The Best Prop Trading Firms Reviewed
Proprietary or prop trading is an increasingly popular investment method, and plenty of firms are joining this rising sector of the industry. In this form of trading, financial firms profit from market activity, rather than commissions on client trades. If you can trade successfully and follow market trends, these companies will speed up your journey toward financial independence.
Traders on prop platforms trade in cryptocurrencies, fiat currencies, stocks, bonds, commodities, and other financial instruments. Finding a platform that deals in assets that are up your alley, under conditions that suit you, can be challenging. To help out, we’ve compiled a list of prominent prop trading firms for you to choose from.
TopstepGet 20% Off
- Futures trading
- Digital coaching
- Buying power up to $150 000 for futures
- Traders get up to 90% of profits
- Live chat, email, and ticketing support
- $10,000 initial balance
FundedNextGet 10% Off On Stellar Challange
- 15% profit share from the start
- High profit split
- An account manager for every trader
- Quick processing times
- Several pricing tiers
- Diverse selection of trading securities
- 90:10 payout ratio
- Free mobile app
- Leverage 1:100
The 5%ersVisit Site
- Several account models
- Instant funding
- Rich selection of trading tools
City Traders ImperiumVisit Site
City Traders Imperium
- Free course before enrolling in the Evaluation program
- Well-known for trading forex pairs
- Online material for traders
- Three account types: Turtle, Hare, and Instant
- Android and iOS app available
- Active community
- Offers trading programs for different levels of expertise
- High profit split
- Exceptional customer support
The Best Prop Trading Firms in 2023:
- Fidelcrest - Best for experts
- Topstep - Best for Forex traders
FundedNext - Highest profit split
- The 5%ers - Most secure platform
- Surgetrader - Best for trading various assets
- FTMO - Best overall
- City Traders Imperium - Most thorough evaluation
- MyForexFunds - Best for those who want to skip evaluation
Prop Trading Firms - How to Choose the Best One?
The key to success with prop trading is finding the right firm to work with. Many companies are competing for new traders with advertised benefits and higher profit cuts. However, profit margins aren’t the only important criterion, and there are several factors to consider before committing to a specific firm.
Due to the well-established presence of bad actors within the prop trading industry, a good reputation takes lots of work to build up. We’ve examined what users have to say about their experience on each platform and how the company handled any issues their traders faced.
Whether in a large or small organization, complaints that haven’t been clearly resolved are reflected in the company’s Trustpilot rating. The time it takes for the firm to onboard new traders and if it’s making on-time payments are some of the most important factors that reflect how reputable the company is.
What do you specialize in? Some prop firms have a variety of assets for trade, while others prefer to have traders focusing on a select few. You’ll likely have a choice of futures, stocks, forex, and other commodities. Even though some are specifically designated as forex prop firms, they also include trading with cryptocurrencies and precious metals.
Fees and profit margins will be determining factors for any prospective trader on the hunt for a platform. You’ll have to make a financial commitment before being accepted as a regular trader, and some platforms have a higher barrier to entry than others. The initial one-time fee for the evaluation process varies significantly; on the plus side, some firms do offer a refund for that payment.
Trading Platform and Trading Style
Check what trading platform the firm is using. When it comes to forex trading, most prop firms implement MT4, MT5, and cTrader platforms, while others may emphasize technical analysis vs. fundamentals on which your potential investments are built. Your approach to researching before making an investment may make or break your trading experience with some of the firms on this list.
Having a good support lifeline from the firm you are trading with is going to be essential. You may have important questions or issues to be resolved with your payments, profit splits, platform features, or just about anything else.
That’s where readily available support is incredibly helpful, and an extensive knowledge base will save you the precious time you need to dedicate to research and trading.
Is proprietary trading legal?
It depends on the person making the trades: In most situations, it isn’t illegal, unless you are working for some of the most influential banks in the world. Due to the 2008 financial crisis, banks are no longer allowed to conduct proprietary trades.
Which prop firm is better than FTMO?
While FTMO is easily considered one of the best platforms for prop trading, some alternatives are popular among traders. Some of these are Topstep, The 5%ers, FundedNext, and others that we listed here.
Are prop trading firms worth it?
Prop trading is a legitimate method of earning huge profits by making trades. Users who can make it through evaluation quickly get access to funded accounts and can start trading with the firm’s capital, which in some instances can amount to millions of dollars.
Do prop traders make money?
Yes, they do. Successful traders can expect to earn between $100,000 and $200,000 per year. Entry positions earn somewhat less, but most of the best prop trading firms pay their traders competitively.