Prop trading or proprietary trading firms use their own capital to trade the markets to earn profits instead of earning commissions from clients’ trading activities or by trading on behalf of their clients. Prop firms trade currencies, stocks, bonds, commodities, and many other instruments. Nowadays, these firms also provide funds to individual retail traders and allow them to trade markets using these funds. Some firms have set up evaluation criteria for traders which they have to meet before giving them funded accounts. The profits are shared between the firm and trader based on a specified ratio.
With the large number of prop firms operating in the market, it can be difficult for beginner traders to choose the best one. Here is the list of some of the top prop trading firms that you can consider to start trading.
1- FTMO
Introduction
FTMO was founded in 2017 and is based in the Czech Republic. It allows you to trade many financial instruments, including stocks, forex, commodities, indices, and even cryptocurrencies. The prop firm provides traders with access to advanced trading platforms, such as MT4, MT5, and cTrader. Traders have to pass a 2-step evaluation process before they can get the funded account.
The trading firm has quickly attracted many professional traders due to its generous profit sharing ratio and modern trading platforms.
Pros
- With FTMO, you can get a trading account worth $200,000, which is a sizable amount.
- The firm offers a hefty profit-sharing ratio of 90%, which is the highest in the industry.
- FTMO also lets you take a retest. However, the only condition is that your balance should be positive.
- You can also take leverage up to 100x your available balance.
- FTMO also provides services of trained psychologists to traders to help them with the psychological needs of trading.
- You get a range of trading tools, such as Metrix, Trading Journal, Mentor App, Equity Simulator that can help you with your trading.
Cons:
- Instead of trading real money, you are given a demo account for trading. However, the profit you earn is real and shared with you according to the profit-sharing ratio.
2- The 5%ers
Introduction
The 5%ers was founded in 2016 in Raanana, Israel. It offers trading capital accounts up to $4 million, one of the biggest in the industry. The firm offers a 50% profit sharing ratio, which means that the profit you earn on the funded account is divided equally between you and the firm. Joining the 5%ers is easy as you just need to pay a one-off participation fee and start trading with a real funded account.
You can get $6,000 instant funding by paying a one-off fee of €235. If you want to get $10,000 instant funding, you need to deposit €385. The fee for getting a $20,000 funded account is €745. However, you’ll need to hit the profit targets and other objectives within the timeframe to be eligible for increased funding.
Pros
- You can withdraw your profits instantly without any minimum profit requirements.
- The 5%ers allow you to start trading with real money instantly as soon as you pay a one-off enrollment fee.
- You are given a reasonable time to meet the stated objectives.
- The firm offers many educational programs for educating new and advanced traders.
- The 5%ers allow you to trade using one of the most advanced trading platforms, MT5.
- The firm lets you trade with tight spreads and low commissions, which can lower your trading costs and increase your chances of earning higher profits.
Cons
- The 5%ers only allow traders to trade forex pairs. Traders cannot trade stocks, commodities, indices, bonds, or any other financial instruments.
- The firm offers limited leverage options as traders can only get leverage of 1:6 or 1:30, depending on the type of account.
3- Fidelcrest
Introduction
Fieldcrest is a prop trading firm that was established in Nicosia, Cyprus in 2018. More than 7,000 traders from over 170 countries are registered with the firm and trading the markets. After passing the firm’s evaluation challenge, you can get a funded account of $400,000 with an 80/20 profit sharing ratio.
The firm offers a $75,000 funded account for a €349 one-off evaluation fee. You can get a $150,000 funded account for €649 evaluation fee, a $250,000 funded account for €999, and $500,000 for €1,599 one-off evaluation fee.
You need to hit the profit target and also meet other trading goals, after which the funds in your account will be doubled. During the verification stage, your share of profit will be 40%, which will increase to 70% after completing the verification stage.
Pros
- Fidelcrest allows you to trade up to 175 products, including stocks, forex, indices, cryptocurrency, gold, silver, and commodities.
- You can get leverage up to 1:100.
- Fidelcrest offers you access to an advanced trading platform, MT4.
- The firm offers various tools that can help traders analyze the markets in a better way and improve their trading.
- For beginner traders, Fiedelcrest also offers micro or low funding options.
- For aggressive account holders, the firm allows holding your positions overnight and on weekends.
Cons
- The trading rules and requirements are quite strict.
- The trading period limit is set for 30 or 60 days, which prohibits traders from executing long-term investment strategies.
- Telephonic customer support is not available.
4- Leeloo
Introduction
Leeloo is a proprietary trading firm founded in Hayward, CA, United States, in 2008. The firm has thousands of clients from more than 114 countries. The firm offers nine different types of accounts, with different fees, number of contracts, profit targets, and drawdown rules. For example, with a Leeloo Express account worth $100,000, you can trade 12 minis or 120 micros with a profit target of $6,000 and a $3,000 trailing drawdown. You can trade Leeloo Express $100,000 account by paying a one-off fee of $77, and you can retain 80% of the profit generated.
Pros
- Leeloo provides you access to the NinjaTrader platform, which is one of the advanced trading platforms.
- When you pass the LeeLoo evaluation, you get a refund while getting 80% of the generated profit.
- The evaluation period is set for 10 days.
- One trader can get multiple funded accounts.
Cons
- Trailing drawdown criteria set by the firm can be difficult to meet.
- The firm does not provide educational materials or analytics to improve your trading.
5- City Traders Imperium
Introduction
City Traders Imperium was founded in 2014 in London, United Kingdom. With this firm, top traders can manage funded accounts worth $4 million with a profit-sharing ratio of up to 70%. However, the profit-sharing ratio during the evaluation stage is 50%, which grows to 60% at the portfolio management stage, and reaches the top 70% level when you reach the $2 million funding mark.
You can bypass the evaluation stage and straightaway get a $20,000 funded account if you deposit a one-time fee of £999. For a fee of £3,099, you can get a funded account of $70,000.
Pros
- You can adopt any trading style to generate profit – even during the news, at the weekends, overnight. You can also use EAs if you want to.
- You get free access to different courses when you subscribe to any of City Traders’ packages, which will help you in becoming a successful trader.
- You can get leverage as high as 1:100.
- The firm allows you to include risk management in your strategies. So, you can use stop-loss in your trades and limit your downside risk.
- The firm offers a very fast scaling system, using which you can quickly increase your funded account.
Cons
- The profit-sharing ratio is 50% during evaluation. However, this rises gradually to 70% as your level goes up.
- The customer support center sometimes takes too much time to respond.
6- DT4X Trader
Introduction
DT4X Trader is a forex prop trading firm that allows traders to start trading with a funded account without undergoing an evaluation period. You can, however, get a funded account by paying a one-time fee. For example, you can get a $10,000 funded account by paying a fee of $345. A funded account of $25,000 is available for a $465 one-time fee, whereas a $50,000 account is available for a fee of $645. You get a profit share of 60% of each of the three types of funded accounts mentioned above. The accounts can be scaled to a maximum of $1.24 million.
Pros
- When you trade with DT4X funded account, you have a 0% risk of losing your own capital.
- The firm offers a generous profit-sharing percentage of 60%.
- You get access to the most advanced trading platforms, MT4 and MT5.
- You can keep your positions open overnight.
- DT4X doesn’t require you to undergo an evaluation period. You can get a funded account from day one by just paying a one-time fee.
- You can trade forex as well as gold and silver on DT4X.
- You can get an in-depth analysis of your performance in your account.
- You get a monthly payout on the 25th of every month.
Cons
- You must have a 5% minimum profit in order to withdraw the accumulated profit.
- DT4X has tough trading parameters, particularly for smaller accounts. For example, you can easily violate the maximum loss threshold of $500 in a $10,000 funded account.
7- Lux Trading Company
Introduction
Lux Trading Company is a proprietary trading firm based in London, United Kingdom. The firm allows you to trade stocks, forex, commodities, and other financial assets. Expert traders who successfully surpass initial evaluation and successive stages are given a funded account of $2.5 million. You get 65% of the profits you generate using the funds provided by the firm.
The firm charges a £299 enrollment fee and evaluates you on a $5,000 demo account. If you pass the evaluation and meet the required profit target, the fee is refunded to you. The firm provides you with access to three advanced trading platforms – Trader Evolution, Trading View, and MetaTrader 4 – that can greatly facilitate you in making informed trades.
Pros
- The firm provides a refund on successfully passing the evaluation.
- You get a 65% profit share without assuming the risk of losing your capital.
- You get access to advanced trading platforms, such as Trader Evolution, Trading view, and MT4.
- The firm provides different educational resources to traders to refine their trading strategies, improving their chances of generating profit.
Cons
- The enrollment fees are on the higher side as compared to other firms.
- The firm has strict trading rules and requirements.
8- Topstep Forex
Introduction
TopStep is a prop trading firm that was founded in 2012 in Chicago. It has thousands of clients spread across 143 countries. The firm offers three types of forex and futures trading accounts. You can have a futures real-time simulated account worth $50,000 with a maximum of 5 contracts for $165 per month. Futures simulated accounts worth more value and contracts are also available. Similarly, you can get a forex demo account worth $200,000 for $125 per month.
These accounts come with profit targets, weekly loss limits, and account loss limits. If you fail to meet the requirements of getting a funded account, you’ll have to reset your account by paying a $99 fee to remain at the same level. However, if you successfully fulfill the requirements of getting a funded account, you will be provided with an account with funds equivalent to the funds in the demo account.
Pros
- TopStep Forex provides coaching and has various educational resources on its website to educate traders.
- You can withdraw your profit anytime during the month.
- The firm offers live chat functionality, using which traders can interact with one another. Experienced traders share their insights on live chat, which can inspire new traders and help them improve their strategies.
- Paid performance coaching plans are also available for those traders who want to further improve their trading skills.
Cons
- You need to meet the stringent evaluation criteria to get the funded account.
- You need to deposit a fee every time you fail to meet the required limits, which can make it expensive for you to get a funded account.
- Only futures and forex are available for trading.
9- Forex Traders UK
Introduction
Forex Traders UK offers two types of programs to get a funded account: An Evaluation Program and an Instant Funding Program. Traders have an option to select either the low-risk or an aggressive evaluation plan. The basic demo account worth £2,500 is available for a one-time payment of £119, though demo accounts worth more are also available. You need to meet the target milestones, such as profit target, absolute drawdown percentage, minimum and maximum trading days, in order to get a funded account. For example, if you successfully meet the target milestones in the £2,500 demo account, you can get a funded account worth £10,000. The profit split you get on these accounts ranges up to 80%.
Alternatively, you can also opt for the Instant Funding option that allows you to pay a one-time fee to get a funded account. For a one-time fee of £150, you can get a funded account worth £2,500.
Pros
- You can trade forex, indices, metals, and commodities.
- There is no restriction on trading strategies. You can trade news, keep your positions open overnight, over weekends, and use EAs as well.
- You can get up to 1:30 leverage.
- You get access to the advanced trading platform, MT4.
Cons:
- Forex Trading UK is new to the industry.
- Has very few reviews on review sites.
- Limited educational content for traders
10- myForexFunds
Introduction
MyForexFunds offers three types of programs for traders: Rapid, Evaluation, and Accelerated. The Rapid program is for beginner traders who want to learn trading in a demo environment but still earn some money for the time they invest in trading. The registration fee for opening a $10,000 worth of demo account is $99, which is refundable if you meet the milestones. There is no profit target, and you get 12% of the profit you generate in the demo account.
The Evaluation program is a 2-step evaluation process in which a trader has to show his or her expertise in trading. A basic Evaluation account can be opened with $84, which will give you access to a demo account with funds worth $10,000. If you successfully meet the goals, such as daily starting drawdown, overall drawdown, minimum trading days, and the profit target, you can get a funded account with a similar amount of funds as the demo account. You can get profit-sharing in the range of 75% to 85% on the Evaluation account.
If you want to start a live trading account from day one, the Accelerated account is for you. You get a $2,000 worth of funded account by depositing a $99 one-time registration fee. Again, you have to meet profit targets, drawdown limits, and other requirements to scale your funded account. The profit-sharing percentage is 50% in this account.
Pros
- No trading restrictions are imposed on traders by myForexFunds. So, you can adopt any trading strategy to generate profit.
- You get access to the MT4 trading platform for executing your trades.
- You can trade forex, CFDs, and metals on the Accelerated account. However, on other types of accounts, you can trade stocks and cryptocurrencies as well.
- Traders can scale up to $2 million.
- Leverage in the range of 1:100 and 1:500.
Cons
- Limited to no educational material for traders.
- Telephone customer support chat is not available.
11- SurgeTrader
Introduction
With Surge Trader, you can get a funded account if you successfully achieve trading targets in an audition or demo trading account. You’ll have to pay an audition fee, which increases based on the amount of funding you desire. You can get the starter package for an audition fee of $250, which gives you access to $25,000 worth of simulated currency. If you achieve the profit target, remain within the daily loss limit, and also keep maximum trailing drawdown within the stipulated range, you will get a funded account of $25,000. The profit-sharing percentage is 75%, which means that you get 75% of the profits generated while 25% is taken by the firm.
The most valuable account that SurgeTrader offers is worth $1 million, for which you have to pay an audition fee of $6,500. At first, you’ll be given $1 million in virtual currency, and if you can meet the evaluation criteria, you’ll then be given a $1 million real funded account.
Pros
- SurgeTrader imposes no restrictions on trading style, so you can implement any trading strategy – be it overnight open positions, swing trading, news trading, EAs, or any other strategy.
- You get instant funding as soon as you achieve the trading milestones mentioned in the audition or demo trading.
- No minimum amount is required for payouts. You can get instant payouts with just a couple of clicks without waiting for your balance to reach a minimum level.
- SurgeTrader has a quick customer service centre to resolve the queries of traders instantly.
- SurgeTrader blog serves as a great educational resource for traders who can learn valuable lessons from it.
- You can trade using advanced trading platforms, MT4 and MT5.
- SurgeTrader allows you to trade forex, cryptocurrencies, and indices.
Cons
- It is a new company with fewer reviews available.
- It offers low leverage – 1:10, 1:5, 1:2.
- Stop-loss is required for each trade.
12- Audacity Capital
Introduction
Audacity Capital is a London-based proprietary trading firm that offers funded accounts to traders. However, unlike other prop trading firms that offer funded accounts after evaluating traders with paid demo account trading tests, Audacity Capital determines the suitability of traders by asking questions about their trading experience and strategy in an online form.
Traders who wish to trade funded accounts of Audacity Capital apply online on its website. After shortlisting candidates based on the responses in the filled forms, the firm conducts face-to-face or phone interviews to learn more details about your past trading experience. After 24 hours, the successful candidates are asked to sign a contract, and the trading journey starts from there.
The funds offered to a trader depending on their experience and other variables. It is up to the firm how much capital it allocates to a trader.
Pros:
- You get 50% of the profit without risking your own money.
- Audacity Capital does not charge fees to apply for demo trading evaluation.
- You have zero risk of losing your own capital.
- The firm uses institutional liquidity providers, which charge no commissions and tight spreads.
- Audacity Capital offers traders many trading guides, such as forex trading strategies, forex currency pairs, and forex trading tools.
Cons:
- Traders can become undisciplined when they feel that their money is not at risk.
- Traders are not allowed to trade news.
- Weekend positions are not allowed.
- Traders have to follow strict rules.
13- Speedup Trader
Introduction
Speedup Trade offers three types of accounts for forex and futures trading. In futures trading, you can choose to open a $25,000 account for $150 per month, or a $50,000 account for $160 per month, or $100,000 for $310 per month. These are demo accounts, and you need to meet the described trading parameters, such as daily loss limit, maximum drawdown, consistency, and profit target, to become eligible for a funded account. The funded account would be equal to the amount you were given for the demo account. You can keep the first $7,000 you earn, while the amount earned above $7,000 would be shared at a profit-sharing percentage of 80/20%. This means that you would keep 80% of the profit while the firm will keep the remaining 20% of the profits.
Similarly, the firm also offers forex trading accounts for a fee and gives a real funded account after you successfully meet the desired criteria.
Pros
- You can view your progress on the dashboard on the trading platform, which will allow you to determine your weak areas and refine your trading strategies.
- If you are not comfortable with the charts using the firm’s proprietary trading platform, you can use MT4 or MT5 or any of the 40+ trading platforms that the firm supports.
- You can trade index equity futures, agriculture futures, financial/interest rate futures, energy futures, currency futures, etc. Also, many popular currency pairs are available for trading.
- A leverage of 100:1 is available.
Cons
- Poor rating on TrustPilot due to many negative reviews.
- Open positions are not allowed to be carried forward on weekends.
- No educational material is available on its website for traders.
14- E8 Funding
Introduction
E8 Funding offers two types of accounts: E8 Account and ELEV8 Account. You have to complete a 2-phase evaluation process before you could be given a real funded account. To start the 2-phase evaluation process, you need to first buy an E8 account. The base account is available for $228 and gives you $25,000 worth of virtual currency. If you can successfully meet each phase objectives and pass both phases, you are given a real funded account.
You can also consider opening the ELEV8 account, which is available for $888 and gives you a trading account with funds worth $100,000. You can scale your account by $100,000 every month if you can achieve the profit target of 16%. E8 Funding allows you to take 80% of the generated profit.
Pros
- It provides a generous profit sharing ratio of 80%.
- You can trade with the advanced MT4 trading terminal.
- E8 Funding allows you to trade forex, indices, commodities, equities, and cryptocurrencies.
Cons
- Fees are on the higher side as compared to other prop trading firms.
- Limited to no educational material are available on its website.
15- BluFx
Introduction
BluFx offers instant funding without making you pass through an evaluation test using demo accounts. By paying just £99, you can get access to a $25,000 funded account. You can also opt for swap-free accounts. However, it will cost you £139 in exchange for a $25,000 funded account. The maximum drawdown limit is 10% of the funding capital, which takes you out of the game. The profit generated is split 50/50 between you and the firm. Withdrawals can be initiated weekly, and you can only withdraw money if you generate a profit equivalent to at least 5% of the funding capital.
Pros
- BluFx gives you direct access to funded accounts instead of evaluating you first on demo accounts.
- Allows you to trade the forex market using the MT4 trading platform.
- You can open overnight positions.
Cons
- BluFX offers very low leverage of 1:3.
- Withdrawal cannot be made if the profit is less than 5% of the initial funding capital.
- It offers trading forex pairs and gold only. You cannot trade equities, indices, commodities, and cryptocurrencies.
Conclusion
Prop trading firms provide excellent opportunities for talented traders to pass the evaluation criteria set by different firms or pay the minimum amount to take charge of a real funded trading account. The prop firms that we mentioned in the article are legitimate, and you can consider them for taking your trading career to new highs. Our top three picks that we like among the 15 firms are FTMO, DT4X, and Myforexfunds as they provide excellent services to the traders.
