If you think you have your trading strategies figured out and are looking to take the next step in terms of portfolio size, you might want to look into what proprietary trading firms fit your bill. The risk factor is high when dealing with a larger portfolio, but so are the returns.
So, with good research into the firm you want to be associated with, you can unlock education about trade and risk management, and get extra power-ups like access to premium trading platforms, learning advanced modelling, and being able to bounce ideas off of and learn from the expertise of more experienced peers.
Below are some of the leading ones you might want to consider.
Best Proprietary Trading Firms For Beginners
(Editor's Choice For 2022)
- 400,000$ Trading Capital
- 80% profit sharing
- Forex, Commodities, Indices, and Crypto
- 200,000$ Trading Capital
- 85% profit sharing
- Forex, Metals, Indices & Cryptos
- 200,000$ Trading Capital
- 90% profit sharing
- Forex, Indices, Commodities, Stocks, Crypto
#1. The Funded Trader
Sharing founders with The Forex League and VVS Academy, The Funded Trader is headquartered in the USA and was registered in May 2021. On here, you can hold positions after the market close, over the weekend, or overnight.
You can trade all your favourite instruments like forex, crypto, indices, and commodities here. Something you need to pay attention to when you select a trading platform is what brokers they work with. The Funded Trader works with Purple Trading and Nash Markets which are both trustworthy.
For your comfort and ease of trading, both MetaTrader 4 and 5 are offered. But be prepared with your own content as the website has no educational content for their newbie friends. Although it does have a thriving community with a comments section where traders can network and discuss strategies.
Also as with most community-oriented projects, they have a Discord server as well with over 25,000 members which additionally provides a place to discuss ideas and learn.
If you continue to be successful, their scaling plan is one where your performance is reviewed every 3 months and if you are profitable in 2 out of the 3 months with an average return of 6% or 2% monthly, you are eligible for a 25% increase in capital and a bump in profit splits to 90%. This has been capped at $1.5M for the maximum trading balance.
In terms of fees, it varies depending on the plan you are opting for but it is refundable with your first withdrawal once you become a trader with them. The fee starts from $315 for the standard challenge that gives you $50,000 in trading balance.
The profit-sharing numbers start at 80% which is up there with most of the leading prop trading firms and can go up to 90% with their scaling plan which is dependent on your performance.
The customer support is available but relatively slow and needs to be worked on. Hopefully, they can get this part sorted out.
#2. My Forex Funds
As a beginner trader, if you are looking to trade 3 days of the week to retain your profits starting from 12% in the rapid program and up to 85%, you might want to look towards My Forex Funds. Trade with more than 180,000 traders in over 150 countries while you hone your skills and prove to the platform that you are worthy of an upgrade.
Depending on the amount of experience, beginners can start with the Rapid program which does not have any profit targets and gives you back 12% of your profits. If you are an experienced trader, you can opt for the Evaluation program where, as the name suggests, you must pass an evaluation test to raise your profit cut to up to 85%.
The platform requires you to have 3 trading days every week for the rapid plan, and 5 days for the evaluation plan. These restrictions are removed for the accelerated plan. The plans start with a one-time refundable registration fee starting at $49 for a trading balance of $5,000 with the evaluation challenge and up to $2,450 on the Accelerated plan and a trading corpus of $50,000. The fee is returned along with your first withdrawal from the live account.
A couple of cons do need to be mentioned. The platform only uses MetaTrader 4 and 5 which might be limiting for a few traders. Also, the trading education is the bare minimum and in the form of infrequent blog posts.
Scalability is not an issue you will run into with My Forex Funds’ option of scaling once every pay cycle for every 20% growth. If you are looking to trade stocks, however, you might want to look at the other options in the article as this one does not have the option for it. You can however trade forex, crypto, and metals with ease.
For customer service, the platform has the option to reach their team via chat, email, or creating a ticket.
Confused between the top two? Check our detailed comparison of MyForexFunds vs FTMO and choose the best for you.
FTMO was founded in 2014, is based out of Prague, Czech Republic, and is always on the hunt for traders. If the trading journey goes in your favour, you can keep up to 90% of your profits.
For a beginner who is confident about their strategies but cannot risk $50,000 on it, FTMO comes to your rescue but not before having to pass their 2-step evaluation process. The first of these steps starts with paying a €155 (~$158) fee that is refunded when you become an FTMO trader after completing the challenge.
This step requires you to have 10 trading days in a 30-day period and gives you a $10,000 trading balance with no limits on position size and the ability to trade Forex, Commodities, Indices, Crypto, Stocks, and Bonds. Your profit target at the end of these 10 trading days is $1,000 (10%) with a maximum daily loss capped at $500 (5%) and a total loss capped at $1,000 (10%).
These plans go up to a $200,000 trading balance with a refundable fee of €1,080 (~$1,101) and the profit targets, maximum daily loss, and total loss are the same percentage-wise. If you keep making profits, scaling is not a problem for FTMO. They have a scaling plan, according to which the balance of your account can be increased by 25% every 4 months.
As a beginner, the educational resources, account analysis, and performance coach are paramount to your success and should play a huge part to tip your scales in the favour of FTMO. With its stellar 24/7 customer support via phone and live chat, any issues you might come across will be resolved speedily.
In a major update to the platform, Fidelcrest has given their traders the option to either ‘Double your capital’ or get a ‘Second chance for free’ where traders can opt to get a second account with the same trading balance, essentially doubling their corpus, or providing a second account in case of failure. The failure could be for any reason, but due to this update, you get a second chance to show what you’re made of.
Traders can only select one of the above options so use your best judgment. You can trade Forex, Indices, Metals, Commodities, and Stocks on Fidelcrest so it should encompass most of your trading needs. The firm was crowned the Best Micro Forex Trading Firm in Europe at the Forex Expo 2021 and provides 1:100 leverage options for quicker and easier profits.
Their support team is available for the traders 24h every business day.
To become a trader for Fidelcrest, you must pass a 2-step evaluation process and you can start getting paid after the completion of phase 2. Micro trader accounts are those that have capital of either $10,000, $25,000, or $50,000 and start with a fee of €99, €249, and €449 respectively that is refunded to your bonus wallets once you complete the evaluation phase.
These accounts have options for normal or aggressive accounts which change the rules of profit target, maximum drawdowns, and profit splits (80% for normal and 90% for aggressive). For accounts with larger trading balances, the rules and profit splits are the same but the fees are higher.
If you feel like you needed to get into the market ‘yesterday’, BluFX is here to help. Doing away with all the annoying evaluation tests and giving you funding as soon as fee payment and KYC are completed, this platform makes sure you can get your hands dirty as soon as possible.
Although there are a few plans to choose from, the basic ones starting from £99 (non-refundable) for $25,000 in funding and billed monthly come with trading time restrictions ( 6 AM – 9 PM UTC ). It should not hold you back unless you plan to trade crypto. But as the name suggests, the platform only allows FX trading so you should already be looking for another trading account if you want more variety.
A small con is that the trader is expected to be armed with market knowledge as the platform itself lacks educational resources. Yes, you can read about it elsewhere to figure out strategies, but it helps if your trading platform takes the extra step to help you become a better trader.
For this reason, it might not be the best choice for beginners. Also, their profit share is 50% of the profits which might seem like it is a disadvantage when compared to its competitors but they provide you trading funds nearly instantly hence taking on more risk. This allows them to command half of your profits but you get to dive into the market sooner and start making profits.
Scaling is available at every 10% profit that you make on your portfolio as long as you stay within the 10% drawdown limit. The final stage is being a Fund Manager at BluFX which comes with its own perks like being able to hold open positions over the weekend.
#6. City Traders Imperium
If you have been trading but would just like to learn a few tips and tricks from the people who have been doing it a while, City Traders Imperium offers a free course before enrolling in the Evaluation program. As a platform well-known for trading forex pairs, it also offers other financial instruments like gold and indices that you can make money off.
They also have exceptional customer support that is available to solve your questions before or during your trading journey.
You can either start as part of the evaluation program (£119 one-time non-refundable payment for a $10,000 funded account) that has only one phase compared to the industry standard of two phases, but it takes 6 months to complete, or you can skip it altogether and pay a non–refundable £999 for a $20,000 funded account and much lesser rules. These amounts, although non-refundable, can get you cashback on your next evaluation.
Their evaluation program has some of the lowest target rates (9%) in the industry which is because they like to keep the targets small but build good trading habits. For example, you only need a minimum of 30 Active Trading Days (ATD) in the 6-month period and a stop loss is mandatory for every trade. The stop loss in a single trade can’t be more than 1.5% of the portfolio value.
For their scaling plan, you can double your funded trading account at every 10% profit target and the profit splits start with 50% and can go up to 100% if you keep doing well consistently.
TopStep is one of the first names that come up when searching for a prop firm. With glowing reviews on TrustPilot and from other regular users, they have made sure to keep their place at the top of the pile.
They have developed outstanding educational resources for their new and experienced traders who want to better themselves. They are more gentle with their traders and give them unlimited time to hit their profit objectives of 6% but with low loss limits.
There is a two-step evaluation process with exceptional guidance from the educational material. Also, they allow you to keep 100% of your first $5K – $10K in profits. After this you can still keep 80%, one of the higher profit splits in the industry.
Their customer service ranks amongst the best in the industry should you have technical or procedural questions, and they are available whenever the traders need them.
With a Pro Account, you can keep your first $10,000 in profits which is great for someone just starting and looking to make quick money. As you work your way up, the scaling plan takes effect. At Topstep the plan works a little differently compared to the others in the prop trading game. The balance in your account at the end of each trading day will govern the number of lots you can trade.
In an account with a $50,000 trading balance, which costs a recurring, non-refundable monthly fee of $165/month but has no time limit on achieving your profit targets. When your end-of-day balance is less than $51,500, you can only trade 2 lots at a time. When this balance is between $51,500.1 and $52,000, you can then trade 3 lots, and then 5 lots when the balance is above $52,000.1.
Something that might hold a trader back from deciding in favour of Topstep is that they only allow you to trade CME Group futures.
Earn2Trade provides a different way for its traders to manage and build up their careers rather than deciding on a specific account size off the bat. It’s called the Trader Career Path and every trader starts with a virtual account to prove themselves. Once they pass the exam, they get funded and become part of the Earn2Trade team.
With the scaling plan, a trader can build up to managing a $200,000 trading account with a fixed drawdown. Scaling is done automatically as you reach the profit targets for your account’s level. You need to trade for at least 15 days within the approved times and follow the progression ladder that dictates how many futures contracts you can trade simultaneously.
With the use of a trading account from Helios Trading Partners or Appius Trading, the traders can make and keep 80% of their trading profits. What you need to keep in mind is Earn2Trade’s consistency rule, because of which a single day’s profit can’t account for more than 30% of your total profit. But not to worry, this won’t disqualify you from trading or shut down your account. You just need to keep trading until this is not the case.
The monthly fee for the Trader Career Path evaluation is $150 which is non-refundable and it starts you off with $25,000 in virtual capital. Once you complete the evaluation process, 80% of the generated profits will be credited to your account. After this point, there is no subscription fee to be paid and there are no longer rules dictating the minimum number of trading days.
If you are not a regular trader you might want to try the Gauntlet Mini, an examination specifically for intraday traders, or The Gauntlet, a program for maximum trader flexibility and see if they work for you.
Earn2Trade also has webinar courses and a mentorship program for new traders. After this, you get to take a crack at the simulator and further weekly mentorship sessions to discuss your losses and profits and how to do more of the latter. Once done, you can get funding from the firm.
One of their better offerings remains their customer service which can be reached by email, phone, and live chat service. You can reach out to the customer service team 24/7.
As an Israeli prop trading company since 2016, The5%ers makes sure their customers have unlimited access to daily trading rooms, education, webinars, professional traders, and 1-on-1 performance coaching. On this platform, you can trade forex and metals.
Also, their support team is there for you via telephone, live chat, email, or form submission. They have a good reputation for speedy responses and resolutions so that should be one less worry for you. There are two different types of accounts that a trader can choose depending on their proficiency and urgency.
Instant funding has low risk or aggressive options starting at €235 (non-refundable) which starts you off at $6,000 which can be 4x-ed by meeting the profit targets of 6.2% for low risk and 12% for aggressive plans. After this, you can double your account for every 10% profit for low risk and 25% profit for aggressive plans capped at $4M
The $100k boot camp can be enrolled in for €85 (non-refundable) with a starting balance of $25,000, a profit target of 6%, and a maximum drawdown of 5%. If completed the balance is increased to $50,000 and then to $75,000 with the same profit target and drawdown percentages. If you can complete these 3 challenges in 12 months, you are eligible for a funded account which requires a further fee of €215 (non-refundable).
In the funded account, you start with an account balance of $100,000 with a profit target of 5% and a maximum drawdown of 4%. Growth happens at every 5% profit and the splits start with 50% but can go up to 100% as you ascend the levels.
The5%ers believe in educating their traders and thus providing them access to free high-quality resources and other unique features, like requesting payment anytime you want.
The account fees are higher than at other companies, and the profit splits start a little low at 50% but if you are confident in your abilities they can go up to 100%.
#10. The Prop Trading
If you want to trade with 25,309 other users via a company from Australia, then The Prop Trading is your firm of choice.
The platform has 5 different account sizes with 1:100 leverage options beginning with a fee of $209 that is refunded with your first withdrawal and a trading balance of $25,000. Step 1 of the two-step evaluation requires you to make a profit of 8% in a matter of 30 days which reduces to 5% in step 2 which you need to accomplish in 60 days. The average number of days to pass step 1 is 6 days and 9 days for step 2.
You can trade forex, indices, metals, and crypto on the platform all the while collecting a profit split of 80% that can be collected in biweekly payouts. They also offer a free trial which you can take for a spin before deciding if you want to purchase the paid plan.
There have been complaints about the speed of their customer service which you should keep in mind when you make your decision. Also, the details of their scaling plan are a little vague. The only available information is that you can increase your funding by 25% every 3 months which is considerably slower than what is offered by other firms.
You are allowed to hold positions over the weekend or trade during the news. Though there are no educational materials available on the website, there are blog posts that might illuminate the path in your trading journey.
This arm of the company is new to the game, having just started operations in 2021, and allows trading of forex, metals, indices, oil, crypto, and stocks so it is for a trader who is looking to trade varied instruments.
You do have to go through a 1-step audition process where you pay the fees and must achieve the 10% profit target without any restrictions on the number of days it takes you to achieve it.
The Standard prop trading account at SurgeTrader provides you with $25,000 in trading balance for a $250 non-refundable fee, a profit split of 75%, a profit target of 10%, and a daily loss of 4%, and a maximum trailing drawdown of 5%. There are no monthly recurring fees which is a relief.
These fees can go as high as $6,500 for a Master account that provides you with $1,000,000 in trading balance and the same percentage rules.
There is no minimum number of trading days that allows you to reach your profit targets at your own pace. Also, there are no limits on the instruments you can use or any 30-day mandatory trading period. It is a 1 step evaluation process that comes with a fast profit withdrawal process.
The scaling plan is also pretty straightforward and if you achieve your 10% profit target, the company will increase the funding in your trading account. You should be ready to let go of your positions over the weekend and also work with low leverage: 10:1 forex, metals, indices, oil; 5:1 for stocks, and 2:1 for crypto.
The customer support promises to be good and there do not seem to be any complaints on the internet so we have to assume all is well with that. The trading resources are not well designed for beginners but are in the form of blog posts and cheat sheets.
Started in 2021 to provide enhanced services to traders that are profitable regardless of their location around the world. As a trader on FTUK, you can choose between either the Instant Funding option that allows you to get started immediately or the 1-step evaluation process that starts on a demo account where the trader must reach the profit targets set by FTUK.
Their customer support is reliable and available via email 24 hours a day. This is in conjunction with mentors and coaches that are available to assist you on your trading journey.
The instant funding option starts with a £150 non-refundable fee and a $3,500 trading balance for the low-risk and aggressive options and a £119 non-refundable fee for the evaluation option where the trader must achieve a 10% profit target for the low-risk option and a 25% profit for the aggressive option.
They are running a promo until the 15th of August, an extension of their July offering where your joining fee can be refunded with your first level 2 payout if you reach their level 1 objectives without breaking any trading rules.
The profit sharing starts with a 50/50 split but with the scaling plan in place, if you keep achieving your profit targets, it can go up to 80/20 in the trader’s favor. Traders can hold positions over the weekend or overnight and news trading is also allowed. They can also trade with leverage up to 50x which can help you achieve your profit targets quickly if used wisely.
The platform in a bid to inculcate good risk management strategies for its traders has mandated a compulsory stop loss for all trades which can be a maximum of 1.5% of the value of the trade.
Factors Beginners Should Consider While Selecting a Prop Firm
- Trading Education
As a beginner, you need to be on the lookout for the company that takes the onus to train you upon itself. Even better if they have educational resources starting from scratch because it might help you brush up on a few things you thought you already knew.
You are after all an employee of the company and it is the employer’s job to train you in the intricacies of the job you are about to get into. Make sure that they offer clear instructions about their trading rules and that you ask if something is not clear. This is so that you are not surprised later about why your account got blocked.
You know a firm is looking out for you if they give you timely education about the current state of the markets as well. As a trader, you need to stay on top of the news and it is good to see that your firm is invested in helping you do that.
- Customer Service
Because prop trading comes with its own set of challenges and as a beginner, you might want to learn about these before you make mistakes that might be bad for your journey. In cases like these, it helps that you have a responsive and well-informed customer service team.
As an experienced trader, you might not need them too often but it is comforting to know that help is just around the corner. It is heartening to see as a beginner trader that the company is willing to solve your problems quickly and is thus interested in your long-term success.
- Instant Funding or Challenge Evaluation
Depending on if you are looking to get started in the market ‘yesterday’ or if you are willing to prove yourself to the company and in the process test yourself, you can choose from the trading firms listed above. Some firms have both options but others will not let you trade until you have passed a challenge.
The challenge also acts as a way for the firm to make sure you can trade within the rules and still make your profits.
- Upfront Cost
Make sure to check whether the upfront cost paid for taking the trading challenge or the instant funding will be refunded once you achieve the trading goals as described by the firm. Most firms refund this along with your first withdrawals but some keep it as a cost of providing the service.
A few firms will give you a discount on the next evaluation challenge in case you fail the first one. So keep your eyes open for that.
- Profit sharing Ratio
This one is probably not as important for beginners as you are looking to get into the thick of things. But of course, keeping the money you have earned is never a bad feeling. So pay attention to the profit splits and if they are increasing as you get better.
- Scaling Available?
Scaling is when the trading firm increases your trading balance and sometimes your profit splits as you keep achieving the profit targets put in front of you. It is good to see your growth as a trader validated by your trading balance and profit splits.
As a beginner trader, you should do a lot of research on prop trading firms as well as understand what you want to trade, and what your trading style is. Lucky for you, this article has done the first part of that for you.
If you are looking to trade most financial instruments under the sun along with being able to learn the ins and outs of prop trading, FTMO might be the way to go for you. They have exceptional educational resources to help you get started.
If you are partial to a fast withdrawal process and a single-step evaluation process that can help you get started quickly, SurgeTrader might be more your speed.
In case you would like to take the platform for a spin before you decide whether or not to buy, you might want to try The Prop Trading. Of course, it is lacking in some other places but at the end of the day it comes down to what is more important for you to have and what you will not miss too much.