I've seen many, many things about prop firms, good and bad. Now, I'm curious about them, and hopefully someone can answer a couple of questions for a "newbie" to the prop world. 1) IF you are successful, at what point does working at a prop firm begin to enable to you to stop eating into your savings to live? Any rules or advice you would give to someone who is looking into joining the prop movement? These questions are difficult to answer without knowing your definition of success and living expenses. Basically, you compare your income from prop firm to you expenses and if your income is greater than your expenses then your savings won't decrease. 2) What is a good cut of the profits. (ie 30/60, etc..) Assume that person is a newbie to the prop world, and wants to gain experience. Also, this ties in with #1. Higher your percentage payout, the better. Payouts usually range from 75% to 95%. There are some places with 50% and 100% payouts also. 3) What are some of the WARNING signs one should look for when talking with a prop firm? What are some good questions to ask, besides the profit cut. Whether you have to contribute risk capital (usually around 3 to 5K). How long they hold your risk capital in your account. (Holding period can range from 4 months to 12 months.) How you are paid. Are the traders making money. What kind of trading strategy do they use. Take a look at the people there and see if you are compatible with them. Not all prop firms have the type of people. (I used to trade at Worldco and haven't been able to find the same quality of people yet. I am still looking.)