability 

Evaluation prop firms are more stable.  

It makes sense if we think about it. Since they vet traders, they only take on traders who can consistently make a profit. Regular profits mean more money for the prop firm. This means they can keep taking on new traders.  

And helping more traders like you make a profit.  

4. Credibility

Here’s a final one for you. It might not seem super important, but it is.  

Evaluation prop trading firms care about their reputation. They’re legit and credible. They’re reliable. And if you’re serious about growing as a trader, these upsides should matter.  

After all, who doesn’t want to trade with a prop firm with a great reputation?    

Your Maven Trading Journey Begins Here

Ready to get serious and take your trading skills to a whole new level? Then Maven Trading wants you!  

Pass our challenges and we’ll give you a simulated funded account. You can keep your hard-earned simulated profits, too. We only take a small amount to cover our fees. Sounds fair, right? 

If Maven Trading feels a good fit for you, then try our challenges. Pass, and you could be up and running in a few days. Choose your account now and start your Maven journey!