So, you started trading but don’t have enough capital on hand? Fortunately, there are firms out there that can provide you with sufficient funds. However, there are a bazillion firms out there, and choosing the best among them requires some research. We have covered the hard yards for you, and in this guide, we will mention the top 10 prop trading firms. So, let’s get started!
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What Are Prop Trading Firms?
First off, you need to know what prop trading firms are.
Prop firms, aka proprietary firms, provide you with capital for trading. Think of these firms as institutions that lend money to retail traders.
Usually, traders face this dilemma of needing more capital, and the bigger the capital, the more the profits. So, prop firms provide you with their capital and, in return, split profits.
Do you know prop trading started in the 1980s? You would be thinking, but why do these firms provide excessive capital, and is that simple?
Firstly, most prop firms have a subscription model. Either it’s a one-time or a monthly subscription. For instance, if you sign up for a $20,000 account, the firm may charge a subscription of $200 monthly or one-time.
Secondly, there is a set of rules that you need to follow to keep trading. Most firms have an evaluation phase in which you must prove your trading skills. Then, they will give you funded accounts. Some firms also give you instant funding (more on that below).
Most firms have a scaling plan; you can go to 4 million if you have the right skills. The profit you make is either split or yours to keep.
The Top 10 Prop Trading Firms
Let’s see the guide's juicy part and the top 10 prop trading firms for 2024.
The5ers
The biggest name in the game is The5ers. It stands out in the world of props due to its unique trading programs and reputation. The firm caters to trades worldwide and offers forex, stock, and metals trading.
The firm offers instant as well as evaluation accounts. Regarding the profit splits, The5ers gives you up to 100% in profits. Also, if you are a consistent trader, The5ers will provide you with a monthly salary, and you can scale your account to $4 million.
The good thing is that you can start with only $39 on the high-stakes account.
2. FTMO
FTMO is another excellent choice for 2024. You can start trading with up to $200,000 and a leverage of 1:100, retaining up to 90% of profits.
To receive funding, you must go through a two-step review process. Though its primary focus is on the FX market, FTMO covers commodities, cryptocurrency, and indexes.
3. E8 Funding
E8 Funding is a US-based prop firm that offers accounts ranging from $25,000 to $300,000.
The scaling plan allows you to increase your account to $1 million. You receive 80% of all profits made once you are funded, and unlike a few others, there is no minimum profit required to obtain your 80% split.
4. Audacity Capital
Audacity Capital is a prop firm based in London. Audacity Capital funds have accounts ranging from $10,000 to $240,000. As you continue to produce favorable results, you can increase the size of these accounts to $2 million.
You can get instant funding, or you can pass a 2-step evaluation phase. However, Audacity only pays out half of the income.
5. True Forex Funds
True Forex Funds is another firm that has a two-step evaluation program. It offers accounts ranging from $10,000 to $400,000. You get to keep 80% of the profit.
6. Trade the Pool
If you are looking for a stock firm, Trade the Pool is the leading prop firm in the industry. It has more than 12,000 stocks, including ETFs and penny stocks. It is a subsidiary of The5ers. You can get accounts ranging from $20,000 to $260,000.
To gain access, you need to pass the one-step evaluation process. The profit split goes up to 80%.
7. TopTier Trader
TopTier is another US-based prop firm on our list. It offers trading instruments like forex, stocks, commodities, and cryptos.
The account ranges from $10,000 to $300,000. You must pass a 2-step evaluation, and the profit split goes up to 90%.
8. Funded Next
Here is a prop firm out of the UAE. The prop firm offers accounts ranging from $15,000 to $200,000.
The firm also offers a 2-step evaluation, like anyone else we mentioned. But unlike other trading firms, when you are in the evaluation phase, the firm gives you 15% profit splits.
9. Finotive Funding
Finotive Funding is the new kid on the block and came onto the scene in 2021. It offers accounts ranging from $2500 to $200,000 and has a one-step evaluation program. You can get up to 95% of the profits.
10. The Funded Trader
The last one on our list is the Funded Trader. The prop firm is based in the US and offers accounts from $10,000 to $400,000. The firms have two-step funding and offer up to 90% profit splits.
What Makes A Good Prop Trading Firm?
Yes, there are plenty of firms out there. But what separates the best from the rest are some of the key components;
Reputation
Arguably, this is one of the essential elements of any good prop trading firm. If the firm isn’t reputable, will you trade with it?
Nope!
Read the firms’ reviews on online forums and review sites like Trustpilot and SiteJabber. You’ll be able to find out if the firm is worth your time.
Make sure to check the About Us page on the website so you know who is behind the prop firm.
Scaling Program
Many firms offer scaling programs up to millions. It’s good for any skillful trader. With so much capital in the account, you can take your trading profits to the next level. Some of the firms will double your funds every 10%.
Support for Traders
Quality support is essential for any firm that wants to make a name for itself. The firm should have 24/7 customer support to respond promptly if you have any questions.
Trading conditions
The best firms give you the best trading conditions, as you don’t want your trades to get stopped or not executed.
It’s very important to check the spreads, execution, and slippage.
Best prop trading firms for 2024 summary
So, there you have it! These are the top 10 prop trading firms for 2024. Prop trading firms give the trader with a low budget an excellent opportunity to start a trading career and earn a high income. If you plan on opening an account with one of them, read their website carefully for all the trading rules.
Disclaimer:
This press release has been distributed by The5ers. The information herein is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any securities by the distributing company. The content of this press release is not intended to provide tax, legal, or investment advice and should not be relied upon for making any investment or trading decisions. The5ers, its employees, and its affiliates are not registered investment advisors or broker-dealers. The material contained in this press release should be used solely for informational purposes. Investors and readers are strongly advised to perform their own due diligence and consult with their professional financial, legal, and tax advisors before making any investment or trading decisions. For media inquiries or further information, please contact The5ers at help@the5ers.com