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Prop Trading Firms – The 24 Best For 2024

Today you’ll learn all about proprietary trading firms, and I’ll give you a list of the best firms out there.

Here are the topics:

List Of Top Proprietary Trading Firms

Here’s a list of the best top proprietary firms.

FTMO

Rating: 4.9

REVIEW SUMMARY

FTMO is a Forex prop firm, located in Prague, Czech Republic. It was founded in 2014. Read the full FTMO review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Stocks, Crypto.

Max balance: $2,000,000

Profit split: up to 90%

Cost: from €155

Platforms: MetaTrader4, MetaTrader5, cTrader, and Dxtrade

PROS & CONS

What I like:

  • Solid and respected firm, in operations for several years.
  • You get back the challenge fee if you pass the evaluation steps and become an FTMO trader.
  • Up to 90% profit split.
  • You can pass any step of the evaluation in as low as 4 days.
  • You have a free trial to test the system before you start a real challenge.

What could be improved:

  • It has a 2-step evaluation so it's psychologically harder to get funded.
  • You can only hold trades over the weekend or trade news if you're using the Swing account type.

Funded Trading Plus

Rating: 4.9

REVIEW SUMMARY

Funded Trading Plus is a Forex prop firm, located in London, UK. It was founded in 2021. Read the full Funded Trading Plus review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Crypto.

Max balance: $2,500,000

Profit split: up to 100%

Cost: from $119

Platforms: cTrader, TradingView, MatchTrader, DXtrade

PROS & CONS

What I like:

  • No time limit to pass the challenges. You can be as quick as possible or take the time that you need.
  • Good selection of programs, from instant funding to 1-step or 2-step challenges.
  • On the instant funding program you can withdraw from the first day.
  • You can get up to a 100% profit split which is rare in this industry.
  • You get paid in as little as 1 day.

What could be improved:

  • It lacks a free trial to test the platforms.
  • You can't hold trades over the weekend on the instant funding account.
  • The leverage is not big, but still enough for day trading or even scalping with a proper risk management.

Topstep

Rating: 4.9

REVIEW SUMMARY

Topstep is a Futures prop firm, located in Chicago, Illinois, USA. It was founded in 2010. Read the full Topstep review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $150,000

Profit split: 90%

Cost: from $165/month

Platforms: TSTrader, NinjaTrader, Quantower, TradingView, Sierra Chart, T4, Jigsaw Daytradr, Multicharts, R|Trader Pro, VolFix, Trade Navigator, ATAS OrderFlow Trading, MotiveWave, Bookmap, Investor/RT

PROS & CONS

What I like:

  • You can get your funded account in as little as 2 days.
  • In business for more than a decade, which conveys confidence.
  • No complex rules. Just a profit target and a loss limit.
  • Proprietary TopStepX trading platform, with TradingView charts, built-in copy trading, and much more.
  • Performance coaches to support you on your journey.

What could be improved:

  • Minimum payout is $125.
  • Day trading only. You can't hold your trades to the next day.

Apex Trader Funding

Rating: 4.9

REVIEW SUMMARY

Apex Trader Funding is a Futures prop firm, located in Austin, Texas, USA. It was founded in 2021. Read the full Apex Trader Funding review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $300,000

Profit split: 90%

Cost: from $137/month

Platforms: NinjaTrader, Tradovate, TradingView, Wealthcharts (web platform), Trader, ATAS, Bookmap, Edgeclear, Finamark, Jigsaw Trading, Motivewave, Quantower, Rithmic, Sierra Chart, Volfix, and Rithmic

PROS & CONS

What I like:

  • Fast evaluation process with just 1 single step.
  • Your first $25,000 are paid with no profit split. 100% of the profits go to you.
  • Trading during news has no restrictions.
  • The system doesn't let you exceed your maximum position size by mistake, which can cost you your acccount on other firms.
  • You can request up to two payouts every month.

What could be improved:

  • Holding trades overnight is not allowed. You can trade for 23 hours per day though.
  • Except for the Static account, the trailing threshold updates considering open positions but this can be easily monitored with the software they provide.

FTUK

Rating: 4.8

REVIEW SUMMARY

FTUK is a Forex prop firm, located in USA. It was founded in 2021. Read the full FTUK review

FEATURES

Instruments: Forex, Indices, Commodities, Crypto.

Max balance: $5,760,000

Profit split: 80%

Cost: from $149

Platforms: MatchTrader

PROS & CONS

What I like:

  • You can get up to 1:100 leverage to trade your funded account.
  • Your accounts can scale up to $5+ Million. That's an enormous amount of money to trade.
  • No minimum or maximum trading days to achieve your targets.
  • Instant funding and 1-step challenges available.

What could be improved:

  • The profit split is only 80%.
  • There's no free trial of the platform.

FundedNext

Rating: 4.8

REVIEW SUMMARY

FundedNext is a Forex prop firm, located in Ajman, UAE. It was founded in 2022. Read the full FundedNext review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Crypto.

Max balance: $4,000,000

Profit split: up to 90%

Cost: from $32

Platforms: MetaTrader 4, MetaTrader 5, cTrader

PROS & CONS

What I like:

  • You get a profit share right from the challenge phase, even before you get funded.
  • The drawdown calculation is based on the balance, and not on open trades.
  • No time limit to end the challenge. You can relax and take your time to achieve the target.
  • You can get a profit split of up to 95% which is very rare.
  • Up to 1:100 leverage on most accounts.

What could be improved:

  • The Stellar 1-step account only gives you up to 1:30 leverage.

The Trading Pit

Rating: 4.8

REVIEW SUMMARY

The Trading Pit is a Futures, and Forex prop firm, located in Liechtenstein. It was founded in 2021. Read the full The Trading Pit review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Stocks, Crypto, Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $5,000,000

Profit split: up to 80%

Cost: from €99

Platforms: MetaTrader 4, MetaTrader 5, ATAS, Quantower, R/Trader, Sierra Charts, Jigsaw, and Volfix

PROS & CONS

What I like:

  • The only firm where you can trade Forex/CFDs and real Futures.
  • You can scale your account up to $5 Million.
  • Quick funding, as low as 3 days if you can meet the objectives fast enough.
  • Cheap challenges which are refunded with your first payout.
  • Free trading platforms for Forex and Futures.

What could be improved:

  • The default Forex leverage is only 1:30. Not big but aligned with the ESMA requirements for brokers.

My Funded Futures

Rating: 4.8

REVIEW SUMMARY

My Funded Futures is a Futures prop firm, located in Texas, USA. It was founded in 2022. Read the full My Funded Futures review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $150,000

Profit split: 90%

Cost: from $50/month

Platforms: Ninjatrader, R|Trader, Tradovate, TradingView, Quantower, Sierra Chart, Jigsaw Trading, ATAS

PROS & CONS

What I like:

  • Minimum trading days as low as 1 day!
  • No daily loss limit.
  • Payments processed within 24 hours.
  • The challenges only have 1 single step.
  • The drawdown is only updated at the end of the day.

What could be improved:

  • No trading education, but you can get it all over the internet if you need.
  • Discounts not as big as other firms.

Take Profit Trader

Rating: 4.8

REVIEW SUMMARY

Take Profit Trader is a Futures prop firm, located in Orlando, Florida, USA. It was founded in 2022. Read the full Take Profit Trader review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $150,000

Profit split: up to 90%

Cost: from $150/month

Platforms: Ninjatrader, Tradovate, Rithmic R|Trader, TradingView, Quantower, Bookmap, Investor R/T, MotiveWave, Jigsaw Trader, MultiCharts, Trade Navigator, Volfix, Finamark, and ATAS

PROS & CONS

What I like:

  • The fastest payment processing in the prop firm world.
  • Only 5 days to get a funded Pro account.
  • Pro+ accounts are real accounts with real funds sent to the exchange, unlike other firms that fund you in a simulated environment.
  • You can get up to 90% profit split.
  • Up to 3 funded trading accounts.

What could be improved:

  • The drawdown from funded accounts trails with your open in real time.
  • Only day trading is allowed.

City Traders Imperium

Rating: 4.8

REVIEW SUMMARY

City Traders Imperium is a Forex prop firm, located in UK. It was founded in 2018. Read the full City Traders Imperium review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Crypto.

Max balance: $2,000,000

Profit split: up to 100%

Cost: from $39

Platforms: MetaTrader 5

PROS & CONS

What I like:

  • Instant funding available.
  • No time minimums or limits. You can get funded on the same day.
  • Weekend and overnight trading allowed.
  • Scale your account up to $4 Million.
  • Drawdown limit based on balance and not on equity.

What could be improved:

  • The profit share for Direct Funding starts at only 50%, but this is pretty much the norm across other firms with Instant Funding.
  • Maximum leverage limited to 1:33.

TickTickTrader

Rating: 4.8

REVIEW SUMMARY

TickTickTrader is a Futures prop firm, located in Bucharest, Romania. It was founded in 2022. Read the full TickTickTrader review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $100,000

Profit split: 90%

Cost: from $145/month

Platforms: Ninjatrader, Bookmap, Daytradr, Agena Trader, Atas, Collective 2, Inside Edge, Medved Trader, Motive Wave, MultiCharts, Optimus Flow, Overcharts, Photon Trader, Quantower, Quick Screen Trading, R Investor, Scalp, Scalp Tool, Sierra Chart, Tiger Trade, Trade Navigator, TS Lab, Volfix.net

PROS & CONS

What I like:

  • Drawdown calculated by the end of the day.
  • You get 100% of your profits during the first three months.
  • Instant funded accounts with a 90% profit split.
  • You can copy trade.
  • You can buy bundles with several accounts.

What could be improved:

  • Minimum payout is $250.
  • Algos/bots are not allowed.

Audacity Capital

Rating: 4.7

REVIEW SUMMARY

Audacity Capital is a Forex prop firm, located in London, UK. It was founded in 2012. Read the full Audacity Capital review

FEATURES

Instruments: Forex, Indices, Metals, Commodities.

Max balance: $2,000,000

Profit split: up to 85%

Cost: from $129

Platforms: MetaTrader 4, MetaTrader 5

PROS & CONS

What I like:

  • Fast scaling up to $2 Million. Your account doubles when you achieve a profit target.
  • No time restrictions to complete the challenges.
  • Free trial available to test the platform.

What could be improved:

  • The profit share starts at 75% on the Ability account and 50% on the Funded Trader Program.
  • Leverage only 1:30 on the instant funding program.

E8 Funding

Rating: 4.7

REVIEW SUMMARY

E8 Funding is a Forex prop firm, located in Dallas, Texas, USA. It was founded in 2021. Read the full E8 Funding review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Stocks, Crypto.

Max balance: $400,000

Profit split: 80%

Cost: from $48

Platforms: MetaTrader5 and MatchTrader

PROS & CONS

What I like:

  • No minimum or maximum days to complete the challenges.
  • You can get paid is a little as 8 days.
  • The payout amounts are not deducted from the account. They are used to scale your account over time.
  • You can customize your evaluation.

What could be improved:

  • Maximum leverage limited to 1:50.
  • The profit split is only 80%. Other firms offer more.

Earn2Trade

Rating: 4.7

REVIEW SUMMARY

Earn2Trade is a Futures prop firm, located in Sheridan, Wyoming, USA. It was founded in 2017. Read the full Earn2Trade review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $400,000

Profit split: 80%

Cost: from $150/month

Platforms: Ninjatrader, Finamark, R|Trader, Inside Edge Trader, Investor RT, Motive Wave, MultiCharts, Bookmap, Photon, QScalp, QSI- Quick Screen Trading, ScalpTool, Trade Navigator, Volfix.net, Jigsaw Trading, ATAS Order Flow Trading, Sierra Chart, and Quantower

UProfit

Rating: 4.7

REVIEW SUMMARY

UProfit is a Futures prop firm, located in Texas, USA. It was founded in 2019. Read the full UProfit review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $200,000

Profit split: up to 80%

Cost: from $89/month

Platforms: Ninjatrader, Bookmap, Agena Trader, Motive Wave, Photon, Collective2, InsideEdge Trader, Optimus Flow, ScalpTool, Medved Trader, Quantower, Trade Navigator, Overcharts, Sierra Chart, Volfix, TigerTrade, MultiCharts, Scalp, QSI, and TSLAB.

Bulenox

Rating: 4.7

REVIEW SUMMARY

Bulenox is a Futures prop firm, located in Delaware, USA. It was founded in 2022. Read the full Bulenox review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $250,000

Profit split: 90%

Cost: from $115/month

Platforms: Ninjatrader, Rithmic R|Trader, TigerTrade, OptimusFlow, InsideEdge Trader, Volfix, Atas, Scalp, Overcharts, Medved Trader, Quantower, QST, ScalpTool, TSLAB, TradeNavigator, SierraChart, MultiCharts, Photon, MotiveWave, RInvestor, and Bookmap X-Ray.

PROS & CONS

What I like:

  • Accounts with balance up to $250k
  • Option to choose between No Scalling Account and EOD Account.
  • Only 1 single step.
  • Get funded after only 5 trading days.
  • 14 day free trial available.

What could be improved:

  • Holding positions overnight not allowed.
  • Algos must be approved by the team first.

TopTier Trader

Rating: 4.6

REVIEW SUMMARY

TopTier Trader is a Forex prop firm, located in Miami, Florida, USA. It was founded in 2021. Read the full TopTier Trader review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Crypto.

Max balance: $2,000,000

Profit split: up to 90%

Cost: from $65

Platforms: MetaTrader 4 and MetaTrader 5

Leeloo Trading

Rating: 4.6

REVIEW SUMMARY

Leeloo Trading is a Futures prop firm, located in Montana, USA. It was founded in 2019. Read the full Leeloo Trading review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $300,000

Profit split: up to 90%

Cost: from $26/month

Platforms: NinjaTrader, Rithmic Pro, EdgeProX, Motive Wave, Multicharts, Jigsaw Daytradr, Trade Navigator, Volfix, Bookmap X-Ray, Investor/RT, Sierra Charts, OptimusFLOW

TradeDay

Rating: 4.6

REVIEW SUMMARY

TradeDay is a Futures prop firm, located in Chicago, USA. It was founded in 2020. Read the full TradeDay review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Metals Futures.

Max balance: $250,000

Profit split: 90%

Cost: from $99/month

Platforms: NinjatRader, Tradovate, TradingView, and Jigsaw Trading

PROS & CONS

What I like:

  • Free trial available to test the system and platform.
  • Only one single step to get funded.
  • You can use algos or bots to trade automatically.
  • 100% profit split for the first $10k in profit, and 90% after that.
  • No time limit to complete the challenge.

What could be improved:

  • You can't trade news.
  • Holding positions overnight is not allowed.

HyroTrader

Rating: 4.5

REVIEW SUMMARY

HyroTrader is a Crypto prop firm, located in Bratislava, Slovakia. It was founded in 2023. Read the full HyroTrader review

FEATURES

Instruments: Crypto Spot, Crypto Futures, Crypto Options.

Max balance: $1,000,000

Profit split: up to 90%

Cost: from $89

Platforms: ByBit

PROS & CONS

What I like:

  • You can trade real crypto on a ByBit sub-account, not CFDs like other firms.
  • Both crypto spot and futures are available.
  • Leverage up to 1:100.
  • Challenge fee refundable with the first profit split.
  • You are able to trade with real capital after the demo simulated account.

What could be improved:

  • Payouts are made in cryptocurrency.
  • You can only trade cryptocurrencies.

Traders With Edge

Rating: 4.4

REVIEW SUMMARY

Traders With Edge is a Forex prop firm, located in Hong Kong. It was founded in 2022. Read the full Traders With Edge review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Stocks, Crypto.

Max balance: $3,000,000

Profit split: up to 80%

Cost: from $55

Platforms: MetaTrader 4, Metatrader 5, DXtrade, and MatchTrade

The Funded Trader

Rating: 4.3

REVIEW SUMMARY

The Funded Trader is a Forex prop firm, located in Miami, Florida, USA. It was founded in 2021. Read the full The Funded Trader review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Crypto.

Max balance: $1,500,000

Profit split: up to 90%

Cost: from $129

Platforms: MetaTrader4, and MetaTrader5

SuperFunded

Rating: 4.2

REVIEW SUMMARY

SuperFunded is a Forex prop firm, located in Victoria, Australia. It was founded in 2021. Read the full SuperFunded review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Stocks, Crypto.

Max balance: $200,000

Profit split: up to 90%

Cost: from $129

Platforms: MetaTrader 4

Trade The Pool

Rating: 4.1

REVIEW SUMMARY

Trade The Pool is a Stocks prop firm, located in Israel. It was founded in 2016. Read the full Trade The Pool review

FEATURES

Instruments: Stocks.

Max balance: $160,000

Profit split: up to 70%

Cost: from $97

Platforms: Proprietary (Trader Evolution)

Lux Trading Firm

Rating: 4.1

REVIEW SUMMARY

Lux Trading Firm is a Forex prop firm, located in London, UK. It was founded in 2020. Read the full Lux Trading Firm review

FEATURES

Instruments: Forex, Indices, Metals, Commodities, Stocks, Crypto.

Max balance: $10,000,000

Profit split: 75%

Cost: from £299

Platforms: MetaTrader 5 and TradingView

Elite Trader Funding

Rating: 4.0

REVIEW SUMMARY

Elite Trader Funding is a Futures prop firm, located in Florida, USA. It was founded in 2022. Read the full Elite Trader Funding review

FEATURES

Instruments: Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy, Interest Rates Futures, Metals Futures.

Max balance: $300,000

Profit split: 80%

Cost: from $80/month

Platforms: NinjaTrader, Tradovate, Rithmic, and TradingView

What Is A Prop Firm

A Prop Firm, a short form of Proprietary Firm, is a company that engages in the activity of prop trading.

So, what the hell does that mean?

Traditionally, when you want to invest or trade, you do it with your own money. You go to a brokerage firm and ask for advice, and you can even have a broker deciding what to trade and taking the trades for you. These typical brokerage firms charge a commission for their work or keep a percentage of the gains to them.

The solution is good if you don’t know how to trade, and especially, if you have a good amount of capital which can eventually translate into good returns over time.

Now, let’s say that you do know how to trade but you lack capital to fund a decent trading account.

How can you solve that problem?

That’s the hole that prop firms are filling.

See, these firms have a lot of capital, and they are willing to share it with traders like you. They give you a piece of their capital, and you trade it using your own trading style.

How does that sound to you?

In my opinion, it’s a great solution. You have the skills, they have the capital. You both are useful to each other. It’s a win-win situation.

Now you’re thinking: How much do I get from my trading results?

Well, that depends on what they are willing to give you. Typically, the profit share starts at around 50% but most of them are at about 80%-90%.

You, the trader, keep the majority of the gains

But things don’t end here.

Prop firms want you to succeed. When you’re trading funded accounts with their real money, your success is also their success. And most of them invest in making you succeed.

How?

Well, they give you access to a lot of tools and education.

From sophisticated trading software, that helps you to trade fast and precisely, to a lot of top-notch analysis tools, they provide you with everything.

And the best part is that usually, everything is free.

The only exception comes to some futures trading platforms. Although futures prop firms frequently give you licenses to some of the most popular platforms like NinjaTrader or Tradovate, if you wish to use other platforms you must have a license for them.

In the case of the Forex/CFDs prop firms, the platforms are always free. The most popular are MetaTrader (3 and 4), cTrader, DxTrade, and MatchTrader.

The firm wins when you win, so they have their interests aligned with you. For this reason, they also frequently give you mentorship, support, and access to education provided by experienced traders.

If you need to learn about a particular trading strategy, they teach you.

If you want to use a different trading platform, they have tutorials.

If your risk management is not the best, guess what, they force you to be!

Force? Isn’t that drastic?

Well, no because risk management is crucial when trading. If you don’t have it you won’t survive much time playing this game.

That’s the reason why they have a set of specific rules you need to comply with. The most important are the daily losses or daily drawdown, and overall losses or overall drawdown.

You need to trade without violating those rules, and all starts with the Challenge or Evaluation phase.

Prop Firm Challenge – How To Pass

Have you ever been in a job interview?

I’ll assume that most likely yes.

Business owners always like to know who they are hiring first, to understand the capabilities of the candidate and how good he is for the job.

When it comes to prop firms, it’s no exception to the rule.

But there’s a difference. You don’t get interviewed directly.

Instead…

You’re put in a simulation.

That’s right. The best way they have to evaluate your capabilities is to test you and see how you perform.

And that test, on a simulated trading scenario, is called the challenge or evaluation. Although a few prop firms fund traders without challenges, the majority will require you to pass one.

Curious to know how these challenges work?

Then keep reading…

A prop firm challenge may have one or two phases. That’s the most common at least. Three-phase challenges also exist but they are very rare.

Think of them as a computer game.

First, you need to beat the bad guys with your ammo. The ammo is your simulated trading account, and the bad guys are the other market participants.

When you start making money consistently, it means that you’re beating them and your account is increasing in value.

So the first rule of a challenge is always to achieve a minimum amount of profit.

Next, you need to preserve your health, or in this case, your wealth.

If you get too much damage from your opponents you get weak, and you die. The damage represents the losses on your trading account.

I’ll tell you a secret:

No one makes money without losing money at the same time, so you need to be able to deal with it.

The losses are counted in two different ways: daily losses and overall losses.

This is the second main rule of your challenge, avoid exceeding a maximum daily loss and a maximum overall loss. Depending on the firm, these losses can be measured from a static point of view or as a drawdown.

In the case of the first one, daily losses, you must guarantee that your account doesn’t exceed a maximum pre-determined loss in a single day. You always need to survive to live another day, so don’t let your account get hit too hard.

Then we have the maximum overall loss (or drawdown). Think of it as an accumulation of losses from different days.

If you get hit too many times and you don’t heal, your character from the computer game will die.

When trading, it’s the exact same thing. Even if you only lose small bits of your account per day, you need to be able to recover those bits at some point. Otherwise, your account will just trend to zero. For this reason, your trading skills must keep your account away from this maximum drawdown limit.

That’s how you are forced to have good risk management.

Depending on the firm, the challenges may have a maximum time to complete, as well as a minimum.

The maximum time is a rule that has been disappearing over time. It didn’t make much sense actually. Results from trading have a random distribution, and cannot be forced. When you’re put in a situation where you’re forced to achieve a certain profit target in a limited amount of time, things don’t tend to work very well.

The minimum time to trade makes sense in my opinion. No one can evaluate if someone is a good trader after just a couple of trading days. It’s easy to get luck, even if you don’t know much about trading, and perform well during a short period. Despite that, a lot of prop firms have a really small number of days to qualify, which is an advantage to you.

What about the costs?

Nothing good comes without some cost, even if it’s minimal.

And prop firms are no exception. All these challenges, support, infrastructure, …, have a cost to them. So you must pay your part when you’re taking the challenge.

The most common way is an initial fee.

The fee depends on the size of your trading account and varies a lot from from to firm. If you want to have an idea, the fees are about 0.5%-1.0% of the account size where you’re doing the evaluation.

For example, a $500 fee can easily give you access to a $50,000-$100,000 account. That’s a small price to pay since you have the potential to recover that on a single trade after you get funded.

Oh, and I almost forgot, frequently the fee is reimbursed to you later when you start getting payouts.

And that’s the next phase.

Once you pass the challenge phase, you’ll finally get your deserved funded trading account.

All profits that you make with this trading account will be shared between you and the proprietary firm. Typically the trader gets the bigger chunk of the profits, which can go up to 90%.

During this phase, the rules are pretty much the same as you had in your evaluation. Although you may not have a target to achieve, you still have to maintain good risk management to keep your balance above the maximum daily and overall losses.

And finally the best part.

Yes, there’s an even better part.

Can you guess what can be better than receiving a funded account to trade?

Your account scaling in size!

Your initial account size is just the beginning.

The computer game continues, level by level.

When you keep performing well, the prop firm may increase your trading capital in steps. Every couple of months or so, they evaluate your performance, and your funded capital may easily double.

This means that you need to take much smaller risks to make the same amount of money. Or that you can keep risking the same (in terms of money), while your returns can potentially double.

How cool is that?

Above in this article, there’s a list of the best prop firms, with links to detailed info about how to pass each prop firm challenge.

Are you ready to take your challenge?

How Do Prop Firms Make Money

Proprietary firms make money when you make money.

When you trade using an account funded by them, your profits will be shared with the prop firm, although typically the trader gets the bigger piece.

Prop firms also won’t let you deviate from good trading and good risk management.

Why?

Because if you lose, you are also losing their own money, and of course, the company doesn’t want that.

There is a set of rules that you need to follow, especially when it comes to risk management. If you take a big risk or if you go into a big drawdown, your account may be closed and you’ll need to pass the prop firm challenges again. So, don’t ever forget to set your stop loss, and calculate and respect your maximum lot size.

This Is What You Learned Today

  • Proprietary firms allow traders to access their capital to trade and share the revenue.
  • To be able to access a proprietary firm account you need to pass a challenge with one or two phases.
  • Prop firms make money when you make money, so you have a list of rules to follow especially risk management.
  • Proprietary firms let you trade almost anything: Futures, Forex, Stocks, Indices, Metals, Commodities, and even Crypto.

Learn More

Now I want to hear from you.

Did I miss any prop firm on the list? Which one?

Let me know below in the comments.

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