A prop firm can make a great asset for an aspiring trader. If you lack the capital to trade significant amounts of money, for example, prop trading firms help by supplying funded stock trading accounts.
This article will take a look at six of the best prop trading firms so you can learn which might be the best fit for you.
One of the most popular prop firms is TopStepTrader. So long as you are eligible for an account, you will get to trade in a live account with real money.
To be eligible for a funded account, however, there are a few key steps. First, you have to pass the Trader Combine, which is a simulated trading competition designed to assess your skills as a trader. After that, you move on to the Trader Bootcamp, which is about teaching the psychology behind trading as well as risk management strategies.
One aspect that sets TopStepTrader apart from some other prop firms is the flexibility they offer. For example, you can select a Day Trader account or Swing Trader account depending on your preferences.
As with most (if not all) prop firms, you have to meet certain criteria in order to receive and keep your funding.
FTMO is another prop firm offering funded accounts to traders who meet their eligibility criteria. The process to gain eligibility, as with TopStepTrader, involves two parts.
With FTMO, you must first pass the FTMO Challenge, which requires that you demonstrate your profit-earning abilities with a simulated account. Next, you pass the Verification phase by trading in a live account with an increasing amount of funding.
One great feature of FTMO is that they emphasize news trading, which is common among day traders. The idea is to analyze and react to national and international economic events, company financial news, etc. “Trading the news” is helpful when looking to profit off short-term market movements and volatility, and FTMO leans into this strategy.
FTMO has a strong track record, including receiving repeated placement among Deloitte’s Technology Fast 50. If you want to explore FTMO’s offerings and take advantage of a free trial, simply click here.
Earn2Trade is another popular prop firm that supplies funded trading accounts to eligible traders. The Trader Career Path program offered by Earn2Trade involves undergoing an educational program. This positions aspirational traders well so that they have a better chance of passing the evaluation process.
Whether you’re a beginner or an experienced trader, Earn2Trade’s educational program is a robust and wide-ranging offering that covers a lot of ground. You’ll learn about forex trading, stock trading, the psychology of trading, and much more.
Earn2Trade’s Trader Career Path program ensures that traders gain the financial knowhow necessary to successfully trade. Once you pass the test, you can upgrade your live accounts, scaling up eventually to $400,000.
OneUp Trader, as its name suggests, aims to have a leg up on its competition. A fast-growing prop firm, OneUp provides a variety of funded trade accounts, from $25,000 to $250,000.
While many prop firms require a two-part or three-part (or more) evaluation process, OneUp Trader has a straightforward one-step process. This enables eligible traders to get up and running quickly. Once you start trading, you need to trade at least fifteen days to meet your profit target. Once you do so, you’ll receive placement with one of their funding partners.
Other benefits to OneUp Trader include its robust analytics, its support for many trading platforms, and its lack of data fees (common to other prop firms).
Fidelcrest offers funded accounts where traders can access a huge variety of assets, including stocks, indices, commodities, and forex. Initially started by forex traders, Fidelcrest aims to fund promising traders so they can start generating significant profits.
To get into the Pro Trader Program, you have to demonstrate your trading savvy by completing their two-step evaluation process. First you complete the Fidelcrest Trading Challenge, which is a 30-day trial period. Next, there’s the Verification phase, which is similar but requires 60 days.
There’s also the Micro Trader Program for beginners who would like to test their skills before taking on a large account. These accounts range from $10,000 to $50,000, while the Pro Trader accounts range from $150,000 all the way up to $1,000,000.
Top features of Fidelcrest include the ability to scale up to $2,000,000 and the fact traders keep 80-90% of their profits. The account pricing is also competitive with other prop firms.
City Traders Imperium
City Traders Imperium is last on our list but certainly not the least. This prop firm has made a name for itself through its transparency and flexibility.
While many prop firms dangle the idea of getting rich quickly in front of prospective traders, City Traders Imperium has robust educational resources and is transparent about expectations.
To get started with City Traders, you must complete one of its Evaluation programs, like the Day Trading Challenge (for forex, indices, and commodities), or pay a larger sum to receive direct funding immediately.
One way that City Traders Imperium stands out is through their free consultation call. On this call you get access to a trading professional who will analyze your trading approach and psychology to see how you can improve your trading performance.
Prop firm account features
Prop firms can vary widely, but they also tend to share many common features. Here are some key features to take into account:
- Trading platform – Not all trading platforms are equal when it comes to prop firms. Some have more user-friendly platforms that offer robust analytics, while others may come up lacking.
- Minimum deposits – Prop firms exist to help aspirational traders secure funding. High minimum deposits can defeat the purpose. If you are hoping to get started at a low cost, be sure to consider any minimum deposit requirements.
- Profit targets – Most prop firms require that you meet a certain profit goal in a certain timeframe. If you don’t, then you can’t secure funding. Aim for a profit target that’s reasonable for your trading strategy and preferences.
- Daily loss limits – Loss limits are equally important to observe and follow as failure to adhere to them can mean losing your funding.
- Trading capital – Some prop firms start funding at $25,000 or $50,000 and go all the way up to $1,000,000 or more. Depending on your preferences and comfort level with managing large sums, you may prefer certain prop firms over others.
- Educational resources – Many prop firms have fantastic educational resources, including community forums, chats, and even ebooks that can help you become a better trader. Others, however, have very little in the way of educational support.
What to look for in prop firms
In addition to the above features, here a few more aspects to consider when it comes to choosing the right prop firm for you:
- Fees – When it comes to fees for prop firms you want to be keeping the vast majority of your profits. You also want to pay a relatively low monthly fee and any and all fees should be transparent.
- Track record – Some prop firms have great ratings on sites such as TrustPilot, which allows you to have confidence in their track record.
- Withdrawal policies – Want access to your trading profits? Prop firms have different withdrawal policies, so this is vital information to understand before signing up.
- Support – Is there chat support? Email only? Can you call and speak with a human? Depending on your preferences, it’s a good idea to see what level of customer support they have, as well as educational support.
Which is the best prop trading firm?
The best prop firm, or funded stock trading firm, will depend on your personal preferences and goals. While the six platforms reviewed above are all leading prop firms, they each have their strengths and weaknesses.
Consider the criteria listed in the two sections above to ensure that you take into account key aspects of a given prop firm. Doing this will make it much more likely that you end up using the funded account platform that’s best for you. Ultimately, you want a prop firm that will deliver not only capital but also educational support for your trading journey.