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

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.

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.”

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.

• 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.

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.

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.

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!

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).

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.

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.