How to choose the best prop trading firm? (2024)

New prop trading companies are emerging all the time and as a trader, you should know how to choose the one that best suits you.

In today’s article, we will focus on analyzing the different factors involved in choosing a prop trading firm to avoid misunderstandings or scams.

The first thing we should look at in order to have a good experience is the platform we have available to perform our trades.This is very important because it is where we will spend our entire trading session – it is our workstation, and it must be tidy so that we do not miss any opportunity that arises in the market.

There are more complex and simpler ones, but what we must pay attention to is which one we feel more comfortable placing trades on. It is important that we can open and close trades or select the amount of lots in a quick and easy way.

It will also depend on the strategy we use, as some may require more specific parameters that only the most complex platforms have, but to get started in trading the most recommended is something simple.

If we go a bit deeper, another important thing to consider is the amount of assets available to trade. There will be some that we know more than others and can not miss our favorite instrument to increase our chances of placing successful trades on assets that we are more comfortable with.

Once we have been able to identify that the platform that we are going to be able to use works for us, we must look at the conditions offered to us to pass the evaluation program.

Some questions we should ask ourselves are:

• What is the target profit? A high target profit will make the process of passing the exam more complicated.
• How many phases must I pass? There are one-stage and two-stage evaluations to choose depending on the risk you are willing to take to achieve your goals.
• How much profit do I make as a funded trader? The profit split will allow us to know what percentage of what you generate is for you.
• Max allocation? It is the maximum amount that we can access in a funded way.
• What are the rules? They should be adapted to your trading style allowing you to trade freely so you don’t have to worry about breaking any rules.

Make sure you always read the rules of any challenge account, and know your profit split to adapt your account management.

When you are a funded trader, the money you generate will be yours, depending on the profit split provided by the company.Of what you generate a part is for the company, but the vast majority will be for you.

It is important to compare how much profit will be for you when you request a withdrawal.

It is not so relevant, but you must know up to what amount you can aspire with the prop you use, sometimes there is a max allocation, for example in Crypto Fund Trader it is $200,000.

It should be enough to enjoy all the benefits of an account of that size.

If you have reached this point it is because you are almost at the point of being able to choose a good option to succeed in what you like to do.

The rules that each company has are very diverse but you should focus on 3 very important factors:

– Drawdown: If the daily or max drawdown is too low you can easily lose your account if you go through a bad streak. A 5% daily drawdown and 10% max drawdown are considered normal values.

– Time limit: Always choose a Prop that has indefinite time to pass the phases as it will take pressure off you when passing the test.

– Strategy restrictions: Make sure your strategy is compatible with the company’s requirements or your account will be suspended.

With these 3 aspects you can already start comparing and researching what is best for you, but there are also other things to assess how it can be;

– A good active community that supports and helps each other.

– A good support team that solves all the doubts you may have at any time.

– The reputation and experiences of other users.

It is always useful to have a fast and efficient customer support service that can help you 24 hours a day if there are any issues during your trading session or if you have any questions.

Also, make sure that their community is good and active so that they can help and advise you to start from zero.

Always value a good technical team and a good community when choosing any company.

If you are already thinking about which is the ideal Prop Trading Firm that meets all your requirements and you have done a good analysis, now you still have one of the most important parts to confirm your decision – the reputation of the company.

There is nothing more truthful and useful than researching the experience of other users to make sure that it is a real and solid project that is not going to scam you.

Ask on forums, in telegram groups, check trustpilot and find proof of payment from other users.

This way it will be very difficult to make a mistake with your final decision.

At the end of this article, you are probably thinking about starting a challenge, and that’s why I bring you a small analysis of Crypto Fund Trader as the ideal Prop to start your first evaluation.

Here is a short summary so that you can evaluate for yourself:

– Evaluation and funding process: You are free to choose between a one-stage or two-stage evaluation program depending on how confident you feel, also, there is no big target to pass the exam as in the standard 2-stage evaluation the profit target is 8% in stage 1 and 4% in stage 2, very competitive percentages to make it easier for traders to do their job.

– Profit: The profit that the trader gets is 80% of what they generate with their funded account while Crypto Fund Trader gets 20%.

– Capital Provided: Get up to $200,000 of virtual funds to trade with +100 Crypto pairs, where your favorite Cryptocurrency will surely be. You will also be able to choose +100 Indices, Forex, Commodities and Stocks for the more traditional market lovers.

– Prop trading Rules: You will not have any time limit to pass any evaluation, or any strategy restriction.

Here you can see all the rules that are clearly explained to avoid any misunderstanding:

https://cryptofundtrader.com/evaluation-rules/

– Customer Support: 24-hour support thanks to the highly qualified technical team.

– Reputation: Crypto Fund Trader has +30,000 followers on Twitter, with a 4.4 rating on TrustPilot at the time of writing this article.

It also has a complete list of all funded traders and proof of reserves in real time so you can see that all profits are covered.

As a curiosity, it also has a KYC from Coinscope to increase the trust of the project and give more peace of mind and transparency to the end user.

If you want to open an account in Crypto Fund Trader you only have to go to the main page:

https://cryptofundtrader.com/ , select which of the two platforms we offer is the one that suits you best and choose the account size you are willing to get.

Start today and achieve your goals !