Top 5 Prop Trading Firms

Prop trading has opened doors for traders to access capital beyond their personal funds while keeping a significant portion of their profits. Unlike traditional retail trading, prop trading allows you to leverage professional funds, giving you greater flexibility and opportunity to grow your trading career.

After analyzing trader feedback, evaluating business models, and reviewing industry standards, we’ve identified the five best prop trading firms that consistently deliver on their promises. Let’s dive into what makes each of these firms stand out and how they can support your trading journey.

What Is a Prop Trading Firm?

A prop firm is a financial organization that trades securities, currencies, commodities, and other instruments using its own capital instead of clients’ money. Traders employed by the firm are allowed to use this capital to generate profits, typically sharing a percentage with the firm.

A prop trading firm functions on a basic principle. In return for a portion of the profits made, it gives traders access to large sums of money. This establishes a win-win situation where traders obtain access to far more purchasing power than they could on their own, and the company uses human talent and experience to optimize returns on its capital.

Usually, the company follows stringent risk management procedures to safeguard its funds while giving traders the latitude to carry out their plans. This includes 

• Setting maximum loss limits
• Position size restrictions, and 
• Implementing monitoring systems that can automatically close positions if predetermined risk thresholds are breached.

The Best Prop Trading Firms

Now that you know what prop trading firms are, here are the five best ones. There aren't many trustworthy prop trading firms, but the ones we've chosen will help you a lot on your way.

1. OneFunded 

Overview: OneFunded stands out for putting traders first. It provides an accessible, low-cost entry into prop trading with flexible evaluation periods, educational support, and fast payouts.

Trading Environment:

• Platforms: cTrader, TradeLocker
• Markets: Forex, cryptocurrencies, global indices, metals, stocks
• Demo Access: Available before committing

Compared to other firms, the challenge fees of OneFunded are quite low, particularly on smaller account sizes. This makes it relatively more accessible to traders wanting to step into the waters without committing such huge initial costs.  Being a trader responsible firm, they offer a more flexible trading environment with unlimited time for evaluations and a higher profit split, fast payouts, and educational support for traders. 

Types of Challenges

1. One-step Challenge: Single-phase evaluation where traders aim to reach set profit targets to qualify for a OneFunded TRADER account. Unlimited trading period with daily loss and maximum drawdown limits. Access fee refundable if not started. Profit split up to 90%.
2. Two-step Challenge: Two-phase evaluation. Phase 1 targets must be met to proceed to Phase 2, where secondary targets are required for a funded account. Unlimited trading period, daily loss and drawdown rules apply. Access fee refundable if not started. Profit split up to 90%.
3. 1F Limited Challenge: Advanced two-phase evaluation for account sizes up to $25,000. Focused on competitive conditions and strict risk management. Unlimited trading period, daily loss and drawdown limits enforced. Access fee refundable if not started.

Key Trading Specifications 

2. FTMO

FTMO has built a reputation for being reliable and open that few other companies can match. This is because it has weathered market cycles and always kept its promises. They're also one of many forex prop firms, offering a full suite of forex trading challenges and accounts.

The firm's method is to find and develop talented traders who can show that they can consistently make money while following strict rules for managing risk.

Once these traders are found, the FTMO will put them through a two-phase evaluation system that is meant to fully test their skills and ability to manage risk. Passing Verification secures your funded FTMO Account (up to $200K), where you trade demo capital but earn real money.

Trading Environment:

• Platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and DXtrade. 
• Markets: Forex, Indices, Commodities, Stocks, and Cryptocurrencies.

Types of Challenges

Two-Step Challenge: Traders must complete Phase 1 (10% profit target) and Phase 2 (5% profit target) within unlimited time. Daily loss max 5%, overall drawdown 10%. Designed for professional traders seeking a structured, high-level evaluation. Profit split starts at 80%, scaling to 90%.

Key Trading Specifications

3. FundedNext

Based in the UAE (with operations in Cyprus), FundedNext offers flexible evaluation paths, high profit splits, and rapid payouts, suitable for beginners and experienced traders alike.

With this firm, traders get a demo account that can be used for free, and can trade with up to $300k simulated funds in the best conditions. They operate three models: Stellar, Evaluation, and Express. Each of these models has a profit split up to 95%. In the Evaluation model, you can get 15% profit during each assessment phase

On the other hand, their scaling potential is equally impressive. They offer funded trading accounts with starting values of up to $200,000 and traders can reach up to $4,000,000 in funding through a scaling plan.

Trading Environment:

• Platforms: MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, Match-Trader, and TradingView (for analysis). 
• Markets: Forex, Indices, and Commodities.

Types of Challenges

1. Stellar 1-Step Challenge: Single-phase evaluation with 10% profit target, daily loss 3%, overall drawdown 6%.
2. Stellar 2-Step Challenge: Two-phase evaluation (8% then 5% target), daily loss 5%, overall drawdown 10%.
3. Stellar Lite & Express Models: Flexible formats for faster or smaller evaluations. Profit split up to 90–95%, scaling up to $4M.

Key Trading Specifications

4. Topstep

Topstep specializes in futures trading and offers a three-step evaluation process through its Trading Combine, with profit-sharing for successful traders.

They've made for themselves a great reputation with clients having collectively withdrawn over $9 million in profits since 2020, Topstep has proven its commitment to trader success through an industry-leading profit sharing structure.

Nonetheless, traders are limited to futures trading products, no stocks or forex here. They require you to flatten positions at the end of the day, so you can't hold overnight trades. They show more care to their traders with a robust ecosystem and performance rewards.

Trading Environment:

• Platforms: TopstepX™, NinjaTrader, Quantower, TradingView, and others. 
• Markets: Futures contracts on CME, COMEX, NYMEX, and CBOT exchanges.

Types of Challenges

Trading Combine: Two-phase evaluation for futures traders. Unlimited time, minimum trading days per phase 2. Profit split 100% for first $10K, then 90%. Daily and overall drawdown vary by account size. Designed for futures traders focusing on clear rules and education.

Key Trading Specifications

5. The Funded Trader

Beginner-friendly firm offering multiple programs with scalable profit splits and flexible evaluation paths from Knight, Rapid, Royal, Dragon, to others, traders can enjoy different profit targets, drawdown rules, and payout timelines. Once you pass, you trade on funded accounts with simulated capital and keep up to 90–95% of profits.

As for trading, all trading is conducted on demo accounts with real profit-sharing based on simulated performance. Traders can get anytime payouts which are available on certain programs.

Trading Environment:

• Platforms: MT5, cTrader, MatchTrader. 
• Markets: Forex, Indices, and Commodities.

Types of Challenges

1. Standard & Rapid Challenge: Two-phase evaluation with 10% / 5% or 8% / 5% targets.
2. Royal Challenge: Two-phase evaluation with slightly higher requirements.
3. Knight Challenge: One-phase challenge for faster funding.
4. Dragon Challenge: Three-phase evaluation with complex targets.

Profit split up to 90%, daily loss 5%, overall drawdown 6–10%, scaling up to $2.5M.

Key Trading Specifications

Comparison

To see how different they are and which one will serve your purposes best, we’ve made a prop firm comparison table below.

How We Evaluate the Top Prop Trading Firms

1. Reputation

A firm’s reputation is a key indicator of reliability and trustworthiness. We prioritize companies with a proven track record, solid industry standing, and consistent positive feedback from traders. Independent reviews, forums, and social media are all used to confirm the authenticity of these experiences.

Awards, certifications, or recognition from reputable trading organizations further strengthen a firm’s credibility. Transparency is also essential—firms that openly share their policies, procedures, and trading rules demonstrate integrity. Firms like OneFunded, FTMO, and FundedNext have consistently shown reliability and professionalism over the years.

2. Payout Reliability and Speed

Timely and consistent payouts are critical for traders. A top firm ensures that profits are processed quickly and reliably, with clear rules for withdrawal methods and schedules. Slow or inconsistent payouts can disrupt trading performance and planning, making this a top factor in our evaluation.

3. Trading Rules and Restrictions

Every firm has its own set of trading rules, which can influence your strategy and potential profits. We favor firms that:

• Offer realistic profit targets
• Allow flexible trading styles
• Have clear rules for risk management, daily losses, and drawdowns

Restrictions like forbidding overnight positions (as seen in some futures-only firms) can impact your trading approach, so it’s important to consider them before committing.

4. Cost Structure and Fees

Understanding the fee structure is essential to evaluate potential profits. Key considerations include:

• Challenge fees and whether they are refundable
• Monthly platform or data fees
• Hidden costs for withdrawals, inactivity, or account maintenance

Firms that maintain transparent and fair pricing allow traders to calculate realistic profit expectations.

1. Support and Community

Support resources play a crucial role in a trader’s success, particularly for beginners. We look for firms that offer:

• Responsive customer service
• Educational materials and tutorials
• Access to active trading communities
• Mentorship and guidance programs

A positive, supportive environment helps traders navigate challenges and improve performance.

Making Your Decision

In the end, you'll have to pick a firm and start trading. In the spirit of making the right decision, consider the following tips.

• Never rush your decision, so take time to research thoroughly on the firm.
• Consider starting with smaller account sizes to test the firm's reliability.
• Stay informed about industry changes and firm updates.
• You should also be ready to switch companies if the one you choose doesn't live up to your expectations.

Final Thoughts 

Prop trading firms such as OneFunded, FTMO, FundedNext, Topstep, and The Funded Trader provide opportunities to trade larger capital, access multiple markets, and earn meaningful profits. By carefully evaluating a firm’s reputation, payout reliability, rules, fees, and support, you can select a prop firm that aligns with your goals and trading style—and maximize your chances of long-term success.

FAQs

Which Prop Trading Firm is Best for Beginners?

Beginners should focus on firms that offer flexible evaluation periods, supportive resources, and a positive trading environment. Look for companies that remove time pressure and provide educational materials. For instance, OneFunded is beginner-friendly, giving new traders room to learn while completing challenges at their own pace.

How Much Does It Cost to Join a Prop Trading Firm?

Joining fees vary depending on the firm and account size. Small accounts usually require an initial evaluation fee between $50 and $500, while larger accounts cost more. Some firms also charge monthly platform or data fees. Always check for hidden fees and confirm whether evaluation fees are refundable upon passing the challenge.

What Happens If I Lose Money While Trading?

With a prop firm, your risk is limited to the evaluation fee you paid upfront. Unlike trading your own capital, you won’t lose more than this. Firms enforce strict risk management rules, including daily loss limits (typically 3–5% of account balance) and maximum drawdown limits (usually 6–10%). Exceeding these limits may close your account but won’t incur additional costs.

How Long Does It Take to Get Funded?

Funding time depends on the firm’s evaluation process and your performance. Most firms use a one-step or two-step evaluation, while others like Topstep have three steps. Once you pass, most firms set up funded accounts within 24–48 hours, though some may take up to a week.

Can I Trade Multiple Accounts at the Same Time?

Many prop firms allow multiple accounts, either with the same firm or different firms. However, there are rules to consider. Some firms restrict copy trading or using identical strategies across accounts to prevent correlation risk. Always review each firm’s terms to understand limits and reporting requirements for multiple accounts.