Top 10 Forex Prop Firms & Guide To Choose The Best One

Due to the rising popularity and high-profit potential of the forex market, a lot of people are interested in pursuing forex trading as a career path. You might already be trading well and making profits but unable to amplify your earnings due to a lack of funds. If you are a skilled trader or learning to become a skilled trader, then you can consider funded accounts from forex prop firms to take the next big step in your trading career. Because forex trading is not something that is reserved for the rich, it can be a source of revenue for all who have the required knowledge along with a disciplined approach.

But how do these forex prop firms help you to unlock your true potential? Which are the top forex firms that you can consider to get a funded account? You will get to know it all by the end of this blog.

Facts To Know About Forex Prop Firms & Prop Trading Forex

Forex prop firm or Proprietary Forex trading firm is a company that offers funded accounts to traders who prove their proficiency in trading bypassing the evaluation process. They will evaluate your performance on a demo account where you trade with virtual funds and when you meet their eligibility criteria for a funded account, you will get to trade with the company’s funds with an agreement to split the profits. These days many prop firms also offer instant funding programs in which you can trade with real money right away, skipping the assessment process. But the profit sharing percentage will be lower in this type of account.

No matter what option you choose, you get the opportunity to trade on a big account without risking your own funds. The evaluation process is often promoted as a challenge that you need to pass to become a prop firm trader operating under the company and trading for them. Now, the evaluation process will be different depending on the prop firm you choose. Some of them offer one-step evaluation and some prop firms have challenges that have to be completed by passing multiple levels. You have to pay an entry fee to enter a challenge or get instant-funded accounts.

This fee is pretty low because you get to control and trade a fully funded account if you get qualified to become a prop firm trader. This is a feasible solution for those who don’t have enough money to open a bigger trading account with a regular broker. With all the interesting challenges and evaluation processes, trading for a forex prop firm can be a good opportunity for beginners and experienced traders alike. If you are a passionate trader open to taking up new challenges, you can enhance your skills and also earn some extra bucks by participating in prop firm trading.

Pros & Cons Of Prop Trading

Trading for a forex prop firm can be very beneficial for you but it also has some demerits that you should consider before diving in. So, let’s have a look at the pros and cons of prop trading in the forex market.

Pros

Funding & Scaling Opportunities

Forex prop firms not only provide sufficient funds for trading but also help in scaling your account step-by-step. Gradually growing your account is the best approach in trading. Many traders try to flip their accounts within a short span of time and end up losing their hard-earned gains and capital. However, the funding model in forex prop firms removes this risk as they promote stability by providing tiered scaling plans that give you the best results when you focus on risk management and account performance remains consistent.

Perfect Platform For Learning and Practice

Forex prop firms mostly offer demo accounts to the new users and you will be receiving real funds only after clearing the evaluation process which often consists of various types of challenges. The max account drawdown and profit targets specified in the challenge should be obtained within the given period of time. You can also find challenges that aren’t time-bound. Either way, it can be a perfect platform to learn and polish your skills. Some prop firms even provide free learning materials and other tools that come in handy for refining your trading model.

Many Options To Choose From

In the past, there were only a few prop firms that supported forex traders and finding a suitable platform was a tough task. But nowadays, you have a number of options to consider as the prop firm industry is rising to the level of forex brokers. You don’t have to compromise with profit sharing or worry about the entry fees you have to pay. There are prop firms offering up to 100% profit split and the entry fees are refunded to those who pass the challenges successfully. You should compare all the attractive plans that are available in different prop firms and pick the best one to get started.

Less Risk

In prop trading, your risk is lesser in comparison as your losses will be limited to the drawdown and other charges that you have to pay. Thus, there is no financial burden on your shoulders but you still get to trade with the funds of the prop firm and get a fair share in the profits you earn for them. Besides this, they also impose strict rules for risk management as you won’t pass the challenge if the account drawdown exceeds the specified limit. Overall, your personal risk can be greatly minimised which allows you to fully focus on the trading process without being stressed.

Better Trading Performance

Your performance as a trader can get better when you are trading with a prop firm as you know that you are being monitored by them and you have to do well to go to the next level. There are a lot of performance metrics and parameters for assessment. It is a very different experience as you are not being evaluated by others when you are trading independently with your own funds. At the same time, you don’t have the stress or pressure of risking your own money. You can feel at ease and passing the challenges boosts your confidence too which again empowers you to trade better.

Cons

Rigid Rules

The rules set by prop firms can make the trading process harder for those who prefer flexibility. For instance, when you are expected to clear a challenge within a short period of time, you will be in a rush and this will have a negative impact on your performance. You cannot follow your own rules like how you do while trading with your own funds and will have to comply with the standards set by the prop trading firm. Such rules may restrict your ability to trade freely.

Evaluation Process May Become An Obstacle

When you are trading with your own funds, you can just perform a self-assessment by looking back on the trading history and going through the trading journal. You can correct the mistakes you made in the past and move forward with a better approach. However, the evaluation process in prop trading can be a barrier to your growth as you may not get a second chance. You will have to start over again and this can be frustrating as all your hard work goes in vain.

Conflict of interest

Prop firms will be earning in two ways. Firstly, they get a share in the profits you earn while using their funds for trading which is fair enough. Secondly, they charge entry fees and more when you join the challenges or take part in any special competition. So, because of this, there can be a conflict of interest between the firm and ordinary traders like us. Also, the fact that you will have to share the profits with the prop firm can be a turnoff for traders.

Should You Be Trading For Forex Prop Firms?

When we look at the bigger picture, prop trading in the forex market has more pros that outnumber the cons. I have only mentioned a few important points and there are many more benefits you get by joining a forex prop trading platform. The platform you pick will also play a key role in the trading experience and results you get. They have to be secure, transparent and supportive. The payouts should be regular and fees should be reasonable.

Prop firms are not subject to the regulatory restrictions that we see with traditional forex brokers. But you have to sign up with a reliable prop trading firm to make your trading journey fulfilling and rewarding. If you aspire to become a professional trader in the future or just want to get funded for optimising your gains, then prop trading can be the right path for you.

Now that you know what to look for while choosing a platform for prop trading, we can finally talk about the top 10 forex prop firms that you can join. But keep in mind that they are not arranged in any particular order and the numbering does not represent their ranking. We are just listing the top 10 prop firms that you can join to trade forex and currency futures in funded accounts.

Top 10 Prop Firms For Forex Traders

FTUK

The first spot in the list is secured by FTUK as they are focused on providing a risk-free trading experience to their clients by offering virtual funds. This prop firm is preferred by many beginners due to the training courses that help in skill development. The senior traders on the platform can also support you by giving valuable advice and guidance. Being a truly global platform, FTUK is accessible to traders from all parts of the world.

The fast profitable scaling offered by FTUK is a feasible solution to grow your account quickly by providing 2x funds whenever you hit a major milestone. You can trade up to $5,760,000 with zero risk and the profit split is 80%. You can also join the instant funding program which does not involve any evaluation. The one-time payment fee depends on the program you choose.

In all programs, you get up to 100x leverage and the absolute drawdown should not go beyond 8% as that is the stop-out level for the accounts. The target is 10% profit and you are eligible to get a payout at any time after reaching level 2. Lastly, there is no time limit and you can take your time to reach the milestones. After that, you will benefit from the scaling program.

SurgeTrader

The second spot in this list belongs to SurgeTrader and this prop firm allows you to keep 90% of your profits. They also offer virtual capital for trading but in order to get the virtual capital, you have to go through the evaluation process. This can be a 1 phase evaluation with an audition or 2 phase evaluation where you have to pass the qualification round and the validation round. Both 1-phase and 2-phase evaluations do not have any time limit.

But if you want to get funded faster, you can choose the lightning round audition which has a 7-day time limit to speed up the process. You just have to pay a one-time fee for getting started and this fee depends on the program you select. The profit target is 8% in Phase 1 and 5% in Phase 2. You get up to 50:1 leverage and the max account drawdown is 8% along with a daily loss limit of 5%. You can even expand your knowledge by exploring the educational resources and information offered by SurgeTrader.

Topstep

The third forex prop firm on this list is Topstep as they follow a unique approach which is more focused on educating the new traders and enhancing their skills. For this, they offer free coaching programs and your ticket to earning a funded account is the trading combine evaluation program. But Trading Combine is not just an ordinary evaluation program but also an experiential learning program that can greatly benefit beginners stepping into the forex market.

But one thing to keep in mind while trying topstep is that they only offer forex futures trading and not traditional forex instruments. Besides this, you can explore other futures as well. For forex futures, you can trade Australian $ (6A), British Pound (6B), Canadian $ (6C), Euro FX (6E), Japanese Yen (6J) and more. Crude oil, gold and NASDAQ 100 are among the top-traded assets on Topstep.

The 5%ers

The 4th prop firm that I want to talk about is The 5%ers and they offer many unique programs like free 1-on-1 performance coaching, prop trading courses, and bringing traders together to support each other. This prop firm allows you to trade up to 4 million USD which is huge. There are also free webinars and live trading room meetups happening online. When it comes to funding programs with The 5%ers, you get 3 options to pick from.

There is a one-step program named Hyper Growth, High Stakes which is a 2 step program and the low-cost program named bootcamp. If you choose the Hyper Growth program, you get up to 100% profit split. They offer solid trading conditions with tight spreads and low commissions. You can join the programs just by paying a one-time fee which depends on the program you choose.

OneUp Trader

The 5th spot in the list is taken by OneUP Trader and their highlight is the one-step evaluation program which offers a simpler way to get a funded account for prop trading in the forex market. You get a 90% profit split from the total earnings in the funded account and there are no limits on withdrawals. You can withdraw your profits without any withdrawal fee from day one itself. You can feel at ease even while encountering losses as there is no daily drawdown limit to get worried about.

If you choose an Express account, you can get funded within 5 days only. Once you pass the simple one-step evaluation, you can access the funded accounts that range from $25,000 to $250,000. Now, one thing to consider before joining oneUP Trader is that they only offer currency futures and not currency pairs for trading. You also have to trade for at least 15 days in total to get funded on the platform. You can also save around $444 as the funded traders on OneUP Trader don’t have to pay any data fees.

Lux Trading Firm

The 6th prop firm on our list is Lux Trading Firm and they offer fully funded accounts up to $10 million when you pass their evaluation process. There are no time limits which removes the pressure to reach the profit target in a rush. There are 3 different types of evaluation programs and you can choose the one that fits your bill. They provide real funds for the accounts that pass the evaluation and enter the professional stage. They also offer their own trading platform named Lux Trader along with the popular MetaTrader 5 platform.

Another highlight is the Elite program offered by Lux Trading, which greatly benefits elite traders joining the firm. This program can give you the very same rewards that you get while trading for a top bank or hedge fund. But this program is accessible to all including beginners and the only requirement is having the skills to showcase top-notch trading performance. This is perfect for those who desire to build a successful career as a full-time forex trader. With the Elite program, you get a chance to trade with $10 million in capital.

This program is a complete package that includes mentorship, education, workshops, daily streams and more along with a sophisticated software solution used by seasoned professionals. It also has features like a risk desk to ensure a secure trading experience by prioritising risk management. You can even get your account audited by a renowned auditing firm that is well-established on a global level and receive a certificate which is a USP of Lux Trading firm as no other platform offers this feature.

Traders4traders

This Traders4traders firm offers both education and funding programs to the passionate traders joining their platform. In order to become a funded trader, you have to get started with the trader recruitment program and then you get a $100,000 Evaluation Account to prove your skills as a trader. However, this funding program is exclusive to those who have enrolled in the financial markets master class on the platform. The platform also provides a free introductory course but the master class is a part of the accelerator programme that includes live trading and coaching sessions.

You just have to make sure that you have a solid risk management plan. Because the evaluation is more about your risk profile and less about the amount of profits you can make within a short span of time. But traders who made less than 5% profit will get eliminated by the end of week 8. There will be a final evaluation at the end of week 12 and this evaluation is based on the Long-Term Sustainable Performance (LTSP) Score of traders.

If you score above 75, you can start trading on a live $250k funded account and If your score is close to 65, you can get a live account with $50k capital. They also provide VPS services and you can also join the trading community for interacting with other traders on the platform. Due to all these features, Traders4traders has secured 7th place in our list of top forex prop firms.

TopTier Trader

The 8th Prop firm on this list is TopTier Trader.They provide simulated funding for participating in the challenges and you will get to keep 90% of your virtual profits after clearing the evaluation. The signup fee will be refunded when you receive your first payout and most importantly there are no time limits which means you can trade at your own pace. You can select an account size ranging from 5K to 300k. You can even get up to $600k in simulated Funding and you can even scale up to $2 Million.

They conduct a two-tier evaluation process for hiring top-tier traders to trade for them with the funds they provide. One interesting feature that I saw on TopTier Trader is the reward program that provides redeemable reward points for your activities in the TopTier Trader community. They also have various affiliate programs if you want to earn some extra bucks while trading for them or trying to pass the challenges. Overall, it is a trusted platform for all traders who aspire to become top-tier traders in the future.

FTMO

FTMO is a well-known name in the forex prop firm industry and we cannot complete the list without them. There is no fixed time limit for passing the FTMO challenge but it requires a minimum of four consecutive trading days. Participants have the option to choose between two modes: Normal and Aggressive. In Normal mode, traders must adhere to a maximum daily loss of 5% and a cumulative loss not exceeding 10%. A profit target of 10% applies during the initial period, which reduces to 5% for subsequent periods. Alternatively, the Aggressive mode allows for a maximum daily loss of 10% and a cumulative loss cap of 20%.

The profit target stands at 20% for the first period and 10% thereafter, with a higher fee. The fee is refundable upon achieving the first profit split.Under the funded conditions, traders are subjected to a maximum daily loss of 10%. Additionally, news trading is permitted solely within swing accounts. Account balances vary from $10,000 to $250,000, excluding the Aggressive mode. Multiple currencies including USD, GBP, EUR, CZK, CAD, AUD, and CHF are accepted. The payout rate ranges from 80%/20% to 90%/10% and is scalable. Leverage is set at 1:100, except for swing accounts where it’s limited to 1:30.

In summary, the trading challenge on FTMO offers participants flexibility with regard to duration and risk tolerance through two distinct modes. Traders must adhere to specific loss and profit targets, alongside paying a non-refundable fee, which is reimbursed upon achieving the initial profit split. Additionally, various account sizes, currencies, and leverage options cater to a diverse range of trading preferences and strategies.

Next Step Funded

The 10th prop trading firm in this list is Next Step Funded and they offer an 80% profit split to the traders who pass the challenge programs. You get two options to choose from for the challenges. There is a one-step challenge with a 30-day time limit and the two-step challenge has a 60-day time limit. You can trade a wide range of assets on Next Step Funded and it is a great place for traders who want to build a diversified portfolio to mitigate the risk.

However, this prop firm doesn’t offer any education programs for their traders. But you can join their discord community and the prop firm also has a global presence which makes it a trusted choice for many traders. The profit target is 10% for the one-step challenge and the daily drawdown limit is 5% with the max loss limit set at 12%. If you choose the two-step challenge, the profit target will be 10% in the first phase and 5% in 2nd phase. The daily drawdown and max loss limit remain the same.

So, this was our list of top 10 forex prop firms and we haven’t included the pricing and fee details of the challenge programs as they keep changing from time to time. Hence, I suggest you head to the website that is linked in the blog and check the pricing and fee structure yourself to find a platform that is perfect for your budget.

But budget is not the only thing to consider for selecting a prop firm to trade forex and that’s why we are including this bonus guide to help you in making a wise choice.

Detailed Guide To Find The Best Prop Firm For Forex Trading

Understanding Your Needs: Before diving into the selection process, introspect on your reasons for joining a prop firm. Are you seeking additional capital? Do you aspire to hone your trading skills under stringent risk management protocols? Evaluate whether the evaluation period suits your timeline and if the growth opportunities provided meet your expectations. Clarifying these aspects will aid in identifying the ideal prop firm for you.

Assessing Reputation: Given the absence of regulatory oversight in the retail prop trading sector, a firm’s reputation holds immense significance. Delve into the company’s history—is it well-established, or a recent entrant? Consider whether it was founded by a reputable figure within the trading community. Additionally, observe how their representatives engage with the trading community. While platforms like Trustpilot offer insights, exercise caution as reviews can be manipulated.

Evaluating Tradable Assets: Ensure that the prop firm offers the currency pairs and CFDs relevant to your trading strategies. If you specialise in trading exotic currency pairs or other instruments, verify if these are supported by the chosen platform. Access to a diverse range of assets enhances your trading flexibility and opportunities for profit.

Understanding Profit Split: The division of profits between you and the prop firm is a pivotal consideration. Determine whether you find a 50/50 split acceptable or if you prefer a different ratio, such as 80/20. It’s essential to recognize that the profit split is intertwined with the fee structure. Therefore, strike a balance between the fees incurred and the profit share, ensuring it aligns with your financial objectives.

Fees: Avoiding unnecessary expenses is paramount, especially if they outweigh potential returns. Take a meticulous approach in assessing prop firms that levy monthly fees, scrutinising whether these costs align with your profit expectations. Explore reimbursement options within profit-split models, strategizing to optimise your financial outcomes and ensure that your gains surpass expenditure.

Trading Platform: While the ubiquitous MT4 platform is standard among retail prop firms, broaden your horizons by exploring alternative platforms, especially for futures trading. Should you require a specialised platform to accommodate your unique trading strategies, ensure the prop firm can fulfil this requirement. Delve into the functionalities of any unconventional platforms offered, assessing their compatibility with your trading needs, including features like mobile accessibility for seamless trading and analysis on the go.

Training and Coaches: Irrespective of your level of expertise, continuous learning serves as a catalyst for refining your trading skills. Prioritise prop firms that offer robust training programs designed to empower traders at every stage of their journey. Reputable firms demonstrate their commitment to trader success by delivering high-calibre courses. Furthermore, explore firms that provide coaching not only on trading strategies but also on psychological resilience—an often overlooked yet integral component for sustaining success in the volatile world of trading.

Customer Support: Navigating technical and financial hurdles is inevitable when engaging with a prop firm. Therefore, prioritise firms that offer responsive and professional customer support to swiftly address challenges and alleviate unnecessary stress. By ensuring timely resolution of issues, you can maintain focus on your trading activities without the distraction of troubleshooting.

Discounts on Challenge Fees: Stay vigilant for promotions and discounts extended by prop firms, often disseminated through newsletters and similar channels. Leveraging such offers, particularly for novices venturing into prop trading, can serve as a buffer against financial risks inherent in exploring new trading avenues. By capitalising on these opportunities, you can navigate the intricacies of prop trading with greater financial prudence and confidence.

Regular Payouts: When evaluating prop firms, consider their payout structure carefully. Some firms offer regular payouts, which can provide a steady income stream for traders. This feature can be particularly appealing for those who rely on trading as their primary source of income or who prefer the stability of consistent payments.

Risk Management: Effective risk management is crucial in the world of trading. Look for prop firms that prioritise risk management protocols to protect both the firm and its traders. This may include measures such as position limits, capital allocation rules, and risk assessment tools. By partnering with a firm that emphasises risk management, you can reduce the likelihood of catastrophic losses and ensure the longevity of your trading career.

Research and Analysis Resources: Access to comprehensive research and analysis resources can significantly enhance your trading strategy. Seek out prop firms that offer robust research tools, including market analysis, technical indicators, and economic calendars. Additionally, consider whether the firm provides educational resources to help traders improve their analytical skills and stay informed about market trends.

Community and Networking Opportunities: Trading can be a solitary pursuit, but connecting with fellow traders can provide valuable support and insights. Look for prop firms that foster a strong sense of community among their traders, whether through online forums, social media groups, or in-person events. Networking with other traders can lead to valuable collaborations, idea sharing, and emotional support during both challenging and prosperous times.

Integration with Third-Party Tools: In today’s digital age, traders often rely on a variety of tools and software to streamline their trading process. When evaluating prop firms, consider whether they offer seamless integration with popular third-party tools such as trading algorithms, charting software, and news aggregators. Compatibility with these tools can enhance your trading efficiency and effectiveness, giving you an edge in the competitive market landscape.

Conclusion

In conclusion, navigating the realm of top forex proprietary trading firms can be a challenging yet rewarding endeavour for aspiring traders. Throughout this guide, we have explored the characteristics that define the best prop trading firms and I hope the top 10 list can be a valuable resource for you. By carefully evaluating the points in the guide alongside your own trading goals, risk tolerance, and preferences, you can effectively pinpoint the prop firm that aligns best with your needs.

Remember, thorough research and due diligence are key when selecting a prop trading firm to ensure a fruitful and fulfilling trading experience. Whether you prioritise access to cutting-edge technology, extensive training and mentorship programs, or a supportive community of traders, there’s a prop firm out there tailored to your requirements.

Ultimately, the journey to finding the right prop trading firm is as much about self-discovery as it is about evaluating external factors. Trust your instincts, leverage the insights gained from this guide, and embark on your prop trading journey with confidence. With the right firm by your side, the opportunities for success in the forex market are boundless. Happy trading!

Feel free to comment about other top forex prop firms you know about in case we missed them in this list. Because each firm can offer something unique and we may never know where we can find the best features until we try them out.