When traders hear a prop firm, many imagine a system where consistent profits lead to funded accounts; however, the nature of order execution can vary dramatically. The mentioned system operates on two primary models. First is known as A‑Book, where trades are sent out to the general marketplace. The second is called B‑Book, where the firm is the counterparty. Knowing their differences between A-Book and B-Book trading is no longer just an option but a necessity in order to steer through risk, trust, and long-term success.
What Is A‑Book Trading?
When it comes to A-Book trading, every order is passed by the prop firm or broker directly onto third-party liquidity sources, such as banks or e‑trading platforms. Thus, firm profits are only realized from spreads and commissions, and never from trader losses.
However, some firms take transparency a step further: in the funded A‑Book stage (Level 4), traders can actually see which Liquidity Provider filled their trades. This is rare among funded prop firms and aims to create true alignment. That way, the firm only profits when you do.
What Is B‑Book Trading?
On the other hand, B‑Book execution keeps trades in-house, with the firm effectively betting against the trader. Most retail forex brokers and discount prop firms use this model; data shows that 80–95% of retail traders lose money in the first 6 months, which can make the B‑Book model highly profitable for firms.
The catch? With companies and traders on opposite sides of every position, conflicts of interest are bound to happen, which can result in widening spreads, slow fills, or even stop-loss hunting.
The Psychological Impact
Maybe the most overlooked, but equally important, difference between A‑Book and B‑Book trading is the impact it has on traders’ psychology.
When traders are confident and know that their trades are being routed to the real market (A‑Book), they are prone to develop more professional habits. With that said, there is greater emphasis on risk management, precision, and trustworthiness because of the sense of feeling like they are making a contribution to the larger financial ecosystem. It creates the element of legitimacy, similar to trading on institutional platforms.
On the other hand, traders operating under B‑Book models, especially with little to no transparency, often report feelings of skepticism or mistrust. Simply knowing at the back of your mind that the firm profits from your losses can unconsciously encourage “revenge trading” or overly cautious behavior. Even worse, some professionals believe the trades are being manipulated against them (e.g., slippage, stop hunts), thus ruining confidence.
To help address this gap, BullRush came up with a transition model, leading from trading simulators to verified A‑Book execution. By allowing traders to start off their journey in a controlled environment and gradually moving them toward real market conditions, BullRush helps develop mindsets based on maturity, emotional resilience, and trust. This is not just a fad or made-up theory. Professional trading firms and hedge funds actively use these psychological training frameworks to help their traders.
From Brokers to Prop Firms: Execution in Practice
Globally, Interactive Brokers and IG Markets operate on A‑Book/STP models, emphasizing market fairness over internal profit. In contrast, many retail brokers use B‑Book setups, banking on trader losses.
In the prop world, too, this split exists: while some firms prioritize volume and internal profits, others are redefining alignment by offering verified A‑Book execution to funded traders. That shift is reshaping expectations for transparency and fairness in prop trading.
A‑Book Trading = Long-Term Integrity
Simply speaking, A‑Book trading removes the motivation for firms to work against their traders, creating a sense of partnership built on shared success. This transparency can further reinforce trader confidence, reduce mistrust, and promote long-term, sustainable, professional trading careers.
Tips of the Trade(r)
- Verify execution model: Always ask if the trades are sent to external LPs. In addition, you can also check your trade logs to see LP names for each fill.
- Watch for hidden costs: B‑Book brokers may offer tight fixed spreads, but often with less favorable execution or little to no transparency.
- Prioritize consistency rules: Models that reward disciplined, stable performance over a few weeks, like relative consistency requirement (>40% consistency), are healthier than those that reward volatility or single-day gains.
- Mind drawdown structures: Consider firms that use a static 5% max drawdown at the funded stage without daily limits. This simple structure allows for better long-term planning.
Research exit terms: Contrary to popular belief, on-demand payouts, minimal fees, and clear withdrawal policies matter. Some firms provide daily withdrawal capability, with the first monthly withdrawal fee-free.
Combine Theory with Learning: BullRush Academy
To help you start your trading journey and build a strong foundation, BullRush Academy created free educational courses like Mastering Forex Basics. Our offer also includes articles on trading psychology, simulator use, and the importance of trading plans. We want to create a space that will bridge the gap between theoretical knowledge and practical, funded trading.
Final Thoughts
As we already mentioned, not all prop firms are the same. If you’re serious about building a sustainable trading career, not just playing the guessing game, you need to look beyond the flashy discount codes and false promises.
And BullRush isn’t just another prop trading firm. We’re on a mission to break the stigma and show the world what it means to be funded.
We are the first platform in the prop trading space to offer:
- Real A-Book trading
- Real payouts
- Real transparency
- Real opportunity
Want to trade on your own terms? Become a member of BullRush Prop, the first prop trading platform dedicated to setting traders on a proven route to real A-book success.
Trade, Profit, and BullRush Now!