10 Best Prop Trading Firms in 2023 • Benzinga

Proprietary or prop trading has become an increasingly popular investment approach for financial institutions and prop traders because of the numerous benefits it offers both players. In this form of trading or investment, the investor or prop trader uses the company’s fund or capital to trade various financial instruments, including equities, derivatives and currencies. The financial institutions profit directly from the financial market rather than relying solely on trade commissions from clients, and the prop trader earns a commission or profit split. 

Prop trading is highly profitable since the prop trader has access to sophisticated modeling and trading tools and pools of market information that are vital in critical decision-making. If you have an excellent understanding of the financial market trends and can trade successfully, prop trading firms can accelerate your journey to financial independence. Undercapitalized professional traders can also tap into the opportunity provided by proprietary trading firms to reap a return. 

However, finding prop trading firms or platforms that deal in your preferred assets or tradable instruments and under conditions that suit you can be challenging. Benzinga reviews some of the top firms to help you make an informed choice.

With prop trading, the key to success is choosing firms that meet specific vital requirements like a low-fees structure, accessibility to a diverse market or tradable assets and trading platforms. The risk contribution, which determines the amount of leverage offered, should be reasonable, and so should the profit split. Benzinga’s top picks below are based on some of these criteria. 

SurgeTrader is one of the most prominent figures in the prop trading scene. When you want to invest with the massive funds available for a larger trading house, you can turn to a prop trading firm. SurgeTrader offers a range of benefits, including:

• Quick trader funding after your evaluation
• Quick account setup
• Powerful educational tools
• High profit shares (up to 90%)
• Several account styles
• A simple platform that’s easy to use

Turning to prop trading is a good way for you to learn, invest and grow your career. You can also make money if you know how to trade well and work well with the platform. Reach out SurgeTrader at any time for more information on prop trading.

In the world of prop trading, FX2 Funding offers the most affordable, single-step evaluation for those who want to access the markets on their own time. FX2 allows you to trade like you’re at a large investment firm, but you can work on your own time and take ownership of you account. You get all the help you need with trading software, educational tools, high profit splits, flexible rules for traders and their strategies and no time limits. The competitive advantage is real, and you can use this platform to grow quickly with the $200,000 you can receive in funding.

Traders on FX2 can access:

• Forex
• Indices
• Crypto and other instruments

Traders can also utilize:

• Weekend holding
• Copy trading
• Expert advisors and other forms of automation

With 24/7 support, you can begin growing your trading career and avoid getting overextended. For many who want to learn and grow, this is the perfect platform with the simplest evaluation and the lowest prices. 

Top Tier Trader is a prop trading firm that makes it possible for you to enter this market and become the daily investor that you want to be. More than a day trading platform, Top Tier Trader offers:

• Simple 2-step evaluation
• $300,00 to $2 million in funding
• 80% to 90% profit splits

Not every program allows you to use EAs or copy trading, but you can still get your evaluation fee repaid and make a living trading with the backing and assistance of Top Tier Trader.

Founded in 2022, Trade the Pool using reputable risk management tools and ensures that traders have a place to trade that serves both parties rather well. 

Most traders have an issue with getting into the markets because they lack the capital required to take risks and see massive returns. This is why traders turn to Trade the Pool. Trade the Pool does more than give you the funds you need to get into prop trading. Trade the Pool also:

• Works for day traders, swing traders and prop traders
• Support professional trader who need another place to work
• Offers trading for stocks and CFDs
• Offers support for inexperienced traders
• Provides unlimited buying power
• A 14-day free trial
• Offers over 12,000 stocks and ETFs to trade
• Educates users
• Subscribes traders to several resources
• Provides space for traders to hone their skills

The 5ers is a prop trading firm that makes it easy to access the prop trading market and affordable to get started. On the platform, you can trade forex, metals and indices, pay as little as $95 for a demo account and get several benefits, including:

• Instant trading access after passing the evaluation
• Freedom to develop your own trading strategy
• No subscription fees
• MT5 trading
• Profit splits up to 100%
• Exclusive resources
• Salary offers on some of the higher-stakes programs
• Easy scaling options

You can visit their website today to set up your demo account and complete your evaluation. Using the 5ers is a good way to enter the prop trading market, change your fortunes and begin to make money on your own terms.

FXIFY is a new proprietary trading firm that offers access to up to $400,000 for those who pass the site’s assessment. With profit shares as high as 90%, you can scale your account up to $4 million. 

If you’re intrigued, you simply need to decide if you want to complete the One-Phase or Two-Phase assessment. Review the terms and conditions of each assessment before beginning so that you know you’re taking the right path. 

Trading is available on MT4 or MT5 and assorted trading platforms through the firm’s partnership with FXPIG. 

When you trade on FXIFY, commission-free trading is the law of the land, allowing you to access stock indices, forex, precious metals, etc. There are relatively tight spreads, no trading restrictions, customizable leverage and more. Plus, you can use expert advisors or other automated strategies to get the best results. 

With instant payouts, no consistency rules, unlimited trading days and a 125% refund on your assessment fee with your first payout, FXIFY is an attractive option for those looking to break into prop trading.

At The Trading Pit, you can entire the funded trading space with help from up to $5M in funding and up to an 80% profit share. The process is simple, you can look into multi-asset trading of:

• CFDs
• Futures
• Crypto (coming soon)
• Stocks (coming soon)

There are also multiple account styles, including:

• Lite—3 days of trading minimum, 90 day challenge periods, $1,000 profit target
• Standard—3 days of trading minimum, 90 day challenge periods, $2,000 profit target
• Executive—3 days of trading minimum, 90 day challenge periods, $5,000 profit target
• VIP—3 days of trading minimum, 90 day challenge periods, $8,000 profit target

All you need to do is pass the challenge for your account type, and when you do, you will become a funded partner with $5 million in funding where you will keep 80% of your profits. With simple rules, easy setup, real learning tools and quick payouts, you can access the prop trading space in your own time.

When you want to get into prop trading, it can be difficult to know where to start and which platform to choose. Using Apex Trader Funding helps you get into the futures trading space with a funded account for which you can qualify in as little as 7 days. You will trade mini or microcontracts in the evaluation period, and once the evaluation has been passed, you will move to a funded account and get paid for your trading skills..

Traders receive 100% of their first $25,000 earned per account with up to 20 accounts active at once and 90% after that, meaning this platform pays the most of any futures prop trading account. There are no daily drawdowns, you can trade on holidays and use your own system to get the best results.

Moreover, there’s no cap on payouts and you will see real-time data that can help you make the best decisions. Traders will use Rithmic or Tradovate, and can choose from one of several different accounts that will come with a particular number of contracts, a profit goal, trailing threshold and more. If you’re ready to enter the prop trading space, you can set up an account in moments with Apex Trader Funding.

Traders With Edge is one of the most popular prop trading platforms and a prop trader favorite because of its flexible and easily accessible trading features. Founded in 2022, a team of experts manages the platform, planning to fund up to 25,000 traders by 2025.

As a result of its unique structure, Traders With Edge offers:

• An 80% profit payout
• Diverse tradable assets
• The cheapest evaluation—challenge accounts starting from $55.

There’s a comprehensive support structure that makes it easier for traders to get the information they need, along with core assistance on their accounts. There are several funded trading accounts to choose from, and up to $3 million of capital could be accessible. 

Superfunded is a simple platform that makes it easy to access the prop trading space. The platform is powered by Eightcap, offering you fast execution once you get started.

As you begin your journey with Superfunded, you will start in the Evaluation Stage where you choose the investment tier you prefer and take the evaluation. At this stage, you also learn all the risk management rules required by the platform and achieve goals that you want. Once you’ve proven yourself, you can move to the Funded Stage where you are trading at the level you’ve chosen.

On Superfunded, you can trade:

• Forex
• Metals
• Oil
• Indices
• Stock CFDs

Plus, Superfunded offers:

• Bespoke liquidity
• Security of funds
• World-class support

If you’re ready to start your prop trading career, you can sign up with Superfunded at any time to start your evaluation. As you learn risk management and grow your portfolio, you can become a trading star and take the prop trading sphere as far as you wish to go.

OneUp Trader provides a unique prop trading program for investors that makes it easier to get into the industry. OneUp partners with multiple prop trading firms in an effort to guarantee trading funds that could be as high as $250,000. 

Using innovative and simple technology, you can take the 1-step evaluation that helps OneUp understand if you have what it takes. You don’t jump through hoops, and you also get:

• The opportunity to extract profit from the markets without spending your own money
• Several account styles
• Funds ranging from $25,000 to $250,000
• Accounts with specific risk parameters
• Placement with a funding partner when you pass the evaluation
• The chance to extract your first $10,000 in profit 
• A 90% profit split after the first $10K

If trading futures and derivatives are your specialty, there’s no better prop trading platform to go for it than Topstep. It is one of the most reputable prop trading firms thanks to its generous payout and profit split — you keep 100% of your first $5,000 earnings and 90% of your profits after that. Like most prop trading companies, Topstep provides requisite capital, support, risk management strategies and coaching to help trained or hired trading professionals excel while rewarding them with robust profit split.

The platform welcomes experienced and beginner traders, helping them develop healthier trading habits. However, to qualify for a funded account, you must prove through the evaluation processes that you can trade and manage risk. Unlike other providers, Topstep’s evaluation process is streamlined into two steps, referred to as Trader Combine, which traders can complete in less than a couple of weeks. Although there’s no time limit to hit the profit target required to pass the Trader Combine and get funded, you continue to pay the monthly fees while in the Trader Combine until funding. 

The monthly fees vary among the three account sizes and range from $165 per month for the minimum account size of $50,000 to $375 for a $150,000 account maximum. Essentially, your account choice will depend on your buying power, monthly fees, loss limit, profit target per step, number of contracts and trailing maximum drawdown. A 14-day free trial is also available. Other perks include an excellent reservoir of educational resources, blogs, podcasts, groups, one-on-one and digital coaching, all geared towards helping future traders improve performances and achieve goals faster. 

Topstep supports various trading platforms, including TradingView, Sierra Chart and TradingView.

FTMO has a reputation as one of the most successful prop trading firms, and that’s for a good reason. Since kickstarting operations in 2014, the company has paid out over $97 million to more than 10 000 traders in over 180 countries, according to its website. Although you can trade diverse instruments (including forex, commodities, indices, crypto, stocks and bonds), FTMO’s super-raw spread and 1:100 leverage make it one of the best forex prop firms. Beginner traders will also find the platform ideal, thanks to its one-time fees, especially considering it is reimbursable at your first profit split. 

The two-step evaluation process is standard and comprises the FTMO challenge and the verification. The duration for the FTMO challenge is 30 days. However, you can proceed to verification if you pass the trading objectives earlier. Remember that a mandatory minimum of 10 trading days is needed to pass. Other core objectives of this stage include a 5% maximum daily loss, a 10% profit target and a maximum account loss of 10% during the testing period. If you pass other core objectives except for the profit target, you can repeat the FTMO challenge for free.

The verification stage is 60 days. Once completed, you become an FTMO trader and can manage an account balance of up to $400,000 with a payout share of 80%. If you maintain consistent profitability, the company increases your account size by 25% every four months. You’ll then enjoy payout shares of 90% in line with its scaling plan. FTMO heavily invests in trading technologies and offers various custom apps to prop traders to help track their trading tendencies, execute market analysis and provide real-time feedback. 

If you double as a retail trader, you can access the MT4, MT5 and CTrader trading tools with liquidity provider data. Swing account holders can hold positions over the weekend or during macroeconomic releases. You can get started with €155 for the $10,000 funded accounts or try out the freemium. FTMO offers excellent educational resources and customer support. The firm’s highly trained professional coaches are ever ready to help streamline your journey to financial independence. The core drawback is the long evaluation period.

Although a relatively new prop trading firm, FundedNext’s 15% profit split offering at the evaluation stages distinguishes it from competitors. The idea is to reward traders handsomely for their efforts and commitment to learning. By opting for the most extensive evaluation package, you can access maximum funding of up to $200,000. Available instruments include forex, commodities and indices, which you can trade via its partner brokerage platform — EightCap. FundedNext adopts two funding models — the evaluation model (funding model 1) and the express model (funding model 2). 

The evaluation model allows you to prove your expertise in two phases with realistic profit targets. In phase one of this model, you’re required to hit a profit target of 10% within four trading weeks without any rules violation. On successful completion, you can kickstart phase 2, which requires meeting a profit target of 5%  within eight weeks without violating any rules. The rules include a maximum of 5% daily and 10% overall drawdown. Once you achieve the target, you are funded and eligible for an 80% payout from your earnings. The payout can rise to 90%, depending on your performance. 

In contrast, the Express model requires you to hit a profit target of 25% with no time limit. Similar drawdown rules as the evaluation model apply here, plus a mandatory 10 trading days per month. Once you achieve the Express target, you’ll start trading a funded account with a 60% profit split which can go up to 90% depending on your performance. 

Another excellent feature of FundedNext is the availability of Dedicated Account Managers for every trader. Furthermore, suppose you maintain a consistent profitable performance. In that case, you become eligible for a 40% increase in account balance every four months, capped at $4 million in line with the company’s scale-up plan. You can kick start your journey with  FundedNext via three simple steps — pick a funding model, maintain consistency and get funded. You can download the  FundedNext iOS and Android app for easier accessibility. The company’s educational blog is valuable. For help, you can reach out to customer support via live chat, email, Discord, Telegram and Facebook.

You cannot outline industry-leading proprietary firms without mentioning the Funded Trader. The company is highly reputable and reasonably qualifies among the top five. Its verifiable payouts, high leverage, realistic profit targets and excellent drawdown are not the only reasons most prop traders prefer the firm. The company’s outstanding flexibility regarding trading rules is also a significant factor. For instance, unlike most prop firms, Funded Trader permits holding trades overnight and on weekends and trading breaking news. Trade copying is also permissible for the royal account.

There are broad ranges of instruments available for trading, including forex pairs, indices, cryptocurrencies and metals. Funded Trader offers three funding options or programs — the standard, rapid and royal challenge. Each option comprises two phases geared towards identifying skillful traders and rewarding them for their efforts. For phase 1 of the standard challenge, you must achieve a profit target of 10% within a 35-day duration while maintaining 6% daily and 12% overall drawdown. On reaching this target, you progress to the validation phase requiring a 5% profit target within 60 days. 

Upon successful verification, you can trade a funded account of up to $600,000 and 80% payout or $1.5 million with a 90% profit split via a scaling plan if you maintain consistent profitability. Phases 1 and 2 of the rapid challenge require an 8% and 5% profit target, respectively, while maintaining a 5% daily and 8% overall drawdown. In contrast, phases 1 and 2 of the royal challenge require an 8% and 5% profit target, respectively, while maintaining a 5% daily and 10% overall drawdown. The duration for each phase is the same as that of the standard challenge. 

While the profit target (10% for phase 1 and 5% for phase 2) and profit split are within industry standards, Funded Trader Standard accounts beat competitors in daily and overall drawdown. The 200:1 leverage (100:1 for the rapid account) is also robust, meaning more buying power. Fees range from $189 refundable fees for a standard account size of $25,000 to $1,399 for a royal account size of $300,000. 

Other top proprietary firms in Benzinga’s consideration include Fidelcrest, 5%ers, City Traders Imperium, Jane Street Capital, Flow Traders, PEAK6 Investment and IMC Financial Markets.

Prop trading occurs when financial institutions like brokerage firms and commercial and investment banks directly trade or invest in the equity market. Specifically, these institutions use their funds or capital to invest in or trade diverse financial instruments, including stocks, bonds, commodities, derivatives and currencies.

Besides earning commissions for processing trades for their clients, these institutions also profit through their direct and active investment in the financial market. Proprietary trading firms invest money in trading assets through their hired or trained professionals and experienced traders (or prop traders). Funding offers vary among companies but can range between $500 to a few million dollars. 

Coaching, training or hiring expert traders makes sense since such professionals can trade more profitably by applying their expertise or strategies and using sophisticated modeling or trading tools and raw market information provided by the company. Since they earn commissions or profit splits, the professionals naturally strive to deliver maximum profitability by employing diverse strategies, including merger arbitrage, index arbitrage, global macro-trading and volatility arbitrage. 

With the increased potential for profit maximization comes higher risk, especially considering that prop trading is relatively speculative and sometimes occurs via a range of derivatives or other complex investment vehicles. But the benefits can be substantial.

Prop trading is highly advantageous to both the firm and the prop trader. While the benefit for the firm is largely increased profit, the trader enjoys the following benefits. 

Due to the nature of the operation, proprietary trading firms often comprise a closely-knitted community of people. The implication is that traders are offered quick support, and issues are resolved timely, unlike retail brokerages.

If you mainly trade in open positions, you’re better off as a prop trader. The reason is that most prop firms allow you to open multiple orders simultaneously. 

Prop trading makes it easy for undercapitalized traders with requisite trading expertise to access and profit from the financial market. Proprietary accounts might be ideal if you’ve less than $10,000 in investment capital. The reason is that your buying power will trump anything you can get as a retail client.

Unlike retail trading, where you’re essentially bound to whatever the retail firm offers you, prop trading allows you to choose your favorite trading platform from a long list of options.

For effective short selling, you first need to locate shares that are good candidates for shorting. This process might be challenging as a retail trader, especially as some equities may be on the threshold or hard to borrow and so unavailable for shorting. With prop trading, you can access a long list of shorting inventories.

Despite its benefits, prop trading can be disadvantageous. Some of the disadvantages are: 

Compared to retail brokers, prop trading firms are highly under-regulated. While this means fewer operating costs, there’s an inherent risk of losing your capital, especially if the principals are fraudsters. You must therefore do due diligence and invest only what you can lose.

Most prop firms require you to pay for the modeling and trading software, especially if you trade remotely. The monthly fee for most sophisticated trading software may be as high as $300. When you factor in other costs that may arise, you may have no alternative but to reconsider, especially on comparing with retail trading fees.

Prop trading leverage mainly applies in day trading. You may likely get different leverage for overnight positions than day trading. The implication is that, to a greater extent, prop trading is essentially day trading. Most prop firms do not permit overnight trading.

If your strategy consistently delivers profitability, the prop firm may look for a way to decode your approach. For instance, they can piggyback your method and teach them to computers via machine learning.