Prop trading firms give you a chance to take part in a funded account challenge, with certain profit targets and other objectives that you need to achieve. If you achieve the desired results whilst showing consistency and good money management, the prop firm can give you a funded account where you get a share of any profits that you make.
They are popular amongst retail traders who believe that they have the trading skills and knowledge of the markets, but are lacking in capital. If you are buying and selling financial instruments throughout the day and wat to get access to more funds so that you can increase your profit potential, then you might consider a day trading prop firm.
Trading securities in a day, or even in a few seconds, is known as day trading. Nothing about it relates to investment in the conventional sense. It is taking advantage of the regular up-and-down price swings that take place throughout a trading session.
The stock markets and the foreign exchange (forex) markets, where currencies are exchanged, are where day trading is most prevalent. Day traders often have a strong financial foundation and are well-versed in the details of trading. Many of them use high leverage to enhance the amount of their trades, which adds an extra layer of danger.
Day traders are tuned into the things that trigger quick changes in the market. One well-liked strategy is trading in response to the news. Market expectations and market psychology can affect scheduled announcements like the publication of economic statistics, business earnings, or interest rate changes. That is, when those expectations are not realised or are surpassed, the market responds, typically with swift, large movements that are very advantageous to day traders.
Day traders employ a variety of intraday tactics. These tactics consist of:
This approach is centred on generating a lot of little profits off of fleeting price swings that happen throughout the day. There are prop firms that allow scalping that you might want to consider if this is your preferred type of trading strategy.
The trader’s buy and sell choices in this technique are based on previously established support and resistance levels in price. Day traders combine price action with technical analysis to try and spot ranging markets to pick tops and bottoms from.
This day trading strategy looks to take trading opportunities from the heightened volatility that occurs around news events. This can be difficult due to unfavourable trading conditions but if you are a fan of it, then you can take a look at our prop firms that allow news trading.
High-frequency trading (HTF)
These day trading strategies make use of advanced algorithms to take advantage of minute or transient market inefficiencies. HFT requires exceptional trade conditions which are not readily available to the average retail trader. Not to mention, the majority of prop firm do not allow HFT so it will result in a breach of their terms if that is the case.
FTMO allows you to trade practically all financial products and also provides the finest profit splits in the industry. They employ more over 10,000 traders globally, making them perhaps the biggest prop trading company in the world.
The excellent reputation of FTMO is for a good reason. They never miss a deadline for payments, and they never make mistakes in the books. For the very best prop traders, the industry’s maximum rate of profit splitting is 90%, based on a sliding scale that starts at 80%.
They not only provide fantastic growth prospects, but they are also highly cost-effective. One of the two phases of the evaluation process, the FTMO Challenge, gives traders access to up to $400,000. If you produce a 10% net profit over a certain period of time, the FTMO will gradually increase your funding up to a maximum of $2 million. As FTMO is aware that it requires money to make money, funding its traders appropriately is a critical component.
Almost every financial market you can imagine can be traded at FTMO. If you are an expert in one market, you can trade stocks, futures, metals, currencies, and futures. You may trade everything you want with FTMO, in contrast to many prop trading companies that are solely concentrated on a small number of marketplaces.
They provide good instructional materials in addition to outstanding trading platforms. Their expenditure on cutting-edge commerce tracking technology is largely to blame for this. FTMO’s applications let you monitor your trading behaviour and get immediate feedback.
As part of their dedication to supporting its traders, FTMO hires qualified psychologists. Although though trading psychology is well-known, FTMO is one of the few prop businesses that provides help in this area.
The evaluation’s standards are quite conventional, although they recently made some changes to ease the process. Your profit objectives for Step 1 are 10% over 10 trading days, and the maximum losses on a $10,000 account are $1,000. However, they have lowered the Step 2 target to 5%, which takes the most of the pressure off.
One of the most reasonably priced, respected prop companies is FTMO. Prices start at just €155 for an account that has $10,000 in funding. If you succeed in the two-step assessment procedure, you will get a complete refund of this one-time cost.
- 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
Great trader assistance, immediate funding, and rapid account scaling are all provided by The 5%ers. This day trading prop firm educate their traders while frequently paying out on time and precisely, much like FTMO. In contrast to FTMO, 5%ers allow you rapid access to actual capital.
The 5%ers, a prop trading company, has one of the best evaluation procedures in the industry. Even though they provide immediate financing, the 5%ers nevertheless do Level 1 evaluations. You will, however, make genuine gains and engage in actual trading during your evaluation.
Trading with real money is instantly possible. You may have an account with up to $20,000, depending on the size of the account you select. You divide the earnings and turn into a fully funded trader if your profit targets are met in less than 180 days. Your starting balance will increase four times after you reach full funding as a trader.
Although the 5%ers provide considerable cash, they do not hinder the company’s ability to meet its profitability goals. You only need a 6% profit to leave Low Risk accounts. The fact that there is no obligation for a minimum trading day is the nicest feature. You’ll be eligible for full funding if you make 6% on your first day of business.
Theoretically, you could begin trading as soon as a few days after creating an account with as much as $80,000. The 5%ers don’t have too many restrictions on trading techniques, despite the fact that they solely provide FX trading. Jobs may be held on weekends and nights.
The 5%ers not only provide a fantastic scaling programme, but also a fantastic mentorship programme. As soon as you become a funded trader, the firm will double your money each time you hit a 10% profit objective, up to a maximum of $2.56 million.
The 5%ers’ community, customer service, and trading aid are mentioned in the majority of web evaluations. The 5%ers have quickly amassed a following of devoted traders who value their overall assistance to dealers.
Moreover, funded traders have the freedom to withdraw their profits whenever they want, as frequently as they like, and for any amount they choose.
- Instant funding in real accounts
- Frequent payouts and growth simultaneously
- Exceptional trading conditions
- Traders community
- All trading strategies are welcome
- Very fast growth plan
- No time pressure on the funded trader program
- One time fee with no ongoing costs
- Trading resources and tools
- Excellent MetaTrader 5 platform
- Scale up to $4M
- News trading and EA allowed
- Overnight and Weekend holding allowed
- Multiple accounts allowed
- Limited leverage options – 1:6 for low-risk accounts and 1:30 for aggressive accounts
- 2% Max stop loss risk limit on low-risk and $100k Bootcamp account types
- No MetaTrader 4 platform
- Could add some more trading instruments such as cryptos
- Not the largest profit share of 50%
- No free trial
Topstep has always had a great reputation as a broker, great trader assistance, and extremely large payments. Due to their current promotion, they represent one of the greatest values in the forex trading sector.
When you initially start out, you keep all of your first $5,000–$10,000 in profits (depending on which account you choose). Also, you will continue to receive 90% of future profits, the greatest payout percentage in the sector.
In addition, Topstep has simplified their Trader Combine two-step assessment procedure. As Step 2 no longer has a minimum trading requirement, both stages may be finished in less than two weeks.
Topstep allows traders an infinite amount of time to reach their profit goals in order to pass the Trader Combine. Be sure you don’t exceed your loss limit or trailing maximum drawdown no matter how long it takes. There will be a monthly cost while you’re in the Trader Combine, but once you’re confirmed as a funded trader, those payments will stop.
- 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
To funded traders that satisfy their trading requirements, SurgeTrader provides 90% profit splits. It’s the ideal prop company to add a range of tradeable assets to your investing portfolio.
Unlike to many other prop firm trading organisations, SurgeTrader just has one phase of review. There are six packages available for traders of varying ability levels. You receive an immediate funding of $25,000 and a 10% profit objective as part of its Starting Package. A maximum trailing decline of 5% is permitted. For newcomers who wish to stay away from aggressive accounts, the starter package is perfect.
The Master Package, with a financing capacity of $1 million and a profit split of 90%, is the highest-tier account. The objective is set at 10%, with a daily loss cap of 4% and a maximum trailing drawdown of 5%. This bundle could be ideal for you if you have high self-confidence.
This prop business also provides a large range of tradeable products, including as gold and cryptocurrencies, as well as well-known stock indexes. Leverage is achievable up to a factor of 10.
SurgeTrader, a renowned proprietary trading company, subjected all of its clients to assessments. The SurgeTrader Audition process consists of just one phase that you must pass. You don’t have to earn more than 10% of your account balance to go through the audition.
The cost of an audition per account ranges from $200 to $6,500. You may attempt the audition as many times as you like. To make payments and withdrawals, you can use PayPal and credit/debit cards.
- 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
Fidelcrest provides access to more than 1,000 financial products with 13 accounts designed to fit all sorts of traders. The prop company provides profit percentages of up to 90% and is renowned for its excellent support services and comprehensive training programmes.
Fidelcrest offers Micro Trader and Pro Trader accounts, both of which include options for Normal and Aggressive trading. There are three distinct funding levels for each category of risk.
The financing for the Micro account ranges from $25,000 to $50,000, depending on the level of risk. The profit objectives, the minimum number of trading days, and the maximum loss restrictions between the two are different. For instance, Micro Trader has a 5% profit objective and a 10% total loss cap. Aggressive risk has a 20% maximum loss cap and a 15% maximum profit aim.
ProTrader accounts are now financed between $150,000 and $1 million, with $1 million of that amount only being accessible for accounts with Normal Risk. Leverage on both accounts is allowed up to 1:100.
Depending on the minimum number of trading days, the maximum daily loss limit, and the maximum overall loss limit, each account type is assessed in two parts. You must provide documentation as part of Fidelcrest’s KYC programme in addition to fulfilling the trading requirements.
Different risk levels and account types have varying fees. The price to start a Micro Normal risk account ranges from $104 to $474. Prices for ProTrader accounts vary from $685 to $2,848 while those for Micro Aggressive accounts range from $157 to $579.
- You can receive up to $400,000 funding
- Leverage of up to 1:100 available
- Fidelcrest pays out 80–90% of profits to funded traders
- Fidelcrest has no minimum trading days for either stage of its evaluation
- If you pass the second stage of your evaluation, you will receive a bonus payout, up to $30,000
- Trade forex, stocks, commodities, metals, and crypto
- Regardless of your experience level, risk preferences, or strategy, you can find the ideal account for you
- Professional traders can sign up for a Pro Account with a $1 million initial account balance
- 5% profit target in phase 1 and phase 2 (Micro Trader accounts)
- Successful traders have the opportunity to double their initial capital with the scaling program
- MetaTrader 4 platform only
- Fidelcrest calculates your max loss based on your highest account balance, not on your initial balance
- Strict trading rules and conditions
- No educational content provided
- Phase 2 of the evaluation has tighter trading parameters than the Trading Challenge
- Almost overwhelming number of account options to choose from
- Do not have a free trial
How much you need to day trade really depends where you are located and the trading broker that you are using. There are plenty of brokers that allow you to open an account with as little as $1 to start day trading online. However, if you are in the USA, then you would usually need a minimum balance of $25,000 to trade the stock market as a day trade. The Financial Industry Regulatory Authority (FINRA) has a Pattern Day Trading Rule that states that you must maintain a minimum account balance of $25,000 ifyou want to day trade more than three times a week.
This is not realistic for many aspiring prop traders who might not have anything to invest into the markets. That is where prop firms for day traders come into the equation. For the small fee it costs to take part in a trading challenge, you have the chance of earning a funded account with a significant amount of trading capital at your disposal. What’s more, the prop firm will usually cover any losses. The caveat being that you need to be a consistent and profitable trader with sensible money management.
As prop trading firms are frequently searching for top performers with solid financial backgrounds, landing a job there may be quite difficult. It’s critical to have in-depth market knowledge, as well as sophisticated abilities in quantitative analysis and risk management, to acquire such a position.
Possessing knowledge of economics and finance will help put applicants ahead of the competition. Candidates must demonstrate their capacity to create plans for maximising profits while comprehending the dangers involved in every trade.
Hence, you often need to compete in some way and prove your trading abilities in order to get a position in a prop trading company. You can then receive management between 10K and 1KK and up to 90% of the trading profit.
An outline of the general requirements for employment with a prop trading business may be found below.
Bachelor’s or master’s degrees in mathematics, physics, statistics, computer science, or engineering from a prestigious university (e.g., a public state school in the U.S. ranked well in engineering). Although they are an advantage, strong academic performance is not as valued in IB recruiting.
Entry-level traders often have little to no full-time employment experience after finishing their degree programmes, but they frequently have internships in trading, asset management, or a similar field.
A good entry-level trader needs to be fast on their feet, composed under pressure, and tough as nails. Not for those who are easily stressed out by deadlines and other forms of time pressure.
Exceptions do occur, and applicants from non-target institutions and English Literature majors may also be accepted. Simply said, more work and networking are necessary.
If you have acquired the necessary information, abilities, and resources to carry out prop trading successfully, you may contact a prop trading company. It is essential to investigate and background check a company before committing to them. After you are confident in the organization’s reliability, you must deposit a risk contribution in order to access high leverage.
When you engage in internal prop trading at the firm’s facilities, you may have access to cutting-edge and sophisticated technology. As a consequence, you will also get access to in-depth knowledge that will help you execute trades more skilfully. As an alternative, authorised software may also be used to conduct remote trading. The benefits of in-house trading outweigh those of distant trading, nevertheless.
Your degree of expertise and experience will have a significant impact on your ability to profit from prop trading. If they reach their profit goals, professional traders employed by proprietary trading businesses might earn up to 70–90% of their trading profit.
Asymmetric risk exists, although trade profits are often split between the company and the prop trader. In other words, you will take 100% of the loss if you lose money, but you won’t get 100% of the profit. Prop traders often get between 10% and 25% of company profits. You must understand that trading, especially day trading, is extremely volatile, meaning you might make millions or lose them.
Other variables that may have an impact on the amount include the magnitude of a certain deal and the current market volatility. Despite the significant risks involved in this type of trading activity, competent prop traders have been known to produce big returns in a short amount of time with a sufficient grasp of market dynamics and risk management measures.
Successful prop traders are able to take advantage of possibilities given by unpredictable markets while reducing losses if things don’t work out as planned by utilising price changes and investing with long-term goals in mind.
Absolutely, you can be paid in a prop trading company. A reputable prop trading company will pay its traders a total salary of between $100K and $200K USD. The basic pay is little over $100,000, and incentives often range from 50% to 100% of the base pay.
Leading companies could even provide you an overall offer of remuneration that exceeds $200K, but this will depend on the state of the market and how well you perform. Losing money results in no bonus and, if you keep doing poorly, ultimately termination. After your first year, if you continue to work well at a prestigious company, your salary may rise to $200K to $500K.
Senior traders frequently make between $500K and $1 million a year, while partners frequently make over $1 million. While basic earnings do not always grow much as you advance in your career, increased bonuses are the primary source of these gains.
Prop trading remuneration may not appear to be significantly greater than investment banking salary, but it offers two key advantages:
Prop trading may make you $500K by your third year if you are highly skilled, which is far quicker than IB. Successful traders can become partners in as short as a few years.
As there are no stock-based or delayed bonuses, you earn everything in cash. At the beginning level, the difference is negligible, but as you develop, it gets more and more significant.
Day trading is aggressively purchasing and selling stocks on the same day in an effort to profit from rapid price movements. Day traders sometimes borrow money or use leverage every day to buy more assets, but doing so significantly raises your risk. If you are looking to take part in a trading challenge to get a funded account and usually open and close trades within minutes or hours, then you will need a prop trading firm for day trading like those listed on this page.
The good thing is that most proprietary trading firms do allow day trading, and most actively encourage it. However, there are other things that you need to consider when choosing a prop firm, including their trading platforms, financial instruments, partner broker, trading conditions, objectives, rules, strategies allowed, challenge fees, profit share, payout method and user feedback.