The number of providers and the selection of a prop trading firm in the USA can quickly become overwhelming for both beginners and advanced traders. This raises the question:
Which one is the best prop trading firm?
Our top pick with the best overall offer is FTMO.
In our comparison, we present our evaluation criteria, our ranking of top 5 proprietary trading firms, and we’ll also show you how to find the best prop trading firm for your needs.
| Firm | Evaluation | Profit Split | Accounts | Registration |
|---|---|---|---|---|
| FTMO | 2-step | 80% to 90% | up to 160,000€ | Sign up now! |
| Apex Trader Funding | 1-step | 90% (100% for the furst $25,000) | up to $300,000 | Sign up now! |
| OneUp Trader | 1-step | 90% | up to $250,000 | Sign up now! |
| The Trading Pit | 1-step | 50% to 80% | up to 200,000€ (CFDs), up to $250,000 (Futures) | Sign up now! |
| Instant Funding | No Evaluation | 70% to 90% | up to $200,000 | Sign up now! – 10% discount with code “Funding10” |
Table of Contents
Key Takeaways
- The most important feature of a reputable prop trading firm is its registration. The company must be registered with the appropriate commercial registry and comply with all standard data protection regulations. However, a separate license from a regulatory authority is not necessary
- The quality of the details is then reflected in the chosen evaluation model, associated costs, and challenge rules. Good prop trading firms also offer functional, reliable customer service, secure payment methods, and dependable payouts
- Below, I will introduce the best prop trading firm and explain my evaluation criteria
If needed, also check out our guide “What is a Prop Trading Firm“.
Recognizing a Legal & Safe Prop Trading Firm
Prop trading firms do not require a license. To assess the reliability of prop trading providers, one must look at other factors. First, it must always be a registered company. The country in which the company is registered is not that important. What is important is that prop trading firms adhere to internet and data security standards. Top online providers have their technical security verified by external testing institutes, such as through the PCI standard.
In addition to objective quality features, the social media followers can be used to determine how popular the company is in the prop trading scene. This helps to assess its reputation as a player in the prop trading market as user approval confirms the firm’s reputation and reliability.
| Firm | X (Twitter) | YouTube | TikTok | ||
|---|---|---|---|---|---|
| FTMO | 113,087 | 60,068 | 316,000 | 150,000 | 4,248 |
| Apex Trader Funding | 17,261 | – | 9,718 | 12,300 | – |
| OneUp Trader | 2,887 | 759 | 5,449 | 2,350 | 432 |
| The Trading Pit | 61,424 | 4,145 | 6,965 | 2,200 | 370 |
| Instant Funding | 69,984 | 9,007 | 20,000 | 797 | – |
I collected the number of social media followers in January 2024.
In my assessment of prop trading companies, transparency has always been and continues to be paramount. I am interested in knowing the key individuals behind these firms and their experience in finance. Transparency also includes disclosing business figures, such as the number of trades, the amount of payouts, and the number of prop trader accounts funded so far. Learning more about their partnerships with brokers and/or financial investors elsewhere adds an extra layer of security.
Our Evaluation Criteria at a Glance
In the following section, I’ll discuss the detailed evaluation criteria I employed to assess the prop trading firms. The first question I always asked was: Is the evaluation process single-stage, two-stage, or is there no qualification process at all? In the second step, I looked at the available account sizes and the respective monthly fees. At the same time, I checked whether the prop trading provider offers a free trial version to allow traders to test the platform for free.
Additionally, the assessment considered the linked trading platforms, such as MetaTrader 4, Rithmic, MetaTrader 5, or NinjaTrader. The best prop trading firms cover the license keys for these platforms. The choice of platform also dictates the trading instruments available, such as Forex currency pairs, futures, CFDs, commodities, metals, or cryptocurrencies.
In each test, we looked at the following evaluation criteria:
- Application Process: Is there an evaluation, or does the firm allow you to engage in trading activities with real money immediately? How many stages are in the application process? Is a quick qualification within a few days possible?
- Account Sizes: What account sizes are available? Some providers start at $10,000, but high trading accounts up to $400,000 are not uncommon.
- Costs: What fees are incurred during the evaluation phase and later with the live funded account?
- Challenge Rules: Are all rules and restrictions clearly communicated?
- Trading Platforms: Which trading platforms can be used, such as NinjaTrader, Rithmic, MT4, or MT5?
- Trading Instruments: What instruments can professional traders trade? Is trading limited to futures trading, or are there other products like Forex trading?
- Broker: Which broker does the prop firm partner with for executing proprietary trades on the exchanges?
- Customer Support: How and when you can contact customer service?
- Payment Methods: What payment methods are accepted for the one-time payment or monthly costs?
- Payout: How quickly is your share of the profits paid out? Are there deadlines, or does the prop trading firm pay the commission immediately upon request?
- Training Programs: What assistance is available to professional traders worldwide to improve their performance?
- Mobile App: Is there a mobile trader app?
For the challenge rules, we examined the following criteria:
- Profit Target: What profit amount and percentage of the initial account balance must the prop trader gain during the qualification phase?
- Profit Split: How is the profit divided between the trader and the firm? Is there an initial amount paid out exclusively to the prop traders without a split? Top firms work with a 95:5 ratio.
- Trading Period: Is there a specified number of days within which the evaluation must be completed?
- Minimum Trading Days: What is the minimum number of trading days required to complete the evaluation? When are successful prop traders granted access to funded accounts?
- Maximum Daily Loss: Is there a maximum daily drawdown, and what is it?
- Maximum Loss: What is the maximum drawdown that cannot be exceeded during the qualification phase?
- Maximum Position Size: How many trades can be executed simultaneously? Does this limit increase as the account size grows?
- Maximum Capital Allocation and Multiple Accounts: How many accounts can a trader have with the prop trading firm? What is the maximum capital that can be traded?
- Types of Trading: Is only day trading allowed, or are other types of trading permitted? Which trading strategies are strictly prohibited?
- Leverage: Is there leverage to increase the capital used for trades?
- Trading Style: What additional regulations does the prop trading firm have regarding permitted or prohibited trading styles?
- Trading Hours: What is the timeframe within which trading is allowed?
- News Trading: Are trades allowed shortly before, during, or after a news event? Is trading based on news permitted?
- Weekend and Overnight Trading: Can trades be held overnight or over the weekend? Are long-term trading systems allowed?
- Expert Advisor: Can expert advisor programs, bots, or algorithms be used to execute trades?
- Copy Trading: Is copy trading permitted on personal accounts or by emulating professional traders?
All of the evaluation criteria and challenge rules mentioned in this article can be found in all our detailed prop trading firm reviews on our website. This allows you to easily compare each firm based on these criteria and find the prop trading firm that best suits you.
Our Top 5: The Best Prop Trading Firms
Of course, I don’t want to keep the list of the top prop firms from you. Below, I present my current top 5 prop firms in a brief overview.
FTMO
My top prop trading firm – FTMO – has been around since 2014. The company from Prague has earned an excellent reputation in the world of prop trading by catering to different trading styles. FTMO has already paid out over 170 million euros to its prop traders. The FTMO Challenge for funded trading consists of two straightforward stages.
Profit sharing on the prop trading account can go up to 90:10. FTMO provides support via live chat, email, phone, and WhatsApp. Interested parties and traders can visit FTMO in the Czech capital. Overall, it’s a standout choice as the best forex prop firm in the industry.
Apex Trader Funding
Apex Trader Funding is even older in the prop trading space. The prop trading firm from the USA, founded by Darell Martin, has been around since 2008 and is one of the best prop trading firms out there. Based in Austin, the company offers a very high profit-sharing ratio. The first $25,000 is entirely yours. Afterward, profits are shared at a ratio of 90:10. The evaluation process is single-stage and can ideally be completed within seven trading days.
Sign up with Apex Trader Funding now!
OneUp Trader
OneUp Trader is a successful prop trading company from the USA. The provider has been in the market since 2017. OneUp Trader has earned a good reputation in the industry. Several details speak for the Americans in the test. The prop trading firm includes all major trading platforms. The evaluation is single-step and can be completed within 15 days. Before the profits are split 90:10, the first $10,000 belongs to the prop trader.
Sign up with OneUp Trader now!
The Trading Pit
The Trading Pit was founded and is owned by German entrepreneurs. This outstanding prop trading firm is headquartered in Vaduz, Liechtenstein. Although The Trading Pit is a relatively new prop trading firm, having been founded in 2022, its list of awards is already very extensive. As an example, the award for the “Most Visionary Prop Firm 2023” from Trading Live is worth mentioning. Withdrawals are processed daily upon request.
Sign up with The Trading Pit now!
Instant Funding
Instant Funding was founded in 2020 by Lewis James Mansbridge and Will Shearer. Today, Instant Funding is the most renowned prop trading provider in the UK. The unique aspect of this British company is that it allows a rapid transition to live trading by foregoing an evaluation process. You can start trading a funded account immediately if you wish.
However, for those who prefer a bit more security and potentially higher returns later on, there is also the option to choose a one- or two-stage evaluation.
Sign up with Instant Funding now!
Necessary: Use code “Funding10” to enjoy an exclusive 10% discount!
Prop Trading Firms by Categories
All professional prop traders share a common goal: they want to achieve their profit targets quickly, avoid losing money, and minimize the risk to their own capital. However, the path to trading success can vary depending on the different trading styles and strategies employed. To excel in the trading world, potential traders carefully consider specific features when comparing prop trading firms:
- Prop Trading Firms for Beginners
- Prop Trading Firms without Evaluation
- Crypto Prop Trading Firms
- Forex Prop Trading Firms
- Futures Prop Trading Firms
- Options Prop Trading Firms
- Stock Prop Trading Firms
- Swing Trading Prop Trading Firms
How to find your Best Prop Trading Firm
When searching for the best prop trading firm, start by assessing the firm’s credibility and examining its general requirements. Pay close attention to the evaluation process first. Is there an account model with a suitable capital amount for you? Is the associated fee reasonable and ideally refunded after qualification? Additionally, always be on the lookout for promo codes and coupons, as many prop trading providers frequently offer special promotions.
Next, take a look the challenge rules in detail, covering profit targets, trading days, daily and maximum drawdowns, and the use of expert advisor bots and copy trading variants.
Profit Split
Of course, profit distribution is crucial when evaluating the best prop trading companies. Some proprietary trading firms start with a ratio of 60:40 or 50:50, with the potential for better ratios through scaling. Other prop trading firms may start with high-profit splits of 80:20, 90:10, or 95:5.
Ideally, the prop trading firm would provide you with a lump sum amount without a split at the start. For example, you might receive the first $10,000, $15,000, or even $25,000 entirely without sharing with the proprietary trading firm.
Additional Quality Features
While the previous quality features focused on the prop trading business itself, good prop trading providers must also excel in other areas.
Prop trading providers should prioritize customer service. This starts with having a robust online presence, including FAQs and helpful blogs. Customer service should be accessible by phone, live chat, email, or ticket system. The best firms prioritize customer satisfaction by providing English-speaking support staff and enabling convenient trading access through a mobile-friendly website and dedicated trading apps.
An ideal payment system for a prop trading firm should include a variety of options, such as credit cards, PayPal, other e-wallets, and cryptocurrencies. That can greatly improve your trading experience by providing more flexibility and convenience in managing your funds. Profit withdrawals should be both fast and seamless. The best prop trading firms focus on efficiency by processing profit share requests promptly, typically within a few hours, and without any time restrictions.
Additionally, training programs that help develop trading skills should not be overlooked. Prop firms should cater to beginners who should not be left to navigate “realm of the financial world” on their own. It’s important that educational programs are available to help traders navigate the trading landscape, and allow them to learn trading from scratch.
Live chats and webinars with trading professionals enhance the educational resources offered by top companies, enabling traders to maximize their trading potential.
Conclusion
My assessments have revealed that numerous excellent prop trading firms are currently available, with leading proprietary trading firms providing a variety of funded trading programs. Since each trader has a different approach and each company promotes its own specific business direction, it can be said that every prop trader will find a suitable provider on the internet that aligns with their trading abilities.
Overall, I can describe the entry opportunities as diverse and financially manageable. The low start-up costs in comparison to the potential profits for successful candidates in the evaluation process of the best prop trading firms suggest a thriving and dynamic prop trading market.
Frequently Asked Questions
In the question and answer section, I have compiled the most important information about the best prop trading firms for you.
How can I recognize the credibility of a Prop Trading Firm?
A reputable prop trading firm operates transparently and openly. It provides all important company data, from the owner to the current business figures. For more details, read our section “Recognizing a Legal & Safe Prop Trading Firm“.
What fees do Prop Trading Firms charge?
There are different fees. The most important costs are the evaluation fees for entry. Read more about prop trading fees in the section “Our Evaluation Criteria at a Glance“.
Do Prop Trading Companies offer bonus offers?
Yes, there are promotions and bonuses. When selecting the best prop trading providers, you should always pay attention to the coupon offers. That way, you can save money. For more information, see “How to find your Best Prop Trading Firm“.
What can I trade with Prop Trading Firms?
The majority of prop trading firms focus on day trading offers. You can place your trades on Forex pairs, CFDs, and/or Futures. For more variety of trading opportunities, see the section “Our Evaluation Criteria at a Glance“.
Where can I find the best Prop Trading Firms?
You can always find the best proprietary trading firms on my website. Together with my partners, I am constantly testing prop trading firms to find the best companies. Check out my list of the best prop trading firms at the top of the page or read the section “Our Top 5: The Best Prop Trading Firms“.
Having more than eight years of trading experience, I know how hard it is to find a good and reliable Prop Trading Firm and not to choose the wrong one. With PropTradingScam.com I want to help you to pick the right one, stay safe, and share your experience.
