Guides
Are Prop Firms Legit in 2025? How to Spot Scams
With hundreds of prop firms launching every year, how do you tell the legitimate ones from scams? Here's a practical guide to evaluating any prop firm.
By PropFirmLab·April 2025·9 min read
The Short Answer
Yes — established prop firms with thousands of verified Trustpilot reviews and years of track records are legitimate. But the prop firm industry also has its share of scams and poorly-run operations.
Green Flags — Signs a Firm is Legitimate
- High Trustpilot score with volume — 4.0+ with 5,000+ reviews is hard to fake
- Claimed Trustpilot profile — the firm responds to reviews, including negative ones
- Years in operation — FTMO (2015), The5ers (2016) have long track records
- Published payout proof — traders sharing screenshots on YouTube, X, and Discord
- Clear, published rules — no hidden restrictions in the terms and conditions
- Responsive support — you can get answers before you pay
Red Flags — Signs a Firm Might Be a Scam
- New firm, no reviews — launched in the last 6 months with under 100 reviews
- Low Trustpilot score — below 3.5 with many reviews about non-payment
- Vague terms — rules that can be interpreted to deny payouts
- No social proof — can't find real traders talking about their experience
- Unrealistic offers — 95% profit splits with no rules and $1M accounts for $10
- No company information — no registered company, no address, no team
The Trustpilot Test
The fastest way to evaluate any prop firm: search for them on Trustpilot. Look at:
- Overall score and number of reviews
- Recent reviews (last 30 days) — trend matters
- Whether the firm responds to negative reviews
- Specific mentions of payouts, support, and rule changes
PropFirmLab's Approach
Every firm on PropFirmLab is ranked by verified Trustpilot data — no paid placements, no manipulation. Our full rankings let you see exactly which firms traders trust most, based on real reviews.