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Based in Exeter - working across prop trading firms worldwide

Glossary · Evaluations

Pass rate

  • Also called
  • evaluation pass rate
  • funded rate

What it means

In a prop firm, pass rate is usually calculated as evaluations passed divided by evaluations that ended, over a period. It can be measured per phase, end to end from purchase to funded stage, or per trader rather than per account, so any figure is meaningless without its definition.

Pass rate is shaped by the rule set (target, loss limits, drawdown type, time limit), the trader audience the marketing attracts, and how many accounts a typical trader buys. Firms change it mainly by changing rules or audience, not by tightening enforcement.

Published pass rates in the industry are mostly self-reported and use different definitions. Treat any number you see as the firm's own claim unless the method is shown.

Related terms

Read these next.

Payouts

Payout ratio

Payout ratio is the share of a prop firm's revenue paid out to traders as performance rewards over a period, the key measure of whether the model is sustainable.
Evaluations

Evaluation

An evaluation is the paid, rule-bound test a prop firm sells, in which a trader must hit a profit target in a simulated account without breaking any risk rule.
Evaluations

Challenge fee

A challenge fee is the one-time price a trader pays to start a prop firm evaluation; some firms refund it with the first payout, others never do.
Running the business

LTV

LTV (lifetime value) is the total net revenue a prop firm earns from one trader across every evaluation, reset and add-on they buy, minus the rewards paid to them.
Compliance

Marketing claims

Marketing claims are statements a prop firm makes to sell its programs, such as payout totals, pass rates, speed and income; each must be accurate, sourced and not misleading.

On your website

Where this shows up on a prop firm site.

Feature

Challenge pricing table

The table traders compare first: program, size, price, target, daily and maximum loss and split, readable in ten seconds on a phone.
Feature

Rules pages

Rules a trader can read one way: one page per rule, worked examples from your own numbers, and a table of which rules apply to which plan.
Guide

How Many Traders Pass Prop Firm Challenges?

Prop firm pass rates: what the few published figures say, why pass rate drives challenge pricing, and how operators should read and publish it.

Looking for a prop firm to trade with, not a website? Compare firms on PropFirmPal, the comparison site our founder owns.Go to PropFirmPal →

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