Prop trading accounts
How do institutional B-book prop business models generate revenue from evaluation entry fees versus real-market trading gains?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
B-book prop models can profit primarily from evaluation and reset fees charged to a high volume of failing applicants rather than from live trading gains.
How it works
Critics note this creates a potential conflict of interest since firm revenue may not depend on traders actually succeeding, a widely debated industry model.
An example
A firm earns more from failed combine fees than payouts.
Risk & limitations
No audited universal data confirms specific firm revenue breakdowns.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.