Proprietary trading firms (also known as prop firms) offer an excellent opportunity for skilled traders to capitalize on their trading strategies without having to risk their own capital. These firms fund traders with capital in exchange for a share of the profits. However, not all prop trading firms are created equal. They differ in their offerings, terms, rules, and structures, making it essential for potential traders to understand the nuances of each firm before deciding where to apply. In this comprehensive guide, we’ll compare the top prop trading firms—FTMO, The Funded Trader, SurgeTrader, Funded Trading Plus, Finotive Funding, The 5%ers, Topstep, Audacity Capital, E8 Funding, and FundedNext. Each section will dive deep into their features, trading conditions, profit splits, and overall benefits, culminating in a detailed summary.
1. FTMO
Overview and Background
FTMO is one of the most well-known and widely respected prop trading firms in the industry. Founded in 2015, FTMO has built a strong reputation for providing traders with significant capital to trade in the financial markets. Their business model focuses on offering funded accounts to traders who pass their evaluation process, which includes a two-step challenge. FTMO has gained popularity due to its straightforward rules and generous profit-sharing schemes.
Evaluation Process
FTMO’s evaluation process is one of the most rigorous in the industry, consisting of two stages. In the first stage, known as the FTMO Challenge, traders are required to achieve a profit of 10% within a 30-day period, without exceeding a maximum daily loss of 5% or a maximum overall loss of 10%. Once the trader successfully completes the challenge, they move on to the verification stage, where they need to generate a 5% profit within another 60 days, with the same risk limits.
Account Types and Leverage
FTMO offers a variety of account sizes, ranging from $10,000 to $200,000, with leverage options up to 1:100. Traders can choose from different account types, such as standard accounts or swing trader accounts, depending on their trading style.
Profit Split
FTMO offers one of the most generous profit splits in the industry. Traders can expect to keep 70% of the profits they generate, with the remaining 30% going to the firm. This split is standard across all account sizes, making FTMO highly attractive for experienced traders looking to maximize their profits.
Fees and Other Costs
FTMO charges a fee for participation in the challenge, which varies depending on the account size. The challenge fees range from $155 for a $10,000 account to $1,080 for a $200,000 account. Additionally, FTMO charges no additional fees for maintenance, withdrawals, or other account activities.
Summary
FTMO is an excellent choice for experienced traders looking for a well-established prop firm with a rigorous evaluation process. The high profit split, variety of account sizes, and straightforward rules make it a top choice for many. However, the challenge fees and strict evaluation process may deter beginner traders who are not ready for a more demanding program.
2. The Funded Trader
Overview and Background
The Funded Trader is another popular prop trading firm that has gained significant traction in the industry. They offer a relatively simple and trader-friendly evaluation process with some attractive conditions for traders. Founded with the goal of providing opportunities for traders of all skill levels, The Funded Trader has quickly made a name for itself in the prop trading space.
Evaluation Process
The Funded Trader uses a one-phase evaluation process, which is easier compared to other firms like FTMO. In this process, traders are required to meet a profit target of 10% within 30 days. The maximum drawdown allowed is 5% daily and 10% overall. This evaluation process is straightforward and appealing to traders who want to get funded quickly without dealing with complex rules.
Account Types and Leverage
The Funded Trader offers accounts ranging from $10,000 to $200,000, with leverage up to 1:100. Traders can select accounts based on their risk tolerance and trading style.
Profit Split
The Funded Trader offers competitive profit splits, starting at 75% for traders who meet the profit targets. Traders who perform exceptionally well can increase their profit share, with some accounts offering up to 90% profit splits.
Fees and Other Costs
The Funded Trader charges a fee for the evaluation, ranging from $97 for a $10,000 account to $697 for a $200,000 account. Traders are also given the opportunity to purchase an “instant funding” option, which allows them to bypass the evaluation process altogether and get straight into trading with a funded account.
Summary
The Funded Trader is an excellent choice for traders who prefer a simplified and faster route to funding. The one-phase evaluation process, coupled with generous profit splits, makes it an attractive option for traders of all skill levels. However, the fees associated with instant funding may be a barrier for those looking for a lower-cost entry.
3. SurgeTrader
Overview and Background
SurgeTrader is a newer prop trading firm, but it has rapidly established itself as a competitor to more established names like FTMO and The Funded Trader. SurgeTrader provides traders with an opportunity to access large capital accounts without needing to risk their own money. The firm focuses on providing traders with a flexible trading environment and a clear path to profitability.
Evaluation Process
SurgeTrader uses a one-phase evaluation process that requires traders to reach a profit target of 8% within a 30-day period. The maximum drawdown allowed is 4% daily and 8% overall. Traders who pass the evaluation are funded with the account size they selected during registration.
Account Types and Leverage
SurgeTrader offers accounts ranging from $25,000 to $200,000, with leverage options up to 1:100. This flexibility allows traders to choose the best account size for their trading style and risk management preferences.
Profit Split
SurgeTrader offers a 75% profit split for traders who pass the evaluation. This is quite standard compared to other firms in the industry, but SurgeTrader also offers higher profit splits for traders who achieve exceptional results.
Fees and Other Costs
SurgeTrader’s evaluation fees range from $99 for a $25,000 account to $999 for a $200,000 account. There are no additional fees for withdrawals or account maintenance, which makes SurgeTrader an attractive option for traders looking for a low-cost funding opportunity.
Summary
SurgeTrader is a solid choice for traders who are looking for a simple evaluation process and competitive profit splits. The fees are reasonable, and the firm offers flexibility in account sizes and leverage. SurgeTrader’s more straightforward rules and lower profit target can be appealing to traders looking for an easier path to funding.
4. Funded Trading Plus
Overview and Background
Funded Trading Plus is a relatively new player in the prop trading space but offers a solid set of features for traders. They provide a user-friendly interface, transparent rules, and an accessible path to funding. The firm caters to traders of various experience levels, making it an attractive option for both beginners and experienced traders.
Evaluation Process
Funded Trading Plus uses a one-phase evaluation process where traders are required to achieve a profit target of 10% within 30 days. The maximum drawdown allowed is 5% daily and 10% overall. Funded Trading Plus offers a straightforward approach that is easy to understand, making it an appealing option for traders who prefer simplicity.
Account Types and Leverage
Funded Trading Plus offers accounts ranging from $10,000 to $200,000, with leverage options up to 1:100. This is on par with many other prop firms in terms of flexibility and available options.
Profit Split
Funded Trading Plus offers a 75% profit split, with the potential to increase this to 80% for high-performing traders. This is competitive compared to other firms in the industry and ensures that traders keep a substantial portion of the profits they generate.
Fees and Other Costs
Funded Trading Plus charges a fee for the evaluation process, which ranges from $99 for a $10,000 account to $999 for a $200,000 account. There are no additional fees for maintenance, withdrawals, or other account activities, making this an affordable option for traders.
Summary
Funded Trading Plus offers a simple, straightforward evaluation process with reasonable fees and a competitive profit split. The firm’s transparent rules and commitment to providing excellent support make it an appealing option for traders looking for a reliable prop trading firm.
5. Finotive Funding
Overview and Background
Finotive Funding is a well-established proprietary trading firm that offers traders the opportunity to earn a funded trading account. Finotive focuses on providing traders with generous capital allocation and a competitive profit split. They cater to traders who have a strong trading strategy and risk management approach.
Evaluation Process
Finotive Funding employs a two-phase evaluation process similar to FTMO. Traders are required to achieve a profit of 8% in the first stage, with the maximum daily drawdown limited to 5% and the overall drawdown limited to 10%. After passing the first phase, traders must complete a verification phase with a 4% profit target and the same risk parameters.
Account Types and Leverage
Finotive Funding offers accounts ranging from $10,000 to $200,000 with leverage of up to 1:100, providing ample flexibility for traders to choose an account that matches their trading style.
Profit Split
Finotive Funding offers traders a profit split of up to 75%, with an option for higher splits based on performance. The firm also offers performance bonuses for traders who exceed their profit targets consistently.
Fees and Other Costs
Finotive Funding charges an entry fee for the evaluation process, which ranges from $129 for a $10,000 account to $999 for a $200,000 account. The firm has no withdrawal or maintenance fees, which keeps costs low for traders.
Summary
Finotive Funding is an excellent option for traders who are comfortable with a two-phase evaluation process and are seeking a firm with generous funding and a competitive profit split. The low fees and high potential for profit sharing make it a strong contender in the prop trading space.
6. The 5%ers
Overview and Background
The 5%ers is another leading prop trading firm, known for its no-risk-to-trader approach. They offer traders a chance to get funded without any upfront capital requirements, making it an attractive option for many. The firm specializes in forex trading, providing traders with flexible funding options and a supportive trading environment.
Evaluation Process
The 5%ers uses a straightforward evaluation process where traders need to achieve a profit target of 5% within 30 days. The firm has a more relaxed drawdown policy than some of its competitors, with a daily drawdown limit of 3% and an overall drawdown limit of 5%.
Account Types and Leverage
The 5%ers offers a variety of account sizes, ranging from $25,000 to $200,000, with leverage options up to 1:100. This provides traders with the flexibility to select an account size that aligns with their risk tolerance and trading style.
Profit Split
The 5%ers offer a competitive profit split of 50% for traders who pass the evaluation process. However, they offer higher splits as traders reach more advanced stages, increasing the potential for earnings as traders grow within the program.
Fees and Other Costs
The 5%ers charges no fees for their evaluation process, making it a unique option in the prop trading space. This is a significant advantage for traders who are looking for a no-cost entry into the world of prop trading.
Summary
The 5%ers is an excellent option for traders who prefer a low-cost, risk-free entry into the prop trading world. Their more relaxed rules and competitive profit sharing make them a great choice for traders who are ready to grow their trading career without the financial burden of upfront costs.
7. Topstep
Overview and Background
Topstep is one of the most reputable names in the prop trading industry, offering a unique program that allows traders to demonstrate their skills before being funded. Established in 2012, Topstep has a long history of helping traders become successful by providing them with the capital they need to trade.
Evaluation Process
Topstep uses a two-phase evaluation process, requiring traders to demonstrate their skills in a simulated environment before being funded with real capital. The first phase involves achieving a profit target of $5,000 within 15 trading days, with a maximum drawdown of $2,000. The second phase has a similar structure, with traders needing to generate $3,000 in profit within 10 days.
Account Types and Leverage
Topstep offers accounts ranging from $50,000 to $150,000, with leverage of up to 1:50. The firm’s focus on futures trading means that the leverage is lower than what some other firms offer, but it aligns with the firm’s risk management philosophy.
Profit Split
Topstep offers a profit split of 80% to the trader, which is one of the highest in the industry. This makes Topstep an attractive option for traders looking to maximize their earnings.
Fees and Other Costs
Topstep charges an entry fee for its evaluation process, with fees starting at $165 for a $50,000 account. There are no maintenance or withdrawal fees, making Topstep an affordable option for serious traders.
Summary
Topstep is a top choice for traders looking for a long-established firm with a solid reputation. The two-phase evaluation process is thorough, and the high profit split makes Topstep an appealing option for traders in the futures market.
8. Audacity Capital
Overview and Background
Audacity Capital is a UK-based prop trading firm that offers traders an opportunity to trade with significant capital. They have a strong focus on forex trading and provide traders with a clear path to funding through a performance-based evaluation process.
Evaluation Process
Audacity Capital offers a one-phase evaluation process where traders must achieve a profit target of 10% within 30 days. The daily drawdown limit is set at 3%, and the overall drawdown limit is 5%.
Account Types and Leverage
Audacity Capital offers accounts ranging from $25,000 to $200,000, with leverage of up to 1:100.
Profit Split
Audacity Capital offers a competitive profit split of 50%, with potential for higher splits based on performance.
Fees and Other Costs
Audacity Capital charges a fee for the evaluation process, which ranges from $180 for a $25,000 account to $1,000 for a $200,000 account. There are no maintenance or withdrawal fees.
Summary
Audacity Capital is a solid choice for traders looking for a prop firm with a straightforward evaluation process and flexible account sizes. While the profit split may be lower than some competitors, the firm’s transparent approach and focus on forex trading make it a great choice for traders who specialize in this market.
9. E8 Funding
Overview and Background
E8 Funding is a newer prop trading firm that offers traders an opportunity to gain access to funding quickly. They provide a trader-friendly evaluation process and a wide range of account sizes.
Evaluation Process
E8 Funding uses a one-phase evaluation process where traders must meet a profit target of 8% within 30 days. The maximum drawdown allowed is 4% daily and 8% overall.
Account Types and Leverage
E8 Funding offers accounts from $25,000 to $200,000 with leverage up to 1:100.
Profit Split
E8 Funding offers a profit split of 80% to traders, which is one of the highest in the industry.
Fees and Other Costs
E8 Funding charges an entry fee for the evaluation process, with fees ranging from $95 for a $25,000 account to $799 for a $200,000 account.
Summary
E8 Funding stands out for its high profit split and relatively low entry fees. The firm’s straightforward evaluation process and flexible account sizes make it an excellent choice for traders looking to get funded quickly.
10. FundedNext
Overview and Background
FundedNext is a relatively new prop trading firm that offers traders a variety of features, including low entry costs and high profit splits. The firm focuses on providing opportunities for forex and crypto traders to get funded.
Evaluation Process
FundedNext uses a one-phase evaluation process with a profit target of 8% within 30 days. The maximum drawdown allowed is 4% daily and 8% overall.
Account Types and Leverage
FundedNext offers accounts from $25,000 to $200,000, with leverage of up to 1:100.
Profit Split
FundedNext offers a profit split of 75%, with opportunities to increase this based on performance.
Fees and Other Costs
The evaluation fee ranges from $95 for a $25,000 account to $799 for a $200,000 account.
Summary
FundedNext offers competitive terms for traders seeking a straightforward evaluation process with low fees and a reasonable profit split. It’s an excellent choice for traders who want quick access to funding with a focus on forex and crypto markets.
Final Summary
In conclusion, all the firms listed above—FTMO, The Funded Trader, SurgeTrader, Funded Trading Plus, Finotive Funding, The 5%ers, Topstep, Audacity Capital, E8 Funding, and FundedNext—offer unique benefits and features for traders of varying skill levels. When choosing a firm, it is important to consider factors such as evaluation process, account types, profit splits, fees, and trading styles.
FTMO and The Funded Trader stand out for their rigorous evaluation processes and generous profit splits, while firms like SurgeTrader and Funded Trading Plus provide more straightforward paths to funding. The 5%ers is particularly appealing for its no-cost entry, while Topstep offers a strong reputation in the futures market. Audacity Capital and E8 Funding focus on forex trading, offering competitive profit splits and flexible account options. Finally, FundedNext stands out for its low-cost entry and high profit potential in both forex and crypto markets.
Ultimately, the best prop trading firm depends on the trader’s style, goals, and the type of support they need to succeed in the financial markets.
