Looking to get started in prop trading? Perhaps you want to take advantage of the tools and knowledge provided by prop trading firms to maximize your financial success. With so many options available, it can be difficult to know where to start. Don’t worry, we’ve done the hard work for you and have researched and evaluated the best prop trading firms on the market.
Prop trading can be a highly lucrative endeavor if you have a solid understanding of market trends and can trade successfully. With access to sophisticated trading tools and information, prop traders have the potential to make significant profits. Even undercapitalized professional traders can benefit from proprietary trading firms by tapping into funded stock trading accounts.
By taking a closer look at the services offered by each firm, you can make an informed decision about which one is right for you. We only cover the top 3 in this article, for a longer list, read this best prop trading firms article.
What To Look For In A Prop Trading Firm
When it comes to choosing the right prop trading firm, there are several factors to consider beyond the basic requirements. Firstly, you’ll want to look at the fees charged by the firm. It’s important to choose a firm that doesn’t charge exorbitant fees, and one that offers transparency in their fee structure.
Another important factor is the track record of the prop firm. You should do your research and find out about the ratings and reviews of the firm on independent sites such as TrustPilot. This can give you a good idea of the firm’s reliability and success rate.
Withdrawal policies are another vital aspect to consider when choosing a prop firm. You’ll want to find out about the firm’s withdrawal policies and make sure that you can easily access your trading profits.
Lastly, you should consider the level of support offered by the firm. It should be easy to get a human on the phone to discuss important issues and they should offer educational support. These are all important questions to ask to ensure that you choose a prop trading firm that meets your specific needs.
The Best Prop Trading Firms: The Top 3
TopStep Trader is one of the most popular prop firms and is highly recommended for traders interested in futures and derivatives. One of the things that sets this platform apart is its flexibility, as traders can choose between a Day Trader or Swing Trader account, depending on their preferences.
To be eligible for a funded account, traders must first pass the Trader Combine, a simulated trading competition designed to assess their trading skills, and then complete the Trader Bootcamp, which teaches risk management and the psychology of trading.
TopStep Trader’s payout and profit split structure is very attractive, as traders keep 100% of their first $5,000 earnings and 90% of their profits after that. The platform provides requisite capital, support, risk management strategies, and coaching to help both experienced and beginner traders develop healthy trading habits.
The evaluation process is streamlined into two steps, and there is no time limit to hit the profit target required to pass the Trader Combine and get funded. Monthly fees vary among the three account sizes and range from $165 per month for the minimum account size of $50,000 to $375 for a $150,000 account maximum.
Topstep also provides excellent educational resources, podcasts, blogs, groups, one-on-one and digital coaching.
FTMO is a reputable prop trading firm that specializes in forex trading. The company has been in operation since 2014, and since then, it has paid over $97 million to more than 10,000 traders in over 180 countries.
It is highly regarded in the industry due to its focus on forex trading and low fees. The company also offers various custom apps and trading technologies to help prop traders execute market analysis and provide real-time feedback.
To be eligible for a funded account, traders must first pass the FTMO Challenge, which requires them to demonstrate their profit-earning abilities with a simulated account. Once they pass this stage, they move on to the Verification phase, where they trade in a live account with an increasing amount of funding.
The two-step evaluation process typically takes 90 days, which is longer than other firms. However, traders can manage an account balance of up to $400,000 with a payout share of 80% if they pass the evaluation process. The firm’s scaling plan also rewards consistent profitability, increasing the account size by 25% every four months, and payout shares of 90% are available in line with the scaling plan.
FTMO’s low one-time fees, reimbursable at the first profit split, make it an attractive option for beginners, while experienced traders will appreciate the firm’s emphasis on news trading, which is helpful when looking to profit off short-term market movements and volatility.
The firm also offers great customer support and educational resources. The main downside is the long evaluation period, which can be discouraging for some traders.
Earn2Trade is one of the most popular prop trading firms available today. What sets Earn2Trade apart is their Trader Career Path program, which is an educational offering that covers a wide range of topics, from the psychology of trading to forex and stock trading.
Earn2Trade offers traders access to almost 20 trading platforms, including NinjaTrader, MultiCharts and Finamark. This comprehensive program positions traders well, giving them the knowledge and skills necessary to succeed in their trading journey.
Earn2Trade offers three funded trading programs: The Gauntlet Program, The Gauntlet Mini, and the Trader Career Path program. The cost and guidelines for each program vary, but they all offer the opportunity to trade with a funded account after successfully completing the evaluation process.
The Trader Career Path program provides traders with a $25,000 virtual capital account to start, and after passing the evaluation, traders are funded with a $25,000 real money account. There are no monthly subscription fees, and traders can develop their trading careers with an account size of up to $200,000.
If you successfully trade with Earn2Trade, you will earn 80% of all the profits you make with the capital you receive, providing you with a great opportunity to increase your earnings.
In conclusion, the decision to choose a prop firm to kickstart your trading career can be a significant step towards financial independence. With the wide variety of options available in the market, it’s essential to do thorough research and pick a platform that aligns with your specific needs.
If you’ve decided that prop trading isn’t for you, you can still access sophisticated information and gain an edge by using stock screeners or opting for funded trading accounts. Whatever route you choose, it’s essential to keep learning, improving, and adapting to the dynamic trading environment to become a successful trader.