Prop firm passing services help traders pass proprietary trading evaluations by managing their accounts or providing trading signals. While they promise convenience, they come with serious risks, including account bans, financial losses, and ethical concerns. Most prop firms like FTMO and Topstep strictly prohibit these services, and violations of their rules can lead to account termination and lost funds.
Key Points:
- What They Do: Services take over trading or provide tools to meet profit targets in evaluations.
- Why Traders Use Them: Difficulty of evaluations, time constraints, and financial pressure.
- Risks: Account bans, high costs, and ethical issues. Many firms monitor for violations.
- Alternatives: Focus on improving trading skills and use reliable trading tools like VPS for better performance.
Before using these services, ensure you understand the rules, assess your skills, and weigh the costs against potential benefits. Long-term success depends on your ability to trade independently.
How Prop Firm Passing Services Work
The Prop Firm Evaluation Process
Most proprietary trading firms use a two-phase evaluation system to assess a trader’s consistency and ability to manage risk. In the first phase, traders are typically required to hit a profit target of 8-10% within 30 days while adhering to strict risk rules. For example, FTMO sets an 8% profit target with a maximum daily loss cap of 5% and an overall drawdown limit of 10%.
The second phase eases the profit target to around 5%, but the trading period is extended, and the same risk management rules still apply. Additionally, traders must meet minimum trading day requirements, which means opening at least one position per day for a set number of days.
Managing risk becomes even trickier with different drawdown models. Some firms use static drawdown, calculated from the starting balance, while others apply trailing drawdown, which adjusts based on the highest equity peak. A single significant loss can disqualify a trader, even if their overall performance is profitable.
These strict rules, combined with time limits, create a high-pressure environment. Traders often struggle to balance aggressive profit goals with cautious risk management, which is where passing services come into play. These services aim to help traders navigate this demanding process, offering various levels of support.
Types of Passing Services Available
Passing services operate through several methods, each with its own risks and level of involvement:
- Account takeover services: Traders hand over their account credentials, and the service manages the trading entirely. While this approach might seem convenient, it violates the terms of service for all prop firms and risks immediate account termination.
- Trade copying: These services use software to replicate trades from a master account across multiple client accounts. While efficient, this method is easily detected by prop firms due to the identical trade patterns it creates.
- Signal services: Here, traders receive trade recommendations – such as entry and exit points – through platforms like Telegram or Discord. While this approach allows traders to retain control, the synchronized actions of multiple accounts following the same signals can raise red flags.
- Educational and mentorship programs: These focus on teaching trading strategies rather than directly managing accounts. However, some services blur the line by offering tools or detailed instructions that closely resemble account management.
- Automated trading systems (EAs): These programs execute trades based on algorithms. While custom EAs tailored to individual needs are safer, widely-used systems often produce repetitive trade patterns that prop firms flag as violations.
How Technology Improves Success Rates
Navigating the challenges of prop firm evaluations – whether independently or with passing services – requires reliable technology. A solid trading infrastructure can mean the difference between success and failure, especially during volatile market conditions.
Platforms like QuantVPS address these needs with ultra-low latency connections of 0-1ms to major trading servers. This speed advantage is crucial during high-volatility periods, where even slight slippage can impact performance. Their 100% uptime guarantee ensures that traders, whether using automated systems or manual methods, won’t face unexpected interruptions that could jeopardize their evaluation.
QuantVPS also offers dedicated resources tailored to varying trading needs. Options range from 4-core systems with 8GB RAM for simpler strategies to high-performance servers with 128GB RAM for complex algorithms. This eliminates the slowdowns associated with shared hosting.
Additional features like DDoS protection, automatic backups, and multi-monitor support (up to six displays on higher-tier plans) provide layers of security and functionality. These tools help traders manage multiple positions, monitor drawdowns, and spot new opportunities – all while staying within strict risk limits.
Another key benefit is global accessibility, which allows traders to maintain consistent trading schedules regardless of their location. This flexibility is especially useful for meeting minimum trading day requirements while juggling other commitments.
For traders exploring automated solutions – whether legitimate or otherwise – having a reliable infrastructure reduces technical risks and ensures smoother execution, which is essential for achieving consistent results during the evaluation process.
Risks and Problems with Using Passing Services
Account Bans and Rule Violations
Using passing services can put your trading account at serious risk. Many major proprietary trading firms strictly prohibit third-party trading, account sharing, and coordinated trading activities. Violating these rules often results in permanent bans and the loss of any funds associated with the account.
Take FTMO and FundingPips, for instance – they explicitly forbid traders from sharing credentials or using third-party services. E8 Markets goes further, restricting traders to a single strategy per account. If multiple users run the same automated trading system, it could lead to immediate termination.
Prop firms employ advanced detection systems to spot rule violations. They monitor identical trade patterns, synchronized trade timing, and similar position sizes that are common with mass-market Expert Advisors. They also track login locations, device fingerprints, and trading behaviors. These robust measures highlight how seriously firms take rule enforcement. Violating these policies not only puts your account in jeopardy but can also result in significant financial losses.
Financial Risks and Costs
The financial side of passing services brings its own set of challenges. High upfront fees and steep profit-sharing agreements can quickly eat into your earnings, sometimes making it more expensive than simply completing evaluations on your own.
Adding to the financial risk is the lack of refund policies. If a passing service fails to secure a successful evaluation for you, you stand to lose your entire investment. On top of that, prop firms frequently update their rules and detection systems. A strategy that worked in the past may suddenly become ineffective or easily flagged, leaving you at a disadvantage.
These financial risks, combined with the ethical concerns, make relying on passing services a potentially costly gamble.
Ethical and Reputation Issues
Using passing services also raises serious ethical concerns. Prop firms are designed to fund traders based on their ability to demonstrate skill and sound risk management. When you rely on a service to pass evaluations for you, it misrepresents your actual trading abilities. This mismatch can create significant challenges when it comes time to independently manage a funded account.
Beyond the immediate risks, your reputation as a trader could suffer. Firms are continually improving their monitoring tools, and being caught using passing services could lead to being blacklisted or losing access to future funding opportunities.
The growing use of these services has also led prop firms to tighten their evaluation processes, making it harder for honest traders to succeed. By depending on external help instead of honing your own skills, you risk undermining your professional integrity and long-term growth as a trader.
What Traders Should Consider Before Using Passing Services
Check Your Skills and Readiness
Before diving into a passing service, take a hard look at your trading skills. Passing an evaluation is just the beginning – you’ll need to handle the funded account on your own afterward. If you’re struggling with risk management or staying disciplined during tough times, relying on a passing service might only delay fixing these critical areas.
Start by evaluating your ability to manage risk. Are you consistent with sticking to stop losses when trades don’t go your way? A solid strategy and a disciplined mindset are essential for live trading. These skills matter far more than the short-term convenience of outsourcing the evaluation process.
Also, think about the time commitment. Passing an evaluation is one thing, but maintaining profitability in a funded account requires ongoing effort. You’ll need the discipline and availability to actively monitor and manage your trades regularly.
Your financial situation is another key factor. If you’re risking money you can’t afford to lose, you might not be ready for prop trading at all. Successful traders usually have enough resources to handle multiple evaluations while covering their living costs.
Once you’ve assessed your readiness, it’s time to dig into the details of passing service providers.
How to Research and Check Services
Start by reviewing the prop firm’s rules. Some firms explicitly prohibit third-party trading or impose strict strategy limitations, which can make using a passing service risky.
When evaluating a service, look for clear and transparent information. A reliable provider should explain their methods, give realistic success rate estimates, and share details about their team. Be wary of services that promise overly high success rates or refuse to explain their trading strategies.
Checking a service’s track record can be tricky. Many providers can’t share detailed account statements, so ask for references or case studies that demonstrate their performance in real trading situations. Be cautious of vague testimonials or providers who hesitate to share concrete data – these are often red flags.
Make sure the service complies with the prop firm’s rules. For example, some providers use automated systems that generate identical trades across multiple accounts, which could lead to detection and account closures.
Lastly, pay attention to their communication. A trustworthy service will respond promptly, provide clear contracts, and maintain professionalism throughout. If communication is poor during your research phase, it could signal bigger problems down the road.
Once you’ve done your homework, it’s time to weigh the financial pros and cons.
Calculate Costs vs Benefits
Beyond your personal readiness, carefully consider the financial trade-offs. Compare the upfront fees and profit-sharing costs of passing services with the relatively modest fees of prop firm evaluations, which also allow you to build your skills.
Think about other ways you could use your money. Funds spent on passing services might be better invested in multiple evaluations or in refining your own trading strategies over time.
Don’t forget the importance of having a reliable trading setup. Passing an evaluation is just the start; keeping a funded account profitable requires stable and efficient trading infrastructure. Make sure you’re equipped with the tools you’ll need for long-term success.
While passing services can help you secure initial funding, your ability to trade profitably on your own is what really matters in the long run. Weigh the costs and benefits carefully, and consider whether investing in your own skills might be the smarter, more sustainable path forward.
I’ll pay to pass my evaluation! – A TERRIBLE IDEA!
Steps for Using Passing Services Successfully
If you’re planning to use a passing service, it’s essential to approach the process with preparation, awareness, and active participation. These steps will help you minimize risks and set yourself up for success.
Learn the Prop Firm’s Rules
Start by thoroughly understanding the evaluation criteria and trading restrictions of your chosen prop firm. These rules are legally binding, and breaking them could lead to losing your account and forfeiting profits.
Dive deep into the firm’s policies, especially regarding prohibited practices. Pay close attention to rules about third-party trading, account sharing, and automated systems, as these directly affect how passing services operate. For instance, firms like FTMO and Apex Trader Funding explicitly prohibit third-party trading.
Don’t just skim through the rules once – save a copy and review them regularly. Prop firms can update their terms at any time, and continuing to use their services means you automatically accept the changes. Key metrics like profit targets, maximum daily and overall loss limits, and minimum trading days are critical for your passing service to navigate. Also, be aware of any restrictions on trading styles, instruments, or time frames that could impact the service’s strategy.
If anything is unclear, document your questions and request written clarifications from the firm. This can help prevent misunderstandings or disputes in the future.
Set Up Reliable Trading Infrastructure
Once you’ve mastered the rules, the next step is ensuring your technical setup is ready to support successful trading. While the passing service will handle the evaluation, you’ll need a solid infrastructure to manage your funded account effectively.
- Stable internet connectivity is a must to avoid interruptions. A backup option, like a mobile hotspot, can be a lifesaver during outages.
- A high-performance VPS (Virtual Private Server) ensures smooth and consistent trading execution. For example, QuantVPS offers ultra-low latency (0-1ms) and 100% uptime. Their VPS Pro plan, starting at $69.99 per month (billed annually), includes 6 cores, 16GB RAM, and support for up to 2 monitors – ideal for most trading setups.
- Familiarize yourself with your trading platform. Practice placing orders, setting stop losses, and managing positions until these actions become second nature. Mistakes during live trading can quickly lead to rule violations.
- Organize your charts, indicators, and workspace before you start trading with real funds. A well-structured setup reduces stress and helps you stay focused under pressure.
- Have backup systems in place, including alternative ways to access your account and emergency contact information for your broker and prop firm. Redundancy is key to staying prepared for the unexpected.
Stay Involved and Learn During the Process
Even though the passing service is handling the evaluation, your involvement is critical for long-term success. Use this time to learn and prepare for independent trading.
- Monitor trades closely. Keep track of every trade the service executes on your account. Ask for explanations about their strategy, entry and exit points, and risk management. This insight will help you develop your own trading skills and maintain profitability once you take over.
- Keep detailed records of trades and secure written clarifications from the prop firm. This documentation not only helps you learn but also serves as proof of compliance with the firm’s rules.
- Communicate regularly with your passing service provider. Ask questions about market conditions, trade setups, and risk management decisions. A good service should be transparent and willing to educate you throughout the process.
- Practice parallel trading. Use a demo account to replicate the service’s strategy. This hands-on experience ensures you’re ready to take control once the evaluation is complete. Compare your demo results with the service’s live trades to identify areas for improvement.
- Prepare for independent trading. Before your evaluation ends, start building your own trading plan, risk management rules, and daily routines. The goal is to transition seamlessly into managing your funded account without any setbacks.
Lastly, ensure you stay compliant with all communication and documentation requirements. Some prop firms may ask for trading journals or periodic updates on your strategy. Be ready to meet these obligations, even while using a passing service.
Conclusion: Should You Use Passing Services
Using a passing service might simplify evaluations, but it comes with serious risks that could harm your trading career and financial stability.
Key Takeaways
Most proprietary trading firms prohibit passing services. Violating these rules often leads to immediate account termination and the loss of any profits earned.
Detection methods are increasingly advanced. Firms actively look for patterns like identical trades across accounts, synchronized trade timing and sizes, shared credentials, and widely-used expert advisors producing similar signals. What seems undetectable today could easily be flagged tomorrow.
The financial risks go beyond the service fee. You’re not just paying for the passing service – you’re putting your evaluation fees, potential earnings, and reputation on the line. Getting banned by one firm can make it harder to join others, as many firms share information about rule violations.
Reliable technology is critical for legitimate trading. Whether you trade independently or use a passing service, a high-performance VPS is vital. It ensures consistent execution and minimizes technical issues that could derail your strategies.
These points highlight the trade-offs every trader should weigh carefully before deciding.
Final Advice for Traders
Focus on building your trading skills; they are essential for long-term success. Even if a passing service helps you get funded, maintaining profitability will depend entirely on your abilities. Successful traders dedicate time to mastering risk management, developing reliable strategies, and building the mental discipline required for consistent performance.
If you choose to use a passing service, tread carefully. Research thoroughly, understand how the service operates, and ensure you can replicate the strategy on your own. Stay actively involved in the process and document everything.
Think about the bigger picture. If you can’t pass an evaluation independently, ask yourself whether you’re ready to manage a funded account. The skills needed to pass are the same ones you’ll need to stay profitable and keep your funding intact.
Invest in your skills and infrastructure. Whether you’re preparing for an evaluation or managing a funded account, having the right tools is just as important as your trading knowledge. A reliable VPS with ultra-low latency and consistent uptime can make a significant difference. QuantVPS, for example, offers plans starting at $41.99 per month (billed annually), providing the stability serious traders need.
Ultimately, your success depends on a combination of strong trading skills and a solid technical setup. The proprietary trading industry rewards discipline, consistency, and expertise. While passing services may seem like a shortcut, the most sustainable path to success lies in developing your abilities, understanding the rules, and building the infrastructure necessary for professional trading. Choose wisely, keeping your long-term goals in mind – not just the immediate challenge of passing an evaluation.
FAQs
What risks should I be aware of when using prop firm passing services, and how could they impact my trading account?
Using prop firm passing services can be a risky move that might endanger your trading account. Most well-known prop firms have strict policies against third-party trading, account sharing, and large-scale copy trading. Breaking these rules could lead to losing your account and forfeiting any payouts you’ve worked hard to earn.
Prop firms keep a close watch for activities that raise red flags, like identical trades across multiple accounts, shared login credentials, or coordinated trading patterns. If they detect anything suspicious, they won’t hesitate to impose penalties, which can include immediate account termination. On top of that, passing services may introduce technical instability or shady practices, potentially disrupting the trading environment and putting your account at further risk.
The safest approach? Stick to trading with your own strategies or use custom automation tools that align with the firm’s rules. Make sure to thoroughly review your prop firm’s policies so you can trade confidently without stepping outside their guidelines.
What are the best ways for traders to prepare for prop firm evaluations without using passing services?
To excel in prop firm evaluations without leaning on passing services, it’s all about honing and perfecting your own trading strategies. This not only gives you complete control over your account but also ensures you stay within the firm’s rules, as most firms strictly forbid third-party trading or account sharing.
If you’re using automation, make sure to go for a custom-built bot designed specifically for your trading approach. Steer clear of widely-used Expert Advisors (EAs) or signal services. Why? Because these tools often result in identical trade patterns across multiple accounts, which many prop firms consider a red flag. On top of that, your strategy should be consistent and able to handle live market conditions seamlessly to avoid any surprises during evaluations.
To keep things running smoothly, think about using a stable and reliable VPS. This can help reduce technical hiccups like latency or platform downtime – issues that not only hurt your performance but could also raise concerns with the firm.
What are the potential long-term consequences of using passing services with proprietary trading firms?
Using passing services can seriously damage a trader’s reputation and limit future opportunities with proprietary trading firms. Most well-established firms have strict rules against practices like third-party trading, account sharing, and large-scale copy trading. Breaking these rules often leads to account termination and losing any payouts you’ve earned.
Prop firms are vigilant about spotting suspicious activity. They look for red flags like identical trading patterns across multiple accounts, shared login credentials, or coordinated trading behaviors – typical signs of passing services. Violating these policies doesn’t just risk your current account; it can also get you blacklisted by other firms, making it harder to work in the industry.
To safeguard your reputation and stay compliant, stick to trading your own strategies or rely on custom automation tools designed specifically for you.
