The fee a trader pays to access a prop firm evaluation or challenge account. It can be either a one time payment or a monthly payment. Evaluation fees vary based on account size and evaluation type, typically ranging from about $50 for small accounts to $1,000 or more for large accounts.
Why It Matters
- 1The evaluation fee is your primary financial risk in prop trading.
- 2Understanding evaluation fees relative to account size and potential earnings helps you calculate your expected return on investment.
- 3Some firms offer discounts, free retries, or refundable fees upon first payout.
- 4Comparing fees across firms is essential because a $100 difference in fees becomes significant if you need multiple attempts to pass.
Example
- 1Firm A charges $349 for a $100,000 one-step evaluation with an 80/20 profit split.
- 2Firm B charges $249 for the same account size but with a two-step evaluation and 75/25 split.
- 3If you earn $5,000/month once funded, Firm A pays you $4,000/ month and Firm B pays $3,750/month — the $100 fee difference is recovered in less than one month, making Firm A the better long-term value.
Common Mistakes
- ✖Choosing a firm purely based on the lowest evaluation fee without considering rules and profit split
- ✖Not budgeting for multiple evaluation attempts — most traders don't pass on their first try
- ✖Ignoring promotional discounts that can significantly reduce the effective cost