Chat With Traders 306 · Michael Katz - Prop Goes the Trader
Aug 27, 2025
Michael Katz, CEO of Trade The Pool, has 17 years of experience trading stocks and futures. He dives into the rapidly growing world of online funding prop firms, discussing their operational intricacies and how they benefit traders. Katz addresses common misconceptions about these firms and highlights the importance of community support and education. He also explores the psychological aspects of trading, including risk management and the transition to funded trading, while indicating how technology advancements are shaping the future of trading.
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Why Funding Props Emerged
- Online funding prop firms evolved as a next step in retail trading by offering capital access and limiting traders' personal risk.
- They let traders pay a small evaluation fee instead of risking large personal savings to access meaningful capital.
Treat Evaluation Fees As Limited Risk
- Accept that the evaluation fee is the primary risk and treat it as the cost of access to larger capital.
- Limit losses to evaluation fees rather than risking substantial personal savings during the learning curve.
Prop Firms Aren't Just Fee Machines
- Prop firms run multiple income streams beyond evaluation fees, including trading P&L, education, and tools.
- Firms also invest in trader support and product offerings to diversify revenue and aid trader success.