Operating the tricky industry of Forex prop trading could seem challenging for traders. Sometimes, this is due to decision-making errors, potential pitfalls due to inexperience, insufficient resources, or unpredictable currency fluctuations. However, the best opportunities in the Forex trading world often emerge from the best Forex prop trading firms.
These are the best institutions for all aspiring traders that offer access to funded accounts with profit-sharing aspects. Beyond just execution, these firms strongly support trader development in the prop trading space. They have challenging assessments, rich educational tools, and efficient mentorship programs that help in skill development for a trader. Better discipline is important to succeed in the dynamic world of Forex trading. Here is a list of Forex prop firms that empower traders to unleash their full potential in this financial arena.
List of the 5 Best Forex Prop Trading Firms 2024
- The 5%ers – Best Funded Trader Programs for Forex Traders.
- FTMO – Modern Prop Forex Trading Firm with Best Condition for Trading.
- Fidelcrest – Top Forex Prop Firms for Professional Traders.
- Fundingpips – Best Forex Prop Firm for Beginners Due to its Low Fees.
- Myfundedfx – Most Trader-Friendly Forex Prop Firm.
Top 5 Forex Proprietary Trading Firms 2024 – An In-depth Breakdown
Let’s review the top five Forex proprietary trading firms for 2024 in detail, analyzing their features, pros, and cons for a comprehensive understanding.
1. The 5%ers
The 5%ers is the ultimate forex proprietary trading firm that deploys its capital towards pursuing profits while trading in forex, metals, indices, and stocks. It allows new traders to deal with private equity funds of up to $4,000,000.
With The 5%ers, experienced traders can get daily live trading rooms, trading performance statistics, real-time trading notifications, free webinars, risk management and trading plan education, extensive trading resources, and dedicated support from professional traders.
Traders can participate in trading with Forex in a simulated environment during a trading challenge and get funded after passing the challenge in minimum trading days.
Furthermore, There is a two-step challenge, an instant funding program, and a 100K BootCamp challenge for traders to choose from. This makes 5%ers one of the best Forex prop firms for global Forex trading.
Features
- Profit Split – 50%
- Registration Fees – €235
- Evaluation Process – 2 levels: after signup, you enter level 1; the trader must perform under the program requirements to enter the next level.
- Supported Forex Currency Pairs – 8 currencies and 28 currency pairs, including AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, CAD/CHF, CAD/JPY, CHF/JPY, EUR/AUD, EUR/CAD, EUR/CHF, EUR/GBP, EUR/JPY, EUR/NZD, GBP/AUD, GBP/CAD, GBP/CHF, GBP/JPY, GBP/NZD, NZD/CAD, NZD/CHF, NZD/JPY, and many more.
- Leverage for Currency Pairs – 1:30
- Max Capital – $4,000,000
- Price Compared To Another Platform – Moderate
- Free Trial – No
Pros
- Offers high funding levels to traders.
- Relaxed trading rules for swing traders, scalpers, and retail traders.
- Lowest Participation cost – No subscription fee, fine print, hidden, and recurring costs.
- Expert Advisors and Hyper-Growth plan pays out profits during the evaluation program.
- Access to a trader community to share ideas and feedback.
Cons
- Payouts may scale to 100% and start at around 75% for funded traders.
- Low leveraged trading.
2. FTMO
FTMO is the best Forex prop trading firm for traders who earn Forex by undergoing a two-step evaluation program. It focuses on rule adherence and the ability to achieve set profit targets.
FTMO mainly focuses on the Forex market and encompasses indices, crypto, and commodities. They are listed as one of the top prop firms for Forex by qualified and experienced traders in the FX Market.
FTMO’s innovative approach involves the verification of the trader and a task-based challenge for their evaluations. These are essential to enhance the potential of traders in Forex.
Additionally, the FTMO prop firm has advanced trading tools to assist traders. These include a statistical app, mentoring app, equity simulation, and more.
The business model of FTMO is based on the success of funded trading, creating a win-win situation for both the firm and the trader. Giving them an advantage over the profit target.
Features
- Profit Split – Up to 90%
- Registration Fees – €155 refundable fee
- Evaluation Process – 2-Step Evaluation Process (FTMO Challenge and Verification)
- Supported Forex Currency Pairs – EUR/USD, GBP/USD, EUR/GBP, USD/JPY, USD/CAD, and many more.
- Leverage for Currency Pairs – 1:100
- Max Capital – $400,000
- Price Compared To Another Platform – Moderate
- Free Trial – Yes
Pros
- A wide selection of tradeable fiat currencies and cryptocurrencies.
- Profit split of 90% to trader and 10% to firm.
- A refundable fee after the evaluation program.
- Educational resources and customer support for traders.
- Trade Forex with funded trading without risk.
- Ideal for both new and professional traders.
Cons
- Strict two-step verification stages need to be completed.
- Not suitable for derivatives or stock investments.
- Offers limited funding account options.
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3. Fidelcrest
Fidelcrest is a globally operating Forex proprietary trading firm headquartered in Nicosia, Cyprus, established in 2018. It gives funded traders access to Forex funds worth up to $400,000, allowing them to make significant differences in their lives.
It gives Forex prop traders access to funds worth up to $400,000, allowing them leverage to make better decisions while trading the Forex pairs.
The management team at Fidelcrest consists of Forex professionals and traders with 10 years of experience or more in the niche.
Fidelcrest helps traders make profits in the long run & make sizeable profits within minimum trading days. This firm also has various account sizes tailored to suit all kinds of traders with different needs and expertise.
Fidelcrest is one of the top Forex prop firms because of the variety of trading instruments offered, with more than 1000 options for traders to complete the challenge within the Fidelcrest evaluation program.
Features
- Profit Split – Up to 90% of profit split.
- Registration Fees – €999
- Evaluation Process – Trading Challenge Phase, Verification Phase, Professional Phase
- Supported Forex Currency Pairs – USD/EUR, GBP/EUR, GBP/USD, USD/CHF, EUR/AUD, NZD/EUR, NZD/USD, and many more.
- Leverage for Currency Pairs – 1:100
- Max Capital – $400,000
- Price Compared To Another Platform – High
- Free Trial – No
Pros
- Traders can manage funded Forex accounts of up to $400,000 without requiring a complex scaling plan.
- Generous max loss levels of 5% to 20%, making it one of the best prop firms for Forex.
- News event trading allowed.
- One-time fee only with no recurrent charges or other hidden fees.
- Unlimited retries in challenge phase one.
- Supports a variety of trading platforms, such as MetaTrader 4 and MetaTrader 5, with algorithmic trading.
Cons
- A lengthy evaluation process that can take up to 90 days.
- Limited tools and education materials compared to other online Forex prop firms.
4. Fundingpips
Funding Pips is one of the best prop trading firms for beginners and is designed to offer traders an excellent opportunity. They help traders achieve better profit targets and shield them from financial scams. It is more than just a platform or a broker; it’s an active partner fully committed to its traders’ well-being. Traders consider Funding Pips because the above reasons make it a top-rated Forex proprietary firm.
It takes a unique approach by embracing an evaluation process that acknowledges all types of skilled traders and allows them to emerge in daily trades with instant funding and profit-building within minimum trading days.
The evaluation program is innovative and carefully designed to take traders through the journey of growth and evaluation of their skills. Additionally, the requirement to place a stop-loss within 60 seconds of opening a trade on the master account has been removed. Traders now have flexibility in how they manage their risks and positions.
Features
- Profit Split – 80% profit split, scaling up to 90% with Hot Seat program
- Registration Fees – Starting at $32
- Evaluation Process– Two phases of evaluation (Student-Practitioner) and funded (Master)
- Supported Forex Currency Pairs – Over 70 currency pairs, including AUD/USD, EUR/USD, GBP/USD, USD/CHF, EUR/CAD, NZD/USD, USD/CAD, & many more.
- Leverage for Currency Pairs – 1:100
- Max Capital – $300,000
- Price Compared To Another Platform – Low
- Free Trial – No
Pros
- Competitive evaluation fees.
- Competitive scaling plans up to 40% based on performance.
- Fast 5-day payouts with no volume requirements.
- Ability to trade your own strategy, including EAs.
- Flexible trading of foreign currencies with no minimum trading days and scaling plans.
- Allows to hold trades overnight and over the weekend during both the Evaluation and Funded phases.
- Traders have flexibility in how they manage their risks and positions.
Cons
- No 24×7 live chat support is available
- Mandatory rule for stop-loss.
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5. Myfundedfx
MyFundedFX is a top-rated Forex proprietary trading firm offering traders up to $600,000 of simulated capital with up to 80% profit share without any scaling plan.
Among other Forex trading firms, MyFundedFX has gained rapid prominence in the industry and has attracted a swarm of swing and day traders currently seeking funding.
Best prop trading firms like MyFundedFX have an innovative 1 step funding process that allows traders to secure their funds with a single trade.
Moreover, MyFundedFX initially offered new accounts on Eightcap. However, MyFundedFX has now shifted to a new platform called ThinkMarkets. This makes it the best prop firm to avail trading with Forex on weekends, appealing to both new and Forex/Crypto traders.
Features
- Profit Split – 80%
- Registration Fees – Refundable fee of $50.
- Evaluation Process – Challenge, Verification, Get Live Simulated Account.
- Supported Forex Currency Pairs – Forex majors, minors, and exotics, including EUR/USD, GBP/USD, USD/CHF, USD/CAD, AUD/USD, EUR/AUD, EUR/GBP, and more
- Leverage for Currency Pairs – 1:100
- Max Capital – $600,000
- Price Compared To Another Platform – Low to Moderate
- Free Trial: No
Pros
- Instant funding via a 1-step procedure.
- Active Discord community with more than 8000 members.
- Regular promotions and competitions with amazing cash prizes.
- Weekend trading enabled for Forex traders.
- 175+ Assets, including Forex, Indices, Crypto, and Commodities.
- Unlimited trading days on all plans & phases.
Cons
- No free trial account, instead provides demo accounts for traders to practice.
- Inadequate record of the platform’s performance.
- Lack of educational resources.
What Are Forex Prop Trading Firms?
Forex trading prop firms offer capital to traders to trade across the currency pairs. The traders go through trading challenges before enrolling; they can access the trading capital after getting associated with the firm.
The objective of the evaluation or challenge period is to learn about the qualifications and capabilities of the traders trading under the company’s money management rules.
The difference between a conventional Forex trading platform and a Forex proprietary firm is that the proprietary firm invests its funds and acts as both client and broker.
Traders employed by Forex proprietary trading companies are prop traders who do not risk their own capital or funds but use the Forex prop firms’ money to trade.
How Do Forex Prop Firms Work?
Forex Prop firm brings experienced and skilled traders onboard to trade foreign exchange. The currency pairs have price variations, and traders book profits based on these variations. Before hiring a trader, the firm assesses their past experiences and records. Then, evaluate them based on their performance and profits booked in the minimum trading days. The firm then offers an agreement and access to large trading capital based on the trader’s experience, skill, and grade.
The agreement would always differ from one brand to another. The best prop firm for forex usually shares around 50%-80% of the profit splits. However, it depends on the trader’s skills. Most prop firms charge a desk fee for operating the trading software, personnel wages, terminal fees, and utility charges. There are varied approaches to operations with these.
Benefits of Working With a Forex Prop Trading Firm
A Forex trader using the platform of a Forex proprietary firm would have great advantages. We’ve listed some of the benefits, and they are as follows:
- Eased Risk Management: A Forex prop firm offers access to leverage the elements that amplify profits instead of losses. This is advantageous for traders as it allows them to manage their risks effectively.
- Lesser Price Spread: A Forex prop firm has the resources to help traders work on the lesser price spread. They have the skills to make profits in such situations.
- Technological Advantage: Forex proprietary trading firm has cutting-edge tech tools, updated trading software, and many more programs that help them with analysis, forecasts, etc. This gives them an advantage in making decisions to perform a trade.
- Mentorship and support: Most prop firms in Forex trading offer mentorship and support to new traders from experienced analysts and traders in the trading industry. This is an invaluable resource for beginners who wish to improve their trading skills in Forex and earn a fortune.
- Seamless & Smooth Liquidity: A Forex trading prop firm would offer a funded account for a seamless & smooth flow of currency liquidity that helps traders enter/exit the trades efficiently.
- 24×5 Trading Assistance: The Foreign exchange markets are open 24 Hours for 05 Days. If the trader needs assistance, the Forex prop firms provide live chat support, call support, etc.
- Beyond Geographical Boundaries: The foreign exchange market has a global reach as geographical restrictions do not bind it. This allows traders to trade their currencies using different trading styles and strategies worldwide.
Disadvantages of Working With Forex Prop Trading Firms
While traders heavily benefit from being a part of the proper trading community, there are potential drawbacks to working with a Forex proprietary trading firm. Some disadvantages have been explained below –
- Multiple Fees & Charges: The proprietary Forex trading platform typically charges traders various fees, including monthly payments, platform maintenance fees, account registration fees, etc. This can cost traders some of their marginal income from profits.
- Lower Profit Sharing: Forex proprietary trading firm often takes a massive part of the client’s profits, ranging between 50% to as high as 90%. Traders must work more efficiently to generate considerable income and avoid potential losses.
- Strict Compliance & Regulations: Forex trading firm usually has strict regulations and rules that traders must abide by. This often limits their ability to trade according to their will and make profits based on their skills. However, these are important because they deal with elements of international markets.
- Possesses A Significant Risk: Forex trading is inherently risky, unlike futures trading or crypto trading. Additionally, Forex prop traders may need to work on tight arbitrages and aggressive trading styles or goals while trading through a Forex prop firm.
- Competitive Earning Structures: Forex Prop Trading firms don’t typically negotiate much on the profit-split structures. They have similar or sometimes uniform slabs set for novice to experienced traders. Hence, Forex proprietary traders are often stuck with lesser offers.
- Complex Trading Environment: The Forex prop trading market, being tricky and ever-changing, can make it challenging for traders to implement efficient trading strategies. Moreover, not all Forex proprietary trading firms provide the resources and support to succeed in such a challenging trading environment.
Tips for Choosing the Right Forex Prop Trading Firm
There are many factors to consider while selecting a Forex trading firm. Here are some tips that traders can use while choosing their best foreign exchange proprietary trading company –
- Reputation of Firm: Choose an industry-leading and reputable Forex prop firm from the industry. Read testimonials and reviews of other experienced traders to get a background check of the firm’s reputation.
- Funding Options: Consider the company’s funded account options before trading. Choose a platform that fits your trading style, profit target, account limits, and budget.
- Trading Platform: It is essential to ensure that the chosen firm uses secure trading platforms. Some renowned firms use the platforms such as MetaTrader 4/5 and cTrader. Research well before enrolling.
- Profit Split: Compare the profit sharing or profit splits available. While most prop firms provide traders with a profit split of 60/40 or 50/50, others may offer favorable divisions for professional traders. Hence, prioritize a firm with a higher profit split to increase your earnings potential.
- Tradable Assets: Most firms offer Forex trading across majors, minors, and exotic pairs. This depends on the regulatory conditions, currency pair stability, etc. Some firms also enable traders to explore the indices, commodities, and crypto markets.
- Commission Structure On Price Spreads: A Forex trader must observe the commission structure that the firm follows. Usually, a certain commission percentage is set on the price spread; this differs from one firm to the other. It is highly recommended that you select the firm which offers a better & competitive deal.
- Risk Management Tools: It is essential to employ tools and strategies such as take-profits, stop-losses, hedging currencies, etc., to manage risk while participating in Forex trading.These are essential to proceed with a smooth flow while performing the trade. Compare the firm’s risk management strategies before enrolling with them.
- Evaluation Process & Criteria: Every firm has a pre-set evaluation process and certain criteria they expect from a trader. Traders can choose the firm that has a suitable evaluation process and matches the criteria accordingly.
- Active Customer Support: Ensure your firm has active backend customer support. Ideally, choose a firm that can help you with live chat support, over-the-call assistance, or anything prompt. This is a key criterion when selectinga Forex prop firm to enroll.
Is Forex Proprietary Trading Legal?
Generally, it is legal to enroll with any reputed Forex prop trading firm. Forex trading activities are legal in a lot of countries. However, some countries have restrictions and prohibitions. Hence, verifying and consulting with a legal professional before trading is advised. A compliance check is highly recommended before plunging into the Forex prop trading world. However, the industry is highly regulated and involves nothing beyond legal boundaries.
A trader must also voluntarily verify if the firm is doing legally safe business. If there is anything suspicious, the trader mustn’t enroll with such firms. The likelihood of such situations is negligible. But it is better to be safe than sorry.
How Do You Stay Safe When Trading with a Forex Prop Firm?
Forex trading is a tricky sector as the prices of currencies keep changing within seconds. Traders must be quick and careful when executing trade orders when buying or selling. Moreover, they need to evaluate if the firms are suitable for them. Different firms have different profit splits, commission structures, evaluation criteria, profit targets, etc. Getting all the legitimate information before enrolling with any firm is important.
A trader must also confirm if the firm has proper customer support in case they need live chat help, call support, or anything prompt from the firm. The trader must execute the best strategy, diversify the trading portfolio, and keep updated with new techniques and technologies. Also, a trader must enroll in workshops, seminars, events, etc., to constantly stay updated about the industry. These are ideal ways for a trader to be safe with any Forex prop firms. Not only would these help a trader stay safe, but they also help them maximize their profits.
Evaluation Of Forex Prop Trading Firms: Delving To Our Methodology
- Predicament Levels: Challenges or evaluations are primarily beginner-friendly and must be qualified in a few stages.
- Trading Platforms: Majorly the Forex trading platforms are supported with MetaTrader 4, MetaTrader 5, or similar platforms as their pre-requisite financial instrument.
- Customer Support: Almost all Forex prop firms in our list have active and efficient customer support, offering 24*7 live chat assistance.
- Profit Split Ratio: The list of Forex prop firms with us have a profit split share between 70%-90%.
- Trading Instruments: Traders in Forex prop can find tradable instruments, which include Forex, indices, crypto, commodities, CFDs, stocks, derivatives, etc.
- Prices: On average, the Forex-funded accounts are usually priced at $100 to $1000.
Conclusion
Trading through the best Forex prop trading companies is an excellent way to start trading. They allocate traders with funded capital that gives access to large amounts of money used for trading. Trading Forex currencies with the best prop trading firms is a wise way to commence a trading career. After enrollment, these firms assign you a trading account to begin your trading journey.
Novice traders can learn and execute flexible trading strategies over a demo account. However, seasoned traders can start trading with multiple trading platforms. Forex prop firms offer profit splits ranging from 80%-90%, where traders can keep a larger amount. It is essential to conduct extensive research, learn & develop effective trading strategies like news trading, and manage risks carefully while trading.
Firms provide a supportive trading community, making it easy for traders to network with fellow traders worldwide. These firms offer great opportunities to flourish in the trading sector. Set your trading preferences and embark on your journey in the world of Forex prop trading.
FAQs
Are Forex Prop Trading Firms Regulated?
Most Forex prop trading firms are not regulated similarly to traditional brokers or financial institutions, as these firms use their own funds and may not provide real money to traders. However, they must adhere to strict regulatory guidelines.
Do Forex Prop Trading Firms Provide Leverage for Trading?
A prop Forex firm provides traders with leverages based on their capital deposited and the firm’s policies.
What Fees Are Typically Associated With Forex Prop Trading Firms?
Forex prop trading firms usually charge various fees, including a monthly desk fee, risk management fee, subscription fee, performance fee, account registration fee, and profit splits.
Do I Need Starting Capital for Forex Proprietary Trading?
Financial institutions and investment banking platform owners chipped in the starting capital. By definition, Forex proprietary traders do not raise capital for proprietary funds.
What Strategies Do Forex Prop Trading Firms Typically Employ?
Forex market prop traders use a variety of strategies to maximize profits, including news trading, volatility arbitrage, index arbitrage, merger arbitrage, global macro trading, swing trading, scalping, and algorithm trading strategy. They also use risk management techniques like positioning sizing, stop-loss orders, etc.
Can I Withdraw My Funds Easily From a Forex Prop Trading Firm?
Traders can withdraw the funds only when they have a positive performance on their account.
Do Forex Prop Firms Offer Demo Accounts for Beginners?
Some Forex prop firms provide demo trading accounts to help beginner traders gain experience using the prop firm’s platform without risking real funds. For example, FTMO offers a free/demo account to new traders.
Can I Use a Forex Prop Trading Firm if I'm a Beginner With Limited Trading Experience?
Yes, breaking into Forex prop trading is possible without any formal background. Beginner traders can learn risk management and trading skills to grow their trading capital.
Is It Hard to Become a Forex Prop Trader?
Nowadays, becoming a Forex prop trader is not that hard. Academically, traders should have a bachelor’s degree in mathematics, business, or finance, complete at least an internship with any trading firm, gain knowledge of finance and trading skills, understand the proprietary trading landscape, set trading strategies, and ultimately join a Forex prop trading firm to begin trading.
Is There a Forex Prop Firm That Provides a Free Trial Funded Account?
FTMO is one of the best Forex prop trading firms that provide beginner futures traders a free trial funded account.
