Prop trading, short for proprietary trading, has become an increasingly popular way for traders to gain access to capital and profit from the financial markets without having to use their own money. Prop trading firms provide traders with funds to trade, allowing them to take larger positions and generate greater profits. In return, these firms take a percentage of the profits made by the traders. The payout structures, terms, and conditions vary greatly between different firms, and some are known for offering higher profit splits and better funding conditions than others.
This article provides a detailed overview of the highest-paying prop trading firms, including some of the best-known and reputable firms such as FTMO, The 5%ers, The Funded Trader, SurgeTrader, Topstep, E8 Funding, FundedNext, Funded Trading Plus, Fintokei, and Audacity Capital. We will look into each firm’s funding model, profit split, and other important details to help you make an informed decision about which prop trading firm might be the best for you.
1. FTMO: A Leader in Prop Trading
FTMO is one of the most popular and well-known prop trading firms in the industry. Founded in 2015, FTMO has become synonymous with reliability and professionalism in the world of proprietary trading. The firm offers traders the opportunity to trade with substantial capital after passing a rigorous evaluation process. FTMO is renowned for its high profit splits, attractive conditions, and support for a wide range of trading strategies.
Evaluation Process and Funding
To become funded by FTMO, traders must first pass the FTMO Challenge and Verification phases. The FTMO Challenge tests the trader’s ability to make a profit within a specific period while adhering to risk management rules. After passing the Challenge, the trader must then pass the Verification phase, which is similar but involves a lower target.
Once successfully completing both stages, traders can be funded with an account ranging from $10,000 to $200,000, depending on the trader’s performance and chosen account size.
Profit Split and Payouts
FTMO offers a highly competitive profit split of up to 90% for traders. This is one of the highest splits in the industry and is a key reason for its popularity. FTMO also pays out on a monthly basis, and traders can withdraw their profits at any time, making it an attractive option for both new and experienced traders.
Additional Features
- FTMO provides flexible risk management and allows traders to use a wide variety of trading strategies.
- The firm has a well-established support team and provides educational resources and tools to help traders succeed.
- FTMO also offers the FTMO Academy, which includes courses and webinars aimed at improving traders’ skills.
2. The 5%ers: A Unique Approach to Prop Trading
The 5%ers is a prop trading firm that offers an innovative approach to funding traders. Known for its unique structure and realistic profit targets, The 5%ers is an excellent choice for traders who are looking for a supportive and growth-oriented trading environment.
Evaluation Process and Funding
The 5%ers operates a two-step evaluation process. Unlike other firms that have high-pressure targets, The 5%ers’ evaluation process focuses on long-term consistency. Traders are required to achieve realistic profit goals while following strict risk management protocols.
Traders can get funded with amounts ranging from $24,000 to $200,000, depending on their progress and consistency. The firm offers multiple funding models, with different account sizes and rules based on the trader’s performance.
Profit Split and Payouts
The 5%ers offers traders 50% of the profits generated, which is a slightly lower profit split than firms like FTMO. However, it’s worth noting that the firm provides more favorable scaling plans for traders who show consistent performance. As traders continue to prove their skills, they can scale up their funding size.
Additional Features
- Low drawdown limits: The 5%ers has relatively low drawdown limits, which help to ensure that traders stay disciplined and maintain a consistent performance.
- Scaling plans: Traders can increase their funding as they show consistent profitability, which offers long-term growth potential.
- The firm offers one of the most trader-friendly environments with no minimum trading days required and minimal risk management restrictions.
3. The Funded Trader: A High-Potential Prop Firm
The Funded Trader is a fast-growing prop trading firm that stands out due to its flexible approach and quick evaluation process. This firm is ideal for traders who want to bypass lengthy evaluation phases and start trading with real capital quickly.
Evaluation Process and Funding
The Funded Trader’s evaluation process consists of two phases: the Challenge and the Verification. The Challenge phase has a low minimum trading days requirement and offers traders a chance to prove their skills with relatively lower targets.
Once successful, traders can access funding accounts that range from $25,000 to $200,000. Traders can also choose between different risk management plans based on their preferences.
Profit Split and Payouts
The Funded Trader offers a 70% profit split, which is a solid payout rate, especially for those looking for an affordable way to access trading capital. The profit split increases over time based on the trader’s performance and consistency.
Additional Features
- Fast approval process: Traders can receive approval and get funded in a short amount of time.
- Low evaluation cost: The Funded Trader provides a cost-effective evaluation process, making it a good option for newer traders.
- Weekly payouts: The firm offers traders the opportunity to withdraw profits on a weekly basis, ensuring that traders are paid regularly.
4. SurgeTrader: Fast Growth with a High Profit Split
SurgeTrader has become a popular choice for traders looking to grow their capital quickly. The firm’s simple evaluation process, combined with its high profit splits and quick payouts, has made it a top contender among prop trading firms.
Evaluation Process and Funding
SurgeTrader’s evaluation process is straightforward and includes a Challenge phase followed by a Verification phase. The firm focuses on risk management and aims to evaluate traders based on their ability to make steady profits with a strong focus on maintaining a healthy balance.
Traders can access funding ranging from $25,000 to $1 million, depending on their performance during the evaluation stages.
Profit Split and Payouts
SurgeTrader offers a 90% profit split, which is among the highest in the industry. The firm also offers daily payouts and traders can withdraw their profits at any time, making it an attractive choice for those looking for liquidity and quick returns.
Additional Features
- Instant funding options: SurgeTrader allows traders to get funded quickly, without having to wait for long evaluation periods.
- Advanced risk management features: SurgeTrader offers robust risk management features to ensure that traders are well-protected.
5. Topstep: Trusted by Traders Worldwide
Topstep is one of the most established names in the prop trading industry. Known for its rigorous evaluation process and reliable payout structure, Topstep is trusted by thousands of traders worldwide.
Evaluation Process and Funding
Topstep has a two-phase evaluation process that focuses on profitability, consistency, and risk management. Traders must prove their skills through the Trading Combine, which is designed to simulate real trading conditions, followed by the Funded Account stage.
Topstep offers funding ranging from $50,000 to $150,000, depending on the trader’s evaluation success.
Profit Split and Payouts
Topstep offers traders a 80% profit split, which is competitive in the industry. However, Topstep is known for its transparency and reliable payouts, which make it an excellent choice for traders who want to build a long-term trading career.
Additional Features
- Trader development resources: Topstep offers extensive training and educational materials to help traders succeed.
- Scalable funding: As traders prove their skills, they can scale their funding and continue growing their trading business.
6. E8 Funding: A New Contender with High Rewards
E8 Funding is a relatively new player in the prop trading market but has already made a name for itself due to its impressive profit splits and trader-friendly policies.
Evaluation Process and Funding
E8 Funding offers a simple evaluation process with clear rules and low barriers to entry. The firm provides funding options that range from $25,000 to $200,000, and traders can choose from various risk management models.
Profit Split and Payouts
E8 Funding provides traders with a 75% profit split and offers weekly payouts, which is highly attractive to traders looking for regular income.
Additional Features
- No time limits on evaluations: E8 Funding allows traders to take as long as they need to pass the evaluation phase, which reduces pressure.
- Easy-to-understand rules: The firm has straightforward rules that make it easier for traders to succeed.
7. FundedNext: Comprehensive Support and Growth
FundedNext offers comprehensive support to its traders and focuses on helping them grow their trading capital over time. The firm’s generous profit splits and well-structured evaluation process make it a top choice for serious traders.
Evaluation Process and Funding
FundedNext has a flexible evaluation process that includes two stages: the Challenge and the Verification. Traders can access accounts ranging from $50,000 to $500,000, depending on their progress.
Profit Split and Payouts
FundedNext offers a 75% profit split, with the possibility of increasing this based on the trader’s consistency. The firm offers monthly payouts to its traders.
Additional Features
- Trader-friendly conditions: FundedNext has low drawdown limits and offers a scalable funding plan.
- Frequent training opportunities: Traders can access various resources to improve their trading skills.
8. Funded Trading Plus: A Transparent Prop Trading Firm
Funded Trading Plus is known for its transparent and clear terms, which make it a trustworthy choice for traders. It has a simple and effective evaluation process.
Evaluation Process and Funding
The firm offers accounts ranging from $25,000 to $200,000, depending on the trader’s evaluation performance. The evaluation process is straightforward, and traders can gain access to funding after completing the necessary steps.
Profit Split and Payouts
Funded Trading Plus offers a 75% profit split, with weekly payouts available. Traders can access their funds at any time.
Additional Features
- Consistent scaling options: As traders show consistency, they can increase their funding size over time.
- No pressure evaluation process: Traders are not rushed during the evaluation phase, making it easier to succeed.
9. Fintokei: A Solid Performer with Great Rewards
Fintokei is another up-and-coming prop trading firm known for its competitive profit split and excellent trader support.
Evaluation Process and Funding
Fintokei’s evaluation process includes two phases: Challenge and Verification, which are designed to assess traders’ risk management and profitability. The firm provides funding options from $25,000 to $300,000.
Profit Split and Payouts
Fintokei offers a 80% profit split, and traders can access weekly payouts for fast returns.
Additional Features
- Trader-focused: The firm is committed to helping traders grow and offers excellent customer support.
10. Audacity Capital: A Boutique Prop Firm
Audacity Capital is a boutique prop trading firm that offers premium services and a personalized approach to its traders.
Evaluation Process and Funding
Audacity Capital offers funding from $25,000 to $500,000 and has a streamlined evaluation process that focuses on finding the most talented and consistent traders.
Profit Split and Payouts
The firm offers a 70% profit split, with monthly payouts.
Additional Features
- Personalized support: Audacity Capital offers one-on-one mentorship and training for traders.
Conclusion
Choosing the right prop trading firm can be a game-changer for traders seeking to leverage larger capital while minimizing personal risk. Each of the firms listed above offers unique advantages, from generous profit splits to supportive evaluation processes and flexible withdrawal options. FTMO, SurgeTrader, and Topstep are among the top-paying firms with some of the most competitive profit splits, while firms like The 5%ers and FundedNext offer excellent scaling opportunities and trader-focused policies.
