Major Risks for Traders Using a Prop Firm Passing Service
Major Risks for Traders Using a Prop Firm Passing Service
Prop firm passing services have become very popular because they help traders complete Phase 1 and Phase 2 quickly. But even though these services can save time and reduce stress, they also come with important risks that every trader should understand.
Before you trust someone with your challenge account, make sure you know these major risks.
1. Rule Violations by the Service
Every prop firm has strict rules like:
- Daily drawdown limits
- Maximum total loss
- No news trading (for some firms)
- No high-frequency trading
If the passing service breaks any rule—even by mistake—you lose the challenge immediately.
Sometimes the trader doesn’t even know until the account fails.
Always choose a service that understands each prop firm’s rules clearly.
2. Using High-Risk Trading Methods
Some services use aggressive strategies such as:
- Oversized lot sizes
- Grid trading
- Martingale
- Scalping during volatile news
These can pass a challenge quickly but can also blow the account just as fast.
You should always know the type of strategy being used.
3. Prop Firm Detection & Account Flagging
Prop firms are smarter in 2025. They can detect:
- Copy trading
- Repeated algorithmic patterns
- Certain EAs not allowed
- Suspicious high-frequency entries
If your account is flagged, the firm can remove profits or cancel your funding.
Always confirm the passing service uses prop-firm-safe methods.
4. Account Access & Security Concerns
When using a passing service, you must share login details.
This carries risk, such as:
- Unauthorized trades
- Data misuse
- Account manipulation
- Personal information exposure
Use services with strong privacy policies and secure access methods.
5. No Guarantees of Passing
Even the most experienced trader or algorithm can face:
- Unexpected market spikes
- News impact
- Drawdowns
- Technical issues
Because of this, no service can promise 100% guaranteed passing.
If someone guarantees success, it’s usually a red flag.
6. Hidden Fees or Extra Charges
Some services advertise a low price at first, then add:
- Reset fees
- Extra payment for Phase 2
- Extra fee after passing
Be sure the pricing is upfront and transparent before starting.
7. Performance Differences Between Firms
A strategy that works for Firm A might fail instantly on Firm B because of different:
- Spreads
- Slippage
- Leverage
- Trading hours
Good passing services adjust their strategy for each specific prop firm.
