Choosing The Best Prop Trading Firms - #1 Checklist (2024)

  • ByMartin Najat
  • Prop Trading

Choosing The Best Prop Trading Firms - #1 Checklist (1)

Table of Contents

Joining a proprietary trading firm is a great way to ramp up your trading, especially if you lack sufficient capital to trade on your own. Plenty of prop firms are touting their services, and as you’d probably guess, they aren’t all created equal. Choosing the wrong one can set you up for failure from the start.

This article aims to provide potential prop traders with a no-nonsense guide on what to look for when evaluating prop trading firms.

From understanding the firm’s reputation and trading platform to checking its support and profit-sharing models, we’ll cover all the aspects that matter most to traders.

Vetting the Prop Firm's Track Record

The first step when deciding on any prop trading firm should be an in-depth look at its reputation and history in the industry. A firm’s standing within the trading community will highlight its reliability and ability to support its traders with a secure trading environment.

Examine the company’s longevity—how long have they been operating? Long-running firms with 5+ years in business tend to be more stable and less risky. It’s noteworthy to mention that City Traders Imperium was established in 2018, making us a safe prop firm with the necessary experience under our belt.

Most reputable prop trading firms, including us at CTI, have a presence on review sites like Trustpilot and Google Reviews. While every prop trading firm is sure to have some negative feedback, it’s one less to waste your time with if you see a predominance of unfavourable reviews.

At CTI, we can boast of an ‘Excellent’ score of “4.8” on Trustpilot based on feedback from over 1,200+ successful traders and 295+ reviews on Google, with a score of “4.9.”

Evaluate the Website Quality and Community

The quality of a prop trading firm’s website is also a telling sign of its legitimacy. Things like broken links, text errors, or no public team faces should make you skeptical.

If a firm doesn’t publicly stand behind its service, how can traders trust them?

If their website’s outward user experience is poor, how can you expect their internal operations, trading platforms, and support to be much better?

A prop firm’s online presence also extends to its social media and digital engagement. You’ll see that CTI maintains an active presence across all social platforms, including Facebook, Instagram, and YouTube.

What we’re particularly proud of, though, is the City Traders Imperium Discord community. Novice and experienced traders come together to discuss trading strategies and market insights and share valuable tips and experiences.

Prop Firms to Avoid

When evaluating prop trading firms, these are a few red flags that should make you cautious about signing up.

  • Steer clear of prop firms that appear too flashy or make outrageous payout claims. Promises that you’ll be making tens of thousands in payouts should raise scepticism. If it sounds too good to be true, it usually is. Remember, most of the huge payouts that you see online are mostly fake, only to lure traders into buying into funding programs out of fear of missing out.
  • You should also avoid firms that lack transparency. The best prop firms will clearly outline all costs upfront with no surprises and with no hidden rules. Unclear profit splits, account minimums, and denying payouts without supporting evidence are all warnings.
  • Lastly, be wary of companies with little history or community presence. Unestablished companies with no track record or reviews should be approached with caution, as you have no way to verify their claims.

If something seems sketchy, trust your gut and keep looking. There are quality prop firms out there focused on helping traders succeed.

Analyzing the Trading Evaluation or Challenge Model

One of the big variables across proprietary trading firms is the structure of their evaluation or the challenge required to receive a funded account.

Clarifying these processes upfront is something that can’t be underestimated in terms of importance for traders. You’ll want to partner with a prop firm that matches your trading style and goals.

Thoroughly research the structure of any potential prop firm’s evaluation process before signing up. Consider the time frame of the challenge. Some challenges might be 30 days, while others could be longer or even unlimited, as is the case with City Traders Imperium.

What happens after the evaluation process? What if you fail? Some prop firms will leave you in the dark, while others, such as ourselves, will provide resources to help you succeed the next time. If you fail our evaluation, we will help prepare you for another attempt if you join our Academy.

For traders who are confident in their trading abilities and prefer to bypass the traditional 2-step challenge or 1-step evaluation phases, some prop firms, like City Traders Imperium, give them the opportunity of direct funding. With our Direct Funding Program, you directly access a funded account without undergoing the standard evaluation process.

Trading and Strategy Flexibility

One of the great advantages of being a solo trader is the inherent flexibility to develop and follow your own trading style and market strategies. However, if you’re considering transitioning to a prop trading firm, can they accommodate this individuality?

The challenge lies in striking a balance between enjoying the benefits of a prop firm, such as access to more capital, training, and advanced tools, while still retaining the freedom to trade according to your personal strategies and insights.

The best prop firms empower individual traders’ goals no matter their risk tolerance or strategy preferences.

We’re all for championing flexibility. CTI’s funded account structure gives the thumbs up to trading at different risk tolerances and at all times using EAs and holding trades overnight and through news events.

Education and Support

Experienced traders understand that trading mastery is a lifelong journey driven by continuous learning and development. Joining a prop firm invested in your growth can accelerate progress exponentially compared to doing it alone.

We see it as a win-win situation; that’s why we host frequent webinars, offer courses, insightful blog posts, and a highly engaged Discord channel. By giving traders the tools to build their knowledge and trading skills constantly, we get to share in their success and prosperity. When CTI traders become consistently profitable from our educational investment, we prosper as well!

How Much Trading Capital Available?

One of the most attractive aspects of joining a prop firm is the access to large amounts of trading capital. This is especially beneficial for skilled traders who need more financial resources to trade at a scale that matches their abilities. For starters, when appraising capital allocation, review the base trading account size offered upon passing evaluations. Confirm whether larger accounts are available for consistently profitable traders and what targets prompt increased tiers.

The best prop trading firms provide clear scaling pathways so traders can grow account sizes aggressively as skills develop. The most generous companies offer seven-figure account funding potentials for star traders to truly apply high-level methods (Our maximum capital allocation is $4,000,000).

How's the Profit Split?

Your primary goal as a trader is to earn from your skills, so the profit-sharing model should be transparent, fair, and motivating. The best prop firms structure plans to incentivise traders’ success since that success ultimately fuels the company’s profit targets, too.

Carefully vet the percentage splits offered. Many proprietary trading companies capture 30-50% of traders’ hard-earned profits. Also, confirm payment processing fees, timelines, and withdrawal restrictions. Complex payout frameworks signal potential issues.

Having your profit potential capped by a prop firm’s greed helps no one in the long run. The most trader-friendly companies understand that putting members’ best interests upfront ultimately works for everyone’s benefit.

CTI’s funded account offers an industry-leading 80-100% profit share back to the trader. You can also benefit from our rapid scaling plans along with a monthly salary option upon qualifying.

Your Next Step

Joining forces with the right prop trading firm opens avenues that are simply not accessible if trading your own capital. If self-funding seems limiting, explore responsible prop opportunities that accelerate, rather than inhibit, your potential.

The lure of substantial trading capital is obviously a motivating factor, but unthinkingly, choosing a prop company based on this alone isn’t a smart move. Assess the prop trading firm holistically – reputation, education, and flexibility matter just as much.

If achieving your full trading potential seems out of reach with your current resources, it may be time to engage a reputable and transparent prop trading partner like City Traders Imperium. Explore our diverse funding program opportunities to begin your prop trading journey.

Related Articles:

  • The Most Powerful Reversal Patterns In Forex You Must Know
  • How to Become a Prop Trader, #1 Ultimate Guide for Beginners
  • Supply and Demand vs Support and Resistance
  • Supply and Demand in Forex: Secrets to 10X Your Results

Choosing The Best Prop Trading Firms - #1 Checklist (7)

Martin Najat

Martin Najat is a seasoned forex trader and co-founder of CTI, a prop firm dedicated to empowering undercapitalized traders. Martin co-founded CTI with the mission to provide traders with the capital and support they need to thrive. Martin has developed and implemented trading strategies that have led him to share his valuable insights through a series of informative blogs aimed at aiding traders in navigating the complexities of the forex market. As a testament to his expertise, Martin's journey from novice to full-time trader serves as an inspiration to those looking to achieve success in the world of forex trading.

Search

Categories

  • CTI vs Prop Firms
  • Forex Education
  • Funded Traders
  • General
  • Indicators
  • Know How
  • Market News
  • Prop Trading

Recent articles

Market News Report: 16 June 2024

Langelihle Ntuli June 17, 2024

Read More »

Market News Report: 9 June 2024

Langelihle Ntuli June 11, 2024

Read More »

Rees’ Trading Journey: From Technician to Forex Success

Martin Najat June 8, 2024

Read More »

Achieving Forex Trading Profitability Without Perfection

Martin Najat May 22, 2024

Read More »

Choosing The Best Prop Trading Firms - #1 Checklist (2024)

FAQs

Which prop firm is the most reliable? ›

Who Are The Best Prop Trading Firms?
  • Best For Stocks & Options Trading (US Only): Funder Trading.
  • Best For Futures Trading (US & Intl): Topstep.
  • Best For Forex Trading: FundedNext.
  • Best Overall For Beginner & Advanced Traders: Apex Trader.
Jun 27, 2024

How to choose a prop firm? ›

Don't just pick the first prop trading firm you find. Choose one with a good reputation, support for traders, good tools, safety measures, fair costs, and a friendly community. This way, you can trade smarter and have a better chance at success.

Which prop firm is better than FTMO? ›

These include FunderPro, the5ers and many more. If you are looking for an alternative to FTMO, FunderPro is currently rank as the number one on the list of top Forex Prop Firms.

Which prop firm is the cheapest? ›

Cheapest Prop Firms Forex 2024 - with $5K Funding Accounts...
  1. The5%ers. The5%ers specializes in providing funding of up to $100,000 to forex traders. ...
  2. FTMO. ...
  3. MyForexFunds. ...
  4. Earn2Trade. ...
  5. The Funded Trader Program. ...
  6. OneUp Trader. ...
  7. Apex Trader Funding. ...
  8. True Trader.
Feb 27, 2024

What is the most trusted prop firm in 2024? ›

It was designed to be smooth to read, by identifying the key points of each firm, but also the pros and cons of trading with them.
  • #1 FTMO. FTMO. ...
  • #2 Funded Trading Plus. Funded Trading Plus. ...
  • #3 Topstep. Topstep. ...
  • #4 Apex Trader Funding. Apex Trader Funding. ...
  • #5 Take Profit Trader. ...
  • #6 FundedNext. ...
  • #7 HyroTrader. ...
  • #8 My Funded Futures.

What is the number one prop trading firm? ›

The Forex Funder

The Forex Funder is among the most popular prop trading firms globally. The UK-based prop firm offers a 1-step and 2-step evaluation process, which allows traders to choose the most suitable one based on their experience and strategy.

What are the negatives of prop firms? ›

Among many other potential factors, the main disadvantages of prop trading arise from being classified as a market professional, unfavorable profit sharing, and whether your net trading profits are taxed as capital gains or ordinary personal income.

How much does the average prop firm trader make? ›

Prop Firm Trader Salary

The salary of a prop trader can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.

How many traders fail prop firms? ›

Historically, retail prop firm challenges have been designed to set traders up to fail. They're given harsh targets, limited time, no support, and huge leverage – a perfect storm! It's not surprising that 95% of traders fail their challenges!

Which prop firm has the fastest payout? ›

Best Prop Firm Payouts. FunderPro has the fastest prop firm payouts, you can claim uncapped daily payouts. Also, they are 100% guaranteed because your trade with real funds!

What is the best funded trader program? ›

Top 5 Best Funded Trader Programs 2024
  1. Bespoke Funding Program. Bespoke Funding Program is a prop firm where traders come together to help each other grow and succeed. ...
  2. Funded Trading Plus. ...
  3. Trade The Pool. ...
  4. The 5ers. ...
  5. Instant Funding.
Mar 15, 2024

Does FTMO really pay? ›

Even though FTMO Traders trade with fictitious capital only, they are entitled to obtain a reward in the form of real money if they can generate “profit” on an FTMO Account.

Is there any free prop firm? ›

There are unique opportunities to get a free prop firm challenge account for forex. The current competition in the prop firm industry has created new offers to attract traders. Many forex prop firm challenge offers include smaller accounts, lower challenge fees, and refunds upon passing.

Can you make a living trading for a prop firm? ›

As a result, anyone can be profitable as a prop trader because profitability is linked to their experience and skills, strategy, and ability to generate gains by trading in the market with the firm's capital.

How much is a 5K prop firm account? ›

The cheaper 5K prop firm challenges allow traders to start small and gradually scale up to a higher capital. As an aspiring FX trader yourself, look for the cheapest prop firms with affordable $5K prop firm challenges – available for less than $100.

Which prop firm has the best payouts? ›

The Top Forex Prop Firms Ranked by Pay-out Frequency
Prop FirmPayout Cycle
Leveled Up SocietyBi-weekly
Bespoke FundingBi-weekly
Goat Funded TraderBi-weekly
Audacity CapitalMonthly
12 more rows

What prop firm has the best spreads? ›

Smart Prop Trader is one such low spread prop firm offering trading accounts with very low discrepancies between the asking price and the bid or spreads that generally average low. Trading with our low-spread account helps you enter and exit trades without worrying about trading costs.

Is FTMO trustworthy? ›

Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.

Do prop firms really pay out? ›

Do prop firms payout? Yes. Prop firms do pay out, but the amount of money that a trader can make will depend on their performance and the terms of their agreement with the firm.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Neely Ledner

Last Updated:

Views: 5433

Rating: 4.1 / 5 (62 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Neely Ledner

Birthday: 1998-06-09

Address: 443 Barrows Terrace, New Jodyberg, CO 57462-5329

Phone: +2433516856029

Job: Central Legal Facilitator

Hobby: Backpacking, Jogging, Magic, Driving, Macrame, Embroidery, Foraging

Introduction: My name is Neely Ledner, I am a bright, determined, beautiful, adventurous, adventurous, spotless, calm person who loves writing and wants to share my knowledge and understanding with you.