In the world of trading, prop firms have gained a lot of attention as they provide traders with the opportunity to trade with substantial capital without risking their own funds. For aspiring traders, one of the most common questions is: which prop firms are the easiest to get funded by? While every trader’s experience may differ, some firms are known for having relatively straightforward and accessible funding processes. In this article, we will explore several of the easiest prop firms to get funded by, based on factors like the evaluation process, trading conditions, and the amount of capital offered.
What is a Prop Firm?
Before delving into the list of prop firms, it’s important to understand what a prop firm is and how it works. A proprietary trading firm, or prop firm, provides traders with capital to trade financial markets, typically in exchange for a portion of the profits. Traders must first pass a rigorous evaluation process to prove their skills and risk management abilities. Once they are funded, they can trade the firm’s capital and earn a share of the profits generated from their trades.
While prop firms offer a great opportunity, not all of them are equally accessible. Some have highly competitive evaluations, while others are more lenient. The key is to find a firm with an evaluation process that suits your trading style, experience, and goals.
Factors to Consider When Choosing a Prop Firm
Before deciding which prop firm to apply to, there are several factors to consider:
- Evaluation Process: The easier the evaluation, the faster you can become a funded trader. Some firms have more flexible evaluation criteria than others.
- Capital Allocation: The amount of capital a firm offers can vary greatly. Some firms offer smaller initial funding, while others provide large amounts.
- Profit Split: This is the percentage of profits that you get to keep. Some firms offer high profit splits, while others take a larger cut.
- Risk Management Rules: Some firms are stricter when it comes to risk management, including daily drawdown limits and maximum drawdowns. Make sure to understand the rules before committing.
- Fees: Some firms charge upfront fees for evaluations, while others provide free trials or more affordable options.
1. FTMO: One of the Most Popular Prop Firms
FTMO is one of the most well-known and respected prop firms in the trading community. They are famous for their relatively straightforward evaluation process and high funding opportunities.
Evaluation Process
FTMO’s evaluation consists of two stages: the challenge and the verification. The challenge involves meeting certain profit targets within a set period, along with adhering to specific risk management rules. The verification stage requires you to trade for another period to confirm consistency. While these two stages may seem daunting, they are relatively accessible compared to other prop firms.
Funding
FTMO offers traders the potential for substantial capital, starting from $10,000 to $200,000. Their funding process is known for being transparent and straightforward, with no hidden fees or complicated rules.
Profit Split
FTMO offers a generous profit split of up to 90%, which is higher than many other prop firms in the industry. This means traders get to keep the majority of the profits they generate, making it an attractive option for those who pass the evaluation.
Risk Management
FTMO’s risk management rules are strict but fair. Traders are required to adhere to a daily drawdown limit and a maximum drawdown, but these rules are designed to protect both the firm and the trader. Most traders find the risk parameters to be reasonable and manageable.
2. The5ers: A Flexible and Friendly Option
The5ers is another popular prop firm, known for its relatively simple and accessible evaluation process. The5ers offers a variety of funding programs, making it an attractive option for traders at different skill levels.
Evaluation Process
The5ers offers two types of programs: a non-evaluation program and an evaluation program. The evaluation program has relatively low targets compared to other firms, with traders required to reach a profit target of 6% over a period of 12 weeks. The non-evaluation program allows traders to start immediately with a small amount of capital and gradually scale up.
Funding
The5ers offers initial funding of $200 to $200,000, with the potential to scale up quickly once traders prove their profitability. This flexibility makes The5ers an ideal choice for traders who want to scale their capital over time.
Profit Split
Traders with The5ers can keep up to 75% of their profits, which is a solid offering in the prop firm industry. Although it’s not the highest profit split available, it’s still a fair amount for traders who manage to pass the evaluation process.
Risk Management
The5ers has more relaxed risk management rules than many other firms. The daily drawdown is typically set at 5%, and the maximum drawdown is around 10%. These rules are easier to comply with, particularly for new traders who are still learning the ropes.
3. TopStepTrader: A Beginner-Friendly Option
TopStepTrader is another prop firm known for its beginner-friendly approach. The firm offers a straightforward evaluation process and is particularly popular with traders in the futures market.
Evaluation Process
TopStepTrader’s evaluation consists of two phases: the combine and the evaluation. The combine requires traders to meet specific profit targets over a set period, while the evaluation stage tests for consistency. Although the targets may seem high, TopStepTrader is relatively lenient with its risk management rules compared to other firms.
Funding
TopStepTrader offers funding from $50,000 to $150,000. The firm’s funding levels are moderate, but they are more than enough for most traders to scale their operations.
Profit Split
TopStepTrader offers a profit split of up to 80%, which is decent in the industry. While it may not be as high as FTMO’s, it still offers traders a fair share of the profits they generate.
Risk Management
TopStepTrader has relatively relaxed risk management rules, with a 4% daily drawdown limit and a 10% maximum drawdown. These rules allow for a bit more room for error, making TopStepTrader an ideal choice for newer traders.
4. Earn2Trade: A Solid Option with Low Fees
Earn2Trade offers a low-cost, accessible way for traders to get funded. With a simple evaluation process and an affordable fee structure, Earn2Trade is a great choice for traders looking to start trading with less financial risk.
Evaluation Process
Earn2Trade has a two-phase evaluation process that involves meeting profit targets while adhering to strict risk management guidelines. However, the profit targets are relatively low, making it easier for traders to succeed.
Funding
Earn2Trade offers funding from $25,000 to $200,000. The firm offers a variety of account sizes, allowing traders to choose the one that best fits their needs and goals.
Profit Split
Earn2Trade offers a profit split of up to 75%, which is fairly standard in the prop firm industry. While it’s not as high as some other firms, it’s still a reasonable offering for traders who are successful in the evaluation process.
Risk Management
Earn2Trade has strict risk management rules, including a 4% daily drawdown limit and a 10% maximum drawdown. These rules are designed to ensure that traders are disciplined and manage their risks effectively.
5. Fidelcrest: Affordable with High Capital Allocation
Fidelcrest is a relatively new prop firm but has quickly gained popularity for its affordability and the high capital it offers to traders. The firm’s evaluation process is relatively easy to navigate, making it a good choice for traders who are looking for a chance to trade large amounts of capital.
Evaluation Process
Fidelcrest offers two main programs: the Pro Trader Program and the Fast Track Program. The Pro Trader Program involves meeting profit targets within a set time frame, while the Fast Track Program is a quicker, more intensive evaluation process.
Funding
Fidelcrest offers traders funding from $10,000 to $200,000. This makes it an attractive option for traders looking for large amounts of capital to trade with.
Profit Split
Traders with Fidelcrest can keep up to 80% of their profits, which is a generous offering compared to other firms.
Risk Management
Fidelcrest has moderate risk management rules, with a 5% daily drawdown limit and a 10% maximum drawdown. These limits are fair and allow traders to manage their risk effectively.
Conclusion: Which Prop Firm is Right for You?
Choosing the right prop firm depends on several factors, including your trading style, experience level, and risk tolerance. FTMO, The5ers, TopStepTrader, Earn2Trade, and Fidelcrest all offer relatively straightforward evaluation processes and competitive funding options. However, each firm has its own set of rules, fees, and risk management guidelines that should be carefully considered before making a decision.
Ultimately, the easiest prop firm to get funded by will depend on your specific needs and goals as a trader. By carefully reviewing the options available and understanding the evaluation criteria, you can choose the firm that best aligns with your trading strategy and objectives.
