Prop Trading Firm, or Proprietary Trading Firm, is a financial institution or investment bank that provides traders with substantial capital to execute trades. In return, traders must share a portion of their profit with the firm. To get access to capital traders must pass an evaluation process to be eligible as a prop trader. The firm will further provide traders with tools and consequent training to help them succeed. Whether you are a newbie or a seasoned t or a seasoned trader, choosing the right firm can make a significant difference in your prop trading career. In this article, we will delve into the peculiarities of the Top 10 Prop Trading Firms in 2024 to help you make a better decision
SIEGFund
SIEGFund is a proprietary trading firm that provides traders with a significant amount of money to leverage their trading experience. It provides a range of market instruments including forex, indices, metals, energies and US Stock with zero commissions and no hidden cost.
Features:
Capital Allocation: SIEGFund provides substantial capital from $5,000 to $400,000 to traders, allowing them to scale their strategies effectively. his is crucial for traders who have successful strategies but lack the necessary capital to maximize their returns. By providing access to more capital, SiegFund enables traders to significantly increase their potential profits.
Technology: SIEGFund offers a variety of trading platforms, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are equipped with high-speed execution, advanced charting tools, and real-time market data. These tools assist traders in making informed decisions quickly.
Evaluation Criteria: SIEGFund sets specific profit targets and maximum loss limits to evaluate traders' performance. The profit target is 10% in Phase 1 and 5% in Phase 2. The maximum overall loss is 10% of the initial account size, while the maximum daily loss is 5% of the initial account size. Traders must trade for a minimum of 3 days during the evaluation period to ensure consistency and discipline in their trading approach
Profit Split: SIEGFund offers an exceptional profit split, allowing traders to keep 90% of the profits they generate. This is notably higher than the industry standard, where many firms offer only an 80% profit split. This generous profit-sharing arrangement ensures that traders are well-rewarded for their success and can maximize their earnings from their trading activities.
Education: Comprehensive training programs and resources to enhance trading skills and knowledge. SIEGFund provides educational resources, including webinars, seminars, and one-on-one coaching sessions with experienced traders. This helps traders at all levels improve their skills and stay updated with market trends and strategies.
Support: 24/7 customer support and dedicated mentorship to assist traders at every step. SIEGFund's support team is always available to help traders with any issues they might encounter, from technical problems to strategic advice.
Conclusion: SiegFund is an excellent choice for traders, offering substantial capital allocations, advanced trading platforms, and comprehensive educational resources. Their 24/7 customer support, transparent fee structure, and well-defined evaluation criteria create a supportive and efficient trading environment. With a wide range of trading instruments available, SiegFund empowers traders to maximize their potential and succeed in the market.
Topstep
Topstep is renowned for its structured evaluation program that allows traders to prove their skills before getting access to the firm’s capital. With a focus on futures and forex trading, Topstep provides a robust platform and educational resources to help traders succeed.
Evaluation Criteria: Topstep's evaluation process, the Trading Combine®, involves two steps to assess trading skills and discipline. In Step 1, traders must achieve a 6% profit target without exceeding a 2% daily loss or 4% overall drawdown, with a minimum of 5 trading days. Step 2 repeats these criteria without a minimum trading day requirement.
Capital Allocation: Traders can choose from account sizes of $50,000, $100,000, and $150,000, each with corresponding monthly fees and profit targets. For example, the $50,000 account has a profit target of $3,000, a daily loss limit of $1,000, and a trailing maximum drawdown of $2,000.
Technology: Topstep offers a range of trading platforms to meet diverse trader needs, including TSTrader, NinjaTrader , and TradingView. Additionally, they support other platforms like Sierra Chart, MotiveWave, and more, ensuring traders have access to the tools they need for effective trading
Educational Resources: Topstep offers comprehensive training programs, webinars, and one-on-one coaching sessions to help traders improve their skills.
Profit Split: Traders can keep up to 90% of their profits. This high payout ratio is a significant advantage for profitable traders; however, it is still lower offer compared to competitors
Trading Instruments: Topstep focuses on futures trading and allows trading of products listed on CME, COMEX, NYMEX, and CBOT exchanges. Instruments include various commodities, financial futures, and equity futures such as E-Mini S&P 500 and Crude Oil.
Fees: Monthly subscription fees start at $165, covering access to the Trading Combine and educational resources.
Conclusion: TopStep Trader is ideal for traders looking to develop their skills and demonstrate their capabilities in a structured environment. Its focus on education and risk management makes it a strong contender in the prop trading space.
FTMO
FTMO is a well-established prop firm that provides traders with substantial capital and a transparent evaluation process. They focus on forex, indices, and commodities trading.
Features:
Evaluation Criteria: The FTMO evaluation process consists of two steps: the FTMO Challenge and Verification. In the FTMO Challenge, traders must achieve a profit target while adhering to risk management rules, including a maximum daily loss and overall drawdown limit. The challenge requires a minimum of 4 trading days but has no upper time limit. In the Verification stage, the profit target is halved, and the same risk management rules apply. Successful traders can then sign a contract to manage a real account with up to $200,000 in capital
Capital: High capital allocation upon passing the evaluation, ranging from $10,000 to $200,000. Successful traders can access significant trading capital, allowing them to maximize their profit potential.
Trading Platforms: FTMO provides access to multiple advanced trading platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and DXtrade. These platforms are equipped with low spreads and low commissions, simulating real market conditions to provide traders with an authentic trading experience.
Instruments: FTMO provides traders with access to a wide range of trading instruments, including forex, commodities, indices, stocks, and cryptocurrencies.
Profit Split: Generous profit split, often up to 80%. FTMO ensures that traders keep a large portion of their profits, which incentivizes high performance.
Support: Extensive support resources and trading tools. FTMO offers a range of tools, including a trading journal, performance analytics, and a psychological coach, to help traders improve their performance.
Fees: One-time evaluation fee starting at €155. While there is a cost to participate in the evaluation, there are no recurring fees, which can be more economical for traders.
Conclusion: FTMO’s combination of high profit splits and large capital allocations makes it a top choice for traders seeking favorable trading conditions and robust support.
The5ers
The5ers offers a unique approach to prop trading by providing instant funding to traders. They specialize in forex and commodities trading, and their model is designed to support traders from the very beginning without requiring an evaluation phase.
Features:
Evaluation Criteria: The 5%ers’ evaluation includes the High-Stakes Challenge and Hyper Growth Program. The High-Stakes Challenge requires achieving an 8% profit in Step 1 and a 5% profit in Step 2, with a maximum daily drawdown and a 6% overall loss limit. The Hyper Growth Program starts traders with 50% of their chosen account size, scaling up with a 10% profit, and enforces a 3% daily loss limit and a 6% overall loss limit.
Trading Platforms: The 5ers provide access to MetaTrader 5 (MT5). These platforms are equipped with a wide range of tools and features to enhance the trading experience, offering robust support for both technical and fundamental analysis
Instruments: The 5%ers offer a wide range of trading instruments, including forex pairs, global indices, and precious metals.
Profit Split: The profit split at The 5%ers ranges from 50% to 100%, depending on the program and the trader’s performance. Traders can start with a lower split and work their way up to a full 100% profit share by consistently meeting profit targets and demonstrating strong trading skills
Support: Comprehensive support and trading resources. The5ers provide various tools and resources to help traders succeed, including performance analytics, risk management tools, and psychological support.
Fees: One-time evaluation fee. This fee covers the cost of the evaluation and provides access to the firm's resources and support.
Conclusion: The5ers is an excellent choice for Forex traders seeking immediate funding and a clear path to increasing their trading capital based on performance.
OneUp Trader
OneUp Trader offers a straightforward evaluation process for traders looking to access funded accounts. They specialize in futures trading and provide a transparent and efficient path to obtaining trading capital.
Features:
Evaluation Cirteria: OneUp Trader offers a straightforward evaluation process consisting of a single step. Traders need to trade for a minimum of 15 days, excluding weekends and holidays, and achieve a profit target based on their chosen account size. The evaluation includes a maximum daily loss limit and a trailing drawdown. Successful completion allows traders to manage a funded account ranging from $25,000 to $250,000.
Capital: Immediate funding upon passing the evaluation. Traders who pass the evaluation are granted access to firm capital, allowing them to start trading right away.
Profit Split: Traders with OneUp Trader can keep 100% of their first $10,000 in profits and up to 90% of profits thereafter, offering a highly competitive profit-sharing model.
Support: Access to trading resources and tools. OneUp Trader provides a range of resources, including educational materials and advanced trading platforms, to help traders succeed.
Trading Platforms: OneUp Trader provides access to a variety of trading platforms, including NinjaTrader, Sierra Chart, QuanTower, R Trader, and R Trader Pro. During the evaluation, traders receive free market data from Rithmic, and once funded, traders can choose their preferred platform, though they are responsible for any related fees
Instruments: OneUp Trader focuses on futures trading, including metal futures (e.g., gold, platinum), e-mini futures, and forex futures, allowing traders to engage in various markets and diversify their trading strategies
Fees: One-time evaluation fee starting from $125. The evaluation fee is a one-time cost, making it a cost-effective option for traders looking to access firm capital.
Conclusion: OneUp Trader’s straightforward approach to funding and robust resources make it a great option for traders looking for a simple and effective path to capital.
T3 Trading Group
T3 Trading Group offers a professional trading environment with a strong focus on technology and trader development. It provides significant capital allocation and advanced trading tools.
Features:
Evaluation: T3 Trading Group requires traders to make a capital contribution to start trading. They offer a flexible approach, allowing for bespoke capital contribution and commission arrangements tailored to each trader's needs. To trade with T3's capital, traders must hold a Series 57 license, which T3 Trading helps them obtain through partnerships with training providers.
Trading Platforms: T3 Trading Group provides access to multiple advanced trading platforms, including Sterling Trader, Lightspeed Trader, Rithmic, and Fusion. These platforms offer low latency, advanced charting, hotkeys, real-time data, and customizable order execution tools. T3 Trading's technology ensures traders can execute their strategies with speed and accuracy
Instruments: T3 Trading Group supports trading in equities, options, and futures. Their advanced technology and execution platforms cater to various trading styles and strategies, including discretionary, grey-box, and black-box methods
Education: Comprehensive training programs. T3 Trading Group offers extensive training resources, including webinars, workshops, and one-on-one coaching, to help traders improve their skills.
Support: Dedicated support and mentorship. Traders have access to experienced mentors and a supportive community that can provide guidance and advice.
Fees: Competitive fee structure, with monthly fees starting at $200. The fees are transparent and designed to be accessible for serious traders.
Conclusion: T3 Trading Group’s professional environment and substantial resources make it a top choice for serious traders looking to leverage advanced technology and significant capital.
Earn2Trade
Earn2Trade focuses on trader education and development, offering a unique Gauntlet program that provides a clear path to funding. Its emphasis on education makes it a valuable choice for new traders.
Features:
Evaluation Criteria: arn2Trade offers two evaluation programs: the Gauntlet Mini™ and the Trader Career Path®. The Gauntlet Mini™ requires at least 10 trading days to meet profit targets and adhere to risk management rules, including daily loss limits and end-of-day drawdowns. The Trader Career Path® allows traders to scale their accounts from $25,000 up to $400,000 by meeting performance benchmarks. Both programs emphasize consistency in trading performance
Capital: Funding opportunities upon successful completion. Traders who complete the Gauntlet program successfully can access firm capital, allowing them to trade with real money.
Support: Extensive educational resources and support. Earn2Trade offers a wealth of educational materials, including webinars, video courses, and one-on-one coaching, to help traders develop their skills.
Trading Platforms: Earn2Trade supports several trading platforms, including NinjaTrader, Finamark, R Trader, and R Trader Pro. These platforms offer features such as advanced charting, real-time data, and customizable order execution, ensuring traders have the necessary tools for effective trading.
Profit Split: Earn2Trade offers an 80/20 profit split, where traders keep 80% of their profits while the firm retains 20%. This competitive split allows traders to maximize their earnings once they secure a funded account
Instruments: Earn2Trade allows trading of CME (CME, CBOT, NYMEX, COMEX) futures, including micro futures. This variety enables traders to apply their strategies across different markets and asset classes
Fees: Monthly subscription fees. The fees for participating in the Gauntlet program are monthly, providing access to all the firm’s resources and support.
Conclusion: Earn2Trade’s focus on education and clear funding path make it an ideal choice for new traders looking to build their skills and secure capital.
Lux Trading Firm
Lux Trading Firm offers traders a professional trading environment with a focus on forex and futures. They provide substantial capital and comprehensive support to help traders succeed.
Features:
Evaluation Criteria: Lux Trading Firm’s evaluation process includes a two-step program designed to assess traders' skills and discipline. In the initial assessment phase, traders must achieve a 6% profit target over 29 trading days while maintaining a 5% maximum relative drawdown. In the second stage, the profit target is reduced to 4% over 20 trading days. Successful completion of both stages results in traders receiving a live funded account with a 75% profit split and scaling opportunities up to $10 million
Leverage: High leverage options for traders, typically up to 1:100. This leverage can amplify returns on successful trades, making it appealing for aggressive traders.
Support: Strong support and mentoring. The firm provides access to experienced mentors and a supportive trading community, helping traders refine their strategies and improve their performance.
Trading Platforms: Lux Trading Firm offers multiple advanced trading platforms, including MetaTrader 5 and TradingView. These platforms provide robust features like advanced charting, real-time data, and customizable trading strategies, ensuring traders have the necessary tools to succeed
Profit Split: Lux Trading Firm offers a 75/25 profit split, allowing traders to retain 75% of their profits. This profit split is competitive and incentivizes traders to perform well
Instruments: Traders can access a diverse range of instruments, including forex pairs, commodities, indices, and bonds. This variety supports different trading strategies and helps traders diversify their portfolios
Fees: Monthly subscription fees starting at $250. While there are costs associated with accessing the firm's resources, the potential returns from the high leverage and scaling plan can justify the investment.
Conclusion: Lux Trading Firm’s high leverage and clear scaling plan make it ideal for traders looking to aggressively grow their trading capital. Its robust support infrastructure further enhances its appeal.
SMB Capital
SMB Capital is known for its intensive training programs and strong emphasis on trader development. It offers a collaborative environment and access to significant trading capital.
Features:
Evaluation: SMB Capital offers a two-year training program for new traders to develop essential skills, build a trading playbook, and advance in trading equities, options, and futures. Experienced traders can join directly and benefit from the firm’s capital and resources, trading either discretionary or automated strategies
Capital: Access to substantial trading capital, typically starting from $50,000 and scaling up. This allows traders to implement and scale their strategies effectively.
Trading Platforms: SMB Capital provides access to proprietary trading technology, including advanced charting, real-time data, and automated trading systems. This technology is designed to support both discretionary and automated trading strategies, ensuring traders have the tools they need to succeed in various market conditions
Instruments: Traders at SMB Capital can trade a variety of instruments, including equities, options, and futures. This range allows for diversified trading strategies and the ability to capitalize on different market opportunities
Support: Ongoing mentorship and support. Traders receive continuous guidance and support from experienced mentors, helping them refine their strategies and improve their performance.
Fees: Monthly fees starting at $250. The fees are competitive and designed to provide access to the firm's extensive resources and support.
Conclusion: SMB Capital’s emphasis on training and collaboration makes it a standout choice for traders dedicated to continuous learning and growth. Its significant capital allocation further enhances its attractiveness.
Maverick Trading
Maverick Trading offers a unique approach with a focus on long-term trader development. It provides extensive training, mentorship, and capital to help traders succeed over the long haul.
Features:
Training: Comprehensive training programs for traders at all levels. Maverick Trading offers in-depth training modules that cover various aspects of trading, from technical analysis to risk management and psychology.
Trading Platforms: Maverick Trading provides advanced trading technology, including a customized trading simulator that helps traders hone their skills in a risk-free environment. The simulator allows traders to practice various strategies under different market conditions, ensuring they are well-prepared for live trading
Mentorship: Ongoing mentorship and coaching. Experienced traders and mentors provide continuous guidance, helping traders refine their strategies and improve their performance.
Profit Split: Maverick Trading offers a profit split where traders keep 70-80% of their profits. This model incentivizes traders to perform well and aligns their interests with the firm's
Instruments: Traders can trade equities, options, and futures, allowing for diversified strategies and market opportunities
Fees: Monthly desk fees starting at $200. While there are fees associated with accessing the firm's resources, the extensive support and training provided often outweigh the costs.
Conclusion: Maverick Trading’s focus on education and mentorship makes it an excellent choice for traders committed to long-term growth and development. Its supportive environment and significant capital allocation provide a solid foundation for success.
Conclusion
Choosing the best prop trading firm depends on your trading style, experience level, and financial goals. Each of these firms offers unique features and benefits, from rigorous training programs to high capital allocations and competitive profit splits. By considering these factors and reviewing the top firms, you can find the ideal prop trading partner to help you succeed in the dynamic world of trading.
FAQs
What is a prop trading firm?
A proprietary trading firm, or prop firm, provides traders with the firm's capital to trade financial instruments. In return, traders share a portion of their profits with the firm.
How do prop trading firms make money?
Prop trading firms make money by taking a share of the profits generated by their traders. Some firms also charge fees for training and evaluation programs.
What are the benefits of joining a prop trading firm?
Benefits include access to significant capital, advanced trading tools, educational resources, and the potential for high profit splits.
What should I consider when choosing a prop trading firm?
Consider factors such as the evaluation process, capital allocation, profit split, fees, and the level of support and training offered.
Can anyone join a prop trading firm?
Most prop firms have evaluation processes to ensure traders have the necessary skills and discipline. Requirements vary by firm.
