Financial institutions and prop traders are increasingly using proprietary or prop trading as an investing strategy because of all the advantages it provides to both parties. In this type of trading or investing, the investor or prop trader trades a variety of financial assets, such as equities, derivatives, and currencies, using the company’s money or capital. Instead of relying primarily on trade commissions from clients, financial institutions make money directly from the financial market, while the prop trader makes money through commissions or profit splits.
Prop trading can be highly profitable since the trader has access to sophisticated modelling and trading tools as well as databases of market data that are essential for making important decisions. Prop trading firms can hasten your path to financial independence if you have a thorough understanding of market patterns and are a competent trader. Professional traders with insufficient capital can also take advantage of the chance offered by organisations that specialise in proprietary trading to profit.
Finding prop trading companies or platforms that deal in your preferred assets or tradable instruments and under terms that work for you, on the other hand, might be difficult. To assist you in making a wise decision, we have evaluated some of the best prop firms.
Professional and experienced traders are hired or trained by proprietary trading firms, who subsequently invest money in trading assets through these experts. Based on the company’s offers, you can get funded from between $500 to millions of dollars and apply your experience and professional trading strategies to trade profitably and earn commissions or profit splits.
The best prop trading firms that you can join and trade for earnings or commissions have been reviewed and ranked by us. Most of them will hire you to trade their capital and give you a profit share. Others will also provide educational resources and train you to become a successful trader. They permit trading in forex currency pairs, commodities including metals, indices, bonds, equities, and even futures as well as cryptocurrencies.
In addition to popularity, we also considered profit splits, maximum capital funding, the speed at which accounts were promoted to funding level, and other crucial variables while ranking them. Some offer bonuses, trial accounts, instant funding, and up to a 90% profit split. These are some of the best firms for prop trading.
For trading in stocks, bonds, forex, cryptocurrency, indices, futures, and commodities markets, a prop trading firm hires professional traders and finances them with company cash. These traders are trained to make money and share profits with the business.
The traders can receive further assistance, training, retraining, expert coaching, and professional trading tools from a prop trading firm.
Most of the time, prop trading firms will create strict trading rules and conditions to help traders and control the activity in order to maximise profit-making and minimise loss-making.
The ideal process for recruiting a professional trader at one of the best prop trading firms begins with a tiered evaluation, primarily through evaluation test accounts on which the novice trader must demonstrate that they possess the necessary skills.
Risk management and trading to profit from active markets are some of the abilities. Even during evaluation, traders may receive commissions or profit splits as compensation. After that, if they reach their goals, they can be eligible for increased funding.
A prop trading firm can either be remote or require prop traders to work at their physical offices. Most of those on this list are international and allow you to trade with a proprietary firm on a funded account from anywhere in the world.
For good reason, FTMO is known as one of the top prop trading firms. According to its website, the company has paid out over $97 million to over 10,000 traders in more than 180 countries since it began operations in 2014. Although you can trade a variety of securities (including forex, commodities, indices, cryptocurrencies, equities, and bonds), FTMO is one of the finest forex prop businesses due to its super-raw spread and 1:100 leverage. Because to its one-time fees, the platform is also a great choice for new traders, especially since they are reimbursed at your first profit split.
The FTMO challenge and the verification are the two steps of the conventional two-step evaluation process. The FTMO challenge has a 30-day time limit. But, if you succeed in the trading objectives earlier, you can move on to verification. Keep in mind that a minimum of 10 trading days must have passed. Additional key goals for this stage include a 10% profit target, a 5% maximum daily loss, and a 10% maximum account loss for the testing phase. You can retake the FTMO challenge for free if you succeed in the other core objectives but fail to meet the profit target.
There is a 60-day verification period. Once finished, you can manage an account balance up to $400,000 with an 80% payment share as an FTMO trader. If you continue to be profitable, the business will boost the size of your account by 25% every four months. Following that, you’ll get 90% payout shares in accordance with the scaling plan. FTMO makes significant investments in trading technology and provides a variety of tailored apps to prop traders to assist in monitoring their trading patterns, conducting market analysis, and giving real-time feedback.
You can use the MT4, MT5, and cTrader trading platforms with liquidity provider data if you also trade as a retail trader. Holders of swing accounts may keep positions during macroeconomic releases or the weekend. You can try out the freemium or start off with €155 for the $10,000 financed accounts. Excellent learning materials and customer service are provided by FTMO. The company’s highly qualified expert trainers are always available to speed up your path to financial independence. The extended evaluation period is the main negative.
- One-time fee only (no recurrent charges or other fees)
- No limits or restrictions on your trading style
- Choice of platforms (MT4, MT5, cTrader)
- Access to some handy trading apps designed to help you with risk management and profit maximization
- Trade Forex, Commodities, Indices, Crypto, Stocks, Bonds
- No limits on the volume traded (lot size)
- Leverage up to 1:100
- FTMO’s scaling plan allows their most skilled traders access to up to $2 million of trading capital
- A thorough account analysis for every account
- The fee will be reimbursed to you with the first Profit Split
- Customer Support in 17 languages
- The most trusted and reputable Prop Trading Firm in the industry
- So many traders have used FTMO over the years that there is an incredible amount of trader-generated resources available, including lots of great advice on how to pass the FTMO Challenge
- Strict requirements for the test period
- Steep 10% profit target for the first step of the FTMO evaluation, however, it eventually drops to 5% for the second verification stage
- FTMO keeps all traders on demo accounts, even those that have passed the FTMO Challenge and become fully funded
- In order to receive a funded account, traders must first pass the FTMO Challenge, followed by a verification stage
SurgeTrader is one of the top prop trading platforms because of its simple rules and one-stage audition or review procedure, which expedites funding. You simply need to produce 10% returns without experiencing a 5% daily drawdown or an 8% maximum trailing drawdown to pass the SurgeTrader audition. No minimum trading days, recurring fees, monthly fees, hidden costs, or time restrictions are necessary to pass the audition. By completing the audition, you immediately become a funded trader and are therefore eligible for a 75% payment of your earnings (90% if you buy add-ons).
In the event that your first audition is unsuccessful, SurgeTrader will give you a 20% discount on future ones. The minimum account size for the Starter tier is $25,000, and the audition price ranges from $250 to $6,500 for the Masters tier (maximum account size). You can trade a variety of instruments, including cryptocurrencies, gold, oil, certain equities, key stock market indices, and FX. The trading portal also allows you to follow all of your trading actions on an easy-to-use dashboard and is very intuitive and user-friendly.
EightCap is a top partner brokerage for prop trading firms and a SurgeTrader partner broker. Your execution in a live account will largely be the same as during your audition phase thanks to EightCap’s strong platform. Remember that you can only trade with funds that are the same as those you used for your audition. As a result, you could only trade $25,000 of SurgeTrader’s capital in your funded account if you traded a $25,000 account size for your audition. You must submit an audition request for a specified account size in order to upgrade, and you must trade them utilising various diversification tactics.
Richly resourceful blogs, quick customer service, learning possibilities, and BKForex membership are further benefits. The price is one of its biggest flaws because it is substantially more expensive than other suppliers. You must follow both the strict and lax guidelines. The drawdown limitations are the rigid guidelines. If you break them, your account will be closed. The soft guidelines include closing positions before the weekend, using the stop-loss to manage risks, and making sure your maximum open lots do not exceed one-tenth of one percent of your account balance. Your position is cancelled while your account is still open if you break the soft rules.
- Simple, straightforward trading rules
- No minimum trading days
- No 30-day assessment period
- Scale up from $25K all the way to $500K
- One-Time fee with no ongoing costs
- No restrictions on trading strategies
- 1 step evaluation process
- Good choice of trading instruments
- Trade on both MT4/MT5 platforms
- Handy trader dashboard
- Realistic profit target set at 10% of the total account balance
- After passing the audition you will start trading directly on a live account, with real profits and losses taken by the company, no demo accounts
- You will have access to a free 30-day membership with BKForex, which includes daily trading signals, tools, indicators, webinars and more
- Quick withdrawals and no minimum or maximum amount restrictions, which can be requested at any time once a month
- Very generous profit share that goes all the way up to 90%
- Free trial of the audition upon request
- A stop-loss is required for each trade
- All positions must be closed on Friday
- Maximum open size of 1 lot per $10,000 of the account balance
- 5% maximum trailing drawdown
- Low leverage 10:1, 5:1 and 2:1
FundedNext stands out from rivals despite being a relatively new prop trading company by offering a 15% profit split during the evaluation process. The goal is to generously thank traders for their work and dedication to their education. If you choose the most thorough examination package, you can get up to $20,000 in funding. You can trade the available products, such as FX, commodities, and indices, using its affiliated brokerage platform, EightCap. The evaluation model (funding model 1) and the express model are the two funding models that FundedNext uses (funding model 2).
With a realistic profit target and two phases, the evaluation methodology enables you to demonstrate your knowledge. You must achieve a 10% profit target in phase one of this strategy within four trading weeks without breaking any regulations. After successfully finishing phase 1, you can begin phase 2, which calls for hitting a 5% profit target within eight weeks without breaking any regulations. The restrictions provide for a 10% overall drawdown and a daily drawdown cap of 5%. When you reach your goal, you become funded and are then qualified for an 80% distribution of your earnings. Depending on how well you perform, the payout could reach 90%.
The Express model, on the other hand, mandates that you achieve a profit target of 25% without a time constraint. There are 10 trading days required each month in addition to the same drawdown restrictions as the evaluation model. When you reach the Express aim, you’ll begin trading with a funded account and a 60% profit share that might increase to 90% based on how well you perform.
The fact that each trader can access a dedicated account manager is just another outstanding aspect of FundedNext. Let’s also assume that you continue to operate profitably. Then, in accordance with the company’s scale-up plan, you are qualified for a 40% increase in account balance every four months, up to a maximum of $4 million. Choose a financing strategy, maintain consistency, and secure funding to jumpstart your journey with FundedNext. For easier accessibility, you may download the FundedNext app for iOS and Android. The business’s informative blog is useful. You can contact customer service by live chat, email, Discord, Telegram, and Facebook for assistance.
- Profit split of 15% for evaluation stages
- Keep up to 90% of the profits
- Possibility to scale up to $4M account balance
- Allowed to merge accounts
- Expert advisors (EAs) and indicators allowed
- Overnight, weekend and news trading allowed
- Intuitive MetaTrader 4 platform
- Leverage goes up to 1:100
- Unlimited evaluation free retries
- A large variety of trading instruments (forex pairs, commodities, indices)
- Copy trading from other traders not allowed
- Consistency rule for express accounts
- Minimum 5 trading days
- No MetaTrader 5 platform
- No free trials available
The Funded Trader must be mentioned when describing proprietary firms that are leaders in the field. The business has an excellent reputation and legitimately belongs among the top five. The majority of prop traders favour the company for a variety of reasons, including its verified payouts, large leverage, reasonable profit targets, and decent drawdown. Another important aspect is the company’s exceptional flexibility with regard to trading regulations. For instance, Funded Trader allows trading breaking news and allowing trades to be held overnight, unlike the majority of prop firms. Furthermore, permitted for the royal account is trade copying.
There are many different types of trading instruments, such as FX pairs, indices, cryptocurrencies, and metals. The normal, quick, and royal challenge funding options or programmes are provided by Funded Trader. Each option consists of two phases that are designed to recognise and reward skilled traders. You must maintain a 6% daily drawdown and a 12% overall drawdown while achieving a 10% profit target over a 35-day period for phase 1 of the standard challenge. Once you hit this goal, you go on to the validation phase, which calls for a 5% profit goal within 60 days.
If you maintain consistent profitability, you can trade a funded account of up to $600,000 with an 80% payment or $1.5 million with a 90% profit split after successful verification. The 8% and 5% profit targets for phases 1 and 2 of the fast challenge, respectively, must be met while keeping an overall drawdown of 8% and a daily drawdown of 5%. Phases 1 and 2 of the royal challenge, on the other hand, call for profit targets of 8% and 5%, respectively, while maintaining drawdowns of 5% daily and 10% altogether. Each phase lasts for the same amount of time as the typical challenge.
While the profit split and profit target are within industry norms (10% for phase 1 and 5% for phase 2), Funded Trader Standard accounts outperform rivals in terms of daily and overall drawdown. The 200:1 leverage is strong (100:1 for the fast account), which translates to additional purchasing power. For a normal account size of $25,000, there is a $189 refundable cost; for a royal account size of $300,000, there is a $1,399 fee.
- Maximum balance of standard accounts up to $600,000
- Scaling plan with balance up to $1,500,000
- Arranges exciting events, rewards and competitions
- High leverage for trading forex up to 1:200
- Achievable profit and drawdown targets
- 90% profit split on scaling plan
- Unlimited evaluation free retries
- Large range of trading instruments
- Overnight and weekend holding allowed
- Good variety of challenges to choose from
- Trade on both the MetaTrader 4/5 platforms
- No free trial
- Very strict trading conditions
- Funded with demo account and virtual funds
- Lack of educational content
- Overwhelming rules and restrictions
Topstep is the best futures prop trading firm to use if you specialise in trading futures and derivatives. Because to its large payment and profit split (you keep 100% of your first $5,000 in earnings and 90% of your profits after that), it is one of the most recognised prop trading firms. Topstep, like the majority of prop trading firm, offers the necessary funding, assistance, risk management techniques, and coaching to help trained or hired trading experts succeed while rewarding them with large profit splits.
Both novice and expert traders are welcome on the site, which supports the formation of better trading habits. But you must demonstrate through the evaluation processes that you can trade and manage risk in order to be eligible for a funded account. Unlike other suppliers, Topstep’s review procedure, known as Trader Combine, is simplified into two parts that traders can finish in less than a couple of weeks. You must continue paying the monthly fees while in the Trader Combine till financing even though there is no time limit on when you must reach the profit target needed to pass the Trader Combine and get financed.
The three account sizes have different monthly fees, which range from $165 for a $50,000 minimum account to $375 for a $150,000 maximum account. Your buying power, monthly fees, loss limit, profit target each step, number of contracts, and trailing maximum drawdown will essentially determine which account you should use. There is also a free trial period of 14 days. Additional benefits include a wealth of instructional resources, blogs, podcasts, groups, one-on-one coaching, and digital coaching, all of which are designed to assist aspiring traders perform better and accomplish their objectives more quickly.
TradingView, Sierra Chart, and other trading platforms are supported by Topstep.
- Not much capital needed to start
- Account reset option available
- Free 14-day trial to enter program
- Excellent choice of professional trading platforms
- Keep up to 90% profits with a 50% account balance withdrawal available
- A real focus on improving trading skills via the Trading Combine program
- Great range of educational resources, community access, coaching and live webinars
- Quick evaluation process. Step 1 can be completed in just five trading days, and Step 2 no longer has a minimum days requirement
- Respected prop firm with many years in the business and millions of dollars of trader withdrawals
- No forex trading
- No MetaTrader platforms
- Very complicated account options and trading conditions
- No weekend positions
- Futures instruments only
- Withdrawals are limited to ACH or international bank wire transfers
- Higher monthly fixed costs because of exchange data fees
- Quite strict rules to follow
Here are the important pros and cons of joining a proprietary trading firm:
- Get a funded account with a low entry threshold
- Free trading education and training for traders
- Access to high-level trading software and data analysis
- Direct market access to trade various asset classes
- No conflict between the prop trading firm and trader
- Take advantage of favourable trading conditions
- Potential to scale account up to significant capital
- Instant funding accounts available at some prop firms
- You will need to pay a sign-up fee
- Takes time and effort to pass a trading challenge
- Need to stick to certain trading rules
- Can cancel your account if you are in breach of rules
Here are some important criteria which help you to select the right Proprietary Trading firm:
- Account size, profit share and trading conditions: The main thing you will want to look for is the account size and profit split that the prop firm provides along with the trading rules and objectives. They should allow you to use your own trading strategy and have achievable targets in terms of profits and maximal drawdowns. Other things to look for include the price, minimum trading days and any consistency rules.
- The term and size of the deposit: A rise in transaction volume should result from the deposit period and account size being increased by a fraction of the firm’s capital. That shouldn’t make present drawdowns more likely, and it shouldn’t make you decrease the volume. Basically, the more profit that you make, the more trading capital and potential profit you should be able to get.
- Conditions for participation in trading contests: Such events are held by legitimate prop firms using demo accounts rather than actual ones. There is a chance that contestants using real trading accounts won’t receive their initial deposits back. Nevertheless, there is no guarantee that they would receive the winnings from the prop trading company. Keep in mind that the market conditions for real trading are fundamentally different from those for competitions.
- The reputation of the organization: Firms with a poor reputation for proprietary trading are plagued by several annoyances, slippage, non-market price surges, or stuttering in communication. So, there is a higher chance that bad prop firms will forbid trading in and withdrawing profits. Hence, you should stay away from such a business and only look for those that have excellent trader feedback with verified payouts.
- Paid training: A prop firm trader is an employee, and as such, the employer is required to provide him with free education. Yet, it is important to note that most prop trading firms just provide pay-for-training and no employment guarantees. Read the terms of the proprietary trading firm you have chosen before making a decision.
What is Funded Trading?
Funded trading provides the trader with a number of incredible benefits, such as instant funds to work with minimal paperwork. Yet, without a track record of proven and reliable performance, it is difficult to become a funded trader.
Is Prop Trading good?
Which are the Best Prop Trading Firms?
Profit splits or sharing with traders may be used to rank the top proprietary trading firms, but other criteria like as money provided, targets, loss limitations, leverage, support, training, and flexibility are also taken into consideration. The top proprietary trading companies for beginners give traders the opportunity to learn while they trade and gradually expand their capital limitations.
How much do the Best Prop Traders make?
How much do Prop Trading Firms make?
Is Proprietary Trading legal?
How does remote Proprietary Trading work?
Can I trade with a Proprietary Trading Firm without having any trading experience?
What is the difference between a traditional prop trading firm and an online prop trading firm?
On the other hand, online prop trading companies do not impose tight restrictions and regulations on their traders. Instead, they usually offer a funded trading account and give their traders the freedom to trade and construct their strategy. Also, they frequently receive shorter evaluation periods of 1-3 months and a greater share profit portion.
The best prop trading firms offer a profit split of 90% or more. You receive 90% profit splits with some of the top deals from FTMO and FundedNext, respectively. In addition, you should assess prop trading firms according to the highest amount of capital they can offer. This will determine the profit potential you can get at the start and over time with scaling the account.
If you want to trade forex, then SurgeTrader is a great option. For trading futures, Topstep are considered one of the best prop firms. You also need to consider the trading strategies allowed, objectives and rules. In terms of flexibility, Funded Traders is a popular choice.
Whichever proprietary trading firm you choose, there are many options out there for you to consider. Make sure you do your research by reading prop firm reviews and checking out prop firm ratings. This can help you to decide which prop trading firm is the best for your own needs. You can also use our prop firm comparison tool to find a suitable prop firm.