Steps to Become a Pro Trader
Becoming a Professional in an Evaluation-Based Prop Firm: Steps to Securing Funding and the Key Differences from Discretionary FX Trading
Prop firms—where skilled traders are given access to capital to trade—have gained worldwide attention as an attractive path for aspiring professionals. Among them, the evaluation-based prop firm model, which has been gaining traction in Japan in recent years, is drawing particular interest.
However, not everyone is granted trading capital unconditionally. In this model, traders must first pass an evaluation process (challenge phase) and meet specific criteria before being entrusted with funds.
In this article, we will walk through the steps to becoming a prop trader, highlight what is uniquely required in evaluation-based firms, and explore how this model differs from traditional discretionary FX trading.
Table of Contents
・What is a Prop Trader?
・Evaluation Steps and Skills Needed to Go Pro
・Key Points to Watch for After Passing the Evaluation
・Differences from Discretionary FX Trading
・Conclusion
1. What is a Prop Trader?
A prop trader is a trader who receives capital from a proprietary trading firm and trades in the markets using that capital. Upon passing an evaluation, traders can gain real-world trading experience without risking personal funds, while also gaining access to performance-based compensation.
2. Evaluation Steps and Skills Needed to Go Pro
To become a funded trader at an evaluation-based prop firm, one must progress through the following steps:
・Select the Right Firm
Evaluate transparency in the assessment system, support resources, and contract terms. Japanese-based firms often offer unique cultural considerations like Japanese-language support and time zone alignment.
・Build a Trading Strategy
Evaluation phases typically set quantitative benchmarks such as “limiting drawdowns” or “reaching profit targets within a set period.” A risk-focused strategy tailored to meet these targets is essential.
・Complete the Evaluation (Challenge Phase)
Trade using a demo account under specified conditions to prove performance. This stage emphasizes discipline, consistency, and reproducibility.
・Manage Capital in a Live Account
Upon passing, the trader gains access to virtual funds for trading in market-like conditions. Profits are shared under a predetermined model.
・Commit to Continuous Growth
Passing the evaluation is just the beginning. Ongoing self-review and adaptability to market conditions are crucial for long-term success.
3. Key Points to Watch for After Passing the Evaluation
Once funded by an evaluation-based prop firm, the following aspects require careful attention:
・Understand the Contract Details
Know your profit split, withdrawal conditions, and loss handling policies in detail.
・Assess the Firm’s Reliability
Consider factors like years in operation, withdrawal track record, and support quality—especially when dealing with international firms.
・Strict Rule Compliance
Violating rules such as “daily loss limits” or “position size caps” often results in immediate account suspension. Maintaining discipline is non-negotiable.
・Master Risk Management
As a steward of allocated capital, strong risk control must be exercised with every trade.
・Evaluate the Support System
Access to educational resources and Japanese-language communication can be a major advantage when judging a firm’s long-term value.
4. Differences from Discretionary FX Trading
(1) Unique Aspects of the Evaluation-Based Prop Firm Model
Discretionary FX trading as an individual allows freedom in trading style and self-assessment. In overseas FX, high leverage is available, while domestic FX offers more regulatory protection but still provides flexible strategies.
By contrast, evaluation-based prop firms require traders to meet third-party standards and balance performance with disciplined execution.
Key differences include:
・Strict enforcement of trading rules (violations result in disqualification)
・Decision-making under consistent performance pressure
・Evaluation based on both quantitative metrics and qualitative behavior
This environment seeks not just “profitable traders” but “trustworthy traders” who can be entrusted with capital.
(2) Benefits Exclusive to Prop Firms After Passing the Evaluation
Successful candidates gain access to support systems and infrastructure unique to Japanese evaluation-based firms, such as:
・Capital allocations up to tens of millions of yen
・Performance-based profit-sharing structure
・Opportunities for tiered promotion and increased capital access
・Educational materials and support in Japanese
Compared to overseas firms that do not offer Japanese-language support, these factors make a significant difference for traders evaluating long-term engagement and peace of mind.
5. Conclusion
To become a prop trader through an evaluation-based prop firm, one must thoroughly understand the evaluation system and consistently demonstrate strategic and disciplined trading.
Passing the challenge is only the starting line. Ongoing dedication and a professional mindset are essential for building a sustainable trading career.
With Japanese-language support and culturally attuned educational resources, Japanese prop firms offer a supportive environment uniquely suited to local traders.
For those who want to test their skills and grow in a fair, structured environment, evaluation-based prop firms present an ideal path forward.