Proprietary FX trading firms or Forex prop firms:-
Proprietary trading, or prop trading, is when financial firms or proprietary FX trading firms use their own money to trade currencies for profit. Often called Forex prop firms, these are firms that maintain a pool of professional traders who trade on behalf of the firm rather than with an individual’s own money.
This money, most of the time, comes as a profit-sharing scheme with the firm, according to an agreed Profit Sharing Scheme. Higher leverage is provided by the proprietary FX trading firms in comparison with retail trading accounts, what this actually does is that it allows traders to hold larger positions with less capital. Besides, it has strict risk management protocols that help ensure the conservation of the firm’s capital and minimize possible losses. The model hence allows firms to exploit the opportunities available in the market while incorporating the expertise from the professional traders.
Top forex prop firm
1) Topstep – A prop firm trading
Topstep, like many other prop trading firms, hires stocks, futures, and indices traders and provides capital, support, risk management strategies, and coaching to help them trade successfully. Traders are then rewarded using a robust profit split.
Profit split: 100% up to $5,000, then 80% afterwards.
Features:-
- Free 14-days trial.
- Group performance coaching sessions.
- Private trading coach with professional coaches and AI coaching.
- Keep the first $5,000 in profit and 80% afterward.
- Support team.
- Pay fees through PayPal, Mastercard, Visa, American Express, and Discover.
Pros:
- According to the company’s website, it funded 8,389 accounts in 2021 for customers spread across 143 countries.
- Leverage of up to 1:100.
- Referral program.
Cons:
- No bonuses from broker Equiti Capital.
- The support service is just on weekends.
2) The 5%ers – A reliable prop firms
The 5ers is one of the oldest and most reliable prop firms in the industry.
The 5%ers let you trade forex, metals, and indices with a live account from day 1 without any need for trial accounts.
Features:
- The fastest growth plan
- No time limit on trading
- Traders use MetaTrader 5.
- 24/7 support
- Bonuses
Pros:
- Funding up to $4 million. Funding doubles after each milestone.
- 1:100 leverage on High stakes program
- The first low-entry cost challenge when you pay upon success!
- The fastest growth plan in the industry
- Compatible with all trading stylesGet account access within seconds
- Profit split up to 100% plus bonuses and salary
- MT5 platform available
- They are traders themself, providing high-quality education
- 24/7 dedicated support
Cons:
- Only 1:10 leverage on the Bootcamp program
3) The Trading Pit – Forex prop firm
The Trading Pit is a globally-recognized prop firm that follows a partnership model. After registering, you’ll need to complete a trading challenge presented by them. Depending on how well you do, you’ll be presented with numerous options.
Profit Split: Up to 80%
Features:
- Fixed 10%
- Simple and Fast Withdrawals
- Multi-Lingual Support
- Real-Time Statistics
- A Wide range of payment options
Pros:
- State-of-the-art trading systems
- Free and paid educational tools available
- High conversion rate
- Dedicated Account Managers
Cons:
- It’s a new firm with more than a year’s worth of experience.
4) Funded Trading Plus – Proprietary trading firm
Funded Trading Plus is a UK-based firm that provides an environment for its traders to partake in simulated trading, Similar to other prop-trading firms, you’ll need to pass an evaluation to become an FT+ Trader. The account sizes can range from $12,500 to $200,000. You can choose between the 1-phase evaluation and 2-phase evaluation process.
Profit Split: Up to 100%
Features:
- Diverse Trading Options
- Option to get instant funding
- One-Phase and Two-Phase Evaluation type
- Customizable trading programs
Pros:
- Comprehensive Profit-split structure
- Choose from a wide range of trading strategies
- Excellent support, Most trusted in the industry
- Double your account size after achieving 10% profit
Cons:
- Note: We allow overnight trading
- No $5000 account
5) SurgeTrader – A standard prop trading firm
A standard prop trading account at SurgeTrader costs $25,000 for a profit split of 75:25, a profit target of 10%, daily loss of 4%, and a maximum trailing drawdown of 5%. This package costs $250.
Profit split: Up to 75%.
Features:
- No monthly recurring fees.
- There are no minimum trading days for account levels, ensuring you qualify for higher funding limits quickly.
- Trade in any strategy that works for you.
Pros:
- Up to 75% profit split.
- Up to $1 million trading limit.
- Non-recurring payments to qualify for a live-funded account.
- 1-step audition process.
- 10% profit targets without a period to achieve it.
- Fast withdrawal processing.
Cons:
- Short operating period for the company (started in 2021).
- No positions are to be held during the weekend.
- 5% maximum drawdown, 1/10000 maximum open lots.
- Low leverage – 10:1 forex, metals, indices, oil; 5:1 for stocks, and 2:1 for crypto.
6) Trade The Pool – Well known forex prop firm
It is powered by The5ers, a well-known and highly reputed online prop firm established in 2016. Trade The Pool lets traders like you use their strategies and experience to trade what you want!
Profit Split: Up to 80%
Features:
- Free 14-day trial.
- 1 step programs
- Real-Time StatisticsTrade more than 12,000 Stocks & ETFs
Pros:
- Excellent support, Most trusted in the industry
- Free educational tools available
- Referral program.
- Simple and Fast Withdrawals
Cons:
- Short operating period for the company (started in 2022).
7) FundedNext – A full-fledged proprietary fx trading platform
FundedNext happens to be a relatively new prop trading platform out there that caters to Forex traders across the globe. You are eligible for a 40% increase in your account balance every 4 months, provided you are consistent with your profitability.
Profit Split: Up To 90%
- Profit split of 15% at the evaluation stage
- Dedicated account manager assigned
Pros:
- Compatible with all trading styles
- Low commissions
- Get account access within seconds
- Trader-friendly leverage
- Unlimited evaluation
Cons:
- No weekend holding option for the Express model.
Fees: One-time fee starting at $99 for Evaluation model of funding and One-time fee starting at $119 for the Express model of funding.
8) FX2 Funding – A prop trading firm
FX2 Funding works in the same way most prop-trading firms do. FX2 also allows its traders to trade at their own pace.
Profit Split: 85%
Features:
- Flexible account sizes
- 85% profit split
- Flexible time frame
Pros:
- High-profit split
- Comprehensive guidelines on trading
- Trade at your own pace
- Trade using your preferred method
- 24/7 dedicated tech support
Cons:
- FX2 Funding is new to the industry. It is hard to assess its reputation at such a nascent stage.
9) FTMO – A proprietary fx trading firm
FTMO lets people learn and discover their forex trading talents using the FTMO Challenge and Verification course, As a trader, you get 90% of your profits earned from trading with the firm and its tools. Customers are also trained on how to manage trading risks.
Profit split: Up to 90%.
Features:
- Maximum capital $400,000.
- 80:20 payout ratio. It adjusts to 90:10 when the FTMO account balance limit is increased.
- Low spreads.
Pros:
- Customers who include retail traders get access to MT4, MT5, and CTrader trading tools.
- Customers are furnished with data coming from liquidity providers to simulate real market conditions for traders who aspire to make more money when trading.
- The platform supports trading crypto as well as forex, indices, commodities, stocks, and bonds.
- About seven payment methods are available, including bank transfer and Skill.
Cons:
- Higher cost compared to other options.
- You can’t hold trades over the market weekend close unless you use the swing trader challenge.
10) Lux Trading Firm – A funded trading
Lux Trading Firm hires career trading experts (forex, crypto, and other financial assets) and funds their accounts for up to $2.5 million. The highest stage 8 is for fund managers.
Profit split: Up to 65%.
Features:
- Elite traders’club helps to boost one’s success rate.
- Personal mentors and fees are advantageous for those who join the elite traders’ club.
- Live trading rooms.
Pros:
- Free trial.
- High capital funding up to $2.5 million.
- No time limit on targets.
- Weekend holding allowed.
- Evaluation is just one phase.
Cons:
- Low leverage.
- 4% maximum relative drawdown and maximum loss limit.
11) Fidelcrest – Proprietary trading entities
Fidelcrest prop trading firm finds, trains, and evaluates Forex, CFD, and other prop traders who can then earn profits and commissions by applying for the company’s capital.
Profit split: Up to 90%.
Features:
- Up to 90% profit split.
- Can’t use robots.
- Swing trading is accepted.
Pros:
- The funding limit is $1 million.
- High-profit split of up to 90%.
- Get a bonus of up to 50% of profits earned in level 2 verification.
- Other bonuses are available.
- Trade multiple assets – CFDs, stocks, forex, and crypto. Withdraw via bank, PayPal, and other
Cons:
- Step 2 is harder to overcome because the maximum loss is half that of step 1 yet the profit target is the same.
- Evaluation is a two-phase and can take up to 90 days.
- Long-term strategy trading is not favoured by the trading limit of 30 days.
- Fewer education materials.
Conclusion
In general, a Forex prop firm is a company that evaluates a trader’s skills, usually via a trading challenge, and assigns its own trading capital for the trader to operate with. This approach represents an excellent way to start in Forex and financial trading for those who lack sufficient starting funds. Even for better-off traders, it remains a valuable path to improved risk management and self-control.
