The Prop Firm Textbook EP15 | 50 Q&A【Resolving All Beginner’s Doubts】

Introduction: Welcome to the Finale of the 15-Episode Series

This is the final episode. The Prop Firm Textbook series is now complete with this EP15.

Over the previous 14 episodes, we have covered every aspect of prop firms, including challenge rules, trading platforms, drawdown calculation, prohibited rules, recommended companies, fund management, mental management, automated trading, and tax strategies.

However, when you actually try to get started, many detailed questions keep coming up one after another.

In this article, we will classify the questions about prop firms into 5 categories and thoroughly explain them in a Q&A format, totaling 50 questions.

Let’s quickly resolve the essential questions that beginners should know.

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10 Basic Questions | Age, Identity Verification, Costs, etc.

Let’s start by resolving the basic questions that you should definitely confirm before starting with a prop firm.

Q1. What is the minimum age to participate in prop firms?

Most prop firm companies require participants to be 18 years of age or older. Minors (under 18) are generally not allowed to participate, even with parental consent.

This age restriction is set from the perspective of legal liability for financial transactions and international financial regulations. There is no upper age limit, so you can challenge at any age.

Q2. What identity verification documents are required?

A passport or driver’s license is generally required as the identity verification document for prop firm registration.

More stringent identity verification (KYC: Know Your Customer) may be required at the time of withdrawal, and you may also be asked to submit address confirmation documents (such as utility bills). Impersonation or using someone else’s name for registration is strictly prohibited. If discovered, your account may be suspended, and any earned rewards may be confiscated.

Q3. Can I withdraw to a Japanese bank account?

Yes, many prop firm companies allow withdrawals to Japanese bank accounts.

However, the withdrawal methods vary by company, and you may have multiple options such as bank transfer (Wire Transfer), PayPal, Wise (formerly TransferWise), or cryptocurrencies (BTC/USDT). The fees and speed of arrival also differ depending on the withdrawal method, so be sure to check in advance.

Q4. Can I participate even if I live in Japan?

Yes, there is no problem even if you are a resident of Japan. Prop firms are a global service and accept traders from all over the world.

However, some companies may restrict participation from certain countries (such as the United States, Canada, or Iran), so it is important to check the terms of use for any residency restrictions. Japan is rarely included in the list of restricted countries.

Q5. Is it okay if I don’t speak English?

Fintokei and some other prop firm companies have full Japanese language support. You can use their website, challenge rules, and support channels entirely in Japanese, so you can participate even if you are not proficient in English.

On the other hand, most overseas prop firm companies only provide English support, so you may need to use translation tools like Google Translate or DeepL.

Q6. Can I trade only with a smartphone?

Technically it is possible, but a PC environment is generally recommended.

While you can trade using the MT4/MT5 smartphone apps, the large screen of a PC is vastly superior for chart analysis, checking multiple time frames, and customizing indicators. Especially for scalping or day trading, there are limitations in operability when using a smartphone alone.

Q7. How much time is required per day?

Depending on your trading style, 1 to 2 hours per day should be sufficient to progress with the challenge.

For swing trading, you may only need to trade a few times a week, making it manageable as a side job. On the other hand, for scalping or day trading, you will need to be more actively engaged in the markets.

Q8. How much is the initial cost?

The initial cost for prop firms starts from around 21,800 yen (Fintokei’s small-scale plan).

Depending on the company and plan, the range is generally 20,000 yen to 100,000 yen. The higher the plan, the larger the trading capital and the higher the profit-sharing payout. It is recommended to start with a small-scale plan to get a feel for it and then gradually step up.

Q9. Can I start even without any trading experience?

Yes, you can start even without any experience. However, it is strongly recommended to first learn the basics through free trials or demo trading before risking real money.

Some companies, like Fintokei, offer free trial plans, allowing you to experience the prop firm system with zero risk. First, stabilize your win rate in the demo environment, and then progress to the paid challenge.

Q10. Can students participate as well?

Yes, students can participate as long as they are 18 or older.

However, you need to be cautious about balancing your studies and managing your funds. Prop firms are not a gamble to strike it rich, but a business model that requires continuously honing your skills to generate profits. Building a solid foundation during your student years can provide a significant advantage when you become a working adult.

10 Questions About Money | Payments, Taxes, Refunds, etc.

Next, let’s resolve the money-related questions that are the biggest concern for prop firms.

Q11. Can I pay with a credit card?

Yes, most prop firm companies accept credit card payments.

Major brands such as VISA, Mastercard, and American Express are available. Some companies also accept debit cards and PayPal. The payment methods vary by company, so be sure to check before making a purchase.

Q12. If I fail a challenge, will I get a refund?

There is generally no refund. The challenge fee for prop firms is treated as a cost for providing the trading environment, so there is usually no refund even if you fail.

However, some companies offer a “retry discount” or “continuous challenge discount” system, where the cost for re-attempting the challenge is reduced. Additionally, some companies like Fintokei may provide a refund guarantee under specific conditions.

Q13. Do I need to file a tax return if I make a profit?

Yes, if the annual profit exceeds 200,000 yen, tax filing is required.

Earnings from prop firms are treated as “miscellaneous income.” For employees with a side job, if the non-employment income exceeds 200,000 yen per year, you have an obligation to file a tax return. For freelancers or sole proprietors, tax filing is required regardless of the profit amount. Please refer to EP14 for more details on tax strategies.

Q14. Are there any fees for withdrawals?

It varies by company. For bank transfers, a fee of a few thousand yen is generally common.

When using PayPal or Wise, there may be currency conversion fees and remittance fees. For cryptocurrency withdrawals, a network fee (gas fee) is required. It is important to compare the fees for each withdrawal method and choose the most cost-effective option.

Q15. Is there an impact from exchange rates?

Yes, earnings are affected by exchange rate fluctuations.

Prop firm rewards are typically calculated in US dollars (USD) or Euros (EUR). When converting to Japanese yen, the actual amount received can increase or decrease depending on the exchange rate. If you withdraw during a period of yen weakness, you’ll receive more yen-denominated earnings, but during yen strength, the amount may decrease.

Q16. What is the minimum amount to get started?

The minimum participation cost for prop firms is around 21,800 yen (Fintokei’s small-scale plan).

Depending on the company and plan, the general range is from 20,000 yen to 30,000 yen. If your budget is limited, it is recommended to start with a small-scale plan, gain experience, and then challenge a higher-priced plan when you are more confident.

Q17. How much monthly income can I expect?

It depends on your trading capital and skills.

For example, if you can achieve a monthly return of 10% with a $100,000 (approx. 15 million yen) trading capital and a profit-sharing rate of 80%, your monthly income would be around 1.2 million yen. However, this is an ideal scenario, and many factors such as market conditions, mental management, and risk management will affect the actual results. Avoid setting unrealistic goals and aim for realistic growth.

Q18. When can I start receiving rewards after passing?

In most companies, you can start trading the very next day after passing.

Once your pro trader account is issued, you can immediately begin your trading activities. However, there may be a certain period (typically 1-2 weeks) of trading history required before your first withdrawal. The withdrawal schedule varies by company, so be sure to check in advance.

Q19. Can I pay in installments?

Some companies do offer installment payments.

However, using installment plans often incurs additional fees, so if possible, it is better to pay the full amount upfront to reduce the costs. You can also use the installment feature on your credit card, but be aware of the interest charges.

Q20. Are there any companies with a refund guarantee?

Some companies like Fintokei provide a conditional refund guarantee.

For example, they have a “fee refund system” where the challenge fee is refunded upon the first withdrawal, or a system where the challenge fee is returned under certain conditions. However, not all companies offer a refund guarantee, so be sure to check the terms of use before making a purchase.