page title icon The 5 best proprietary trading firms for beginners

There are a lot of advantages to joining a good proprietary trading firm. You can trade someone else’s capital, walk away from losses, access premium trading platforms, and receive education and guidance from successful traders.

The best proprietary trading firms will provide you with all of these benefits and then some.

The worst prop firms will charge you a substantial monthly fee and would rather bleed you dry with fees than actually see you succeed. Unfortunately, there are plenty of prop trading firms like this who will make enticing but ultimately empty pitches in order to lure you in.

The bottom line is that you will not succeed if you don’t choose the right proprietary trading firm.

Before you begin

As a newcomer to the prop trading world, you aren’t expected to know everything. However, it is paramount to your success that you have substantial knowledge of the market or markets you plan to trade in and a good idea of what type of trading strategy you’d like to employ. 

Good prop trading firms will offer guidance, but they all charge some sort of one-time start-up fee or a recurring monthly fee, so it’s best to know exactly how and what you plan to trade before you sign up.

Once you have a deep understanding of your market, it’s time to find a proprietary trading firm that will give you the best chance to succeed. 

Market Overview

BEST NEW PROP FIRMBEST NO EVALUATIONBEST FOR FUTURESBEST OVERALL PROP FIRMBEST FOR CRYPTOBEST FOR FOREX
FirmThe Funded TraderThe 5%ersTopstep FTMOFidelcrestBluFX
Initial Balance
/Fees
$50K – $315
$100K – $549
$200K – $949
$400K – $1898
$6K – €235
$10K – €385
$20K – €745
$50K – $165
$100K – $325
$150K – $375
(per month)
$10K – €155
$25K –  €250
$50K – €345
$100 K – €540
$200 K– €1080
$10K – €99
$25K – €249
$150K –  €649
$250K – €999
$1 mil – €2699
$25K – £99
$50K – £249
(per month)
Current Discount5% off with code 5WLDSSRHB3Click this link for 5% off!Click this link for 20% off!2 for 1 on all accounts!
Highlights80-90% profit splits

Rapid account options, with 0 min. trading days

Leverage 1:200 on standard accounts
Fees fully refunded with passing of 2-stage evaluation

Rapid profit targets: 8% for Stage 1, 5% for Stage 2

Standard Account:
12% max loss, 6% max daily loss
Instant funding!
Trade real money immediately & keep 50% of the profits

Meet 6% profit target to get 4x your initial account balance.

No restrictions on trading styles

Leverage 1:30 for Aggressive Accounts

Equity stopout level set at 4% below initial account balance
Keep 100% of your first $5,000 in profits; 80% thereafter

Complete two-step evaluation in as few as eight trading days

6% profit target, $1,000 daily loss limit, trailing max drawdown $2,000 for $50K evaluation

Offers outstanding educational resources
80% profit split to start, scales up to 90%

Trade everything from forex to stocks to crypto

Scale-up max of $2 million per trader

Two-step evaluation – Step 1: 10% profit target, 10% max loss limit, max daily loss 5% limit. 5% profit target in Step 2.

Full refund of fees upon passing Challenge
80% to 90% profit splits

Trade forex, crypto, CFDs, shares

Earn money during 2nd stage of evaluation

10% profit target, 10% max loss; max loss to 5% for Verification Stage

Offers accounts for beginners and pros

$1 million account w/o scaling

Max leverage
1:100
No evaluation! No demo accounts! Immediate funding up to $50,000

50/50 profit split

No daily loss limits; 10% maximum drawdown

Trade 29 major & minor currency pairs + gold

Make weekly profit withdrawals

Hit 10% profit to scale Pro Accounts up to $1 million
Swap-Free
Accounts
NoNoN/AYesYesYes
Get StartedStart Trading
with The
Funded Trader
Start Trading
with The 5ers
Start Trading
with Topsetp
Start Trading with FTMOStart Trading
with Fidelcrest
Start Trading with BluFX

My Top Pick: FTMO – 9.3/10 (Best Prop Trading Firm for Beginners)

FTMO does everything they can to ensure the success of new traders, from providing the best educational resources, to top-of-the-line trading platforms, to substantial trader support.

Pros

First things first, when choosing a prop trading firm, you have to find a company you can trust. FTMO is that company. They have more than 10,000 traders worldwide and their reputation is impeccable. They issue timely, accurate profit payouts and they have an outstanding customer service team.

As a newcomer to proprietary trading firms, you should pay special attention to the educational resources provided. In this category, FTMO is one of the industry leaders. 

Each FTMO trader has access to a series of apps that record, monitor, and analyze your every trade. A mentoring app also allows you to improve your discipline by comparing your trades to strategic parameters that you set. 

Access to performance coaches is also part of the FTMO program. These coaches focus on the critical role that psychology plays in trading. Even the most experienced traders can let emotions get in the way of executing their strategy, and the psychological aspect of trading is often the most difficult to master for new traders. FTMO is there to help.

New traders and experienced prop traders alike love FTMO’s profit payout and scaling plan, which allows you to withdraw profits and grow your account at the same time. Payouts start at 80% of profits and can reach 90% if you continue to meet profit targets, plus your account can grow up to $2 million in capital, even if you withdraw your profits.

Initial fees are also quite low as €155 will provide you with $10,000 funding capital. More capital is more expensive, of course, with a maximum initial funding capital of $200,000 costing €1,080. Unlike some other prop trading firms, FTMO will refund your initial fee with your first profit split if you pass the evaluation stages.

Finally, FTMO has the widest range of tradable assets in the business. Most proprietary trading firms cater only to forex traders, but FTMO allows trading in forex, commodities, indices, crypto, stocks, bonds, and more. They also don’t limit trading strategies, so long as your trades conform to FTMO account rules. 

Cons

I’m sure you’re eager to get started as a funded trader, so going through FTMO’s two-stage evaluation may seem like an impediment to your ultimate goal. I’d argue the opposite. The evaluation period is an ideal time for you to test your strategy and familiarize yourself with your trading platform, which will put you in a better position to have long term success. But of course I get those traders who are chomping at the bit. 

It may take up to 90 calendar days to complete your evaluation, but you can also do it much more quickly if you meet your profit objectives earlier. In fact, each stage requires only 10 trading days each if you meet or exceed the established goals. That means if all goes well you’ll pass your evaluation after just 20 trading days and become an FTMO trader. 

The educational apps are fairly sophisticated so, if you are not technically savvy, you may not receive their full benefit. The performance coaches and customer service department do help in that regard, but the more you can glean from the trading apps, the better.

Overall

FTMO offers cheap access to trading capital, tremendous educational resources, and performance coaches, all while paying up to 90% of trading profits. They are the most popular proprietary trading firm for a reason. 

If you’re new to proprietary trading and want to start your career off with the best, open an account with FTMO today.

Runner Up: Topstep Futures – 9.1/10 (Best for Futures, Current Promotion)

The Topstep Futures funded trader program is world renowned, with outstanding educational resources, great customer support, a fantastic current promotion, and you can keep 100% of your first $5K – $10K in profits. 

Pros

Topstep funded more than 8,000 accounts in 2021, and many of them belonged to traders who were new to the world of prop trading. 

How is Topstep so successful in funding accounts? Part of it is, of course, a numbers game. Topstep’s current 20% off has traders signing up in droves. The more traders signing up, the more that are getting funded.

But the reasons for Topstep’s success goes beyond that. They also fund a lot of traders because they offer exceptional trader guidance. Their customer service ranks amongst the best in the industry should you have technical or procedural questions, and their education department is in a class of its own.

Topstep does such a good job at educating its traders that you can find reviews from traders who failed the Trading Combine, but still thanked Topstep for how much they learned. Topstep offers group training sessions, “Coach T,” an automated account monitoring system, and a wealth of online materials including podcasts, webinars and videos.

They also give traders unlimited time to hit your profit objectives, which gives newcomers a chance to learn the ropes without the pressure of an imminent deadline. Profit objectives are attainable at just 6%, but watch out for tight loss limits.

If you pass the two-step evaluation process, Topstep offers a Pro Account for those that aren’t quite ready yet to trade real capital. Traders with a Pro Account can keep their first $10,000 in profits without giving Topstep a cut. It’s all yours. That’s a great boost to the bank account for traders who are at the beginning of their prop trading careers. After that, you’ll still keep 80%, one of the highest profit splits in the industry.

Cons

Although Topstep also offers funded accounts for trading forex, the educational resources aren’t of the same quality. If you want to take advantage of the full Topstep experience, you have to trade futures. So if you are interested in trading other assets, you should probably look to another prop firm.

Topstep also charges a recurring monthly fee. That’s in contrast to a lot of prop firms that just charge you once. Most of those firms, however, have you on a very tight schedule and you typically have to meet profit objectives within 30 days.  

Topstep’s website can get a little confusing. Between all the account options including the Funded Account and the Pro Account, it all gets a little jumbled. Topstep’s customer service department is top notch, so they can certainly help you if you get confused, but I wish their website was a little more clear.

Overall

Topstep is one of the most popular prop firms in the world for a lot of good reasons. Their expert guidance has led to thousands of funded traders profiting millions of dollars. If you want to trade futures, they are an outstanding bargain with their current promotion, and a great place to start your trading career

#3 The 5%ers – 8.9/10 (Forex only, instant funding)

The 5%ers are a great option for newcomers as they actually allow you to keep a percentage of any profits you may make during your evaluation. 

Pros

The 5%ers are a very reputable proprietary trading firm that offers one of the most trader-friendly evaluation periods in the industry. They start you off with a small amount of real capital immediately and allow you to keep 50% of your profits even though you have not yet passed your evaluation.

For example, if you choose the $24,000 low-risk account, the 5%ers will instantly give you $6,000 of capital to invest. If you reach your 6% net profit goal, you will pass the evaluation period and receive the full $24,000 funding. Plus you get a check for 50% of the profits you earned on that initial $6,000 funding capital.

From there, your account will be doubled every time you meet profit goals (set at 10% for low risk accounts) within a certain time frame all the way up to a maximum funding amount of $1.28 million.  

The evaluation period and rapid growth plan are enough to make the 5%ers an intriguing option for beginners, but they also offer a great education program. Amongst their many available resources they have a particularly valuable introduction to prop trading course that features 22 lessons. They also offer webinars, live events, various workshops, and an active online trading community giving you access to experienced forex traders.

The 5%ers also do not put any restrictions whatsoever on trading styles although they are limited to forex trading.

Cons

The biggest drawback to the 5%ers is their profit splitting. Although they begin sharing profits in the evaluation phase much sooner than FTMO does, they cap trader profits at 50%.  That’s 30% less than FTMO’s base payout percentage and the 5%ers don’t provide an opportunity to increase your percentage based on performance.

The argument could be made that an even profit split gives the 5%ers a much bigger incentive to see you succeed, and that’s probably true, but it is hard to think about leaving 30-40% of your profits on the table.

The 5%ers also charge a higher one-time fee. An account with $10,000 of funding capital costs €155 with FTMO, but  €385 with the 5%ers. Again, the 5%ers actually allow you to trade real money and earn real profits from the get-go, while your initial fee with FTMO only covers entrance into their two-stage evaluation period. Still, that’s more than double the cost.

The last big knock on the 5ers is that they only allow forex trading. This is true of probably 80-90% of proprietary trading firms, but that doesn’t make it any less limiting if you wish to trade other assets.  

Overall

If you’re exclusively interested in trading forex, there’s a lot to love about the 5%ers educational programs and trading community as well as their profit sharing from day one of the evaluation phase. 

You’ll have to decide if these benefits outweigh profit payouts that are 30% less than FTMO’s base rate.  If you want to be funded immediately and start earning 50% of your trading profits today, visit the 5%ers.

#4: Fidelcrest – 8.7/10

With performance coaching, Micro Accounts, and a current promotion offering two accounts for the price of one, Fidelcrest is a good choice to break into the world of prop trading.

Pros

Fidelcrest is the only reputable prop firm I know of that is offering two accounts for the price of one. It’s a great opportunity for those of you who are new to the prop trading world. 

Here is how it works. When you sign up for an account, you can decide to get your free second account during the evaluation stages or in the funded trader phase after you’ve passed evaluation. As a newcomer to prop trading, I strongly suggest you take your free account during the evaluation phase. That gives you the freedom to experiment a bit and really learn the ropes. If you fail, you can start in earnest with your free extra account.

Fidelcrest also offers a Micro Trader Program, which they call Beginner Level. These Micro Accounts work exactly like their Pro Accounts, but offer smaller capital amounts for cheap prices. Also nice for newcomers is that they come with more achievable profit objectives — 5% for Normal Accounts, 10% for Aggressive Accounts.

In the education department, Fidelcrest is also amongst the industry leaders. Traders have free access to the NeuroStreet Trading Academy for thirty days. NeuroStreet offers a really valuable beginners course on trading modules, plus educational resources about every market you can trade with Fidelcrest. 

If you become a funded Fidelcrest trader, you also have access to a free performance coach who is a “mindset and performance consultant.” He will help you deal with the crucial psychological elements to trading.

Whether you’re a new trader or not, you’ll be thrilled with the Fidelcrest profit split, which is 80-90% for funded traders. Fidelcrest also begins paying its traders out during the second evaluation phase, which can be a big boost if you’re attempting to make trading your career. 

The last true advantage of trading with Fidelcrest is the vast array of tradable assets. They are especially strong in crypto, but also offer access to forex, commodity and equity markets. 

Cons

If you don’t study the trading parameters, Fidelcrest might have a few unpleasant surprises for you. As always, read and understand your trading rules before you begin trading.  

Fidelcrest has two trading parameters that always seem to catch new traders off guard. The first is that Fidelcrest actually makes the second step in their evaluation phase harder than the first step. In Step 1 for most accounts, your maximum loss is 10%. Fall below that and you’ve failed your evaluation. Ten percent is actually pretty reasonable, but things get more challenging.

For Step 2 of your evaluation, the Verfication Stage, your maximum loss shrinks to 5%. Fidelcrest wants you to prove that your Step 1 performance wasn’t just a fluke, but they leave you with very little margin for error. 

What also surprises inexperienced traders is that Fidelcrest calculates your max loss based on the high watermark of your account, not on your initial balance. If you purchased a $10,000 account and made $500 (5%) on your first day, with a max loss of 5% now means you can’t fall below $9,975. In this case, you would fail the evaluation, even though you only lost $25 overall.  

If you are aware of these two rules and trade accordingly, you’ll give yourself a good chance at success. It’s the traders that don’t fully understand their parameters that most often fail. 

Overall

Fidelcrest offers the educational resources, beginner-level account sizes, and variety of tradable assets to make them a great choice for new prop traders. Add in the fact that they are currently offering two accounts for the price of one, and this is a great time to start trading with Fidelcrest.

#5 Lux Trading (8.3/10)

Lux Trading is a reputable prop firm and a good entry point into the world of funded accounts. They offer funding after only one evaluation stage, the ability to trade a wide variety of assets, and no time limits.

Pros:

If you are new to prop trading and need a little time to get your sea legs, Lux Trading offers all the time you need with no running clock and no monthly fees. Once you sign up, you have unlimited time to meet a 6% profit target with a demo account. 

That means you can really familiarize yourself with the trading platform and trading parameters and carefully execute your strategy when the market conditions are right. 

Once you meet your objective in the demo account you get your fees reimbursed and you’re trading with real money. Hit a 6% profit target again, and they’ll give you 65% of the profits. Your next stage begins with 10x your initial account balance and you are on the express train heading towards an account worth $2.5 million. 

I also like the variety of assets you can trade with Lux, including stocks, CFDs, commodities and more. If you’re coming from one discipline like simple equity trading, you can do that with Lux while you learn other markets.

The Lux trader dashboard is also quite user-friendly and allows you to very easily monitor your maximum relative drawdown and your progress towards reaching profit targets. And if you’re looking to make a career out of trading, Lux partners with KPMG to provide you with audited trading records.

Cons:

Lux places a premium on your risk-management skills. They are looking for patient traders who aren’t overly aggressive. To make sure they only trust their capital to risk-averse traders, they have a 4% max relative drawdown, which is pretty tight. 

In order to further mitigate their risk, Lux requires a stop-loss to be placed on each trade. They won’t close your account if you forget, but they will close the position and you won’t receive credit for any profits.

And although the Lux scaling program offers giant leaps in capital from one level to the next, in order to make the jump you have to have traded over a minimum of 29 days each for the demo level and the second evaluation. Once you’ve cleared those levels, there’s a minimum of 49 trading days before you can advance to more funding. 

Lux doesn’t offer a great deal of education resources, although they have partnered with Trading Central to provide analytics and fundamental analysis to all traders. It’s a very valuable resource so long as you know how to interpret the data. And all traders have access to the risk management desk to help them navigate trading parameters. 

Overall

Lux Trading is looking for risk-averse, consistently profitable traders. If that’s you, they will give you a tremendous amount of capital to trade in a wide variety of markets. Sign up here to begin your journey.

The Bottom Line

As a newcomer to the world of proprietary trading, you have to be very careful what prop trading firm you choose. Many are better suited for seasoned traders and there are some out there that take advantage of the inexperienced. 

Before you sign up for any funded trading account, make sure you are with a trading firm that invests in your success with mentoring and education programs, is transparent regarding fees and trading parameters, supports your trading style, and won’t overcharge you for access to their capital.

For most traders, newcomers, and veterans alike, FTMO checks all of these boxes. They also offer the highest profit-sharing percentage in the industry, an excellent scaling plan, access to a number of markets including crypto, and they’re affordable.

If you’re confident in your trading strategy, well-versed in your chosen market and just need sufficient capital to realize your financial dreams, sign up with FTMO today

Methodology

I used almost the same methodology for this review as I did for my article listing the overall best prop trading firms. I discuss that methodology in more detail here. I also go into much more individual detail about the above firms and their strengths and weaknesses with my longform reviews: FTMO, TopStep Futures, the 5%ers, Fidelcrest and Lux Trading.

When considering the best prop firms for beginners, I put far more weight on the educational resources and customer service departments. Those are important factors for any trader to consider, but far more important to newcomers to the prop trading world.

I ranked the above prop trading firms according to the following seven factors:

Factor 1: Educational Resources

Clearly this is one of the most important factors for those new to prop trading. Even if you have significant trading experience, there’s still a lot to learn about the intricacies of trading with a prop firm. 

A really good prop firm will offer clear instructions on the rules specific to their funded accounts and will help teach you how to manage risk according to their parameters. A firm that doesn’t spend a lot of time teaching you these basics is not interested in your long term success. 

Beyond that is the general market education. Even the most seasoned traders need to stay up to date on ever-evolving markets. Good prop firms will provide timely information on current market conditions, alert you to potential trading opportunities and generally help you become a more informed trader.

For the purposes of this ranking list, I awarded the highest points to those firms who have proven through investment that they care about trader education. 

Factor 2: Customer service

An experienced trader probably won’t have much contact with a prop firm’s customer service department, but as a newcomer, a good customer service team can be invaluable. 

You can be a very profitable trader but still need some help getting started as a prop trader. Prop trading comes with its own set of rules, and you need to master those rules to be successful. Having a knowledgeable, responsive customer service team to help answer your questions before you make critical mistakes can make a huge difference. 

A good customer service department is also a good indicator that a prop firm is truly invested in your long term success. 

Factor 3: Trading parameters  

This is a very important factor for beginning traders because it is where most beginners get tripped up. If you violate trading parameters, you often lose access to your funded account and have to start over from the beginning. That can mean new fees and new evaluation periods.

Since they provide the capital, prop firms are very concerned about limiting the risks you take with their money. 

They do this by making you close positions at the end of every trading day, prohibiting you from trading news such as the release of unemployment data, and other tactics. You’ll also face loss limits, both daily and overall. Should you exceed those limits your account will probably be cancelled. 

Some trading strategies may also be prohibited, and you’ll have to use stop loss orders on every trade.

I also put profit targets in this category as different prop firms provide different targets you have to meet in order to graduate from your evaluation period or scale up to a larger account size. Typically you’re expected to grow your account 8-10% in order to move on. Obviously lower profit targets make life considerably easier, especially for beginning prop traders.

For the purposes of my rankings, I gave the highest scores to prop firms that most clearly disclosed their trading parameters and put as few restrictions on trading as possible. I also awarded extra points to those firms that had lower profit targets.

Factor 4: Profit splits

Profit split percentages are probably the first thing any trader looks at. I understand that, and for experienced traders that’s the first thing I’d look at too. 

It’s not as important for beginning traders, however, because you need to make a profit before you can split a profit. It is better to get 50% of something than 80% of nothing. 

That doesn’t mean you should just ignore the profit splits all together. Of course it’s still an important factor in your decision. Prop firms are letting you use their capital, so they deserve a cut of your profits, but obviously the more you can keep for yourself the better.

Factor 5: Scaling opportunities 

As you move from being a new prop trader to a successful prop trader, most firms will give you access to more and more capital. Some firms scale you up faster than others, and some firms also improve your profit splits as you continue to meet your trading objectives.

Just about every prop firm has a splashy banner on their website advertising the largest account size you can obtain. “Trade up to $2 million of our money!” It is extremely difficult to maintain consistent enough profits to graduate all the way to this level, so I don’t put a lot of stock in the top-end scaling. 

I’m much more interested in how quickly each firm allows you to move up and how easy they make it to do so.

Factor 6: Affordability / Value

This is another critical factor for beginners, since you don’t want to be wasting your money if it becomes pretty obvious early on that prop trading isn’t for you. At the same time, you don’t want to select a super cheap firm based on price alone if they don’t give you a good chance to succeed. The perfect prop firm offers premium services at a reasonable price.

As a general rule, I prefer one-time fees to monthly fees. Even low monthly fees add up over time, and I feel like impending monthly fees make me more aggressive than I should be. Like I have to succeed or fail before my next payment. 

Factor 7: Tradable assets

As a newcomer, I strongly urge you to focus on one particular market niche and really build up a level of expertise. I’ve known a lot of successful traders who have done exactly that. Some just  choose one currency pair for example, and don’t allow themselves to be distracted by anything else. 

That said, I still prefer prop firms that offer a lot of tradable assets. It’s impossible to predict the future, and I don’t want to have to start over with a new prop firm because I’ve decided to start trading a new asset.

Conclusion

I don’t like to sugarcoat things—making it as a prop trader is a challenging endeavor. You can make it a lot easier on yourself by doing your homework, understanding the rules and choosing the prop firm that’s best for you. 

I truly hope my rankings have helped you make this important choice and that prop trading is your path to financial freedom. 

If you’re ready to get started and you want to go with my pick for the prop firm that gives you the best chance to succeed, check out FTMO here.

Leave a Comment