Best Forex Prop Trading Firms: Trade Legit & Safe in 2024

A forex prop trading firm allows trading in forex and is characterized by a good overall package.

Which one is the best forex prop trading firm?

Our top pick for the best forex prop trading firms is FTMO.

In our comparison, we present our evaluation criteria and our top 3 rankings and show you how to find the best prop trading firm for currencies.

The Best Forex Prop Trading Firms (Top 3)
Firm	Evaluation	Profit Split	Accounts	Registration
FTMO	4 days	80%	up to 160,000€	Sign up now!
The Funded Trader	3 days	80%	up to $200,000	Sign up now!
The Trading Pit	3 days	50% to 80%	up to $250,000	Sign up now!

Key Takeaways

Forex Prop Trading involve placing trades on the price movement of two currency pairs within a set timeframe. Typically, forex prop trading is carried out as day trading. Since only the trend of two currencies is considered, forex prop trading initially appears quite simple
Top forex prop trading firms work with trading platforms like MetaTrader 4 and MetaTrader 5. MT4, originally designed for forex trading, offers access to all currency pairs for trading
The best forex prop trading firm is not solely defined by offering forex trading. Other important quality features are explained in my report

Top 3: Forex Prop Trading Firms

I want to start by introducing the top three forex prop trading firms. All three providers come with a very good forex portfolio. I have thoroughly tested these firms. The prop trading providers are reputable and secure. I can recommend registration with them without any reservations.

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

FTMO

FTMO For me, the best forex prop trading firm on the market is FTMO. The company from Prague, founded in 2014 by Otakar Šuffner and Marek Vašíček, enjoys a stellar reputation and has seen steady growth over the past years in both revenue and user base. They have professionalized their recruitment process for new talented traders. If you have no experience, you can learn the basics of forex at the FTMO Academy.

The Czech company’s customer service even extends to WhatsApp, offering an additional channel for support. They allow traders to conduct trading on popular platforms like MT4, MT5, and cTrader. FTMO generously shares profits of up to 90% (through scaling) with their prop traders.

The Funded Trader

The US-based The Funded Trader definitely deserves a place on the list of the best forex proprietary trading firms. If not for anything else, then because it’s backed by the former founders of the Forex League and the VVS Academy. From day one, The Funded Trader’s business model was focused on forex trading.

In the best-case scenario, you can complete the evaluation phase at the US-based prop firm within just three days. Other advantages include very moderate entry fees, starting from $65, and professional customer service, which is available via live chat, email, phone, and an internal ticket system.

The Trading Pit

The journey of The Trading Pit has been marked by numerous awards and honors. Although the company from Liechtenstein is still quite young, it has secured a solid position among the best forex prop trading firms. The overall package from The Trading Pit can be rated as flawless. Also, it has a great track record of rewarding and being profitable for the trader community.

Uniquely among prop trading firms, The Trading Pit goes a step further by offering top traders a pathway to becoming independent asset managers.

The Offer: Forex Trading

In classic forex prop trading, traders bet on the price movements of currency pairs. Leading forex proprietary trading firms offer access to over 80 currency pairs. In practice, forex trading is divided between major and minor markets. The most important major currency pairs (also known as forex Majors) include:

- Fiber: Euro and US Dollar (EUR/USD)
- Gopher: US Dollar and Japanese Yen (USD/JPY)
- Cable: British Pound and US Dollar (GBP/USD)
- Swissie: US Dollar and Swiss Franc (USD/CHF)
- Aussie: Australian Dollar and US Dollar (AUD/USD)
- Loonie: US Dollar and Canadian Dollar (USD/CAD)
- Kiwi: New Zealand Dollar and US Dollar (NZD/USD)
- Chunnel: British Pound and Euro (GBP/EUR)
- Euro-Swissie: Euro and Swiss Franc (EUR/CHF)
- Yuppy: Euro and Japanese Yen (EUR/JPY)

In the minor markets, numerous other smaller currencies are included in trading.

To be successful in forex prop trading, you should have a good understanding of currency rate developments. Several indicators directly influence the stability of currencies and their trends. First, the global and regional economic situation must be considered. Second, central bank interest rate decisions significantly impact currency rates. Third, economic news from large companies and corporations can influence currency rate developments.

Can Currencies be traded at all Prop Trading Firms?

When people talk about prop trading, they almost always mean forex trading. Statistics from brokers and prop trading firms show that many traders specialize almost exclusively in forex, i.e., currency pairs. In my experience, you will find forex prop trading opportunities at the vast majority of online providers.

It is noteworthy that currencies (forex) can also be traded in the form of futures. In this case, you are not trading the currencies directly but the related securities.

Our Evaluation Criteria at a Glance

How did I find the best forex prop trading firm? I’ve compiled a detailed checklist below outlining the evaluation criteria I used to make the list of Forex prop firms. It’s important to note that not all forex prop trading firms are the same. The quality and conditions of their offers vary significantly. Always pay close attention to the following 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

If forex trading isn’t a priority for you, that’s no issue. You can also use other trading instruments in prop trading. Find the best prop trading firms in other categories here.

Advantages of Prop Trading with Forex

A major benefit of prop trading with forex is that many prop trading companies specialize in currency trading. As a result, you have a wide selection of excellent forex prop trading firms to choose from.

Understanding how the forex markets work is actually pretty simple, even for beginners. It’s easy to see when prices are going up or down. Before making any trades, you’ve got a ton of information sources you can check out. You can look online and track how currencies have moved over the last hour, day, week, month, or even years. With a bit of practice and intuition, you’ll be able to do some targeted analysis on your own.

Forex markets are always the top priority on prop trading firms’ trading platforms. I want to emphasize that the popular prop firms out there use MetaTrader 4. This platform was specifically designed for forex trading, and it’s super user-friendly. Even beginners can pick it up pretty quickly.

Disadvantages of Prop Trading with Forex

Honestly, there aren’t really any major downsides to prop trading with forex. Those who are smart about it and use a solid strategy have a good chance of making consistent profits.

However, you should note that currency pairs are volatile. The trend direction of a forex pair can reverse multiple times within a day. Rarely does it go consistently up or down. The reason for this is that some big players, such as central banks, are active in the forex market. For example, if a bunch of big investors decide to take profits, that alone can push the price down within just a few minutes.

Who should choose a Forex Prop Trading Firm?

Forex prop trading is generally suitable for everyone. Those who want to trade with currencies occasionally or permanently should choose a forex prop trading firm.

Based on my prop trading experiences, currency pairs are ideally suited for beginners as they are easy to understand. I’d even go as far as to say that prop trading newbies should focus exclusively on forex trading in the initial phase.

How to find the Best Firm for Forex

If you are looking for the best forex prop trading firm, you should pay attention to the previously mentioned evaluation criteria and practically ask and answer the following questions.

Does the prop trading provider offer forex as a trading option?
Does the forex prop trading provider work with MT4 or MT5, or are there other equivalent trading platforms?
How is the evaluation phase structured? Is qualification for prop trading done in one or two steps?
Is direct entry possible with the online provider? Can you trade with real money on a directly funded account immediately?
Can you learn forex trading in advance for free on a demo account without any further obligation?
What is the profit split? When are my profits paid out?
What account sizes are offered for beginners and professional prop traders? What is the maximum trading capital after scaling?
Can I open and manage multiple accounts simultaneously? Are there any discounts for this? What are the evaluation fees? Are the challenge costs refunded after successful qualification?
What regulations are in place regarding Expert Advisor programs, copy trading, and holding trading positions overnight or over the weekend?
What daily drawdown and total loss limit must be observed in forex prop trading? Is trading with leverage possible?
How quickly and how often are payouts made?
Is the forex prop trading firm regulated, secure, and reputable?

Fazit

In conclusion, Forex prop trading is definitely the most popular way to do business. Anyone who knows anything about trading is familiar with currencies and how they move. Therefore, starting with a forex prop trading firm can be recommended for both aspiring traders and professionals alike.

To our Top 3

The best forex prop trading firms on the market do not only focus on the major markets. You can trade literally any currency pair you can think of. The top firms globally also offer the necessary trading tools, market insight, and market information (real-time quotes) for free.

Frequently Asked Questions

Finally, I have compiled the most relevant questions about the top forex prop trading firms and forex trading in general in the FAQ section.

Is Forex Trading offered by all Prop Trading Firms?

Most prop trading firms offer forex currency pairs, but not all companies do. You can find out how to choose the perfect provider for forex trading under “How to find the Best Firm for Forex“.

What evaluation criteria are important for the best Forex Prop Trading Providers?

The evaluation criteria range from how profits are distributed, the rules around daily and maximum losses, and regulations around copy trading. All important quality features are compiled under “Our Evaluation Criteria at a Glance“.

Which Forex Prop Trading Firm is the best provider on the market?

The best forex prop trading firm, in my opinion, is FTMO from Prague. You can read more about the company under “FTMO“.

What are the disadvantages of Forex Prop Trading Firms?

There are no significant drawbacks to forex prop trading in my view. Details to watch out for can be found under “Disadvantages of Prop Trading with Forex“.

Where can I find the best Forex Prop Trading Firms?

You can find the top firms for forex prop trading on my website. The rankings and evaluations of the companies are constantly being updated to reflect the latest offers and market conditions. The currently best forex prop trading firms are presented in detail under “Best Forex Prop Trading Firm“.

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.