Best Prop Trading Firms 2023
What Are Prop Trading Firms?
Proprietary trading firms – also known as prop trading firms – are trading companies that offer intermediate and professional traders the option to join in and trade using the company’s capital. One of the biggest benefits for traders is access to high-leverage and advanced research tools.
Prop trading firms usually have stringent rules and requirements to qualify for a funded account, and they’re generally very generous in how much you get to keep – it’s very common for profit splits to start at 80% of the profits you make and up to 100% if the company offers a scaling program.
Prop trading firms support various asset classes and are known as one of the best options for stocks, options, and forex traders. In this summary, we go over the three best options – for a more detailed comparison, check out our full list of the best prop trading firms.
1. Topstep Trader
Founded in 2012 by Michael Patak, Topstep is a futures prop trading firm based in Chicago and one of the biggest in the world, with thousands of funded traders. To qualify for a live Topstep funded account, you have to complete the Step 1 & 2 of the trading combine – this can take as little as eight days, and after you pass it, you’ll get your live funded account in less than two days.
Topstep funds 600+ new accounts every month, and they’ve paid out almost $8 million to traders since 2020. What we really like about Topstep are the payout rates. For newly funded accounts, traders keep the first $5k they make, with no fees or commissions. Afterward, the payout rate is set at 90% of all your profits.
Topstep has more than ten years of experience and is one of the most trusted prop trading firms in the business, with an average Trustpilot score of 4.5/5.
Pros
- Keep 100% of the first $5k in profits you make
- 90% fixed profit split after the first $5k
- Get your funded account in just eight days
- Free coaching (1-on-1 or group coaching)
- 14-day free trial
- Compatible with TradingView, TSTrader, NinjaTrader, and more
Cons
- You need to accumulate five ‘winning days’ before claiming payouts
- Previous trading experience recommended
Pricing
- Account Size ($50k, $100k, or $150k): $165, $325, or $375/month, respectively
2. FTMO
Headquartered in Prague, FTMO is a proprietary trading firm that offers traders worldwide access to all the major asset classes. Supported classes include stocks, forex, and crypto, among many others.
To get a funded account, FTMO has a two-step evaluation process called the FTMO Challenge. To pass the FTMO Challenge, you have to reach a profit target – based on the Challenge Account you choose initially –and follow the rules. On average, it takes anywhere from 30-90 days to complete the two steps of the challenge.
Something we like about FTMO is that, as long as you end with a profit, they offer a 14-day extension and a free retrial. With FTMO, the starting payout rate is 80% of all the profits you make, and it can be increased to a maximum of 90% if you sign up for the scaling plan.
Pros
- Keep up to 90% of the profits you make
- Available for traders worldwide
- Trade stocks, forex majors & minors, crypto, and more
- 1:100 leverage on most trades
- Hold your positions over the weekend
- Refund after you pass the FTMO Challenge
Cons
- It can take up to 90 days to get funded
- The profit split starts at 80%
Pricing
- Account Size ($10k, $25k, and $50k): €155, €250, and €345/month, respectively
- Account Size ($100k and $200k): €540, or €1,080/month, respectively
3. Earn2Trade
Earn2Trade is a Wyoming-based trading education & evaluation company that offers traders the chance to trade using a funded account. Earn2Trade offers three funding programs: Trader Career Path (TCP), The Gauntlet, and The Gauntlet Mini.
Earn2Trade has a lower trial period than FTMO, and you can get your funded account through the TCP and The Gauntlet Mini in just 15 days. For The Gauntlet challenge, the minimum period to get funded is 60 days. One downside of Eearn2Trade compared to our other options is that payout rates are set at 80%, and there’s no scaling plan.
With Earn2Trade, you’ll have access to all CME (NYMEX, CBOT, and COMEX) future assets, but there is currently no support for forex trading. Earn2Trade has excellent reviews from its users, with an average Trustpilot score of 4.7/5
Pros
- Keep 80% of the profits you make
- Three funded accounts to choose from
- Get your funded account in just 15 days
- Excellent score on Trustpilot
- Comprehensive educational resources
Cons
- The profit split doesn’t scale
- Doesn’t support forex trading
Pricing
- Trader Career Path ($25k-$50k): $109-$120/month
- The Gauntlet Mini ($50k-$200k): $136-$440/month
Conclusion
Prop trading firms are an excellent option for intermediate and experienced traders to boost their profits and access higher leverage on all their trades. In general, prop trading firms have similar rules and requirements, like reaching a specific profit target or staying within a maximum daily loss limit, that you have to meet before qualifying for a funded account. Check out the best-funded trading accounts here.
Funded accounts work best in tandem with the best stock screeners and stock research platforms and can be the difference between reaching the profit goals and staying in the program or getting kicked out.
FAQs
Are Prop Trading Firms Worth It?
Yes – if you can complete the challenges and qualify for the funded accounts, prop trading firms are definitely worth it. With the right prop trading firm, you can boost your profits and access higher leverage on all your trades.
Is It Hard To Get Into Prop Trading?
Yes – in recent years, prop trading has become increasingly more available to the general public, but it can be challenging for beginners to pass the challenges. We recommend prop trading only for very experienced traders.
What Is The Failure Rate Of Prop Traders
Depending on the firm, the failure rate of prop traders can be 90%. This is because firms can now afford to be more picky and onboard only the very best traders who can turn a consistent profit.
