Prop trading firms for beginners are designed for novices who want to get started. These firms prioritize teaching you about prop trading and provide a demo account where you can practice trades before risking real money.
Which is the best prop trading firm for beginners?
Our top pick for beginners is Earn2Trade.
In our comparison, we present our evaluation criteria and our top 3 ranking, in addition to showing you how to find the best prop trading firm for beginners.
| Firm | Feature | Profit Split | Accounts | Registration |
|---|---|---|---|---|
| Earn2Trade | Top Training | 80% | up to $400,000 | Sign up now! |
| FTMO | Free Trial | 80% to 90% | up to 160,000€ | Sign up now! |
| OneUp Trader | Free Trial | 90% | up to $250,000 | Sign up now! |
Table of Contents
Key Takeaways
- Prop trading firms for beginners specifically target newcomers and novices. They almost always offer a free demo account and the ability to try out initial trades risk-free
- The best prop trading firm for beginners is Earn2Trade. The company specializes in training new prop traders. In my review, I will introduce you to other good prop trading firms that facilitate a smooth entry into the field
- You will learn the key evaluation criteria here, which will allow you to determine whether a prop trading provider is suitable for beginners or if its offerings are primarily aimed at more experienced traders
Top 3: Prop Trading Firms for Beginners
We won’t keep you waiting for the review. Here are the details of the three best prop trading firms for beginners.
You can find the best prop firms with the most compelling offerings on our “Best Prop Trading Firms” page.
Earn2Trade
From our tests, it’s evident that Earn2Trade directly targets prop trading beginners. The company has very specifically tailored its business concept to help newcomers launch their trading careers.
Earn2Trade’s goal is to help beginners by training aspiring prop traders and then referring them to partner firms for live trading. Unlike traditional prop trading firms, Earn2Trade does not execute trades itself through a broker.
Beginners can benefit from a variety of offerings at Earn2Trade. It all starts with a complete crash course for beginners, followed by weekly webinars to keep you up to speed. Beginners can access a library of videos on the Earn2Trade website, which explain every aspect of trading. The videos start with fundamentals and go all the way to advanced trading strategies. Earn2Trade’s training program was developed in collaboration with the Universiapolis International University of Agadir in Morocco.
The prop trading provider, founded by Ryan Masten, has been in the market since 2016. US traders are served by the office in Wyoming, while the staff in Dubai handle all the other countries. Earn2Trade keeps its entry fees affordable, with options ranging from $120 to $550.
FTMO
FTMO offers a professional approach to prop trading. They offer a free trial account that lets you experience their training program firsthand. You can go through several stages in the training program. The FTMO free trial, a shortened version of the FTMO Challenge, prepares you for the evaluation phase and, ultimately, for achieving profitability.
Also, you can use the FTMO Academy. It offers learning programs that equip you with the foundational knowledge needed for successful trading. During the challenge phase or later during real-money trading, you can always consult performance coaches. You can choose from general training sessions or book individual consultations focused on your specific trading journey.
FTMO is a European prop trading firm based in Prague, the capital of the Czech Republic. The company was founded in 2014 by Otakar Šuffner and Marek Vašíček. You can trade Forex, commodities, indices, cryptocurrencies, stocks, and bonds using MetaTrader 4, MetaTrader 5, and cTrader. You can get started with FTMO for as low as €155.
OneUp Trader
OneUp Trader offers a free trial account. If you want to try out the prop trading firm, you can start with the free demo account. Note that OneUp Trader limits the free trial period for potential traders to one week. This gives you seven days to decide if OneUp Trader is the right fit. On the plus side, they don’t monitor your trading activity on the demo account, giving you freedom to explore.
OneUp Trader places great importance on internal communication among traders. As a beginner, you’ll have direct access to chat with experienced, funded traders. You can get tips and advice from them to achieve the best results and also have the opportunity to post your own messages in the channels. You can expect friendly and quick responses from other prop traders.
Sign up with OneUp Trader now!
OneUp Trader is based in the USA and has been in the market since 2017. The prop trading firm has built a very good reputation in the industry through its reliable work. The fees are beginner-friendly, ranging from $125 to $650, depending on the account size. If you become a profitable funded prop trader, you can keep the first $10,000 without any split.
The Offer: Learning Programs, continuous Coaching, moderate Fees
Top proprietary firms for new traders always offer a choice between jumping into an evaluation phase or starting with a demo account. The free trial accounts give you a taste of real-money trading, providing real-time market data and allowing you to take no risk while trying out various trading strategies.
That said, prop trading firms still expect you to follow basic trading rules, even in a demo trading environment. After all, it’s not very helpful to develop a trading plan in a demo account that you can’t actually use during a real evaluation.
Any prop trading firm serious about attracting new traders should offer beginner courses. It’s safe to assume that many people signing up will have limited to no prior experience with financial markets or trading on the stock exchange. Therefore, the learning programs should always start with the basics of trading, including essential risk management principles, and then build up step-by-step.
It is important that prop trading beginners are not left alone during the challenge. Ongoing coaching and support are essential. And yes, no prop trader is perfect. Even after switching to a live funded trading account, performance support is still needed.
It’s important to be realistic: Prop trading is not suitable for everyone. It is known that many users fail during the challenge and evaluation phases. That’s why it is important for prop trading firms for beginners to operate with low entry fees. It can not be entirely free, but joining should be as affordable as possible. And if a trader doesn’t succeed on their first attempt, there should be a way to reset and try again. The best firms will even offer better terms or lower fees for second and third tries.
Why aren’t all Prop Trading Firms suitable for Beginners?
In my experience comparing top prop trading firms, I’ve noticed some prioritize actual stock market trading over extensive educational resources. These firms are often targeting more experienced prop traders who are ready to hit the ground running. Their main goal is to generate profits quickly through their affiliated brokers.
You’ll find some prop trading firms that skip the evaluation phase altogether. Instead of proving your skills up front, you apply with references. If accepted, you dive straight into trading with real money, but often under stricter rules and oversight. Other firms offer flexibility: you can choose between a funded account and an evaluation at the start. Prop trading firms without evaluation are usually more expensive due to their focus on seasoned, professional traders.
Our Evaluation Criteria for Prop Trading Beginners
In the following section, I will explicitly outline the evaluation criteria that are particularly important for beginners looking for the best prop trading providers and that we considered in our tests.
- Extensive Training Program and Educational Material
- Free Demo Account or Free Trial
- Moderate Account Sizes and Fees
- Continuous Assistance and Good Support for Questions
- Quick Evaluation with Fair Conditions
- Beginner-Friendly Trading Platform (such as MetaTrader 4 or MetaTrader 5)
Overall, in all our reviews, we consider 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?
Prop Trading Firms by Categories
With my evaluation criteria, coming up with additional rankings is possible. If you are not specifically looking for a prop trading firm for beginners, you can alternatively make your selection based on the following options:
- Best Prop Trading Firms
- 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
Advantages of Prop Trading Providers for Beginners
In the pro and con check, the advantages of prop trading for beginners outweigh the disadvantages, which include:
- Free entry through free trial, test, or demo accounts
- Beginner learning courses that cover the essential trading basics
- Continued assistance, including personal coaches
- The initial challenge phase has very affordable fees
- Evaluation requirements are comparatively low
- Numerous trading instruments and beginner-friendly platforms
Disadvantages of Prop Trading for Beginners
There are no real disadvantages to prop trading for beginners. The moderate entry options and free test versions are also suitable for professionals. Why wouldn’t even experienced prop traders seek to continually refine their trading skills??
If you are really looking for disadvantages with prop trading for beginners, a potential disadvantage is that direct access to a funded account is not possible without going through the evaluation process. Traders must complete an evaluation process before they can withdraw their profits. This means profits are held in stages until certain criteria are met.
Who should choose a Prop Trading Firm for Beginners?
In general, a prop firm for beginners is welcoming to both beginners and experienced traders. And, there is nothing wrong with potential prop traders with experience registering. They can also benefit from the offerings.
If you have no knowledge of trading, check out the options available in proprietary trading for beginners. It’s the ideal place to learn the basics of trading step-by-step.
How to find the Best Provider for Beginners
If you’re looking for an excellent prop trading firm for beginners, consider answering the following questions:
- Is a demo account offered? Can I use multiple free trial accounts to try out different trading strategies? Is there a time limit or restricted trading options with the free trial account?
- What assistance programs are offered for beginners? Are there training sessions and webinars to learn prop trading step-by-step?
- What support can I use after entering the challenge phase?
- What are the most affordable fees for trading entry? What account sizes are offered for beginners?
- What costs do I have to pay if I reset my account?
- Are there currently any promotional offers that can further reduce my fees?
- Which trading platforms can be used? What trading instruments are allowed?
- How and when can I reach customer service?
- What profit target do I need to achieve during the evaluation? What is the loss limit? Is it a single or two-phase evaluation?
- How many days do I need to trade minimum to get funded and become a prop trader?
- When can I start earning money?
Conclusion
The international prop trading space is very well-established, offering a variety of options for those looking to start prop trading. There are several companies specifically designed for beginners, making it easier to get started. Take advantage of the benefits offered and choose the prop trading firm that best suits your needs and level of knowledge.
Prop trading firms act as a stepping stone, helping newcomers navigate the world of proprietary trading and potentially become professional prop traders.
Frequently Asked Questions
In the questions and answers section, I have compiled the most important details of my experiences with the best prop trading providers for beginners.
Are there Prop Trading Firms that specifically target Beginners?
Yes. There are firms that specialize in prop trading for beginners. You can find the most important criteria for these companies in the section “The Offer: Learning Programs, continuous Coaching, moderate Fees“.
Why is a demo account particularly important for Beginners?
Only if a demo or free trial account is available can you truly start for free and without any risk. You can find all the information under “The Offer: Learning Programs, continuous Coaching, moderate Fees“.
Who is the best Prop Trading Provider for Beginners?
The best prop trading provider for beginners in the test is Earn2Trade. In my opinion, the company has a unique training and education program. You can read the company details and the corresponding offers under “Earn2Trade“.
What are the disadvantages of Prop Trading Firms for Beginners?
In my opinion, the only disadvantage is that you cannot immediately start with a funded account. And the profit payout is delayed. Read more under “Disadvantages of Prop Trading for Beginners“.
Where can I find the best Prop Trading Firms for Beginners?
You can find the best prop trading firms for beginners on my website. I always update the ranking of the top providers. Beginners will find what they need in the section “Best Prop Trading Firms for Beginners“.
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.
