How do prop firms make money, is it from selling challenges?

I think it is high time I asked this question. How do prop firms really generate their revenue? I find it absurd that people say they depend on profit splits with traders because so many prop firm traders fail.

L
@liam_calgary - 2 months ago

i am also not buying that profit split lie that prop firms tell. I bet you prop firms hope you fail so you can buy another challenge while they smile to the bank.