Our Methodology In 2024

Challenge Accounts

In our methodology, each prop trading firm is evaluated on its approach to onboarding and challenge structures, as these processes often reveal the firm’s transparency, accessibility, and fairness in funding.

Each prop firm’s scoring in this area depends on the flexibility, clarity, and cost of their evaluation challenges, with a focus on the following:

• Prop Challenge Levels: We assess the variety and accessibility of each challenge at each funding level (e.g., $5,000 to $500,000) offered by each prop firm. Firms with broader, more accessible entry points receive higher scores, as they provide options for a range of traders.
• Profit Targets: Firms with achievable targets in Phase 1 and Phase 2, typically under 10% and 5% respectively, are ranked higher. These targets indicate a reasonable and sustainable approach to evaluation.
• Drawdown Limits: Flexible and transparent daily and overall drawdown limits (e.g., 5% daily, 10% overall) score well, as these help traders manage risk without restrictive or unpredictable conditions.
• Challenge Flexibility: Higher-scoring firms often offer one-step, two-step, or custom challenge formats that cater to varying trading styles and risk tolerances. Lower fees for challenges also contribute to a more accessible and trader-friendly approach.
• Additional Policies: Key policies such as inactivity rules, consistency requirements, and refund policies on challenge fees also factor into scoring. Firms that maintain fair, clear policies that encourage long-term success for traders are rated higher.

Scoring Example

• 8-10/10: Low fees, flexible drawdown (5% daily, 10% overall), achievable profit targets under 10%, varied challenges.
• 6-8/10: Moderate fees, standard drawdowns and targets (10-12% for Phase 1, 5-8% for Phase 2), limited flexibility.
• 0-5/10: High fees, restrictive drawdowns, high targets above 12%, limited challenge formats or rigid requirements.

Spreads and Commission Fees

Spreads and commission fees are crucial for maintaining profitability, especially in high-frequency trading.

Firms are scored based on how well they control these costs, with lower spreads and transparent, competitive commission rates scoring higher.

Transparent cost structures that keep total trading fees low are prioritised in our assessments.

• Forex Spreads: Tighter spreads (e.g., below 0.5 pips for EUR/USD) receive top marks.
• Commission Fees: Low and consistent fees earn higher scores, especially when they enhance value.

Scoring Example

• 8-10/10: Sub-0.5 pips spread, low commission (up to $3.50 per lot).
• 6-8/10: 1 pip spread, fair commission (~$4.50).
• 0-5/10: Spreads above 1.5 pips, high or unclear fees.

Financial Markets and Leverage

A diverse market selection and appropriate leverage give traders more flexibility in strategies. We look for firms that offer a broad range of financial markets, from forex and indices to commodities and crypto.

Leverage that allows traders to balance opportunity and risk, typically up to 50:1 for forex, also ranks higher.

• Financial Market Range: Wide access to markets, including niche options.
• Leverage Levels: Balanced leverage, typically up to 50:1, for forex.

Scoring Example

• 9-10/10: Access to forex, indices, crypto; leverage up to 50:1.
• 6-8/10: Basic forex and indices access; industry-standard leverage.
• 0-5/10: Limited markets, restricted leverage.

Trading Platforms

Platforms play a key role in traders’ experience, so we assess firms based on the quality and versatility of their trading platforms. Firms that offer multiple platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, or TradingView score higher, especially if they come with advanced tools, high performance, and mobile accessibility.

• Trading Platform Options: Multiple platforms like MT4, MT5, cTrader are rated higher.
• Advanced Trading Tools: Tools for risk management, charting, and order types enhance scoring.

Scoring Example

• 9-10/10: Full platform range (MT4, MT5, cTrader), advanced charting.
• 8-8/10: Limited platforms, basic trading tools.
• 0-5/10: Performance issues, limited or minimal features.

Payments and Profit Payouts

Profit payouts are essential for traders looking to access earnings without delay. Firms are scored on payout frequency, minimum withdrawal amounts, and profit split percentages. Firms offering low minimums, higher splits, and fast payout cycles earn higher marks for supporting trader cash flow and flexibility.

• Profit Split: Higher profit splits (above 80%) rank well.
• Payout Frequency: Frequent (weekly/bi-weekly) payouts with low minimums are preferred.

Scoring Example

• 9-10/10: 80%+ split, weekly payouts, low withdrawal minimum.
• 6-8/10: Standard splits (~75-80%), bi-weekly payouts.
• 0-5/10: Low split, high withdrawal minimums, infrequent payouts.

Customer Service and Education

A prop firm’s support and educational resources are vital for a positive trading experience.

Trading firms with responsive 24/7 support, especially with live chat and phone options, are scored higher. Educational resources, such as tutorials, guides, and webinars, especially those relevant to prop trading, also contribute to higher scores.

• Customer Support Availability: 24/7 support with live chat, email, or phone access is highly rated.
• Educational Resources: High-quality tutorials, webinars, and relevant training improve scores.

Scoring Example

• 9-10/10: 24/7 support, live chat, extensive educational content.
• 6-8/10: Limited support hours, basic tutorials.
• 0-5/10: Delayed responses, minimal educational content.

Trust and Community

Trust and community engagement reflect a firm’s reliability and openness. We consider reviews on platforms like Trustpilot, the transparency of fees and policies, and the presence of active communities (e.g., Discord).

Prop firms with high ratings and clear policies score well, along with those that facilitate community support.

• Reputation: High Trustpilot or similar scores indicate trustworthiness.
• Forex Broker Partnerships: Is the prop firm connected to a reputable and regulated broker?
• Trading Community: Active communities on social media or forums score better.

Scoring Example

• 9-10/10: Positive reviews, active community, transparent fees.
• 6-8/10: Mixed reviews, moderate community presence.
• 0-5/10: Poor reviews, limited transparency.

Sign Up Process

A straightforward, quick sign-up process is essential for a smooth onboarding experience. Firms that offer simple, secure sign-up forms and immediate access to evaluation challenges score highly. Clear KYC requirements and guidance on the onboarding process also add to the score.

• Simplicity and Speed: A streamlined sign-up process with clear steps rates best.
• KYC and Verification: Transparent KYC requirements enhance onboarding.

Scoring Example

• 9-10/10: Simple sign-up, clear KYC, immediate challenge access.
• 6-8/10: Moderate sign-up steps, standard KYC.
• 0-5/10: Complicated or unclear sign-up, lengthy KYC.

Overall Prop Firm Scores

The overall score is a comprehensive assessment that combines each category’s individual rating, creating a single, consolidated score that reflects a prop firm’s overall performance.

This score helps traders quickly gauge a firm’s strengths and limitations, with a higher score indicating a firm that excels across essential aspects such as challenge accessibility, trading costs, platform usability, and payout policies.

Each category is weighted based on its impact on a trader’s experience and potential earnings. For instance, factors like challenge accounts and profit payouts receive higher weights due to their direct influence on a trader’s financial success, while factors like customer support and community contribute to the firm’s accessibility and supportiveness.

By combining individual scores into an overall rating, our methodology provides a balanced view of each prop trading firm, helping traders identify which firms best align with their trading goals and preferences. This consolidated rating offers a clear, data-driven way to compare prop firms side by side.