How to start a prop firm in 2026: tech, legal setup and a 90 day launch plan

A prop firm sells challenges. A trader pays a fee, trades a simulated account under your rules, and if they pass, they move to a funded account where they earn a share of the profit as rewards. Before you talk to a single provider, write down three things.

CFD or futures

CFD firms offer forex, indices, metals and often crypto, usually on platforms built for brokers. Futures firms offer exchange traded contracts and work with a different set of platforms and data connections. In the US, CFDs are not available to retail traders, which is one reason many firms that target US traders run futures programs. This one choice narrows your platform list, your payment options and your audience.

Account models

Decide on one step or two step challenges, account sizes, profit targets, a daily loss limit and a maximum drawdown, the profit split and how often traders can request rewards. Keep the first version simple. Three or four account sizes on one clear model are easier for a trader to understand than a menu that needs a comparison table. To see how a set of rules feels from the trader's side, run it through our free drawdown calculator and pass probability simulator.

Rules you can enforce

Every rule you publish has to be measured by your software exactly as written. If your terms say drawdown trails on end of day balance, your risk engine has to do exactly that. A gap between the written rule and the enforced rule is where disputes and bad reviews start.

The platform is what your traders touch every day, and it is the hardest part of the stack to change later. Here is how the options look.

MetaTrader 5

MT5 is the platform many traders already know. But MetaQuotes stopped issuing new MT5 white label licenses in late 2022. A new firm can no longer simply license its own MT5 white label. Access now runs through a broker or technology provider that holds a full server license, and those routes increasingly expect a regulated forex or CFD license behind them. In February 2024, MetaQuotes made brokers stop grey-labeling MT5 to prop firms, starting with Blackbull Markets and Funding Pips, with US clients a particular focus. MT5 now generally needs a firm's own direct license, and US clients are restricted. If you choose MT5, ask the provider directly how your access is licensed and what happens to your traders if it is withdrawn.

Match-Trader, cTrader, TradeLocker and DXtrade

These four are widely used alternatives for CFD prop firms.

• Match-Trader offers a white label built for prop firms, with challenge settings and payment options included, and publishes its prices.
• cTrader, from Spotware, is available as a white label and is known to traders who want a MetaTrader alternative. Spotware does not publish a price list.
• TradeLocker is web first, publishes prop firm pricing and connects to CRMs through an API.
• DXtrade, from Devexperts, is an established broker platform that a number of prop firms run on.

What they cost

Typical public prices, checked in September 2026. Where a vendor publishes no price, the figure is an industry estimate.

• Match-Trader white label: $2,500 a month on its Basic plan, $4,000 a month with a full CRM included.
• TradeLocker Prop Starter: $3,000 a month, with no setup fee.
• cTrader white label: an estimated $3,000 to $31,000 to set up, and $2,000 to $5,000 a month.
• DXtrade: from about $5,000 a month.
• MT5 through a license holder: an estimated $5,000 to $15,000 to set up, and $1,000 to $5,000 a month.

Questions to ask every provider

• Who holds the license, and what happens to my traders if access ends?
• Which CRMs and dashboards does it connect to, and how?
• Can it enforce each of my rules exactly as written, in real time?
• Is the mobile app under my brand?
• Can I export all trader and trade data if I leave?

The trading platform is one piece. A prop firm also needs a CRM to sell challenges and manage traders, a trader dashboard that shows progress against the rules, a risk engine that checks breaches, and a way to issue certificates and pay rewards.

You can buy these separately or as one package. All-in-one prop firm white labels cost about $2,749 to $3,000 to set up, with no monthly fee, but the provider keeps 50% to 70% of challenge revenue, depending on the model. A standalone prop firm CRM runs from $840 to $3,000 a month, depending on how much it includes. The package is faster to launch. Separate tools give you more control and can cost less at scale, because there is no revenue share. Either way, make sure you own your trader data and can export it.

Most prop firms sell evaluations on simulated accounts and pay rewards from their own revenue. In many countries there is no license written for this model. That does not mean there are no rules. Consumer protection, advertising standards, anti money laundering, data protection and tax rules still apply, and regulators in several countries have looked closely at prop trading.

Choosing where to set up

Many founders who target the GCC and international traders set up in a UAE free zone. A free zone company costs roughly AED 12,900 to 25,000 in year one, about $3,513 to $6,807. A DMCC company costs roughly AED 35,000 to 50,000, about $9,530 to $13,615. These are typical public prices checked in September 2026. The licensed activity you choose matters, because banks and payment providers read it before they approve you.

Other founders use a company in their home market. Whatever you choose, check three things before you commit: whether you can open a business bank account, whether payment providers will accept a prop firm from that jurisdiction, and what tax you will owe.

Terms and policies

You need terms of service, a risk disclosure, a refund policy, a privacy policy, a KYC and anti money laundering policy and a list of restricted countries. Drafting these with a lawyer typically costs $3,000 to $10,000. Do not copy another firm's terms. They were written for a different structure, and a mismatch is exactly what a regulator, a processor or a trader will point to.

Payment processing is where many new firms get stuck. Card processors often class prop firms as high risk, so expect higher fees and closer checks.

Cards

High risk card processing typically costs 3% to 8% per transaction. Processors also hold a rolling reserve, usually 5% to 20% of card revenue, for 90 to 180 days. That money is still yours, but you cannot use it, so plan your cash flow around it.

Chargebacks are the bigger risk. A trader fails a challenge and disputes the charge with their bank. Card networks watch each merchant's dispute rate, and a processor can close an account that crosses its limits. You reduce the risk by showing the rules before purchase, recording that the trader accepted your terms at checkout, using a billing descriptor traders recognize, using 3-D Secure authentication and answering every dispute with evidence such as login and trading records.

Crypto

Crypto processing typically costs 0.4% to 2% per transaction. A crypto transfer cannot be reversed by the buyer's bank, which removes chargeback risk on those payments. It does not remove the need for a clear refund policy, and not every trader will pay in crypto.

Have a second route

Apply to more than one provider, and start early. Underwriting can take weeks, and a single processor is a single point of failure.

You need to know who you are paying. Many firms verify identity before a funded account is issued or before the first reward, rather than at purchase, so the checkout stays short. Some verify at sign-up. Choose the moment, then apply it every time.

KYC providers charge per verification. Published self-serve rates checked in September 2026 were $0.80 per verification with a $49 monthly minimum at Veriff, and $1.35 per verification with a $149 monthly minimum at Sumsub. Screen against sanctions lists, enforce your restricted countries and remember that your payment provider may run its own checks before it sends a reward.

Ninety days is realistic when decisions are made quickly and providers onboard on schedule. Company banking and payment underwriting are the steps most likely to run late, so start them first.

Weeks 1 and 2: decide

• Choose CFD or futures, and draft your account models and rules.
• Choose a jurisdiction and start company formation.
• Shortlist platforms and CRMs, and book demos.
• Start payment provider applications.

Weeks 3 and 4: sign and draft

• Sign with your platform and CRM providers.
• Apply for a business bank account.
• Brief your lawyer on terms and policies.
• Build your brand identity, domain and email.

Weeks 5 and 6: configure

• Set up the platform, CRM and dashboard with your exact rules.
• Onboard your KYC provider.
• Design the website, with challenge pages and checkout.
• Build your Discord server and social accounts.

Weeks 7 and 8: build

• Build the website and connect checkout.
• Write ad creative that passes financial ad review. Platforms flag words like payouts, so write rewards.
• Set your affiliate terms.
• Write support answers for the questions traders ask most.

Weeks 9 and 10: test

• Buy, pass, fail and breach test accounts from start to finish.
• Request a test reward and check every number against your rules.
• Fix what breaks, then test again.

Weeks 11 and 12: warm up

• Open a waitlist and run a pre-launch campaign.
• Claim your Trustpilot profile and plan how you will reply to reviews.
• Publish your rules, FAQ and restricted countries.

Week 13: launch

• Open sales, watch every order and every support ticket daily.
• Review the first week's numbers with your team, then adjust.

The numbers in this guide are one side of the budget. Marketing, staff and ad spend are the other. Our launch cost calculator adds the typical costs for your choices in one place, so you can see the full picture before you sign anything.

If you would like a second pair of eyes on your plan, request an audit. We look at your offer, your setup and your marketing, and tell you what we would build first.