Best Prop Trading Firms For Beginners

Updated June 5, 2024

Proprietary trading have increasingly become a popular investment approach for individual traders and financial institutions. Although trading funding is their main focus, many prop firms give you access to various learning opportunities to catapult your trading skills in different financial markets. 

In this list, we've analyzed the best prop trading firms and why they stand out. To give you a big picture of these firms, we look at their markets, the amount of funding offered, profit-sharing ratios, and their pros/cons. Read further to get more detailed insights. 

What are Prop Trading Firms?

Prop firms are companies that give funding to traders to act as capital for trading in commodity markets, bonds, forex, stocks, indices, or crypto. The funding doesn't come freely; traders have to undergo an evaluation process. Upon passing the evaluation process, traders are awarded a funded account with a 50-90% profit split.

Moreover, traders can leverage the amount of funding they can get by meeting specific targets. For additional support, prop trading firms give traders comprehensive mentorship opportunities, training modules, and a communal culture that emphasizes learning as a bridge to success.

#1

Funder Trading

Funder Trading is a proprietary trading firm that provides skilled traders with capital to trade across various financial markets, allowing them to generate profits while sharing in the firm's financial success.

4.5 of 5 stars

#2

Topstep

Topstep Trader provides aspiring traders with the opportunity to prove their skills in a simulated environment and earn funding to trade with a proprietary account if they meet specific performance criteria.

4.5 of 5 stars

#3

Surge Trader

Surge Trader offers traders the opportunity to trade with firm capital, providing funding to those who demonstrate their trading skills and meet predefined performance benchmarks.

4 of 5 stars

#4

FundedNext

FundedNext provides traders with capital to trade in financial markets, enabling them to showcase their trading skills and earn a share of the profits based on their performance.

4 of 5 stars

#5

The5ers

The5ers is a proprietary trading firm that offers funding to forex traders who meet specific performance criteria, enabling them to trade with larger capital and share in the profits.

4 of 5 stars

#6

Apex Trader

Apex Trader Funding is a proprietary trading firm that offers traders the opportunity to access funded trading accounts by proving their trading skills through a structured evaluation process.

4 of 5 stars

#7

The Trading Pit

The Trading Pit offers traders the opportunity to trade with firm capital and access advanced trading tools and resources, aiming to maximize profitability through strategic market engagement.

4 of 5 stars

#8

FTMO

FTMO is a firm that provides traders with capital to trade in financial markets, supporting their growth by offering a structured evaluation process and profit-sharing opportunities based on performance.

4 of 5 stars

#9

Earn2Trade

Earn2Trade is a trading education and evaluation platform that helps aspiring traders develop their skills and potentially secure funded trading accounts through a rigorous training and assessment process.

4 of 5 stars

#10

FX2 Funding

FX2 Funding is a prop trading firm that provides forex traders with capital to trade in the markets, allowing them to grow their accounts and share in the profits based on their performance.

4 of 5 stars

Top 10 Best Prop Trading Firms in 2024

This list details some of the best proprietary trading firms on the market today. In summary the top names in our selection are as follows:

1. Funder Trading


Funder Trading tops our list of the best prop trading firms since it's the only one that offers options and stock funding without requiring upfront capital or certification. It just requires you to pay a one-time sign-up fee that's refundable once you finish your evaluation and access a funded account. This means you retain 100% of the profits until when you have recouped your starting and subscription fees. 

There are 4 challenges with different sign-up fees and account sizes. During the challenge phase, you work hand in hand with Funder Trading expert advisors and get full access to educational resources. After beating the challenges, you get to the verification phase, where your trading consistency is tested before being awarded a funded account. Onwards, you keep 80% of the total profits earned. 

The total funding starts from $100,000 and only goes upwards. Interestingly, this funding isn't limited to stocks alone; you can get up to $200,000 to trade both stocks and options. Finally, you can personalize the risk management tools to match your risk tolerance and trading style.

Pros

  • Doesn't require upfront capital or licensing
  • Vast library of educational materials
  • Supportive help desk
  • Straightforward application process
  • Efficient risk management tools

Cons

  • Quite selective in the evaluation process; less number of applicants get approved

2. Topstep


Topstep ranks among the best proprietary firms for futures and forex trading thanks to its spectacular reputation, generous payouts, trader support, etc. No matter the account size you choose, you are eligible to keep 100% in profits for the first $5,000 to $10,000. Afterwards, you get a profit split in the ratio of 80:20, which is still a handsome payout in the industry.

Previously, Topstep had a two-step verification for traders who sign up for their simulated account; Trader Combine, which requires them to pay either $50K, $100K, or $150K. Currently, Topstep has only a one-step evaluation process, which you can finish in just two days and qualify for a Topstep-funded account. Luckily, there's no fixed timeline for completing the Trader Combine challenge. 

Topstep uses a Meta Trader 4 interface, which is easy to navigate as everything is displayed on the dashboard. As a Topstep member, you can access digital coaching services, group training sessions, and an incredible education library.

Pros

  • Robust education library
  • Simple evaluation process
  • Strong emphasis on performance
  • Supportive community
  • Generous profit payouts

Cons

  • Coaching is priced separately
  • Pricey subscription plans

3. Surge Trader


Surge Trader is a highly renowned prop trading firm that supports forex, crypto, and CFD-based indices. Though relatively new (started in 2021), it has garnered the attention of many traders because of its simple evaluation process, quick funding, and not-so-stiff trading rules.

There are two phases of evaluation: 1 and 2. Both phases have several profit and drawdown rules. For example, for phase 1, you get a profit of 10% after hitting certain targets and have a consistent drawdown that doesn't exceed 8%.

Surge Trader has 3 types of accounts: standard, intermediate, and expert, which cost between $250 to $6,500. Moreover, these accounts qualify for funding ranging between $25,000 up to $1 million. You enjoy 75% of profits made, which can increase to 90% based on your performance. In conclusion, Surge Trader cares about the success of its clients by having an excellent customer support system and comprehensive learning resources.

Pros

  • Offers performance-based scaling opportunities
  • No monthly recurring fees
  • High trading limits of up to $1 million
  • Simple evaluation process
  • Quick withdrawals

Cons

  • Limited experience; only operated since 2021

4. FundedNext


FundedNext is a prop trading firm that started recently in 2022 and has quickly gained popularity as a go-to company for traders seeking forex funding. Just like other forex prop firms, it uses MetaTrader 4 and 5 trading platforms for more convenience.

Getting started is simple, sign up and choose your preferred funding model: Evaluation or Express. The Evaluation model has 2-phase challenges, which span over 60 days and require you to demonstrate your trading prowess in a controlled environment. 

The Express model is ideal for expert traders who are interested in getting direct funding. For this model, you should achieve a minimum of 10 trading days in one month. After that, you should be consistent in your trading performance to sail through.

Once done with either of the evaluation models, you qualify for a FundedNext funded account with a 60% to 90% profit-sharing ratio. Best of all, your account balance can be increased after every 4 months depending on your consistency in profitability. Notably, you can increase your capital on a scaling basis up to $4M.

Pros

  • Active discord channel
  • Quick payouts
  • Offers capital on a scaling program
  • Compatible with trading platforms
  • High profit-sharing ratios

Cons

  • Express model lacks a weekend holding option
  • No direct phone support

5. The5ers


The 5ERS is a top-notch prop trading firm that gives you access to funding and allows you to trade in metals, forex, and indices. The firm has gained the trust of many traders due to its unique business structure, transparency, and excellent superb management team. 

What's unique about this firm is that it gives you an account that directly qualifies for funding in its Hyper Growth Program. You only pay the one-time fee and are approved to start trading with real money. So, for every 10% profit you make, you are awarded a funded account with a double amount of your initial balance of $260 to $850. 

You can scale the amount for the Hyper Growth Program up to $4 million, depending on how you achieve the profit targets. Alternatively, you can take part in the challenge-based program where you can choose between the Bootcamp Offering and the High Stakes Program. These programs have different evaluation processes and profit targets. Lastly, the profit splits range from 50% to 100%.

Pros

  • Exclusive learning resources
  • Easy scaling options
  • No subscription fees
  • Offers immediate funding with no evaluation
  • Vast educational resources

Cons

  • Limited assets for some accounts

6. Apex Trader Funding


Apex Trader Funding is a prop firm that started in 2008 and has grown tremendously over the years. It has thousands of members in over 150 countries, boosts simple evaluation tests, and has high profit-sharing ratios. This firm focuses on futures trading, and users can trade different kinds of futures like forex, equity, interest rates, metal, agricultural, or micros. 

The firm has a structured evaluation process that you can easily finish within 7 days and qualify for funding. There are different account sizes with individual contract sizes, trailing thresholds, and profit targets. The best part you'll love about this firm is that you can use up to 20 multiple accounts simultaneously; a unique feature you won't find in other prop firms. 

What's more, you can make a complete withdrawal of the first $25,000 you've generated in profits for each account you have. Thereafter, you can make profit withdrawals on a 90% basis, which is quite an attractive rate on this list. Summing up, ATF is compatible with up to 15 trading platforms including Ninja Trader 7, Tradovate, Rithmic RTrader Pro, and WealthCharts, to offer a seamless trading experience.

Pros

  • Robust educational platform
  • Quick evaluation process
  • High payouts
  • No daily drawdowns
  • No trading days limitations

Cons

  • Limited assets; mainly focused on futures
  • Has monthly charges/subscription plans

7. The Trading Pit


This widely recognized prop firm embraces a partnership model with traders. It's a great platform for traders with different financial interests since it enables them to trade in crypto, stocks, forex, and ETFs. Upon registering, there's a trading challenge you need to pass before you get the funding.

The firm has different account sizes and challenges depending on whether you are trading in forex or futures. For example, the $10,000 or $20,000 account sizes require you to reach a profit target of 10% and have a trailing drawdown. On the other hand, account sizes of $50,000 or $100,000 require a profit target of 8% and have a constant drawdown.

After signing up with an account and passing the set profit target limits, you are now qualified to get The Trading Pit funded account. The funds increase on a scaling plan depending on the account you chose and can scale up to $1 million. Additionally, you are eligible for a profit split of 50% to 80% and instant payouts.

Pros

  • High conversion rate
  • Flexible options and fast payouts
  • Competitive 80% profit split
  • Challenge periods act as a learning curve
  • Reasonable profit targets

Cons

  • Founded in 2022; still a new firm with fewer years of experience
  • High minimum deposit

8. FTMO


FTMO has made itself a name as one of the best forex prop firms. Besides forex, you can also trade crypto, indices, stocks, and commodities with your FTMO account. Besides, you can access the best trading platforms, like cTrader and Meta Trader 4/5; thus a great time saver.

There's an FTMO 2-step challenge that you should pass before you can get funded. For a €155 challenge, you get an FTMO funding of €10,000, while a €1080 challenge gives you €160,000. Luckily, you'll be refunded the challenge fee after passing the evaluation process. 

After being verified, you get an FTMO funding of up to $400,000, depending on your profit targets over a certain period. Unlike other firms with a constant profit share, FTMO profit splits start at 80% and can increase on a scaling basis up to 90%. This is probably among the best profit shares in the prop trading industry.

Pros

  • Deals with multiple asset classes
  • Supportive trading environment
  • Capital is provided on a scaling basis
  • Attractive profit splits
  • Excellent educational resources

Cons

  • The fee range charged for trading challenges can hinder some traders

9. Earn2Trade


Earn2Trade is a prop firm that aims at empowering traders to be successful in futures, has credible trading tools, and an excellent payout structure. It's also a great platform for beginners as it has plenty of educational resources for learning and growth. 

The firm gives you 2 funding pathways: the Trader Career Path and the Gauntlet Mini. All these pathways have a minimum challenge duration of 15 trading days with no fixed timelines. To join the Trader Career path, you'll pay monthly fees of $150 or $190 to qualify for funding of $25,000 or $50,000, respectively. 

Similarly, you pay monthly fees of $170 or $550 to get funding of $50,000 or $200,000 for the Gauntlet Mini pathway. Upon meeting the set targets for whichever pathway you choose, you qualify for an 80/20 profit share. Finally, Earn2Trade supports different trading platforms like R|Trader, Finamark, NinjaTrader, and Motive Wave.

Pros

  • Offers multiple account sizes
  • Simple evaluation process
  • Interactive community
  • Supports multiple trading platforms
  • Splendid customer support

Cons

  • Limited to only futures

10. FX2 Funding


FX2 Funding is a distinguished prop firm with the goal of helping undercapitalized traders. It does so by providing a straightforward and efficient pathway for traders interested in forex trading to obtain funding. 

There are 5 programs that are classified according to a trader's level of experience. They are namely; the $10K Starter, $25K Intermediate, $50K Professional account, $100K Expert, and $200K master account. These accounts are associated with fees ranging from $95 to $925. 

Whichever account you open, you won't get direct funding as you'll first pass the one-step evaluation process. The differentiating factor from other accounts in this list is that you determine when to get a funded account; it can be after a day, a month, or a year. In conclusion, FX2 Funding gives you a profit split that ranges from 75% to 85%, depending on your performance.

Pros

  • No set time limits
  • Simple one-step evaluation process
  • Flexible account sizes
  • High profit splits
  • Offers detailed guidelines on trading

Cons

  • Limited to forex trading and doesn't include other asset classes
  • Founded just in 2023; therefore it's hard to determine its reputation

Conclusion

Don't let a lack of capital diminish your dreams of venturing into trading and eventually becoming a successful trader. Many prop firms are more than ready to offer you funding to kick-start your trading interests.

However, you may have to part with one-off or subscription fees, and pass the challenges to unlock any form of funding. Always conduct research on a prop firm's reputation, pricing structure, years of experience, and customer reviews before selecting it.

Jerry Garnes

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About the Author

Jerry Garnes is a seasoned writer in personal finance. His informative and insightful pieces have been featured by esteemed platforms like Bankrate, The Street, and Business Insider. In addition to his financial expertise, Jerry is a passionate poet and musician with a deep love for nature.

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