No Evaluation Prop Firm: Best Firms without Evaluation

A prop trading firm without an evaluation process is often preferred by advanced prop traders and professionals to get a real funded prop trading account directly and avoid time-consuming challenges.

Which is the best prop trading firm without evaluation?

Our top pick for direct financing is Instant Funding (save 10% with code “Funding10”).

In our comparison, we present our evaluation criteria and our top 3 ranking, and we show you how to find the best prop trading firm without evaluation.

The Best Prop Trading Firms without a Challenge (Top 3)
Firm	Evaluation	Profit Split	Accounts	Registration
Instant Funding	none	70% to 90%	up to $200,000	Sign up now! – 10% discount with code “Funding10”
The5ers	none	50% to 100%	up to $40,000	Sign up now!
The Trading Pit	only 3 days	50% to 80%	up to 200,000€ (CFDs), up to $250,000 (Futures)	Sign up now!

Table of Contents

Key Takeaways

Prop trading firms without an evaluation process are still quite rare. However, there are a few firms that completely forgo qualifications. With these firms, you receive a Direct Pass, allowing you to start trading immediately
The advantage of prop firms with Direct Funding is clear: you can start earning profits right away and withdraw them. The disadvantages are that the accounts are subject to stricter trading rules, and the costs to get started are higher compared to the accounts in the evaluation phase
In my review, I will examine the pros and cons in more detail. Additionally, I will discuss the evaluation criteria of the best no evaluation prop firms

Top 3: Prop Trading Firms without Challenges

Prop trading firms without an evaluation process are not standard. However, there are some exceptions, and I will start my review by introducing the current market leaders that don’t require an evaluation.

You can find the firms with the best overall offerings on our “Best Prop Trading Firms” page.

Instant Funding

For Instant Funding from the UK, the name says it all, as prop traders are financed immediately. However, to start at the highest level with an Instant Funded account, you need to pay $3,460. The most affordable entry-level program is available for $79.

Trading is conducted using CFDs on the DXtrade platform. In our comparison, this provider is clearly the best prop trading firm without an evaluation.

Necessary: Use code “Funding10” to enjoy an exclusive 10% discount!

The5ers

The5ers At the prop trading firm The5ers, you start with a funded trading account, and there is no profit target. 5ers is notable for its excellent training programs, which can be used alongside trading and are part of its growth program. The5ers allows prop traders to use EAs (Expert Advisors) and also supports copy trading. Trades can be held over the weekend.

The Trading Pit

The Trading Pit is a Liechtenstein-based company located in Vaduz. While it does use an evaluation process, the onboarding is extremely fast and can be completed within three trading days. The prop firm offers trading instruments such as indices, stocks, forex/currencies, cryptocurrencies, metals, commodities, and bonds.

The Offer: A Directly Funded Account

As previously mentioned, prop trading firms with direct funding are not yet a widespread trend. Those who choose a provider without an evaluation process are given a trading account immediately after registration, which allows for real-money trading. This is also referred to as a live account in professional terminology.

In my experience, there are quite a few prop traders who are specifically looking for these types of companies in the market. They feel more liberated without profit and time pressures. On the other hand, it must be noted that the most no evaluation prop trading firms employ quite strict risk management. Naturally, these companies aim to minimize the potential risk of loss of their trading capital.

There are differences among the top prop trading providers with a Direct Pass, particularly in the trading instruments they offer.

While futures trading is common, some prop firms also cater to forex traders. Also, some no-evaluation prop firms do allow traders to hold positions overnight or over the weekend.

Why do most Prop Trading Firms have an Evaluation Process?

A no-evaluation prop trading firm truly extends a leap of faith to its traders by providing them with access to the firm’s capital through its funding program. Clearly, despite all risk management measures, this approach is associated with the possibility of trading losses. If the prop trader does not deliver the desired performance, the prop trading firm can lose money.

This is precisely why the majority of prop trading providers require a traditional evaluation process. You need to prove your skills, and this comes with lower initial costs. You will only be granted access to the pool of prop traders once you have demonstrated consistent profitability.

Our Evaluation Criteria at a Glance

To find the best prop trading firm without evaluation, in my opinion, one should not only focus on the potential direct entry. Before registering, you should consider various quality criteria. Not every provider suits all prop traders. Below, I have compiled the most relevant evaluation points from my perspective.

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?

Prop Trading Firms by Categories

If you’re not specifically searching for a prop trading firm without an evaluation, you can explore the following options to make your selection:

Advantages of Prop Trading without Evaluation

What are the key benefits you can expect from the best prop trading firms without evaluations? Below are the most important pros summarized for you:

No Time Pressure: Without the time restrictions of an evaluation, traders can make more deliberate decisions, reducing the risk of errors caused by rushing
No Profit Target: Direct Funding lacks a specific profit target. Instead, indirect limitations like a minimum withdrawal amount may apply
Profit from the 1st Trade: A big advantage is that you can start earning profits from the very first trade with a Direct Pass
Usually, No License Costs: Platform costs (such as NinjaTrader license fees) are typically covered by prop trading providers without evaluations
Higher Drawdown: The drawdown is typically higher with industry leaders. With higher loss limits, you have greater flexibility in trading

Disadvantages of Prop Trading without Evaluation

Of course, I don’t want to hide the drawbacks of prop firms with Direct Funding from you. If you choose such a provider, you’ll have to accept the following limitations:

Higher Fees: The most significant disadvantage of prop trading providers without evaluation, in my opinion, is the higher entry fees
Partial Withdrawal Restrictions: Companies sometimes limit or delay withdrawals. While this practice is understandable, it’s not ideal for prop traders
Lack of Sustainability: There are quite a few experts, myself included, who question the sustainability of prop firms without an evaluation process. Is it truly the case that a trader who can afford the higher costs associated with funded accounts is inherently a better prop trader? Probably not
Live Account Doesn’t Guarantee Profitability: Equating a live account with profitability is a crucial mistake. In practice, having a live account doesn’t necessarily mean being profitable

Who should choose a Prop Trading Firm without Evaluation?

While the evaluation phase can be tedious, I recommend that newcomers to the prop trading industry participate in it. With relatively little capital investment, they can test whether prop trading is truly suitable for them by exploring various trading opportunities and beginning their trading journey on a solid foundation. Additionally, some of the best providers will refund their fees once the evaluation phase is successfully completed.

Prop trading without evaluation is suitable for traders who already have some experience in successful trading. Trading on a live account only makes sense if you’re already familiar with the industry. Absolute beginners will quickly fail with strict conditions and are unlikely to generate profitable gains in the long term.

How to find the Best Provider without Evaluation

If you’re looking for the best prop trading company with direct financing, you should answer the following questions one by one to ensure it aligns with your trading goals:

Does the provider operate with or without evaluation?
Which trading instruments are offered on which trading platforms?
What are the available account sizes?
What are my initial entry costs and ongoing fees?
What are the maximum daily drawdown and maximum total loss to consider?
What profit split is initially offered, and is there a scaling plan for increasing the profit share?
What rules apply to withdrawals? Are there any security holds?

Conclusion

In conclusion, I can highlight that there are some very good prop trading companies with direct financing, but you should think very carefully before getting started. In my assessment, the advantages and disadvantages are almost equally balanced, so it’s important to consider your individual circumstances and goals when making a decision.

To our Top 3

Frequently Asked Questions

In this section, I have answered some important questions about prop trading firms without evaluation.

Why are there so few Prop Trading Firms without evaluation?

Prop trading providers without evaluation provide traders with proprietary capital for trading directly. This can be economically risky, as the firms make a significant investment in each trader. More about the offerings of these companies can be found under “The Offer: A Directly Funded Account“.

Why is evaluation useful for Prop Traders?

Having a specific profit target in mind, traders can prove their trading skills during the evaluation phase. For beginners, the admission and training process is undoubtedly beneficial. Read more in the section “Why do most Prop Trading Firms have an Evaluation Process?“.

Who should sign up with a Prop Trading Firm without Challenges?

Experienced traders should opt for prop trading without evaluation. For further information, read “Who should choose a Prop Trading Firm without Evaluation?“.

What are the disadvantages of Prop Trading Firms without Evaluation?

The two main disadvantages are the stricter withdrawal policies of the providers and the higher entry costs for aspiring prop traders. All the cons are summarized in “Disadvantages of Prop Trading without Evaluation“.

Where can I find the best Prop Trading Firms without Evaluation?

You can always find the best prop trading firms without evaluation on my website. I continually adjust the ranking to reflect the market. Read “How to find the Best Provider without Evaluation” to learn how to find the best prop trading firms with direct financing.

Liam Matthews

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.