Are Prop Firms Rules Getting Stricter in 2025? (New Rules Explained)
Why Prop Firms Are Tightening Their Rules in 2025
The proprietary trading industry has seen explosive growth in recent years, with the global prop trading market now valued at over $8.7 billion according to recent industry reports. This growth has led to:
- Increased competition among traders
- Higher risk exposure for firms
- More sophisticated evaluation methods
- Greater need for sustainable trading practices
As a result, nearly 70% of major prop firms have updated their rules for 2025, with most changes making it more challenging to pass evaluations and maintain funded accounts.
Key Changes in Prop Firm Rules for 2025
1. Stricter Evaluation Phase Requirements
The evaluation phase has become more rigorous across most prop firms:
| Requirement | 2024 Rules | 2025 Changes |
|---|---|---|
| Profit Target | 8-10% | 10-12% |
| Maximum Daily Loss | 5% | 3-4% |
| Minimum Trading Days | 5-7 days | 10-14 days |
| Maximum Drawdown | 10-12% | 8-10% |
2. New Trading Restrictions
Many firms have implemented additional trading limitations:
- Overnight holding restrictions: 60% of firms now prohibit or severely limit overnight positions
- Weekend holding bans: 45% of firms no longer allow weekend positions
- News trading limitations: Increased restrictions around high-impact news events
- Leverage reductions: Average maximum leverage reduced from 1:100 to 1:50
3. Enhanced Monitoring and Compliance
Prop firms are investing heavily in advanced monitoring systems that track:
- Trade copying between accounts
- Martingale strategy patterns
- Unusual latency in execution
- Consistent news event exploitation
Pros and Cons of the New 2025 Prop Firm Rules
Advantages
- Promotes more disciplined trading approaches
- Reduces firm risk exposure, leading to more sustainable funding
- Creates a more level playing field for all traders
- Encourages development of robust trading strategies
Disadvantages
- Makes evaluation phases significantly harder to pass
- Limits certain profitable trading strategies
- Reduces flexibility in position management
- May discourage some traders from pursuing funding
Essential Tools for Navigating Stricter Prop Firm Rules
With the increased difficulty in passing evaluations and maintaining funded accounts, having the right tools is more important than ever:
1. TradingView for Advanced Chart Analysis
As prop firms reduce allowable drawdowns, precise technical analysis becomes crucial. TradingView offers:
- Advanced charting tools with 50+ indicators
- Real-time market data across multiple asset classes
- Customizable alerts for key levels
- Backtesting capabilities to refine strategies
With tighter profit targets, having this level of analysis can make the difference between passing or failing an evaluation.
2. TradeZella for Performance Tracking
TradeZella has become essential for traders navigating stricter prop firm rules because it provides:
- Comprehensive trade journaling to identify weaknesses
- Detailed performance analytics across all metrics
- Risk management tools to stay within new limits
- Psychological insights to maintain discipline
With firms monitoring trading patterns more closely, having detailed records of your strategy and execution is invaluable.
FAQ: 2025 Prop Firm Rule Changes
Which prop firms have changed their rules the most for 2025?
The firms with the most significant changes include FTMO (increased profit targets), The5%ers (reduced leverage), and Topstep (new trading day requirements). Our prop firm comparison tool tracks all the latest updates.
Are there any prop firms with relaxed rules in 2025?
A few newer firms are offering more flexible programs to attract traders, but these typically come with higher fees or lower profit splits. Always review the terms carefully before committing.
How can I adapt to the stricter evaluation challenges?
Focus on: 1) Smaller position sizes to manage risk, 2) More consistent rather than aggressive trading.
Will these changes affect existing funded traders?
Most firms are grandfathering existing accounts under old rules, but some are requiring compliance updates at renewal periods. Check your specific agreement.
Navigating the New Prop Trading Landscape
While 2025’s stricter prop firm rules present new challenges, they also create opportunities for disciplined traders to stand out. By adapting your strategies, leveraging the right tools, and maintaining rigorous risk management, you can still succeed in today’s funded trading environment.
Ready to test your skills against the new standards? Start your evaluation with our recommended prop firms or use our updated comparison tool to find the best program for your trading style.