Ivy Leaguers used to work on the trading desks of the big banks. The 2008 financial crisis was caused by the big banks blowing it in a big way.

A new type of prop trading firm is willing to fund anyone who knows how to make money forex funding in the market. This is a great chance for traders.

I ranked the top 6 prop trading firms to make sure you end up with the right one.

Review Summary

The Best Overall Proprietary Trading Firm is the FTMO.

They offer the best profit splits in the business, and they let you trade any financial instrument. They are the most popular prop trading firm in the world.

Pros

There is a good reason for the reputation of the FTMO. They don’t make accounting mistakes or not pay out on time. You will get all of the money you earn. It is not always the case with some of the bottom feeders.

The elite traders keep up to 90% of the profits, which is the highest in the industry, because profit splitting starts at 80% and operates on a sliding scale.

Great scaling opportunities are also available. After passing the two-stage evaluation process, traders can have access to up to $400,000 and if you generate a 10% net profit or higher over a certain time period, the funding can be raised to a maximum of $2 million. They fund their traders based on how much money they make.

Almost every financial market you can think of is accessible to traders. If you have mastered a market, they will let you trade it. Many prop trading firms only focus on a few markets, but the freedom to trade what you want is provided by the FTMO.

Due to their investment in new trade tracking technology, they have one of the most professional trading platforms in the industry. A series of apps that track your trading tendencies and give real-time feedback are available to FTMO traders.

Trained psychologists are one of the things that exemplifies the commitment to helping their traders. One of the few prop firms that actually offers support for this critical area is FTMO.

They have made a recent concession to make things easier, but evaluation parameters are still pretty standard. The profit targets are 10% in Step 1 and 5% in Step 2, but they have cut the Step 2 target to 5%, which takes a lot of the pressure off.

One of the cheapest prop firms is the FTMO. For a $10,000 account, current prices start at 155. If you pass the two-step evaluation process, this one-time fee will be fully forgiven.

Cons

Some traders are turned off by the fact that they can not trade real money. Even if you have a funded account, you will be making virtual trades. The demo trades are connected to the real account, but they are a little vague about whether or not they are making all of the trades.

This doesn’t make a difference to me. I get paid out on my virtual trades as if they were real, so what should I do? I don’t care if they make money off my strategy or not.

The use of dummy accounts brings up the question of how dedicated the FTMO is to their traders. What is their incentive to lead you along if they don’t profit?

I think that the huge investment the FTMO has made to develop their training programs and trade tracking apps shows their dedication to helping traders succeed.

Overall

One of the most popular, transparent, and supportive proprietary trading firms you’re going to find is the FTMO. There is never a better time to start your evaluation and join the thousands of traders who have made great money trading with FTMO

#2: The 5%ers – 9.1/10 (Best No Evaluation)

The 5%ers is a proprietary trading firm that offers great trader support and instant funding.

Pros

The 5%ers have a reputation for working hard to educate traders and make accurate payouts. The 5%ers give you real capital to trade Immediate.

The 5%ers are known for having the best evaluation processes. Even though 5%ers get instant funding, they still have an evaluation stage called Level 1. While you are being evaluated, you will be trading real money and making profits.

It works the same way. You begin trading with money. Depending on the account size you choose, it could be as much as $20,000. If you meet your profit targets within 180 days, you can split the profits and become a fully funded trader. You will get 888-405-7720 888-405-7720

You would think that the 5%ers would make it difficult to reach profit objectives, but they don’t. You can move on with low risk accounts if you hit 6 profit. There are no minimum days to trade. If you make a profit on your first day, you can get funded.

It is possible to be trading with up to $80,000 in a few days.

The 5%ers are not very strict in terms of trading strategies. You can keep your position over the weekend. You can make money by trading news. Swing traders, scalpers, and just about anyone else are allowed to trade in gat. If you can make money, they want you on their team.

One of the best scaling programs is offered by the 5%ers. When you hit a 10% profit objective, they will double your capital up to $2.56 million.

Almost every online review you can find mentions the 5%ers for their trader assistance, trader community and customer service. The 5%ers built a community of loyal traders who love them for their overall trader support.

5%ers will go to links with Dr. Gary Dayton, who is a psychologist and author who specializes in trader psychology. The most difficult aspect of trading will be helped by Dr. Dayton. Other prop firms would charge more for such an important service, but with the 5%ers it is free for all their traders.

Funded traders can make profit withdrawals at any time, as many times as they want, for as little as they want. It is not standard practice in the prop trading industry. Many prop firms make it hard to withdraw your hard earned profits. The 5%ers aren’t included. You can withdraw your money whenever you please.

Cons

5%ers invest a lot of money in trader support because they are invested in your success. How much? They split profits equally. They have a lot of hair. They will do the same if you succeed.

50% profit sharing is on the low end of the spectrum, but that is to be expected from a prop firm that offers instant funding. Getting immediate access to so much capital can be a challenge.

The low risk accounts only have the stop-loss requirement applied to them. You can sign up for an Aggressive account if you can’t live with stop-loss requirements.

The 5%ers only allow the trading of foreign exchange. If you want to trade other markets, you will need a separate account.

Overall

You can make money during your evaluation period with 5%ers instant funding. The scaling plan, trader support and educational resources are some of the best in the industry. I don’t like the 50% profit split, but it seems like a good price for getting so much capital quickly. Sign up with the 5%ers if you want to start trading immediately.

#3 Lux Trading – 8.6/10

If you want to trade stocks, commodities,CFDs or other instruments beyond the confines of the foreign exchange market, Lux Trading is a good place to start.

Pros:

There is a middle ground between instant-funding prop firms and those that require two-stage evaluations.

If you pass the first stage by making 6 percent, you’ll be moved to the real capital for Stage 2. Even though you are still being evaluated, you can start splitting profits once you start trading.

After you pass the initial evaluation on a demo account, Lux will give you the same amount for Stage 2. If you meet the profit target in Stage 2, your account will be funded 10 times your original amount. You could find yourself with $150,000 after two stages.

When you hit 10% profit, your account is doubled or more every time. A trader with a fifteen thousand dollar account could be worth over two million dollars in five stages. That is pretty amazing.

Even though they offer a streamlined evaluation process, they still pay out competitive profit splits. They are well above the splits of instant funders and not far away from the FTMOs.

Lux puts a lot of faith in its traders due to the fact that they make a big investment in trader support and education. The Risk Management Desk can be used by all Lux traders, as well as free access to Trading Central, a company specializing in automated analytics. The Lux trader support team is one of the best.

Lux Trading has an excellent reputation in the industry. They have lightning-fast trader support, clear trading parameters and transparency when it comes to trade execution.

Cons:

You don’t have to worry about the refunds after you pass just one stage of the evaluation. The fees are high if you end up on the hook. Most of the firms that don’t issue refunds don’t look so bad when you compare them to the ones that do.

For those of you who value consistent returns, Lux allows you to take as much time as you need to hit your profit targets so you may save money with them instead of with a prop firm that charges monthly fees.

The strict nature of their trading parameters is a knock on them. You can lose 4% if you trade $5,000 dummy dollars in Stage 1 of your evaluation or manage 2.5 million of real capital. At least they are.

It stands to reason that they would try to keep the capital on a tight leash since they give it out so quickly. You have to be patient and risk-averse to succeed at Lux.

Overall:

The Lux Trading Firm gives their traders access to as much capital as they can handle and built a solid reputation. They offer the freedom to trade a number of different assets and have manageable profit targets.

One of the most highly regarded prop firms in the industry will give you $2.5 million in trading capital if you work hard.

#4: Topstep Futures – 8.4/10 (Best Current Promotion)

Topstep has a great reputation and generous payouts. Thanks to a current promotion, they have become one of the best bargains in the business, as they are the best prop firm for trading futures.

Pros

Topstep has become a favorite of prop traders for a number of reasons. They make millions of dollars in trading profits every year.

I think they are popular because they are generous with their profits. Very kind. You keep all of your first $5,000-$10,000 in profits. They will give you 80% of your profits, which is close to the top percentage in the industry.

The Trader Combine has been streamlined by Topstep. The steps can be completed in less than two weeks after the minimum trading requirement was removed. Over 8,500 accounts were funded by Topstep in the past year.

Topstep gives traders unlimited time to hit their profit targets in order to pass the Trader Combine As long as you don’t hit your loss limit, you can take as long as you need. Once you are confirmed as a funded trader, your monthly fees will no longer be charged.

One of the best educational programs for futures traders can be found at Topstep. Topstep traders have access to group training sessions led by experienced traders, a digital trading coach known as Coach T, and an incredible library of training materials.

I appreciate the fact that Topstep is based in Chicago, so there is no currency conversion involved when paying fees, like there is with other prop firms.

The current bargain they are offering my readers is one of the best in the industry. If you follow this link, you will be able to claim a 20% discount on the Combine.

I have never seen a better deal for such a firm. It is an amazing opportunity.

Cons

The layout of Topstep’s website can make it hard to understand which rules apply to which programs. I want everything to be clear when it comes to prop firm rules. The customer service department is one of the best in the industry.

The monthly fees are not something I like. I like prop firms that charge setup fees. If the market isn’t cooperating and you don’t find trading opportunities you’re looking for, monthly fees can quickly add up.

If you complete the Trading Combine in one month and become a funded trader, you have made a tremendous deal. You are paying less for a funded account at a lot of other prop firms if it takes you two or three months to open.

The one-on-one training sessions at Topstep are really amazing and cost more, but they also have a great mentoring program with a lot of educational resources available at the click of a mouse. I am not a fan of add-on fees and I know it is not realistic to offer individual attention to every trader.

When it comes to fees, most prop firms kick you back to square one after a violation, but Topstep lets you hit reset and start over at the same level. It will cost you more if you want to stay at your level and pretend your mistake never happened. I don’t think it’s a bad idea to have free do-overs, but I think it’s a bit pricey.

Overall

Topstep has a proven track record of big payouts, outstanding trader support, and fair trading parameters. At the moment, they are a great bargain, so sign up now to begin your career as a prop trader.

#5: BluFX 8.1/10 (Best for Forex)

Instant funding up to $50,000 is offered by the firm. Over the course of 10 years, they have funded more than 20,000 traders.

Pros

It’s rare for prop firms to keep it simple these days. They don’t like demo accounts. If you sign up for an account, they will give you capital immediately.

The parameters are the same as before. You don’t have to worry about complicated calculations. 10% of the initial account balance is the maximum limit for your account. Don’t let your account drop below 45K if you sign up for a $50K account It is all done.

The parameters are easy to understand and loose compared to other prop firms. You don’t have to worry about having a very short leash.

Their plan for scaling deserves a high score. You can scale up to a $1 million account with a $50K Pro Account. All you have to do is hit 10% profit targets. You can join the Steady Growth program if you want to take out some of your profits.

It’s simple to make profit withdrawal. After you have realized a 5% profit, you can cash out.

The discount is being offered in honor of the 10th anniversary of the company. They have two account types, one with a $25,000 instant balance and the other with a $50,000 balance. For the $25K account, there is a monthly subscription fee of £99 and for the $50K account, there is a monthly subscription fee of £29. This is a great time to open your account because of the 10% discount.

A special anniversary account is available for a limited time, with a one-time fee. It is a $20K account with the same rules as their standard accounts, but with a tighter trading parameters.

Cons

It is standard for instantly funded accounts to have a profit split of 50%, but it is less than you would get at a firm with a long evaluation period. In order to take a higher percentage of the rewards, firms that offer instant funding take on more risk.

It is not for new traders. A lot of prop firms offer a lot of training. They do support their traders, but they do expect you to have a certain amount of knowledge.

If you only sign up for a lite account, you will only be able to trade during certain times in London and New York. 24 hour trading is allowed by the Pro Accounts.

Overall

A current discount, instant funding, simple trading parameters, easy profit withdrawals, rapid account scaling, and a reputation for being a great prop firm make them a great bargain for foreign exchange traders. You could be trading up to $50K real money in a matter of hours.

#6: City Traders Imperium

The prop firm of City Traders Imperium has come a long way in recent months. One-time evaluation fees have been lowered to a point more in line with other top prop firms, they now offer up to 70% profit sharing, and will fund the top traders up to $4 million.

Most traders pass their evaluation period in between one to three months, and they boast the lowest profit target in the industry.

When you look at the fine print, things aren’t as rosy as you might think. If you want to achieve the $4 million mark, you will have to have two separate accounts.

When you reach the $2 million funding level, profit sharing goes up to 70%, but only if you reach the evaluation phase. The best traders get the best rewards.

The financial instruments are limited. Once you graduate to the portfolio management phase, you can add indices to the mix.

You can skip the evaluation period completely and move into a funded trading account, but it will cost you. If you pay a one-time fee of £999, they will fund you $20,000. You can get $70,000.

City Traders Imperium claims to have the best learning platform. They offer several training options, both to learn general trading practices and specific strategies, as well as a YouTube channel that publishes a daily live look at the foreign exchange market.

City Traders Imperium seems to be putting a lot of effort into improving their funded trading program, and I am excited to see if they can compete with the best of the best.

If you want to try out one of the best up-and-comers, go here.

The Bottom Line

When choosing a proprietary trading company, be careful. There are a lot of prop firms out there that don’t have the best interests of traders in mind.

The prop trading firms that are invested in you are the best. They take a higher percentage of your profits than you want, but they are also incentivized to help you meet your trading goals.

Both worlds can be found at FTMO. They offer some of the highest profit-sharing percentages in the industry, but also heavily invest in prop traders.

If you have a winning strategy and need capital to propel you towards your loftiest financial goals, then sign up with FTMO.

Methodology

The right prop trading company will give you the best chance to make money. A lot of time and money can be lost if you choose the wrong one. I want to be as transparent as possible about how I made my rankings.

I started with a list of prop firms that I compiled from my own experience trading, recommendations of friends and traders in my network and a search on the internet. It was important to me that I only listed firms with a proven track record.

I came up with the above rankings by analyzing each firm and awarding points based on seven factors.

Factor 1: Profit splits

This is what it is. The firms that gave the highest profit splits were the ones that I gave the most points to. This is an important category. It is difficult to make profits as a trader when you are bound by the rules of your prop firm. You should get the lion’s share of the rewards if you are up to the challenge.

I can give the firm their cut. They put up the money and assume a lot of the risk. You are the one doing all the work, sweating through the tough decisions and beating the market. You should get the highest profit percentage.

Factor 2: Scaling opportunities

This is a fairly easy category. Successful traders can trade more capital if they meet profit targets. The best traders may eventually be given millions of dollars from a prop firm.

Every prop firm has these figures on their website. It is recommended to trade up to $2 million. Some firms make it nearly impossible to get to the high water mark.

I looked at how hard the firms made it to get there, when I awarded points in this category.

If you can meet your profit targets, I took that into account.

Factor 3: Trading parameters

A lot of rookies don’t look at this category very closely when they sign up with their prop firm.

Firms control how much risk their traders are willing to take. It makes perfect sense that theyentrusting you with their capital.

A number of different tools are used by prop firms. You can’t keep positions open over the weekend. You can only trade news releases when unemployment figures or other economic data is released. Most of the time, they use daily loss limits and overall loss limits.

Some prop firms limit the types of trading strategies that you can use.

prop firms are able to limit how much risk they take. It’s their money. Some firms are too far off base. You have to be able to assume some risk to be a trader.

The firms that gave their traders the most freedom were rewarded the most.

Most prop firms fall in the 8 to 10% range, so there is not a lot of variation. The easier it will be to be a trader, the lower the profit targets will be. It will be easier to graduate if you have less stress.

Factor 4: Affordability / Value

Some prop trading firms are very expensive. It makes sense to start trading the money you would have to pay as fees rather than forking it over to a firm.

Monthly fees are not something I like to pay. I would rather pay my dues upfront than worry about it again.

I rewarded prop firms with low price points and one-time fees, but I also looked at what they offered with their funded account program. I don’t recommend a cheap prop trading firm that doesn’t offer great trading platforms or good customer support. I want to see a good price for it.

Factor 5: Tradable assets

I believe in finding a niche in the market and trading within it. Most of the successful traders did that. I prefer prop trading firms that offer a lot of options.

You still need to be aware of what assets are allowed to be traded. Some foreign exchange prop firms only allow you to trade a limited number of currency pairs.

A prop firm that gives a lot of asset options is something I like. Your current trading strategy might not work in the future. I had to change my strategies so I don’t want to start all over with a new firm.

Factor 6: Educational Resources

If you are already an experienced trader and looking for capital, you may not find much value in the prop firm’s educational resources. I am aware of that. There are two things I would argue against.

With the way markets are evolving so quickly, it’s important for the most seasoned traders to keep learning. It’s a good example. The traders who figured it out early made a lot of money. Don’t stop studying.

There is a correlation between the quality of a prop firm and its education program. The ongoing education of their traders is something prop firms invest in. Those that don’t do so don’t.

A prop firm wants the smartest traders in the world. The necessary investments will be made to make sure they have it.

Factor 7: Customer service

It’s not something a lot of traders think about, but it’s very important when judging a prop trading firm. A good indicator of how much a firm values you is how much it invests in its customer service department.

The prop trading rules are unique to the trading world. Even the best traders need some help. It is important that you get the sound guidance as quickly as possible.

A prop firm has invested in a knowledgeable, helpful, courteous support staff that will be there to guide you whenever you need them.

Conclusion

I hope this guide will help you find a prop trading firm. If you want to make money as a trader, a good proprietary trading firm can help. That is the goal of all of you who have decided to go prop trading

Please let me know if you are trading with a firm that you do not like. If you have had a bad experience with one of the firms, please let us know. My rankings will be updated.

It seems like a me vs you game, but it is not. We can help each other on our journey towards financial freedom by exchanging information and learning from each other.

If you are ready for the next step and want to join a prop firm that will give you the best chance to become a successful prop trader, sign up with the company today.

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