Prop‐Firm Budgeting 101: Broker Fees, CRM, KYC & Hidden Costs

Most prop firm founders blow their budget before they even launch. They underestimate costs by 40-60% because they focus on the obvious expenses (broker fees, marketing) and completely miss the hidden ones that kill profitability.

We’ve helped launch dozens of prop firms in under 7 days, and we’ve seen every budget mistake in the book. The difference between firms that survive Year 1 and those that don’t? They understood their real numbers from Day 1.

The Real Numbers Behind Running a Prop Firm

Breaking Down Your Actual Monthly Costs

Let’s use real numbers from our budget calculator to show you exactly what you’re looking at. We’ll base this on a typical prop firm targeting 250 sales per month with an 8% pass rate and $250 average challenge fee.

Important: These baseline calculations don’t include launch discounts, promotional offers, or other revenue variations you might implement.

Your trader funnel looks like this:

• Monthly signups: 250
• Pass rate to funded: 8%
• Funded traders requiring KYC: 20 per month

This is your baseline. Now let’s see what it actually costs to service these numbers.

1. KYC & Compliance Costs (The First Reality Check)

Here’s what most founders miss: KYC isn’t just a one-time cost. It’s an ongoing operational expense that scales with your success.

Based on 250 sales/month with 8% pass rate:

• Traders needing verification: 20
• Cost per verification: $1.20
• Total monthly KYC cost: $24

Sounds cheap, right? That’s because we’re assuming you’re using automated KYC. Manual verification? You’re looking at 15-30 minutes per trader plus the actual verification fees. At 20 traders, that’s 10 hours of staff time plus fees.

Manual vs Automated comparison:

• Automated KYC: $24/month
• Manual processing: $24 (fees) + $250 (labour at $25/hour) = $274/month
• Annual difference: $3,000

2. CRM & Technology Stack (Where the Budget Bleeds)

This is where prop firms hemorrhage money without realising it. They piece together multiple tools, hire developers, and end up with a Frankenstein system that costs a fortune.

Typical “DIY” tech approach:

• Basic CRM: $500-1,000/month
• Challenge automation tool: $1,000-2,000/month
• Payout management system: $500-1,000/month
• Integration development: $5,000-10,000 (one-time)
• Ongoing maintenance: $2,000/month
• Total monthly cost: $5,000-8,000

Propriotec all-in-one approach:

• Complete prop firm CRM: From $2,000/month
• Includes: Challenge automation, KYC workflows, payout management, trader timelines
• Setup time: Under 5 days
• No additional dev costs
• Monthly savings: $3,000-6,000

3. The Real Cost Comparison

Based on processing 250 sales monthly with an 8% pass rate, here’s where most firms overspend versus using a specialist solution like Propriotec.

4. The Complete Monthly Budget (250 Sales Model)

Let’s put it all together using our calculator’s baseline:

Revenue:

• 250 sales × $250 average = $62,500/month

Note: These calculations don’t account for launch discounts, promotional pricing, or seasonal variations that may affect your actual revenue.

Core operational costs:

• Traditional CRM/Tech stack: $5,000-8,000
• KYC verification (20 traders): $24
• Marketing budget: Variable based on your strategy

With Propriotec:

• All-in-one CRM: From $2,000/month
• KYC verification (20 traders): $24
• Monthly savings on tech alone: $3,000-6,000

That’s $36,000-72,000 in additional profit per year, just from choosing the right infrastructure.

Sample Calculation: Your First 6 Months

Using our budget calculator defaults, here’s your realistic path to profitability:

Months 1-2 (Launch Phase)

Setup with Propriotec:

• Propriotec CRM: From $2,000/month
• Time to launch: Under 5 days
• No complex integrations needed

Months 3-4 (Growth Phase)

• Sales ramp-up: 100-150/month
• KYC costs scaling proportionally
• Automated workflows handling the volume

Months 5-6 (Scale Phase)

• Target sales: 250/month
• 20 funded traders (8% pass rate)
• KYC cost: $24/month
• CRM cost: From $2,000/month (same price, handling 250 sales)

How to Use These Numbers

Step 1: Calculate your specific model Our budget calculator uses these defaults, but your model might differ:

• Different pass rates (5-15% industry range)
• Higher/lower challenge fees
• Various marketing costs

Step 2: Add your buffer Whatever you calculate, add 20%. Markets change, regulations shift, and unexpected costs always appear.

Step 3: Focus on unit economics With 250 sales and 8% pass rate:

• Cost per funded trader: $987
• Average revenue per funded trader: $5,000
• ROI per trader: 506%

Step 4: Optimize ruthlessly Every $1,000 saved monthly = $12,000 annual profit. That’s why choosing the right tech stack matters.

The Bottom Line

Based on real calculator data from dozens of prop firms:

Using the 250 sales/month model:

• 8% pass rate = 20 funded traders
• KYC costs: $24/month total
• Traditional tech stack: $5,000-8,000/month
• Propriotec all-in-one: From $2,000/month

The difference:

• Immediate savings: $3,000-6,000/month
• Annual savings: $36,000-72,000
• Plus: Launch in under 5 days vs months of development

Your Next Move

Stop guessing at your prop firm budget. Use our budget calculator to model your exact scenario. Adjust the variables:

• Your expected monthly sales
• Your pass rate
• Your average challenge fee

Get instant calculations on:

• Monthly operational costs
• Break-even timeline
• Profit projections
• ROI per trader

Ready to launch with real numbers, not guesswork? See exactly how Propriotec can cut your operational costs while launching you in under a week.

Calculate Your Real Costs →