The Hidden Costs of "Low-Fee" Prop Firms

Been diving deeper into the economics of these new prop firm models, especially for those looking to scale. On paper, the profit splits and initial fees look incredibly attractive, but I'm finding that the actual cost of capital, when you factor in the often-exaggerated spreads on certain pairs and the sometimes-onerous payout hurdles, can really eat into projected returns. It's not just about the headline fee, but the effective spread they're passing through, particularly for day trading strategies that rely on tight entries and exits. Anyone else running detailed simulations on this? The difference between a few pips here and there across hundreds of trades daily really adds up.

Then there's the liquidity question. While many tout deep liquidity, when you're moving size, especially around news events, some of these smaller or newer setups seem to struggle with slippage that's far beyond what you'd see with a prime broker. It makes me wonder if the allure of rapid scaling is sometimes negated by the practical friction of execution and the implicit costs of their market access.