The best proprietary trading firms are:
The Funded Trader Program Topstep SurgeTrader FTMO Lux Trading Firm The 5%ers Audacity Capital Fidelcrest City Traders Imperium 3Red Partners Akuna Capital Belvedere Trading The Trading Pit My Forex Funds FundedNext
Below is a list of the best proprietary trading firms in 2023.
The Best Prop Trading Firms 2023
The Funded Trader Program is an online prop trading firm founded in Texas in 2021. As it is so new, there is no historical data to confirm if the firm is reliable and trustworthy. It offers three different accounts – Standard, Rapid and Royal Challenge – which traders progress through during their trading evolution. Traders can take home profit splits of up to 90% and can trade in forex, commodities, crypto and indices. The trading rules are very simple to follow and traders are allowed to trade on the weekends when they reach the Royal Challenge. Evaluation periods are 35 and 60 days, and traders are rewarded for consistency.
TopStep was founded in 2012 and has a history of being a reliable prop trading firm. It hosts traders in over 143 countries and is based out of Chicago. It offers excellent training options, including live webinars, group performance coaching sessions and private coaching.
SurgeTrader was established in Florida in 202, meaning it doesn’t have enough of a track record to state whether it is reliable or not. There is a one-time audition process that is reported to have strict standards. SurgeTrader also offers lots of trading options, including oils, metals, crypto, forex, stock and indices. As a trader, you start on the intermediate account before moving to seasoned, advanced and, finally, expert.
FTMO was founded in Prague in 2014 and has a two-step evaluation process called the FTMO Challenge and Verification course. The company also provides performance coaches and excellent customer service. It offers trading in forex, stocks and bonds. Its scaling plan gives a 25% balance limit increase every four months.
Lux Trading is a London-based proprietary trading firm founded in 2021. Like many of the new prop trading firms, there is not enough data to confirm the trustworthiness of the company. Traders work through stages, from one to eight, progressing when they reach a 10% target. Lux Trading offers trading in commodities, crypto, forex, indices and stocks. There is a large element of social trading, with chat rooms and trading rooms open for idea-sharing and feedback.
The 5%ers was founded in 2014 and is based in Israel. Its goal is to facilitate the growth and success of forex traders. There are three packages: Instant, Bootcamp and Freestyle. The Freestyle package allows for 100% profit, Instant 50% and Bootcamp 80%. Once you have completed one of these challenges, you have access to unlimited funding.
Audacity Capital was founded in 2012 in London and has traders all over the world. It doesn’t have a typical evaluation process. Instead, traders apply for a role and are invited for an interview. Successful traders choose between the Hidden Talents programme or the Funded Trader programme. The first is designed for traders with a natural ability but no experience, and the latter for experienced traders with a three-to-six-month track record.
Fidelcrest was founded in Cyprus in 2018 and has a two-step evaluation process lasting 60 days. If you are successful, there are two trading programmes: Micro Trader and Pro Trader.
Based in London, City Traders Imperium was founded in 2014. Traders can trade forex, gold, indices and shares. There is a one-year evaluation process where successful traders can earn a 400% reward. However, that process can be skipped if you have the record to prove your trading ability.
Very little information regarding profits and leverage is available for 3Red Partners. What is known is that this Chicago-based company uses high-frequency trading platforms and specially created algorithms to read and interpret data, allowing traders to make well-informed trades.
It is another Chicago-based company, founded in 2011, and has a revenue of $100m to $500m.
As is the trend with most Chicago-based proprietary trading firms,there are very few details on Belvedere Trading’s leverage, profit split and trading programmes. It was founded in 2002 and has a revenue of $16.58m, so it can be considered trustworthy, and it is obviously doing something right. Its strength is the market-making trades, and it trades in indices, interest rates, energies, grains, softs, metals, equity index and commodities.
The Trading Pit was founded in Cyprus and offers its best traders the chance to earn an official certification and become a fund manager. It has an evaluation process where you need to prove your trading skills. Once you pass, you go on to become a Funded and Scaling Trader before finishing as a Trading Pit Expert.
MyForexFunds was founded in 2020 in Canada and has a two-step evaluation process that you can skip if you have enough experience. It offers instant funding and provides customisable funding programmes.
FundedNext is a new proprietary trading firm that operates out of the UAE, Bangladesh, UK and the US. Its partner broker firm is regulated by the Australian Securities and Investments Commission (ASIC), so the company does have a level of trust and reliability. It offers low commissions and spreads and works with forex, indices and commodities. Once you complete the two-step evaluation, the goal is simple: pick your funding model, stay profitable and get more funding.
A prop trading firm does not make trades on behalf of a client. The capital for these trades is generated from the company or bank and used for trading in numerous assets including:
Stocks Bonds Forex Cryptocurrencies Indices Futures Commodities
It is also common for proprietary trading companies to specialise. Traders who are hired by these companies are trained to earn profits. All profits made by the trader are split between the trader and the company. To facilitate a trader’s success, the firm offers support by way of training, retraining, coaching, providing professional trading tools and more. There are often stringent rules traders must follow, designed to encourage better profit levels and reduce losses. When hiring, the best proprietary trading firms will start the recruitment process with a staged evaluation. This includes using a test account. These accounts prove whether or not traders have the skills required for the role. Some trading companies will offer commission or profit splits during the evaluation, but others don’t.
Benefits of Proprietary Trading Firms
Choosing the best proprietary trading firm for you can take time, but there are lots of advantages, such as:
Most firms offer funded trading, meaning you don’t need a large amount of capital investment. Often only a registration fee is needed. Prop trading companies also often offer lots of training and retraining, with some encouraging social trading. You have access to professional tools, information and top-level data software at either a reduced rate or no cost. Prop Traders have access to the exchange You don’t have to worry about conflicts of interest between companies and traders.
How to Choose a Proprietary Trading Firm
Before selecting and applying to a prop trading firm, you need to assess the pros and cons of each and decide which is the best one for you. When evaluating the firms, consider:
Reputation – Check that the firm is profitable and reliable within its niche. This may take some lengthy research, and you may want to speak to other traders. TrustPilot is a great place to get started, as is Reddit and Quora. Those companies that are the most trustworthy are more transparent with company happenings. Available Assets – Check which assets can be traded with each platform/company. If you want to specialise in just forex, then opt for a firm that has the resources for that. If you want to trade in all assets, you will need to find one that has a wide variety. Fees – There are going to be fee structures. Sometimes this is just a one-off payment for the evaluation procedure. Others have monthly fees and fees for different types of trading. Trading Platform – Ensure that the firm has a good trading platform that meets all the requirements. Ideally, you want to be able to test the platform first to ensure you are comfortable with the interface. Trading Style – Different firms have different styles and approaches. Some rely on technical analysis, others on fundamentals. There are also some prop trading firms that encourage short-term strategies and others that allow for overnight/weekend holds. Decide what trading strategy you want to adopt and find the firms that accommodate it. Customer Support – Customer service is important for working with any firm. Some have better rates of responding, a better reputation or more communication methods.
The more successful and consistent you are, the more funds you will have access to. However, as this information is something you can learn on the job, your skills and attributes have more value. This figure varies greatly between the firms and is dependent on the type of programme or account you want to open. While studying, you should look to apply your knowledge through work experience and internships. Assuming you have a good track record, you will be able to apply for a position in a prop trading firm. It is advised that you speak with an accountant, financial advisor or lawyer to ensure you don’t make any mistakes. The possible taxes you will have to pay are National Insurance, income tax and capital gains tax. A large number of the best prop trading firms have stop-loss and minimum profit loss rules in place to minimise damage. That being said, if you have the knowledge and talent for trading, then this can be a lucrative career option. Before committing to one firm, remember that there are hundreds of firms across the globe and some are better than others. Do your research, check the trustworthiness of the firm and confirm that it supports your trading style.
