When it comes to the world of proprietary trading, the available options can be both vast and overwhelming. Whether you’re an experienced trader or a beginner, there’s a prop trading firm out there tailored to your needs. In this review, we’ll dive deep into the best prop trading firms available in 2023 to help guide your decision.
TopStepTrader, founded in 2012 by Michael Patak in Chicago, has made remarkable progress, establishing its name as one of America’s 5,000 Fastest Growing Companies, as recognized by Inc.5000. The unique concept behind TopStep’s platform involves allowing traders to open an account, and then they can engage in simulated trials within the Trading Combine. This serves as a competitive arena where they vie to be the best. Those who stand out and qualify may get the opportunity to be promoted. Furthermore, the Trading Combine supports over 14 distinct platforms, but TopStepTrader emerges as the prime choice for beginners.
Moreover, the company values education for its traders, offering an abundance of educational content which can be pivotal for those aiming to elevate their day trading and future trading skills. Making them also one of the best futures prop trading firms out there.
- Highlight: Recognized as the best overall, it stands out due to its round-the-clock trading feature, which ensures that traders can capitalize on global market opportunities.
- Unique Selling Point (USP): Offers a high-profit split which means traders can expect a bigger piece of the profit pie.
Earn2Trade is not just a typical trading education platform; it’s a unique gateway for aspiring traders to demonstrate their trading skills and potentially gain funding from a proprietary trading firm. As part of their educational journey, traders are granted access to a trading simulator during their subscription period. This simulator allows them to exhibit their trading prowess in a risk-free environment. The company’s primary focus is on futures trading, reflected in their specialized educational package known as the “Beginner Crash Course.”
Earn2Trade’s unique proposition is its “Trader Career Path® Examination,” wherein traders test their skills on a virtual account, either $25,000 or $50,000. Successful candidates are given the opportunity to trade with a firm’s capital and can even progress to manage a staggering $400,000 funded trading account.
- Highlight: It’s the top choice for rookies.
- USP: Novice traders get to learn essential trading skills while actively participating in the market.
Elite Trader Funding serves as a platform for traders to validate their trading prowess through simulated environments. Successful traders are then given the means to engage in live markets. This organization adopts a proprietary (prop) trading firm model where it allocates its capital to traders who then engage in trading various financial instruments. In return, the firm garners a share of the profits generated. Traders are presented with a selection of evaluations, each having its distinctive criteria such as the starting balance, permissible trading days, profit objectives, and drawdown ceilings. These evaluations cater to various account magnitudes ranging from $10,000 to $300,000. When a trader attains the stipulated profit goal and trades for a minimum of five days without breaching the maximum drawdown, they qualify for funding.
Regarding their profit-sharing mechanism, traders are allowed to retain the full amount of their initial $12,500 earnings. Beyond this threshold, the profits are split in an 80/20 ratio, with the trader receiving the lion’s share of 80%. The firm emphasizes transparency in their evaluation processes, and they have an array of support channels indicative of their investment in customer service and user experience.
- Highlight: Perfect for traders who want to dive right in.
- USP: Offers an opportunity to skip the evaluation phase, allowing traders to get started faster.
FTMO started its journey in 2014 in a small office in Prague, where a group of passionate day traders, including its three founders, merged their abilities and expertise. Originally known as Ziskejucet.cz, the company evolved and secured funding, rebranding as FTMO in 2017. Their operation model is unique: upon successfully passing the two main stages of their evaluation, which are the FTMO Challenge and Verification, traders are allowed to handle an FTMO Account and can earn real money.
The firm is quite versatile, granting traders the freedom to adopt any legal trading strategy or plan that aligns with current market conditions and can be replicated on FTMO’s business accounts. Moreover, they provide several trading platforms, including MT4 and MT5. One standout feature is their emphasis on trader education and support, acknowledging the role of a knowledgeable trader in their business model. They even have on boarded performance coaches, specializing in trading psychology, recognizing its vital role in a trader’s success. This tracks well with research that suggests that traders are more likely to trade when encouraged by others. With operations spanning over 180 countries, they’ve paid out $130 million to traders, and are known for sharing 80%-90% of the profits with them.
- Highlight: Perfect for traders looking for trustworthy companies with an extensive learning platform.
- USP:The emphasis on a comprehensive educational platform underscores FTMO’s commitment to fostering informed and proficient traders.
When scouting for the best prop trading firms, it’s vital to consider what each firm brings to the table and which aligns best with your goals and skill level. Whether you’re searching for a firm that offers the best overall experience or one that’s beginner-friendly with an educational emphasis, there’s a firm on this list for you. Always do your research, consider your trading preferences, and choose a firm that aligns best with your goals.