Topstep vs. Elite Trader Funding: A Detailed Comparison for Aspiring Traders
In the competitive world of proprietary trading, aspiring traders are often presented with multiple options for funding opportunities. Topstep and Elite Trader Funding are two well-known firms in the industry, offering traders the chance to trade with real capital after successfully completing an evaluation process. Both companies provide solid paths to become a funded trader, but they differ in key aspects such as evaluation processes, profit-sharing models, risk management rules, and payout structures. In this article, we will compare Topstep and Elite Trader Funding to help you decide which one suits your trading style and goals.
1. Overview of Topstep
What is Topstep?
Topstep is one of the most recognized names in the prop trading industry. It has built a reputation for its rigorous evaluation process and educational resources aimed at developing traders. Topstep primarily focuses on futures trading but also offers forex trading accounts in some cases. The firm offers a two-phase evaluation process, with traders required to prove their profitability and risk management skills before receiving funding.
Key Features:
- Evaluation Process: Topstep has a structured two-phase evaluation process that tests traders for their ability to meet profit targets while adhering to strict risk management guidelines.
- Account Sizes: Traders can access futures trading accounts starting from $50,000 up to $150,000, with different account options depending on the trader’s experience and risk appetite.
- Profit Share: Topstep offers up to 90% profit share once traders pass the evaluation and are trading with a funded account.
- Risk Management: Strict risk management rules are enforced, including a $1,000 daily loss limit and $2,000 maximum drawdown.
- Payout Frequency: Topstep offers bi-weekly payouts, which means traders can access their profits every two weeks.
2. Overview of Elite Trader Funding
What is Elite Trader Funding?
Elite Trader Funding is a prop trading firm that offers traders the opportunity to trade real capital after passing an evaluation process. Known for its flexibility and variety of account sizes, Elite Trader Funding allows traders to work with futures and forex accounts, offering a wide range of funding programs for different trading styles. Elite Trader Funding offers lower entry fees and provides traders the chance to trade with competitive profit splits.
Key Features:
- Evaluation Process: Elite Trader Funding has a single-phase evaluation process that is designed to be faster and simpler than multi-phase evaluations. Traders are required to meet specific profit targets while adhering to risk management rules.
- Account Sizes: Account sizes range from $25,000 to $200,000, providing ample options for traders to choose the size that best fits their risk tolerance.
- Profit Share: Elite Trader Funding offers a 75%-90% profit share, which is slightly lower than Topstep’s maximum but still competitive in the industry.
- Risk Management: The firm enforces $1,000 daily loss limits and a maximum drawdown of $3,000 for funded accounts.
- Payout Frequency: Elite Trader Funding offers weekly payouts, allowing traders faster access to their profits compared to the bi-weekly payout schedule of Topstep.
3. Evaluation Process: Topstep vs. Elite Trader Funding
The evaluation process is one of the most important factors to consider when choosing a proprietary trading firm. Both Topstep and Elite Trader Funding have structured evaluation processes, but they differ in their approach, requirements, and overall duration.
Topstep Evaluation Process:
- Phase 1: Traders in Phase 1 of the evaluation must hit a $3,000 profit target in 15 days while following the firm’s strict risk management rules.
- Phase 2: In Phase 2, traders need to achieve a $3,000 profit target in 10 days, adhering to the same risk limits as in Phase 1.
- Evaluation Focus: The two-phase evaluation process is intense, requiring traders to hit profit targets in relatively short timeframes, which can be stressful but offers an opportunity to demonstrate consistent performance.
Elite Trader Funding Evaluation Process:
- Single-Phase Evaluation: Elite Trader Funding uses a single-phase evaluation process, where traders need to meet a profit target of 10% (or more depending on the account size) within 30 days.
- Evaluation Focus: Elite Trader Funding’s evaluation is simpler and has a longer time frame, giving traders more flexibility to meet the profit targets compared to Topstep’s two-phase process. This might appeal to traders who prefer more time to prove their skills.
4. Profit Share and Payouts: Topstep vs. Elite Trader Funding
Profit-sharing rates and payout frequency are key considerations for traders when choosing a proprietary trading firm. Both firms offer competitive profit-sharing models, though there are some differences.
Topstep Profit Share:
- Profit Share: Topstep offers up to 90% profit share once traders pass the evaluation and are trading with a funded account.
- Payout Frequency: Topstep offers bi-weekly payouts, meaning traders can receive their earnings every two weeks.
Elite Trader Funding Profit Share:
- Profit Share: Elite Trader Funding offers a profit share ranging from 75% to 90%, depending on the account size and trader performance.
- Payout Frequency: Elite Trader Funding offers weekly payouts, meaning traders can access their profits more quickly compared to Topstep’s bi-weekly payouts.
5. Risk Management: Topstep vs. Elite Trader Funding
Both Topstep and Elite Trader Funding have strict risk management rules to ensure that traders are managing capital responsibly. However, there are some differences in the maximum drawdown limits and daily loss limits that traders must adhere to.
Topstep Risk Management:
- Daily Loss Limit: $1,000 daily loss limit for funded accounts.
- Maximum Drawdown: The maximum drawdown for a funded account is $2,000.
- Leverage: Topstep offers leverage up to 1:100, depending on the account size and instrument being traded.
Elite Trader Funding Risk Management:
- Daily Loss Limit: $1,000 daily loss limit for funded accounts.
- Maximum Drawdown: The maximum drawdown for a funded account is $3,000, offering more room for risk compared to Topstep.
- Leverage: Elite Trader Funding also offers leverage, but specific details may vary based on the account size and the instruments being traded.
6. Key Differences: Topstep vs. Elite Trader Funding
| Feature | Topstep | Elite Trader Funding |
|---|---|---|
| Profit Share | Up to 90% | 75%-90% |
| Evaluation Process | Two-phase (15 days and 10 days) | Single-phase (30 days) |
| Account Sizes | $50,000 to $150,000 | $25,000 to $200,000 |
| Risk Management | $1,000 daily loss limit, $2,000 max drawdown | $1,000 daily loss limit, $3,000 max drawdown |
| Payout Frequency | Bi-weekly | Weekly |
7. Conclusion: Topstep vs. Elite Trader Funding – Which is Right for You?
Both Topstep and Elite Trader Funding offer excellent opportunities for traders to gain funding and access real capital. However, your choice depends on your preferences for evaluation structure, profit-sharing models, and payout frequency.
- Choose Topstep if you prefer a higher profit share (up to 90%), are comfortable with a two-phase evaluation process, and can handle a shorter, more intense evaluation timeline. Topstep’s bi-weekly payouts may also be more appealing for traders who like consistent earnings every two weeks.
- Choose Elite Trader Funding if you want a simpler, single-phase evaluation, more time to meet your profit targets (30 days), and weekly payouts. Elite Trader Funding also offers more flexibility with account sizes and slightly higher drawdown limits, which may be more suitable for traders looking for a bit more room to maneuver.
Ultimately, both firms have their strengths, and the best choice for you depends on your trading goals, risk tolerance, and how you prefer to structure your trading career. Whether you choose Topstep or Elite Trader Funding, both firms offer the opportunity to scale your trading career with the right blend of support and capital.
