When you're ready to transition from self-funded trading to joining a prop trading firm, selecting the right one to meet your trading needs is crucial. To simplify your decision-making process, we've done the hard work for you and reviewed the best prop trading firms.
In this article we'll give you an overview of some of the most reputable prop firms, considering essential factors like funding speed, evaluation processes, transparent pricing, profit sharing, trading rules and more.
Quick Look: Best Prop Firms
- Best Futures Prop Firm: Apex Trader Funding
- Best for Undercapitalized Futures Traders: MyFundedFutures
- Best for Beginners: For Traders
- Best for Experienced Traders: FXIFY
- Best for Fast Payouts: Day Traders
- Best Stock Trading Prop Firm: Trade the Pool
- Best for Forex, Indices and Metal Traders: The 5%ers
- Best for Seasoned and Undercapitalized Traders: Top One Trader
- Best Broker Backed Prop Firm: ThinkCapital
Compare Prop Trading Firms
Best Prop Trading Firms
Part of your success with prop firm trading depends on choosing firms with low fees, diverse market access, strong trading platforms, reasonable leverage, and fair profit-sharing models. Our top picks meet these criteria.
1. Best Futures Prop Firm: Apex Trader Funding
- Best For:Futures TradersVIEW PROS & CONS:securely through Apex Trader Funding's website
With Apex Trader Funding you'll trade mini or microcontracts in the evaluation period, and once the evaluation has been passed, you'll move to a funded account. You'll receive 100% of your first $25,000 earned per account with up to 20 accounts active at once and 90% after that, meaning this platform pays the most of any futures prop trading account. You can use Rithmic or Tradovate, and can choose from one of several different accounts that will come with a particular number of contracts, a profit goal, trailing threshold and more.
Why We Picked It:
- Relaxed Trading Rules: Supports various trading styles with flexible rules.
- Trading Platforms: Rithmic-based platforms like Rithmic and Tradovate, known for user-friendly interfaces and group trade features.
- Educational Resources: Free 30-day education course and one-on-one coaching, accessible across devices, including mobile.
- Live Accounts: Trade up to 20 accounts simultaneously with a single click, each supported by Tradovate's unique trading platform and data connection separate from Rithmic.
- Trading Strategies: Utilize tools like Tick Strike for market flow analysis, Markers Plus for automation, ChartPros for simplified trading, and Ninja Suites for accelerated execution.
Profit Split:
- 100% of the first $25,000 and 90% thereafter
What You Can Trade:
- Futures
2. Best for Undercapitalized Futures Traders: MyFundedFutures
- Best For:Fastest Payouts for Futures TradersVIEW PROS & CONS:securely through MyFundedFutures's website
At MyFundedFutures offers a straightforward one-step evaluation process, access to a wealth of trading resources, and expert guidance. Trade on a variety of platforms and earn the opportunity to manage up to $600,000 in capital, with the first $10,000 in profits entirely yours. Profit splits are typically set at 90%, and you'll gain access to esteemed exchanges like CME, CBOT, COMEX, or NYMEX through platforms like Tradovate, NinjaTrader, and TradingView.
Why We Picked It:
- No Daily Loss Limits: Eliminating daily loss limits and implementing a maximum trailing End of Day (EOD) drawdown of 4% for $50,000 accounts and 3% for $100,000 and $150,000 accounts.
- No Minimum Trading Days: No minimum trading day requirement allows traders to pass the evaluation efficiently, and there are no maximum trading day limits.
- Two Evaluation Models: Starter and Expert, account sizes range from $50,000 to $150,000.
- Risk Management Tools:
Profit Split:
- Up to 90%
What You Can Trade:
- Futures
3. Best for Beginners: For Traders
For Traders offers the opportunity to manage up to $300,000 in virtual capital through their simulated trading platform. For Traders offers a wide range of challenges where you can adjust the parameters to fit your trading goals. They provide a comprehensive platform with guaranteed fast payments, a structured evaluation process, robust customer support, and a commitment to trader development.
Why We Picked It:
- Various Trading Platforms: The firm offers three distinct trading platforms: cTrader, TradeLocker, and DXtrade, each catering to different trading preferences and styles.
- Payouts: The firm offers weekly and expedited payouts, ensuring that traders can promptly access their earnings.
- Customer Support: A dedicated customer support team is available 24/5 to assist traders with any inquiries or issues.
- Educational Resources: For Traders offers complimentary educational materials, including video courses and e-books, to help traders enhance their skills.
- Community Engagement: The firm fosters a sense of community through events such as trader meetups and tournaments, providing opportunities for traders to connect and learn from one another.
Profit Split:
- 80%
What You Can Trade:
- Forex, commodities, energies, metals and more
4. Best for Experienced Traders: FXIFY
FXIFY is a proprietary trading firm that offers access to up to $400,000 for those who pass the assessment. With profit shares as high as 90%, you can scale your account up to $4 million. Trading is available on MetaTrader 4 (MT4) or MetaTrader 5 (MT5) and assorted trading platforms through the firm’s partnership with FXPIG. FXIFY offers instant payouts, no consistency rules, unlimited trading days and a 125% refund on your assessment fee with your first payout.s.
Why We Picked It:
- Commission-Free Trading: Commission-free trading on a diverse range of products, including forex, stock indices, precious metals like gold and silver, and more.
- Spreads and Leverage: Tight spreads and no trading restrictions, along with customizable leverage options.
- Automated Trading: Supports automated strategies and Expert Advisors (EAs), provided they are proprietary strategies developed by the trader.
- Instant Payouts: Convenience of requesting an initial payout after your first profitable trade, a feature not commonly found in other prop firms where traders typically wait 2-4 weeks for payouts.
- Robust Trading Dashboard: Comprehensive dashboard offering real-time metrics and analytics, including max daily and total drawdowns.
- Free Trading Tools and Resources: Access Trading Central's tools and resources, such as the Economic Calendar, Featured Ideas, and Technical Insights, providing valuable market analysis and research resources at no cost.
Profit Split:
- Up to 90%
What You Can Trade:
- Forex, indices, commodities, stocks and cryptocurrency
5. Best for Fast Payouts: Day Traders
Day Traders founders developed the technology powering the world’s largest futures funding company. With a unique Automated Payout System, payouts are approved within seconds, setting them apart from others in the industry. They offer instant account creation upon payment, enabling traders to start immediately. With transparent trading rules and a range of flexible account sizes, the company provides options to help each trader find the perfect fit for their needs.
Why We Picked It:
- Daily Payouts and Clear Rules: Consistent, predictable income opportunities supported by transparent guidelines.
- Extended Trading Hours: The platform offers trading availability from 6 PM ET to 4:59 PM ET the following day, covering 23 hours daily, which accommodates various trading schedules.
- No Daily Drawdown Limits: Utilizing a live trailing threshold system, Day Traders eliminates daily drawdown restrictions, offering traders greater flexibility in managing their positions.
- Comprehensive Resources: Traders benefit from access to educational courses, real-time market data, and a community of fellow traders, all designed to enhance trading proficiency.
Profit Splits:
- Varies by account
What You Can Trade:
- Futures
6. Best Stock Trading Prop Firm: Trade the Pool
- Best For:Stock TradersVIEW PROS & CONS:securely through Trade The Pool's website
Established in 2022, Trade the Pool prioritizes providing you with robust risk management tools and caters to a diverse range of trading styles, including day trading, swing trading, and professional trading needs. With support for trading stocks and CFDs, the platform welcomes traders of varying experience levels, offering guidance and assistance to inexperienced traders. They offer access to over 12,000 stocks and ETFs, the platform aims to diversify trading options and provide educational resources to enhance users' trading knowledge.
Why We Picked It:
- Trade the Pool Pump: Designed to boost trader confidence, the pump increases your DL and max exposure after five consecutive winning days. The percentage increase varies by package: 5% for Super Buying, 8% for Extra Buying, and 15% for Ultimate Buying.
- Trade the Pool Dump: Conversely, the dump reduces your DL after five consecutive losing days, triggered after a pump. For instance, after five days of losses with at least 2XDL, your DL steps back to its initial value.
- Comprehensive Risk Management: Traders manage maximum daily loss (DL), Risk Per Day (RPD), and max drawdown (DD).
- Transparent Profit Target Calculation: Three service packages offer 45-day trade period and access to premium resources like Trade Ideas or TrendSpider.
Profit Split:
- Up to 80%
What You Can Trade:
- Stocks
7. Best for Forex, Indices and Metal Traders: The 5%ers
- Best For:Experienced and beginner forex, indices and metal tradersVIEW PROS & CONS:securely through The5ers's website
The 5%ers platform offers a gateway into prop trading, allowing you to access forex, metals, and indices trading with minimal barriers to entry. The platform supports MT5 trading and offers profit splits of up to 100%, along with exclusive resources and salary offers on select higher-stakes programs.
The 5%ers offers a demo account for as little as $95, which allows you to enjoy instant trading access after passing the evaluation, giving you the freedom to develop your own trading strategies without the burden of subscription fees.
Why We Picked It:
- Trading Platforms: Licensed MetaTrader 5 platform across PC, web, and mobile versions, offering unique features for user convenience.
- Global Accessibility: Accepts applications from traders worldwide, including United States citizens, distinguishing itself as a prop trading firm rather than a broker.
- Clear Profit Targets: Regardless of the chosen funding program, The5%ers clearly outlines profit requirements and order restrictions, enabling traders to align strategies with program specifications before committing.
- Abundance of Resources: Suite of tools to enhance trading performance. The community feature facilitates connections with successful traders for valuable insights and tips.
Profit Split:
- Up to 100%
What You Can Trade:
- Forex, indices and metals
8. Best for Seasoned and Undercapitalized Traders: Top One Trader
- Best For:Seasoned and Undercapitalized TradersVIEW PROS & CONS:securely through Top One Trader's website
At Top One Trader, accessing forex trading is straightforward. With flexible evaluations and conditions, you can secure up to $200,000 in funding, extendable to $5 million with consistent success. There are no trading day restrictions, allowing weekend and news trading, even with expert advisors.
Why We Picked It:
- User-Friendly Platform: Intuitive and easy-to-navigate platform, ensuring a smooth trading experience for all users, whether beginner or experienced.
- No Daily Loss Limits: Top One Trader does not impose daily loss limits, giving traders more flexibility and control over their trading activities.
- Support for Various Trading Strategies: Whether you prefer manual trading or automated strategies, the platform supports a wide range of trading styles, including scalping, day trading, swing trading, and more.
- Bi-Weekly Payouts: Traders can enjoy regular payouts on a bi-weekly basis with an add-on, providing them with consistent income and helping them manage their finances effectively.
Profit Split:
Up to 90%
What You Can Trade:
- Forex, indices, commodities and cryptocurrency
9. Best Broker Backed Prop Firm: ThinkCapital
- Best For:Traders Seeking FlexibilityVIEW PROS & CONS:securely through ThinkCapital's website
ThinkCapital embodies a "traders first" philosophy, offering customizable evaluation phases and flexible trading environments. With a user-friendly design and TradingView integration, the platform helps new users get up to speed quickly, allowing them to build skills without risking personal capital. Backed by ThinkMarkets, a regulated broker, ThinkCapital stands out for its credible reputation and streamlined trading experience.
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Why We Picked It:
- Seamless Integration: TradingView integration enhances ease of use and accessibility.
- Credible Parent Company: Backed by ThinkMarkets, adding regulatory credibility and recognition.
- Trader-Centric Approach: Emphasis on a "traders first" philosophy with flexible, user-friendly features.
- Customizable Evaluation Phases: Allows traders to select from one-, two-, or three-step evaluations based on their preferences and readiness.
- Risk-Free Skill Development: Users can practice and grow their trading skills without risking personal capital.
Profit Split:
- Up to 90%
What You Can Trade:
- Forex, commodities, indices and cryptocurrencies
How to Choose a Prop Trading Firm
Choosing a prop trading firm is crucial for aspiring traders. Focus on factors like reputation, trading strategies, support and risk management.
Company Reputation
A prop firm’s reputation impacts your trading experience. Look for firms with a strong track record and positive feedback from traders who have used the platform. Compliance with financial regulations and effective handling of issues should also be a contributing factors to a firm's credibility.
Fees and Profit Sharing
Understand the fee structure, including any one-time fees and refundable deposits. Pay attention to the profit sharing terms to ensure you are getting the most return on your investments.
Withdrawal Policies
Check the firm’s guidelines on withdrawal limits and processing times. Make sure they offer convenient withdrawal methods and understand any restrictions on the frequency of withdrawals.
Trading Tools and Flexibility
Access to advanced trading tools is crucial to make sure you are trading using the tools your familiar with. If you use MetaTrader 4 already, make sure the firm offers it. Ensure the tools meet your needs and offer flexibility, so that you can trade from various devices.
Customer Support and Community
Reliable customer support is essential. Look for firms with dedicated support channels like email, phone, or live chat. Additionally, a supportive trading community can provide valuable insights and help you learn from other traders.
Pros and Cons of Prop Trading
Prop trading is highly advantageous to traders who want to increase profits. However, it can also have some drawbacks. Here are some pros and cons of becoming a prop trader.
Pros
- Excellent support: Due to the nature of the operation, proprietary trading firms often comprise a closely-knitted community of people. The implication is that traders are offered quick support, and issues are resolved timely, unlike retail brokerages.
- Liquidity through open order: If you mainly trade in open positions, you're better off as a prop trader. The reason is that most prop firms allow you to open multiple orders simultaneously.
- Market accessibility for undercapitalized traders: Prop trading makes it easy for undercapitalized traders with requisite trading expertise to access and profit from the financial market. Proprietary accounts might be ideal if you've less than $10,000 in investment capital. The reason is that your buying power will trump anything you can get as a retail client.
- Streamline short selling: For effective short selling, you first need to locate shares that are good candidates for shorting. This process might be challenging as a retail trader, especially as some equities may be on the threshold or hard to borrow and so unavailable for shorting. With prop trading, you can access a long list of shorting inventories.
Cons
- Potential for loss of capital: Compared to retail brokers, prop trading firms are highly under-regulated. While this means fewer operating costs, there's an inherent risk of losing your capital, especially if the principals are fraudsters. You must therefore do due diligence and invest only what you can lose.
- High fees: Most prop firms require you to pay for the modeling and trading software, especially if you trade remotely. The monthly fee for most sophisticated trading software may be as high as $300. When you factor in other costs that may arise, you may have no alternative but to reconsider, especially on comparing retail trading fees.
- Mostly for day trading: Prop trading leverage mainly applies in day trading. You may likely get different leverage for overnight positions than day trading. The implication is that, to a greater extent, prop trading is essentially day trading. Most prop firms do not permit overnight trading.
- Intellectual theft: If your strategy consistently delivers profitability, the prop firm may look for a way to decode your approach. For instance, they can piggyback your method and teach them to computers via machine learning.
Frequently Asked Questions
Do prop firms really pay out?
Yes, some proprietary trading firms (prop firms) do pay out profits to their traders. However, the terms and conditions vary between different firms, so it’s important to do thorough research and understand the specific payout structure and policies of the firm before getting involved.
Which prop firm is better than FTMO?
It depends on your preferences and goals, along with what you are looking for from trading conditions, funding options, support services and overall reputation. Apex Trader Funding and FXIFY are two great alternatives to FTMO. If you are in the US, note that FTMO has stopped accepting US prop trader.
How much do prop trading firms make?
Prop trading firms make between 10% to 50% of each trader’s profits depending on the split profit.
How do prop trading firms make money?
Prop trading firms make money by taking a percentage share of each trader’s profit and account opening charges. They may also charge traders for training and expert coaching.
Who should try prop trading?
Prop trading can be a good idea for anyone who understands how to invest but doesn’t have the backing they need. Prop trading may also be a good idea for those who want to learn as they trade, but you must find a platform that allows you to learn and grow.
About Chika Uchendu
Chika Uchendu is an investing writer and investment platform analyst passionate about helping people learn more about managing their finances, making informed investment decisions, and navigating the complex landscape of investment platforms to find the best options for their financial goals and needs. He has over 8 years of experience writing compelling articles for various reputable publishers across diverse topics. When he’s not writing content, he’s wrangling and analyzing data to help businesses make informed decisions.