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What is prop trading, in plain English?

A prop firm backs skilled traders with its own capital and shares the profit. Here is how that works, and how UZO does it.

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Written by John

The short answer

A proprietary trading firm (a "prop firm") lets skilled traders trade the firm's capital instead of their own, then shares the profit with them. At UZO that capital is simulated, so the most you ever put at risk is your one-time evaluation fee. Pass the evaluation, trade the funded account, and you keep 90% of the profit while UZO keeps 10%.

If you have heard the term "prop firm" and were not sure what it actually means, this article explains the model from the ground up, in everyday language, and shows exactly how UZO fits in.


Prop firm vs your own brokerage account

Most people start trading through a personal brokerage account. You deposit your own money, you place trades, and every dollar of profit or loss is yours. The upside is full control. The downside is that your savings are directly on the line, and your position size is limited by how much you can afford to lose.

A prop firm flips that. Instead of risking your own capital, you prove your skill on an evaluation, and the firm gives you a larger account to trade. You are also not an employed bank trader sitting on a trading desk. You trade independently, on your own schedule, and you are rewarded on performance rather than a salary.

Your own brokerage

UZO (prop)

Capital traded

Your own deposit

Firm's simulated capital

What you risk

Your full balance

A one-time evaluation fee

Profit you keep

100% of a small account

90% of a larger account


Where the capital comes from

At a traditional prop firm, the capital is the firm's own money, placed in live markets. UZO works differently, and we are direct about it. UZO is a simulated, or "Syn-Fi," prop firm. The prices you trade are real, streamed from third-party feeds across forex, metals, crypto, indices, stocks, and energies, with real spreads and commissions applied. The capital itself is simulated, so no live money sits behind your positions.

That single design choice is what protects you. Because the balance is simulated, a losing run can never reach into your bank account. The only money you ever commit is the evaluation fee, and that fee is refunded to you on your first reward payout.


How profit is shared

The arrangement is simple. You bring the trading skill, the firm provides the account, and the two of you split the results. At UZO the split is fixed at 90% to you and 10% to the firm, and it does not change as your account grows. Whether you are trading a $5,000 account or a $1,000,000 one, your share stays at 90%.

You keep 90%, at every size

No tiers, no sliding scale, no fine print that quietly shrinks your cut as you scale up. Your interests and UZO's point the same way: the firm does well when you do.

Payouts are designed to be fast. Reward requests are approved in under an hour and clear within 12 hours, paid by bank transfer or crypto. KYC identity verification (through Veriff) happens only after you pass, never to get started.


Why people choose this route

The prop route appeals to traders who have the skill but not the bankroll, and to anyone who wants to test their edge without exposing their savings. Instead of slowly growing a small personal account, you can demonstrate consistency once and then trade a much larger account.

  • You risk a small evaluation fee instead of your savings, and that fee comes back on your first payout.

  • You trade real market prices and conditions, so the skill you build is genuine.

  • You keep the large majority of the profit, fixed at 90%.

  • You can scale a winning account over time without paying a new fee.

We are honest about the bar: most evaluations do not pass. The model rewards disciplined, repeatable trading, which is exactly the point. If you can trade well within clear risk rules, UZO is built to back you.


Related

  • What does "simulated trading" actually mean?

  • New to prop trading? Start here

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