Know the 10 Best Prop Trading Firms

Currently, prop trading has become immensely popular to the traditional mode of investing. If we were to go by statistics, from December 2015 to April 2024, there has been an expansion in the prop trading industry by as much as 1264%. This has surpassed the traditional investment industry.

For those who aren’t aware of Prop trading, here’s an outline. Prop trading, the short form of proprietary trading, is a situation in which a particular financial firm trades by using its own money rather than the client’s money. In this article, we will look into the best prop trading firms and learn about the benefits of prop trading. 

How Does One Benefit From Prop Trading?

Here are some of the benefits of prop trading that you may want to know. Let’s take a look at them: 

• The financial institution or commercial bank involved in prop trading acquires an increased profit both quarterly and annually. 
• When an investment bank or brokerage firm trades on their clients’ behalf, they earn revenues through commissions and fees. 
• The institution investing in prop trading can stockpile an inventory of securities. 
• Traders investing in prop trading enjoy the benefits of larger capital, supportive communities, and advanced trading technologies. 

Get An Insight Into the Top Prop Trading Firms

If you have invested in prop trading, you have the privilege of trading with the capital of the respective firm in place of your own funds. This gives you the scope of profit sharing and lessens the financial risk that could have happened had you invested using your own funds. Here is an analysis of some of the best prop firms to invest in. 

FundedNext

It is new to prop investment, with offices in several countries across the globe, like the United States, the UK, the UAE, and Bangladesh. 

Why Choose FundedNext?

• You’ll get a 15% profit share from Challenge phase profits (which is the profit made by a trader during a certain evaluation period within the funded trading account)
• Free monthly competitions are hosted where one may compete to acquire exclusive rewards.
• It provides competitive spreads and high leverage, making the trading experience excellent and unmatched. 
• If you have violated any of the trading rules, you may still top-up or restart your account and resume your journey in trading.
• Traders have the liberty to trade without being bound to any time limits. 
• Customers will get their first payout after 21 days. Then, there’ll be payouts every two weeks from trading. 

The Flipsides Of FundedNext

Here are the flip sides that you should keep in mind: 

• The commission rates are high.
• There are strict rules regarding the daily drawdown limits.

FundedNext At A Glance

Average Prop Firm Score: 83/100

Trading Platforms: Meta Trader 4 (MT4), Meta Trader 5 (MT 5), cTrader, Match-Trader 

Profit Payout: Up to 95%

Leverage: 1:100 (maximum)

Is the registration fee refundable? Yes (if there isn’t trading within seven days of registration); fees become non-refundable after trading begins.

The Funded Trader

The next on our list is Funded Trader. Let us look into its boons and banes at length. 

Why Choose The Funded Trader?

Here are the reasons why you may select The Funded Trader: 

• Its scaling is as much as $5 million.
• You can trade on MT4 and MT5 platforms. While MT4 is great for beginners, MT5 is a good choice for the novice and the experienced as well. 

The Flipsides Of The Funded Trader

The downsides of The Funded Trader are stated below: 

• The Trustpilot score based on customer reviews is low – 3.3/5.
• It lacks transparency, and the commission fees are high. 

The Funded Trader At A Glance

Average Prop Firm Score: 65/100

Trading Platforms: Meta Trader 4 (MT4), Meta Trader 5 (MT 5)

Is the registration fee refundable? No, it is not refundable 

OFP

OFP is quite an innovative name when it comes to prop trading. You can fund instantly sans the challenges. The best part is that the payout is rolled out to traders within four days, who may select their mode of payment from several currencies.. They are transparent and reliable. No wonder traders get the scope of achieving success in no time. 

Why Choose OFP?

If you are planning to trade with OFP, here is why you should choose the same: 

• It is reliable and transparent. 
• The profit split is as much as 80%.
• Traders get payouts in just four days. 
• They have the liberty to select from many currencies. 

The Flipsides of OFP

OFP has certain downsides as well that you must take into account.

• The profit targets may be a little difficult to hit – 10% within 30 days.
• Increased slippage issues (which mostly occur when the market is highly volatile)

OFP At A Glance

Trading Platforms: Match-Trader, TradeLocker, cTrader,

Profit Payout: 95%

Leverage: 1:100

Is the registration fee refundable? Yes, only if there hasn’t been any trading in 72 hours of purchases. The refund processing time is 2-3 days on average. 

FTMO

This Prague-based company has been in operation since 2015, reputed for the generous provision of capital to its traders. To invest in FTMO, you have to go through the FTMO challenge at first, where your trading skills are checked. Then you go through the verification process, wherein you finally get to trade with FTMO. 

Why Choose FTMO?

The good points of FTMO to consider are as follows: 

• You get to trade on large-sized accounts to yield significant results. 
• They give you the scope of a free trial
• You may be rewarded with as much as 90% of your stimulated profits. 
• They help novice traders with video tutorials so that they may understand the nitty-gritties of trading. 

The Flipsides of FTMO

Here are some of the drawbacks to keep in mind: 

• All funded traders must pay a fee with FTMO.
• If you can’t go through the three-step challenge, you must restart the challenge and pay the fee as well. 

FTMO At A Glance

Trading Platforms: cTrader, MT4, MT5 

Leverage:1:100

Profit Payout: As much as 80%

Is the registration fee refundable? Yes (when the trader passes the challenge and verification process successfully) 

BrightFunded

BrightFunded has small to large account sizes, ranging from a minimum of $5000 to as much as $200,000. It has three phases that a trader must go through to access a funded account. 

Why Choose BrightFunded? 

If you are wondering why you should choose BrightFunded, here are the reasons to consider.

• The fee structure is transparent and trader-friendly.
• You get a realistic and cost-effective trading environment.
• It has a lucrative trading program.
• This trading program gives you access to several trading instruments like

 Forex, commodities, indices, and cryptocurrencies.

• There are weekly payouts, with traders being paid every seven days.
• It has a high profit spit that may reach as much as 100%.

The Flipsides of BrightFunded

If you need to know the aspects where BrightFunded lags behind, here are some of them:

• They don’t offer any free trial. To be a part of the challenge, traders have to pay.
• The challenge options provided by BrightFunded trading are quite limited. At present, they offer just a single trading challenge, which may not cater to everyone’s needs. 

BrightFunded At A Glance

Average Prop Firm Score: 95/100

Trading Platforms: cTrader, DX Trade

Profit Payout: Up to 100%

Leverage: 1:100

Is the registration fee refundable? Yes it is

Funded Trading Plus

This London-based firm offers flexible account options – instant funding, one-phase, and two-phase. 

Why Choose Funded Trading Plus?

Here are some of the advantages of Funded Trading Plus that may tempt you to choose the same.

• They have flexible rules and regulations, following which won’t be a mammoth task indeed.
• The payout cycles are flexible in three, five, or seven days.
• The processing of payouts is done through cryptocurrency or bank transfer, giving traders a chance to access their profits in a quick and versatile manner. 
• There are several specialist programs.
• It has provisions for instant funding sans any evaluation. This way, experienced traders may skip the process of evaluation.

The Flipsides of Funded Trading Plus

Some of the disadvantages of Funding Trading Plus are mentioned below:

• Instant funding may incur advanced fees.
• There is limited initial bot support.

Funded Trading Plus At A Glance

Average Prop Firm Score: 77/100

Trading Platforms: Meta Trader 4 (MT4), Meta Trader 5 (MT 5)

Profit Payout: 80-90% on average

Leverage: 1:30

The Trading Pit

The Trading Pit began with the motive of empowering traders with resources and tools required for financial independence. The Trading Pit has a unique structure, setting it apart from many other trading firms. 

Why Choose Trading Pit?

There are many reasons why you may choose Trading Pit for your next prop trading venture. Let’s check them out. 

• You don’t have to pay any deposits, and there aren’t any hidden fees. 
• It is ideal for both novice and experienced traders. 
• When a trader completes a certain challenge, there’s the next level where he goes. Here, there are chances for more contracts, increased payouts, and larger drawdown limits. 
• When you visit their official website, you will find several educational tools at hand for your assistance, like webinars, podcasts, infographics, ebooks, etc. 

The Flipsides of The Trading Pit

Here are some banes associated with the Trading Pit. 

• There isn’t any demo version or free plans to help traders. 
• To participate in challenges, professional traders have high qualification requirements. 

The Trading Pit At A Glance

Trading Platforms: MT4, MT5, Quantower. NinjaTrader

Profit Payout: As much as 80% 

Leverage: 1:30 for Contract for Difference or CFD. 

Is the registration fee refundable? No subscription fee per month is needed. 

DNA Funded

The diverse challenges, flexibility in trading, and competitive pricing make DNA Funded one of the best prop trading firms. The challenge types associated with DNA Funded include single helix, double helix, and pro challenge. 

Why Choose DNA Funded?

Here are the reasons to choose DNA Funded as your prop trading option. 

• It has low fees associated with it.
• You get access to over 800 instruments, which is a big thing indeed. 
• It provides a great variety of challenges for traders of various levels – from novice to experienced. If you prefer an easy single-step challenge, the single helix is apt. However, for something more challenging, the two-step double helix is more apt. 

The Flipsides of DNA Funded

Here are some of the downsides of DNA Funded to consider. 

• Its leverage rate compared to other firms is relatively low.
• If you are taking the Pro Challenge, Crypto trading isn’t allowed.

DNA Funded At A Glance

Average Prop Firm Score: 97

Trading Platforms: DX Trade, Trade Locker 

Profit Payout: 80% to 90% 

ThinkCapital

This prop trading firm is backed by brokers. If you wish for a firm with unparalleled security, where you may trade with confidence, ThinkCapital is your perfect pick. 

Why Choose ThinkCapital?

If you are wondering why you should choose ThinkCapital, here are the reasons, as stated below. 

• It is broker-backed and a highly reliable firm to trade with. 
• The challenge fees start as low as $39, also offering customers profit splits of as much as 90%. 
• The rules are transparent, and payouts are quite trustworthy. 
• They offer bi-weekly payouts – once a fortnight. 

The Flipsides of ThinkCapital

Check the disadvantages of ThinkCapital: 

• The payouts are confined to cryptocurrency.
• The trading community is way too small.

ThinkCapital At A Glance

Average Prop Firm Score: 91/100 

Trading Platforms: Meta Trader 5 (MT 5), Think Trader Plus

Profit Payout: Up to 90%

City Traders Imperium

When trading with City Traders Imperium, prop traders get the unique opportunity to acquire monthly salaries alongside the profit. It has a two-step, a one-step, and an instant trading process. 

Why Choose City Traders Imperium?

Here is why you may choose City Traders Imperium.

• It provides competitive profit spits.
• You will get strong educational resources.
• The prop trading community is strong enough. 

The Flipsides of City Traders Imperium

The drawbacks are stated below: 

• The fees are high.
• The platform options are limited. 

City Traders Imperium At A Glance

Average Prop Firm Score: 72/100

Trading Platforms: Meta Trader 5 (MT5), Match-Trader 

Profit Payout: 80% to 100% 

Conclusion

These are some of the many prop trading options that you have at hand. Some of the other notable prop trading firms include FXCI, Trade the Pool, Liberty Market Investment, FXCI, Blueberry Funded, Funded Pips, Apex Trader Funding, and a lot more. The list is endless indeed. You must do your research well and review the respective firms in and out before proceeding to trade with them.

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