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Are you a trader looking to expand your portfolio? If you are, then you are in the right place. Below, we have done intensive research on prop firms to give you the most updated information to kick-start your trading career.
Further in the article, we have listed the main parameters, and according to them, we chose the best prop firm. You can use those parameters to conduct your own research.
WHAT IS A PROP FIRM
A proprietary firm is an organization or entity that funds you using its capital. If you receive this funding, you can utilize your trading strategies to make a profit. These firms give you a significant portion of the profits generated using the firm’s capital.
In the past, proprietary firms were physical establishments that hired highly skilled and experienced traders with extensive backgrounds in the field. Conversely, more capable and professional traders were required to invest substantial capital to receive training.
Nowadays, prop firms have a well-established online presence and are more inclusive to the average individual trader. These firms offer training resources at affordable prices and would subject you to an evaluation process before granting you funding.
OVERALL BEST PROP FIRMS:
We have evaluated each of these prop firms against the parameters mentioned further down. Below is the outcome of the search for the best prop firms.
- The5ers: It is among the oldest prop firms that offer maximum funding of $4 million with profit split up to 100%. They have programs to suit every trading style with a one-time fee. Their key focus is on consistent growth. They provide top-notch educational resources, and they also have unique features like salary, bonuses, and the fastest scaling plan in the industry.
- FTMO: It is quite an old firm that offers maximum funding of $400,000. The evaluation process is 2-step with a one-time fee. They offer trading platforms like MT4 and MT5 with assets across markets like forex, crypto, indices, etc.
- My Forex Funds: Founded in 2020. They offer traders three different programs to get funded with an opportunity to scale up to $2,000,000 while keeping up to 90% profit splits. They are a reputable prop firm and one of the most popular among traders.
- Trade The Pool: It is the best stock prop firm in the industry and suits every trading style. It offers a $260,000 buying power with unlimited scaling. The profit split is up to 80%. You can trade more than 12,000 stocks & ETFs and even short every penny stock, and once you sign up, you get a free user to Bookmap/Trade-Ideas/TrendSpider.
- The Funded Trader: It is an excellent prop firm that offers funding up to $1.5 million with a profit split of 90% with scaling. It also offers competition for the traders and rewards the best traders.
- True Forex Funds: Another great firm and popular among traders that offers capital up to $2,000,000 with a profit split of 80%. It offers platforms like MT4 and MT5 and has a responsive support team.
PROP FIRMS WITH THE BEST TRADING CONDITIONS
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THE5ERS
The EUR/USD pair typically has a tight spread ranging from 0 to 0.2 pips. The commission for each complete round trip on a lot is $4, equivalent to 0.4 pips. Furthermore, the firm has a good slippage tolerance that is rare in the industry.
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FTMO
The EUR/USD pair typically has a tight spread ranging from 0 to 0.4 pips. FTMO has zero commission on indices and crypto coupled with low spreads, but high slippage can occur during high-impact news.
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TRUE FOREX FUNDS
The EUR/USD pair typically has a tight spread ranging from 0 to 0.4 pips. They charge low commissions with less slippage. The prop firm allows you to use MT4, MT5, and cTrader platforms.
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TRADE THE POOL
This firm charges low commissions, has tight spreads, and has low slippage. You can trade pre/after market and real-time data feed from New Your Stock Exchange.
- E8 FUNDING
The EUR/USD pair typically has a tight spread ranging from 0 to 0.5 pips. The firm offers ECN accounts with good spreads and no commission.
HIGHEST-RATED PROP FIRMS ON TRUSTPILOT
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FTMO
FTMO, one of the most popular prop firms in the industry, has an excellent 4.9-star rating on Trustpilot and 5331 reviews.
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THE5ERS
The5ers, one of the most popular forex prop firms, has an excellent 4.8-star rating on Trustpilot and 1184 reviews.
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MY FOREX FUNDS
My Forex Funds has an excellent 4.8-star rating on Trustpilot and 16,144 reviews, and they are very popular in South Asia.
- E8 FUNDING
E8 Funding has an excellent 4.8-star rating on Trustpilot and 1215 reviews.
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FUNDING NEXT
Funded Next has an excellent 4.7-star rating and 5955 reviews.
BEST CHEAPEST PROP FIRM PROGRAMS
THE5ERS – Starting from $39
The5ers offers the lowest cost for the popular 2-step challenge starting from $39 for a $5K funded account and $495 for a $100K funded account.
They also have a unique Bootcamp program, which is a low-entry-cost challenge, and you pay the rest upon success. It starts from $95 for a $100K funded account.
It’s unlimited time. You get up to a 100% profit split, and you can scale up to $4M
MY FOREX FUNDS – Starting from $39
The firm’s $5K account costs $49, the $10K costs $99, while the $20,000 and the $50,000 cost $189 and $399, respectively.
FUNDEDNEXT – Starting from $49
Fundednext offers a two-step challenge starting from $49 for a $6K funded account, $15,000 package costs $99, while the $25,000 and $50,000 packages cost $199 and $299, respectively.
TRADE THE POOL – Starting from $97
Trade the Pool provides a complimentary 14-day trial for individuals interested in testing it without requiring credit card information. The firm’s $20,000 package costs only $97, while the biggest account costs $1240, and you’ll receive a massive $260,000 buying power.
THE PARAMETERS WE USED TO DECIDE THE BEST PROP FIRMS
We have chosen integral parameters to give you the best possible idea of how these prop firms are and how to rank them. This should aid you in selecting the best prop firm to further your trading career.
Reputation
Reputation in this respect means the perception of prop firms to the trading community. A prop firm’s reputation is built by its track record, performance, and transparency. Reputation is essential as it shows that the prop firm is highly regarded in the trading community.
Available Assets
Prop firms have different assets, so it’s very important to check if the company has the assets you like to trade. Popular assets are the major Fx pairs, major indices, and commodities such as gold & silver, and some of them also offer crypto-currencies.
Fees
This is a critical parameter, as it directly affects your profit from a prop firm. Under this parameter, we focused on three aspects. These are:
Commission Structure: We looked at the amount of commission each prop firm charges for executing trades
Profit Split: We also focused on how profits are split between the trader and the prop firm. Prop firms with more favorable profit splits ranked higher.
Evaluation Costs: We assessed the fees that the prop firm charges to evaluate traders. We weighed this charge against the value they offer you as a trader regarding possible profit returns.
Flexibility Rules
Under this parameter, we assessed how much you can exercise independence and adaptability in your trading strategy. We focused on the following aspects.
Trading Strategies: Do these prop firms allow you to choose a strategy that best suits you, for example, trading news, holding positions overnight and over the weekend?
Risk Management: Do these prop firms allow you to employ risk management that best works with your trading plan?
CUSTOMER SUPPORT
Under this parameter, we assessed the efficacy of each prop firm’s customer support and the speed of their responses. They should address all concerns and issues promptly. Traders may experience significant inconvenience due to loss of trades and revenue caused by even a slight delay in response time.
Furthermore, we evaluated the kinds of communication channels that customer support employs and the effectiveness of these channels.
EDUCATION
Under education, we focused on training programs offered by prop firms. We assessed the quality and comprehensiveness of these programs. A proper training program could differentiate success and failure in this industry.
TRADING CONDITIONS
Under trading conditions, we focused on various aspects. They include the amount of capital the prop firm offers, the leverage, and the kind of trading platforms offered.
COMMISSIONS
Under this parameter, we focused on which prop firm offered the most favorable commissions. This parameter is essential as it directly affects profits.
SPREADS
The spread refers to the difference between the bid price (the price buyers are willing to purchase) and the ask price (the price sellers are willing to sell). Prop firms that offer a tight spread allow you to make more profit.
SLIPPAGE
Slippage refers to the difference between the expected price of a trade and the actual executed price. Less slippage equals more profitability.
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BEST PROP FIRM CONCLUSION
Prop firms have become very popular in recent years and are an excellent solution for traders to receive a large amount of funds. There are many prop firms today, so it’s not easy to choose the best one for you. Use these main parameters to help you make the best decision.
Much needed info. Thanks for the wonderful article.