The Real Cost to Launch a Prop Firm in 2025: Budget Breakdown

Bottom line upfront: $20-30K represents the absolute minimum to launch an evaluation-based prop firm—and you should secure more funding if possible. This budget works only if you avoid expensive traps, execute flawlessly, and accept zero margin for error. Here’s where your money actually needs to go.

We’ve helped dozens of prop firms launch in under 7 days with budgets exactly in this range. The key is understanding that evaluation prop firms operate fundamentally differently than traditional trading firms—and your costs should reflect that reality. Most founders waste money on things they won’t need for at least a year, if ever.

Trading platform costs: $2K-5K gets you live

Match-Trader leads the pack at $2,000 monthly with zero setup fees and built-in prop functionality. Unlike MT5’s recent 20% price hikes and regulatory restrictions, Match-Trader was designed specifically for evaluation firms. You get TradingView charts, risk management tools, and seamless challenge workflows without paying for A-book features you won’t use.

MT5 grey label runs $3,000-5,000 monthly, but MetaQuotes increasingly refuses prop firm clients due to US regulatory concerns. The $20K main label option includes features like A-book connectivity that evaluation firms simply don’t need. Why pay for institutional-grade order routing when your traders are on demo accounts?

Here’s the reality check: 95% of your “funded” traders will remain on simulated accounts indefinitely. The 5% who might eventually qualify for live trading won’t happen in year one. Start with platforms built for evaluation models, not institutional trading.

Essential infrastructure: $8K-12K covers the basics

Company formation runs $1,500-3,000 for offshore setup (Seychelles, SVG, or similar). Unlike regulated brokers, evaluation prop firms don’t need expensive licensing. You’re selling educational challenges and profit-sharing agreements, not managing client funds or providing investment advice.

Specialist CRM solutions like Propriotec start from $2,000 monthly and include everything prop firms actually need: trader timelines, KYC workflows, contract signing, automated pass/fail logic, and branded client portals. Compare that to Skale’s $12,500 monthly enterprise pricing for essentially the same functionality with more overhead.

Website development costs $800-3,000 for conversion-optimized prop firm sites. Template-based solutions work perfectly fine—your challenge fees come from the trading experience, not fancy web design. Payment processing setup runs $1,000-2,000 with 2.9-4.5% transaction fees.

Cloud hosting starts at $200-500 monthly for most evaluation firms. You’re not running high-frequency trading algorithms or managing thousands of live accounts. Basic AWS or DigitalOcean setups handle challenge management and trader dashboards without enterprise-grade infrastructure costs.

Marketing reality: $3K-5K monthly drives growth

Google Ads require $1,000-2,000 monthly minimum to compete effectively in the prop firm space. Average cost-per-click runs $0.50-2.00 for keywords like “prop firm challenge” or “funded trader program.” With proper campaign optimization, expect $50-150 customer acquisition costs.

Social media advertising adds $500-1,500 monthly across platforms. TikTok and Instagram perform particularly well for reaching aspiring traders aged 18-35. Micro-influencer partnerships cost $100-500 per collaboration—far more cost-effective than paying macro-influencers $5,000+ for similar reach.

Content creation tools and SEO software add $100-300 monthly. Unlike traditional financial services, prop firms can create aggressive marketing content focused on lifestyle and profit potential. The regulatory restrictions that constrain broker marketing simply don’t apply.

Staffing: lean team, focused priorities

Customer support represents your most critical hire. Remote support agents from India or similar markets cost $300-500 monthly and handle 80% of trader inquiries. Most questions involve challenge rules, payout procedures, and platform navigation—not complex financial advice requiring expensive expertise.

Technical support can start with freelancers at $300-600 monthly for part-time coverage. Platform integrations, trader dashboard updates, and basic troubleshooting don’t require full-time developers initially. Scale to full-time technical staff only after consistent $20,000+ monthly revenue.

Avoid the founder trap of hiring trading analysts or risk managers from day one. Your evaluation challenges generate revenue regardless of trader performance. Failed attempts often result in retries, making “trader success” less critical than customer satisfaction and marketing effectiveness.

The A-book myth that drains budgets

The most expensive misconception? Believing you need A-book liquidity and institutional-grade risk management from launch. Industry data shows only 5% of challenge passers ever qualify for live trading, and that typically happens 12-18 months after they first pass, not immediately.

Most evaluation firms operate entirely on demo accounts, even for “funded” traders. The profit-sharing model works because trader profits come from simulated trading, while your revenue comes from challenge fees and monthly subscriptions. You’re not managing real trading risk—you’re running an educational program with performance incentives.

When firms do eventually transition select traders to live accounts, it happens gradually with small position sizes. The liquidity costs that terrify new founders represent a year-two scaling challenge, not a day-one requirement.

Revenue timelines: 3-6 months to positive cash flow

Month 1-2: $2,000-5,000 from initial challenge attempts as marketing campaigns launch and word-of-mouth begins.

Months 3-4: $8,000-15,000 as repeat customers drive volume and acquisition costs optimize.

Months 5-6: $15,000-25,000 as customer lifetime value improves and organic growth accelerates.

The math depends on challenge volume. With $150-300 average challenge fees and 60-70% retry rates from failed traders, customer lifetime value reaches $400-800. Successful firms hit break-even around month 4-5 with proper execution.

Compare this to traditional trading firms requiring 12-24 months for profitability while burning through hundreds of thousands in regulatory and infrastructure costs.

Where founders waste money and fail

Overengineering from day one kills more prop firms than competition. Paying $15K monthly for enterprise CRMs, hiring full development teams, or building custom platforms delays revenue generation by 6-12 months while burning through startup capital.

Pursuing unnecessary regulation represents another budget killer. Evaluation prop firms don’t need FCA, CYSEC, or similar licensing. You’re not handling client money or providing investment advice—you’re selling educational challenges with profit-sharing incentives.

The “professional image” trap drains budgets on expensive offices, full-time staff, and premium software when simple, effective solutions generate identical revenue. Traders care about payout reliability and platform stability, not your office address or enterprise software stack.

Your $25K absolute minimum breakdown

Essential month 1 costs:

• Match-Trader platform: $2,000
• Propriotec CRM: $2,000
• Company formation: $2,500
• Website development: $1,500
• Payment processing setup: $1,500
• Legal documents: $1,200
• Total: $10,700

Monthly operational costs:

• Platform fees: $2,000
• CRM: $2,000
• Hosting/tools: $400
• Customer support: $400
• Marketing spend: $3,500
• Monthly burn: $8,300

This represents the absolute floor—you should secure additional funding if possible. With only 2 months runway, any delayed revenue or unexpected costs create immediate cash flow problems. Smart founders raise $40-50K to provide proper operating cushion.

The prop firm model rewards speed and efficiency over perfection. Launch fast with specialist tools like Propriotec, focus relentlessly on challenge volume, and scale infrastructure only as revenue justifies expansion. Your $20-30K budget works as a minimum—but more capital dramatically improves your odds of survival.