One of the best things about joining a prop trading firm, or proprietary trading firm, is that you’re able to trade with someone else’s capital, without taking on any serious risk. With most firms, you’ll also have access to premium trading platforms, a support community, and high quality analytics.
In most cases, these firms will have strict trading rules in place to support traders and discourage any serious losses.
But with those stringent rules comes extra support, training, retraining, professional coaching, and professional trading tools.
When you’re looking for a prop trading firm to join – you want to find one that offers all these benefits.
For more detailed comparisons, check out Modest Money’s reviews of the best stock screeners on the market.
So what should you look out for when choosing a prop trading firm?
Fees. It’s important to make sure the firm you choose is up front about all their fees so you’re clear from the beginning. Ideally you want to join a firm with low monthly fees so you can keep your margins healthy.
Evaluation Process. While it may seem tedious having to work through an evaluation process, the more stringent this is, the better the quality of traders you know you’re working with. So ensure there’s a reliable evaluation off the bat.
Track record. Do your research. Make sure the firm has a proven track record that you can trust with your time, money and effort.
User-friendliness. This may seem simple, but it’s important. If you’re going to invest your time and money into this firm, you want a dashboard that’s easy to navigate so you can maximise your earning potential.
Risk Management. You want a firm with a focus on risk management. This often manifests in the form of parameters that traders must trade within, which in turn helps manage their risk more effectively and avoids blowing up accounts.
What are the Top Prop Firms?
This is a great option to get started with. Like most firms, in the beginning, Topstep Trader provides you with simulated accounts to practise trading in a risk-free environment.
Traders who then pass the evaluation can then trade with real funds and earn a share of their profits.
One Topstep Trader’s big strengths is its risk management tools and large earning potential.
Though like many firms, some traders may be deterred by the restrictions on trading styles and strategies.
Overall, Topstep Trader is a great option for traders looking to gain experience.
Another great option is FITMO. This is a popular firm among experienced traders, who can jump on and begin trading with as much as $400,000.
As expected – there is an evaluation process where traders must pass through both a challenge and verification.
But once through – FITMO has an awesome support network to help you trade and a fast and efficient process to get you paid afterwards too.
This firm is a great way to realise those profits even if you don’t have the necessary capital to begin with!
Earn2Trade is a great firm for traders looking to learn a little something along the way. In addition to capital, this firm offers retail traders learning courses to get them on the path to becoming professionals.
Once trained up, those who trade successfully under the firm’s set parameters are given access to capital. This can range from $25,000 to $200,000.
The education tools are a real standout for Earn2Trade, and it’s definitely worthwhile checking out if you’re keen to pick up some tips!
OneUpTrader is another strong firm offering aspiring traders the opportunity to get started in the market with real capital.
One of the great things about the firm is the variation in plans – allowing you to pick the one that suits you best.
These range from $125 per month to $650 per month.
Like other firms – OneUp Trader requires a 15-day evaluation period – before you receive the real capital to begin trading.
OneUp Trader has a proven track record and a very easy to use dashboard, with a strong community and support network as well.
This is another prop firm with a strong support network that comes well recommended.
The firm offers traders up to $400,000 in capital to take to the market, while also offering the largest profit share ratio in the industry, with you keeping up to 80% of your profits on the trading account.
Another great aspect is that Fidelcrest doesn’t just cater to the high flyers. They offer capital as low as $5,000 to those who maybe are not as confident. This low barrier means almost anybody can get involved and start trading.
This variation in account sizes, strong support network, and incredibly high level of capital on the top end, makes Fidelcrest a very worthwhile choice!
City Traders Imperium
City Traders Imperium is another firm offering very high volumes of capital – allowing you to chase that path to financial freedom and success.
On top of that – they put a strong focus on education, and helping their traders learn as they go.
One of the things that makes CTI stand out is its lack of restrictions on trading style. You can trade during news, hold trades overnight and trade on the weekends. So for those who have a much more personal style. This is a great option!
So Why Join a Prop Firm in the First Place?
Prop trading offers traders a much higher earning potential compared to investment banking or private equity jobs.
It allows you to make money trading for firms regardless of how much money they make from their expertise.
So for experienced traders – it’s a much more worthwhile and beneficial experience!
While you’re here – don’t forget to check out some more detailed reviews of the best funded stock trading accounts and the best stock screeners on offer, to take your trading journey to the next level.