COMPARE THE 2024
BEST PROP TRADING FIRMS

In-depth reviews based on our first-hand experience and prop firm testing.

Why you should Compare Prop Firms?

Prop trading, which is short for proprietary trading is a type of trading arrangement where a trading firm provides you funding to trade with on the understanding that the profits will be shared between yourself and the prop firm. Since you are using clients funds, rather than your own capital when trading, prop trading allows yo to avoid putting your own capital at risk when trading.

Since prop firms provide you as a clients with the funds to trade with, their profitability is (almost) entirely reliant on your skills as a trader.  For this reason, its in the interest of the prop firm to provide you with the right trading infrastructure (like platform and products), tools and support to better your chances of earning profits. The more profits you earn for yourself, the more you will earn for the prop firm.

All prop have different funding programs and since it is their funds you will trade with and they will bear  the cost of any losses. For this reason prop firms provide you with different amounts of funding, have different evaluation programs to asses your suitability as a client and risk management policies in place to ensure losses of their capital are minimised.

With these factors, we are PropCompanies, list out most important consideration when choosing a Prop firm.

1. Trading Platform

It is important to use a trading platform that not only has the essential tools (such as right charts and analytical tools) to help you make better trading decisions but also a platform you are comfortable using. You will find many firms offer MetaTrader 4 or MetaTrader 5 since these are relatively popular mainstream platforms and well liked by traders across the world but some offer other platforms which may suit the needs of different traders.

2. Training and Support

A prop trading firm should have include an education suite so you can improve your skills as a trader. trading programs might consists on videos, e-books and courses about necessarily topics related to trading.

A good prop firm will also have good support, this includes a responsive and knowledge customer service team and while the support team can’t provide trading advice they can ensure you can find the information you need. Most firms will have customer support via live chat but some may use a chatbot rather than human and no all are 24/7. and FAQ/help/support sections on the prop firms website.

3. Evaluation Process

A prop firm needs to know that you have the trading skills to make profits with the funding they give you, for this reason most will require you to pass an evaluation or audition process. While there are some that do skip the evaluation process, most will have a one-step or two-step evaluation.

4. Profit Share/Profit Split Arrangement

As a trader, you will want a profit share arrangement that is favorable to you. Expect most firms to to have a profit splits as low as 60/40, with 80/20 or 90/10 quite common. Some may allow you to keep 100% of the profits, usually with conditions attached.

Some firms start with a lower profit split and reward you with a better split as you prove your skills. You may also find that some firms allow you to buy your way into a better split arrangement.

5. Funding Provided

One of the big advantages of prop trading is that you can access more funds to trade with than you might be able to use if you were using your own capital. Funds available generally start from $10,000 and can go up to $1,000,000 (possibly higher in some cases).

Being able to access more funds obviously does provide opportunity to greater returns but it can also mean greater risk and therefore responsibility. With this in mind, keep in mind how much funding you really need for your trading style or strategy and only use funding amounts you are comfortable using.

6. Prop Firms Reputation

At this time, Prop firms do not require regulation from the regulator of a countries financial markets, for this reason it is essential to look for a prop firm with a sound reputation.

Look for a prop firm that has many years of history as a prop company, firms that have been around a long time are likely doing something right. We at PropCompanies like to check the prop firms online reputation (such as with Trustpilot) and also see if the firm has any black marks against their name in the news.

7. Location

Where is the prop firm located? It might be smarter to trust a firm based on a developed country such as Australia, the UK and EU than one from a small country in Africa or the Caribbean. If you have a dispute, it might be easier to resolve if the company is based in your own country.

8. Trading Rules

All prop firms have rules you need to follow, with some firms having more onerous requirements than others who have more relaxed rules. Some firms for example may require you to trade using a guaranteed stop loss while others may not allow hedging, scalping and possibly social trading.

9. Cost (Evaluation fee)

Before the prop form will give you funds to trade with, you will need to pass the evaluation process. You will need to pay an audition fee to do the evaluation and this will be the main cost if not only cost you will pay. Generally speaking, the more funding you wish to access, the larger you evaluation fee will be. The other thing to keep in mind is what you will need to pay should you fail the evaluation and wish to try again, some prop firm may give you a discount.

10. Trading Products

Last but not least on are the trading products one can trade with. Most firms have trading with CFD products but some offer spot rather than CFDS and even futures in some cases. Also consider how many Forex pairs they offer, if you wish to trade with some exotics, you might wish to check the prop firm has these exotics before signing up.

 

best prop trading firms

Best Prop Trading Firms

We review and compare prop trading firms based on some of the key aspects to look for in a prop firm which we discussed elsewhere on this page. Based on this criteria we are able to provide our thoughts on which are the best prop trading firms in the market.

best funded trading programs

Best Funded Trading Programs

All prop firms provide funding for you to trade with but some will give you more capital than other firms. While we could base the best funded trading programs on how much funding the prop firm gives you, we think there are other things to consider such as how difficult the evaluation program is and what the profit split will be. Another factor might be the product you wish to trade, some firms specialise on forex funded programs.

prop trading firm reviews

Prop Trading Firm Reviews

Before we can make recommendation about the best trading firms, it makes sense that we know the firm very well. For this reason, we deep dive into the prop firms and try to understand everything the firm has to offer. Expect us to summarise the key features the key features the firm has to offer, what their strengths and weaknesses are and what you costs will be.

prop trading guides

Prop Trading Guides

To help you with you with your prop trading journey, we have provided some guides about prop trading.

Our Prop Firms Comparison Methodology

PropCompanies was created to help you as a trader find a suitable Prop trading company to trade with. When comparing prop firms, we consider a number of factors that we feel as critical to choosing a good prop firm. Factors include:

  1. Trading Platforms
  2. Evaluation Process
  3. Funding Amounts
  4. Trading Conditions
  5. Products To Trade With
  6. Prop Firm Reputation
  7. Customer Support
  8. Education

 

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