What Is a Prop Firm?

What Is a Prop Firm? Understanding the TEFS Proprietary Trading Model

If you're exploring the world of proprietary trading and searching for the best prop firm to launch or elevate your trading career, TEFS offers a powerful gateway to success. Whether you're a new or experienced trader, understanding how the prop firm model works—and what sets TEFS apart—can be the first step toward trading with real capital and earning meaningful profits.

What Is a Proprietary Trading Firm?

A proprietary trading firm (or prop firm) is a company that allows skilled traders to trade using the firm’s own capital instead of their personal funds. At TEFS, we offer traders access to large simulated trading accounts and professional-grade tools, empowering them to participate in the markets with minimal personal risk and maximum potential upside.

How the TEFS Prop Firm Model Works

At TEFS, we’ve designed a streamlined and trader-friendly model that includes both 1-phase evaluation challenges and instant funding packages, making it easier than ever to get started:

1.    Choose a challenge or instant funding plan.

2.    Complete the 1-phase evaluation if you opt for a challenge. Demonstrate trading discipline, reach the profit target, and stay within risk parameters.

3.    Once passed, get access to a fully funded simulated trading account.

4.    Start trading in a virtual environment that mirrors live market conditions.

5.    Receive real payouts based on the profits you generate in your simulated account.

6.    Keep a share of the profits, based on your plan’s profit split.

7.    Grow your account and opportunities as long as you follow the rules.

This accessible path means you don’t need prior qualifications or significant savings—just trading skills and discipline.

TEFS Offers Over 2,500 U.S. Stocks and ETFs

TEFS specializes in offering an extensive selection of over 2,500 U.S. stocks and ETFs to trade. This gives traders access to the most liquid and well-known instruments in the global markets, including names from the S&P 500, Nasdaq, and popular exchange-traded funds. It is a perfect environment for day traders, swing traders, and technical analysts.

Why Choose TEFS as Your Prop Trading Firm?

TEFS is designed to support traders with everything they need to succeed, from capital to mentorship.

✅ Access to Large Simulated Trading Accounts

Trade with accounts ranging from five to six figures, giving you the leverage to scale your strategies and increase profit potential.

✅ Real Rewards

While trading at TEFS is simulated, your performance is tied to real financial rewards. We provide real payouts based on the profits you generate within your simulated account.

🔍 Trader Performance Matters

Your simulated trades produce valuable performance data. TEFS analyzes this data, as outlined in our Provider Services Agreement, to refine live trading strategies, enhance decision-making tools, and improve capital allocation. Your trading has real value, even in a simulated environment.

💹 Live Market Hedging

Traders who consistently perform well may have their simulated trades mirrored or hedged with real capital in the live market. This allows TEFS to share in your upside, without changing your risk-free, simulated setup.

✅ Professional Trading Platform with Level 2 Data

TEFS provides access to a professional-grade trading platform that includes:

●    Level 2 market data for enhanced depth-of-book visibility

●    Advanced stock scanners to identify trade setups in real time

●    Fast execution, customizable charts, and institutional-level tools
 These features equip traders with everything needed to compete at a high level.

✅ Competitive Profit Splits
Up to 90/10 (you keep 90% of the profits)
As your trading matures, so do your rewards.

✅ Live Trading Room and Mentorship -we do not only fund you, we train you!
TEFS provides more than just capital—we offer daily live trading room access, where traders can engage in real-time analysis, discuss strategies, and learn from professionals. Our 1-on-1 mentorship programs are ideal for those seeking personalized coaching to refine their edge.

✅ Remote Flexibility & Fee Refunds
Trade from anywhere, on your own schedule. And if you pass the challenge and earn your first payout, your audition fee is refunded—a fair and motivating bonus.

✅ Educational Resources
We offer structured learning tools such as:

●    Trading guides

●    Risk management strategies

●    Market psychology resources

●    Onboarding programs for new prop traders

Whether learning or sharpening your edge, TEFS is your growth partner.

How Does TEFS Make Money?

We operate on a mutually beneficial model where your success contributes to ours.

●    Evaluation Fees: A key revenue stream comes from the small fees traders pay to take challenges. Not all traders pass on their first attempt—this helps support our infrastructure and fund future payouts.

●    Profit Sharing: We only make money when you do. This aligns our incentives and drives mutual success.

●    Performance Data & Hedging: TEFS uses performance analytics to develop its strategies and may mirror top performers in live markets, leveraging trader data for strategic growth.

Final Thoughts: TEFS Is More Than a Prop Firm—It’s a Simulated Trading Powerhouse

The TEFS proprietary trading model is built to empower serious traders. With simulated trading, real payouts, access to U.S. stocks and ETFs, Level 2 data, 1-phase evaluations, and a full ecosystem of education, mentorship, and advanced tools, TEFS gives you everything you need to thrive.

Whether building confidence or looking to scale, TEFS is the prop firm that grows with you.

👉 Ready to get funded in a simulated environment? Start your TEFS challenge today and unlock your trading potential.