---
title: "Proprietary trading Meaning - Get Funded Now"
description: "Trading a firm's own capital rather than client money. The traditional form employed traders in-house; the retail form assesses traders remotely and pays…"
url: "https://getfundednow.com/glossary/proprietary-trading"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/proprietary-trading"
  pt-BR: "https://getfundednow.com/pt-br/glossary/proprietary-trading"
  fr: "https://getfundednow.com/fr/glossary/proprietary-trading"
  it: "https://getfundednow.com/it/glossary/proprietary-trading"
  de: "https://getfundednow.com/de/glossary/proprietary-trading"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Industry, legal and operations

# Proprietary trading

Trading a firm's own capital rather than client money. The traditional form employed traders in-house; the retail form assesses traders remotely and pays them a share of the results they produce.

Also called: Prop trading

GFN’s figure

GFN runs virtual evaluation programmes on simulated accounts. It is not a broker, financial institution or investment provider, and it does not accept customer investment deposits.

In detail

## Proprietary trading, explained

The two models share a name and little else. A bank's proprietary desk deployed the bank's balance sheet; a retail prop firm sells an assessment and pays out against performance on a simulated account.

What both have in common is the alignment: the trader takes none of the capital risk and a share of the result, and the firm takes the rest of both.

[Rules handbook](https://getfundednow.com/rules) · [More industry, legal and operations](https://getfundednow.com/glossary/category/industry)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Prop firm](https://getfundednow.com/glossary/prop-firm) - A company that assesses traders and pays them a share of the results they produce, rather than a broker that executes orders for clients. Most modern retail firms run the assessment on simulated accounts.
- [Simulated funding](https://getfundednow.com/glossary/simulated-funding) - The model where a firm assesses and pays traders on simulated accounts rather than routing their orders to a market. Trading is simulated; payouts against qualifying performance are real money.
- [Funded account](https://getfundednow.com/glossary/funded-account) - The account a trader receives after passing an evaluation, or buys directly under an instant programme. At a simulated-funding firm it is a simulated account whose eligible gains can qualify for a real payout.
- [Broker](https://getfundednow.com/glossary/broker) - A firm that executes trades on a client's behalf and holds client funds to do so. It is a different business from a prop firm, with different obligations and a different relationship to the client.
- [Market maker](https://getfundednow.com/glossary/market-maker) - A participant that quotes both a bid and an ask continuously, profiting from the spread between them and carrying inventory risk in return. Market makers are what make an instrument tradeable in size at a predictable cost.

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Source: https://getfundednow.com/glossary/proprietary-trading
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt