Prop Firm Match (PFM) conducts bi-annual due diligence checks on listed proprietary trading firms to ensure they maintain high standards. This process involves verifying executive information, monitoring organizational changes, reviewing trader metrics, assessing financial health, and evaluating strategic goals, all while ensuring transparency and integrity within the trading community.
At Prop Firm Match (PFM), we’re committed to helping traders find reputable and reliable proprietary trading firms. This commitment requires more than just an initial vetting process; it demands consistent oversight to ensure that each listed prop firm maintains PFM’s standards over time. That’s why we’ve established a robust bi-annual due diligence process, aimed at verifying that all listed firms continue to uphold transparency, sound financial practices, and commitment to trader success.
Below, we walk through the detailed maintenance checks we perform twice a year to evaluate and reaffirm each firm’s quality and alignment with our values.
1. Confirming Executive and Contact Information
To maintain a secure and professional relationship with each firm, we start by confirming their executive information:
We gather the latest details about the firm’s proprietor or CEO, as well as up-to-date contact information.
If a firm has a designated Point of Contact (POC) specifically for PFM, we also verify these details, ensuring streamlined communication.
2. Monitoring Organizational and Structural Changes
The structure and partnerships of a firm can significantly impact its operations and offerings. Therefore, PFM checks for:
Business Registration or Name Changes: Any updates in a firm’s registration or name are recorded to keep our directory accurate and verify their active status in business registries.
Partnership and Affiliation Changes: We look into recent shifts in broker affiliations, platform migrations, funding sources, or other partnership changes that could affect a trader’s experience.
Board of Directors Updates: Changes in the Board of Directors may indicate strategic shifts within a firm, and we want to ensure any new leadership aligns with our quality standards.
Trading Rules and Terms & Conditions Updates: Firms are asked to report changes in their trading rules or general terms and conditions, allowing us to monitor for any significant policy changes.
3. Reviewing Trader Metrics and Activity
A firm’s success and stability often correlate with the health of its trader community. For this reason, PFM evaluates:
Active Evaluation Traders: We gather statistics on the number of active traders undergoing evaluations, giving us insight into the firm’s growth and scalability.
Active Funded Traders: Similarly, we review the count of active funded traders to assess the firm's commitment to supporting successful traders.
4. Assessing Financial Health and Payout Performance
A prop firm’s ability to consistently pay traders is essential for building trust. Our maintenance check includes:
Payout Ratios: We analyze the monthly payout ratio, which shows how much is distributed to funded traders relative to the firm’s revenue, ensuring that payout commitments remain sustainable.
Proof of Reserve: Firms must present evidence of liquidity reserves to confirm they have the financial resources needed for ongoing trader payouts and demonstrate a buffer to ensure payout stability in the event of rapid growth.
Withdrawable Amounts: We verify the open withdrawable amount available to funded traders, ensuring that the profit split is transparent and fair.
5. Evaluating Strategic Goals
PFM values forward-thinking firms that prioritize sustainable growth. As part of our review, we ask each firm to share:
An outline of strategic objectives for the next 6-12 months, helping us understand their vision and plans.
Additional revenue sources beyond challenge fees, allowing us to assess their financial sustainability.
PFM’s Dedication to Integrity and Transparency
All proprietary trading firms listed with PFM must adhere to strict standards of honesty and transparency. Each firm is required to attest to the accuracy of their submitted information, and any misrepresentation could lead to a suspension from our platform. This disclaimer ensures a trusted relationship between traders and firms, supported by PFM’s commitment to maintaining a secure and transparent trading community.
Through these bi-annual checks, Prop Firm Match strives to uphold our promise of connecting traders with the best proprietary trading firms. By verifying that listed firms remain financially sound and committed to their traders, we help create a safer, more reliable prop trading ecosystem.
Prop Firm Match conducts bi-annual maintenance checks on listed proprietary trading firms to ensure they meet high standards of transparency, financial stability, and trader support. This involves verifying executive and contact information, monitoring structural changes, reviewing trader metrics, assessing financial health, and evaluating strategic goals. PFM is committed to fostering a secure, transparent trading ecosystem by holding firms accountable to these rigorous standards.