Top 6 best prop trading firms in 2024

Find and compare the best prop trading firms with the lowest fees, largest capital, and best profit sharing plans.
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Updated: Dec 7, 2023
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Our forex trading experts test dozens of prop trading firms to help you choose one that suits you. Read on to learn more about forex prop firms, how to join one, and review the best prop trading firms in 2024.

The 6 best proprietary trading firms

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  1. TopStep: Best prop trading firm overall
  2. FTMO: Best prop trading firm for beginners
  3. LuxTrading: Best funded account for automated trading
  4. SurgeTrader: Best prop trading firm with fast payouts
  5. E8 Funding: Best prop trading firm for high leverage trading

What are the best prop trading firms?

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These are the best prop trading platforms that combine competitive fees with generous profit sharing offers. Each of these offers plenty of markets to trade on and a simple way to get funding for your trading journey.

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The top 6 prop trading firms, reviewed

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1. TopStep: Best prop trading firm overall

...

Fees

...

Minimum deposit

20

No. assets

No

Demo/virtual account

Overview

  • Profit split: 100% up to $5000. 90% above $5000
  • Cost: From $165 per month
  • Platforms: Ninja Trader, TradingView, TS Trader, Quantower, and more
  • Leverage: up to 1:100
  • Markets: Stocks, futures, indices

TopStep is one of the best rated futures proprietary trading firms that accepts traders from all over the world. With funded trader programs starting from just $165 and generous profit splits, TopStep is an excellent option for anyone looking for funding. If you successfully complete its challenge, you’ll get to keep 100% of your first $5000 in profit and up to 90% afterwards. 

TopStep has 15 trading platforms to choose from, so you’ll likely find your preferred option and you can even take advantage of its free coaching and tutorials to improve your trading skills. One of its best features is its fast payouts and once you’ve made a profit, you can withdraw your money in as little as 7 hours.

Highlights

Visit TopStep TopStep Review

2. FTMO: Best prop trading firm for beginners

Variable

Fees

$200

Minimum deposit

100

No. assets

Yes

Demo/virtual account

Pros & Cons

High profit sharing up to 90% Scaling plan available to $2 million Refundable fee when evaluation has passed Wide range of education and support
Two stage verification process Limited number of stocks

Overview

  • Profit split: up to 90%
  • Cost: From $155 (free trial available)
  • Platforms: MT4, MT5, cTrader
  • Leverage: up to 1:100
  • Markets: Forex, crypto, indices, commodities, stocks, bonds

FTMO has one of the best reputations in the prop trading industry. While best known as a forex proprietary firm, it lets you trade a wide range of markets, including cryptocurrencies and stocks. FTMO is suited to all levels of trader and its easy to understand rules mean you’ll always know where you stand. 

To get started with FTMO, all you have to do is complete the FTMO challenge, which requires you to make 10% profit within 45 days. Once you’ve passed your forex challenge, you can move to the verification stage, where you only have to generate 5% in profit over 60 days. Once passed, you’ll become a FTMO trader, where the rules become more flexible.  

Highlights

Visit FTMO FTMO Review

3. LuxTrading: Best funded account for automated trading

...

Fees

...

Minimum deposit

20

No. assets

No

Demo/virtual account

Overview

  • Profit split: up to 65%
  • Cost: From £299
  • Platforms: MT4, TradingView, 
  • Leverage: up to 1:30
  • Markets: Forex, crypto, commodities, metals

Lux Trading Firm is a UK based prop trading company and is the best rated for anyone wanting to use trading robots such as EAs. The company hires profitable and professional traders across a range of markets, including forex and crypto, with no limit on the type of robot you use. Lux also offers accounts up to $2.5 million, making it one of the biggest prop trading firms around. 

Like all of the best crypto prop firms, Lux has an evaluation process. Once you pass its challenge account, you’ll become a fully-fledged professional trader using its capital. It has a slightly lower profit split than others; however, it offers traders a variety of tools and trading platforms, making it a top choice.

Highlights

Visit LuxTrading LuxTrading Review

4. SurgeTrader: Best prop trading firm with fast payouts

...

Fees

...

Minimum deposit

20

No. assets

No

Demo/virtual account

Overview

  • Profit split: up to 90%
  • Cost: From $250 
  • Platforms: MT4, MT5
  • Leverage: up to 1:20
  • Markets: Forex, crypto, indices, commodities, stocks

Surge Trader offers U.S. and international traders access to funded futures, forex and crypto accounts. Its starter program provides up to $25,000 in buying power. You’ll get a funded account if you grow your audition account by 10% without hitting drawdown limits. Surge focuses on transparency and education.

It’s a solid choice with fast payouts and up to a 90% split. SurgeTrader has an active chat room and provides mentors to help you s쳮d. Once funded, you can withdraw profits quickly. Surge Trader is a great option if you’re looking for a supportive U.S. prop firm that provides ample learning resources.

Highlights

Visit SurgeTrader SurgeTrader Review

5. E8 Funding: Best prop trading firm for high leverage trading

...

Fees

...

Minimum deposit

20

No. assets

No

Demo/virtual account

Overview

  • Profit split: up to 90%
  • Cost: From $228 
  • Platforms: MT4, MT5
  • Leverage: up to 1:100
  • Markets: Forex, crypto, indices, commodities, stocks

E8 Funding provides funded forex and crypto accounts up to $1 million for traders who pass its evaluation program. Its rules focus on risk management and consistency. E8 offers accounts denominated in USD, EUR, and GBP so you can get funding in your preferred currency.

Headquartered in Dallas, Texas and founded in 2021, E8 is one of the newer prop trading firms but has already built a strong reputation in the industry. E8 has a simple yet effective testing process to verify prop traders. Once funded, you can trade with flexibility while following its proven guidelines. If you’re unsuccessful in passing your challenge, E8 offers free repeats, so you can have another go without buying another account.

Highlights

Visit E8 Funding E8 Funding Review

What is prop trading?

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Prop trading (or proprietary trading) is the practice of trading financial instruments using a firm’s own capital rather than client funds. When a bank or a financial institution trades its own money rather than trading clients’ money. This allows a bank or financial institution to keep all of its profits rather than splitting them with their clients.

This form of trading allows financial institutions or individual traders (prop traders) to speculate on price movements in various markets, such as stocks, currencies (forex), commodities, futures, and options.

What is a prop firm?

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A prop trading firm, also known as a proprietary trading firm, is a financial company that engages in proprietary trading. These firms recruit skilled and experienced traders to execute trades using the firm’s capital. Aspiring traders who join these firms are often referred to as “funded traders” since they trade with the firm’s money, not their own.

A prop trading company typically offers an incentive for traders to join the prop firm by offering to split its profits with the individual, if they make the company money.

Traditionally, the best proprietary trading firms operated from major financial hubs such as Wall Street and London; however, in recent years, prop companies have moved online, allowing anyone to participate.

How do prop trading firms make money?

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Prop trading firms generate profits when their traders execute successful trades. The firm takes a share of the profits made by their traders, as per the predetermined profit-sharing agreement.

Some prop trading firms may also charge their traders commissions on each trade or other fees for using their proprietary trading platforms and services.

The best online prop firms in 2024 also earn money through challenge accounts and recurring fees. A challenge account is similar to a test, where an aspiring trader pays the firm a fixed fee for the opportunity to show off their skills and meet profit target. Due to the high rate of losing challenge accounts, forex prop firms in 2024 earn large profits.

How does a proprietary trading platform work?

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Proprietary trading firms provide traders with capital to trade financial assets on their behalf. While there are slight differences in how each prop trading platform works, they all follow a similar model, in which retail traders must pass a probationary stage known as a funded trader program before being able to trade the firm’s capital. 

A forex prop trading firm works as follows:

First, professional traders apply to join the programme by buying a ‘challenge account’. This challenge account varies in price and is used by the prop trading firm to determine whether or not the trader can, in fact, trade successfully.

A challenge account usually has specific rules, such as max drawdown, minimum trading requirements, and profit targets to ensure that only experienced traders make it to the next stage, as these are the only people with the skills to meet the trading account targets and make a profit.

The next step is the verification stage. This is similar to the challenge account and gives the prop firm more time to verify the trader’s results. Usually, the same rules are applied. If the trader passes verification, they become a proprietary trader for the firm.

Once confirmed, the trader benefits from more relaxed trading rules and a share of any profits they make while trading the prop firm’s capital. Most prop firms offer competitive incentives as far as the profit split goes, but the difference between the top prop trading firms and the rest is often the percentage of profit you receive.

How can I become a prop trader?

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To start with, you need to become a successful trader. Start by learning about financial markets, different trading strategies, and risk management. Familiarise yourself with forex trading in particular, along with futures trading, and other trading instruments.

Practice trading with a demo account or a small personal trading account to gain experience and refine your trading skills. Over time, develop a track record of successful trading, showcasing your profitability and risk management abilities. Some prop trading firms may require a certain level of proven trading experience.

Once you feel ready, research and apply to reputable prop trading firms that align with your trading style and preferences. Many firms actively recruit talented traders with potential, so there are plenty of proprietary trading companies choose from.

What do I need to become a prop trader?

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Successful prop traders need to be experienced traders who know how to make money in the markets, but you also need to have the mentality to trade under pressure with other peoples’ money.

Here are some traits of the top professional traders:

  • Financial market knowledge. Understand how financial markets function and stay updated on market trends.
  • Strong analytical skills. Develop strong analytical and technical analysis skills to interpret market data and identify potential trading opportunities.
  • Discipline and emotional control. Trading involves risk, and emotional discipline is essential to avoid impulsive decisions.
  • A good track record. A proven track record of profitable trading can significantly increase your chances of being hired by a prop trading firm.
  • A willingness to keep learning. Remain open to learning and adapting to new market conditions and trading strategies.

How should I choose the best prop firms?

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With so many prop trading companies around, finding the right one can be a time-consuming and difficult process. While a high-profit split prop firm is important, there are other features you need to consider. Use the tips below to help you find the best prop trading firm. 

Look for a prop firm with a good reputation

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Make sure you take the time to read online reviews from other traders and find a prop company with a good reputation. Unfortunately, the rise in popularity of prop firms has resulted in malicious actors posing as legitimate companies becoming scams. A prop firm with a good reputation can save you a lot of time and money. 

Consider the costs before joining

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The cost to join a prop firm and participate in a funded trader challenge can vary from company to company. Some start from as little as $99, while others can run into the thousands depending on the size of capital you require. It’s best to start slow, as you can always upgrade to a larger account as your profits grow. 

Make sure profit splits meet your expectations

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When trading prop, you’re only goal is to earn profit for yourself and the prop firm. Profit splits can range from 50/50 all the way up to 95%. Obviously, the higher the profit split, the better for you, so make sure you find a prop company with a fair profit split that you’re happy with. 

Use a prop firm with easy-to-understand rules and trading requirements

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Many forex prop firms have elaborate trading rules which can be difficult to understand, even for professionals. If you don’t know what trading objectives are required, ask the company, or find one with a clearer set of rules. The best prop firms make it explicitly clear as to what their rules for payouts are with easy to understand profit targets and minimum trading days. 

Check what trading platform the firm is using

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Before you go ahead and use a prop account, make sure you’re comfortable with the trading platform they use. Most of the best forex prop trading firms use commonly available platforms such as MT4 and TradingView, but if you prefer another, check that the prop firm offers it; otherwise, you may need help to use new software. 

Find a prop firm with the assets you want to trade

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Some prop firms allow you to trade a range of assets, while others are focused on only one or two. There are many forex prop firms and the rise in cryptos has resulted in many crypto prop firms hitting the market. If you prefer other assets that fit your own trading strategy, there are still a few good options available and you can use our reviews above to find a suitable platform. 

How to join a prop firm: A step-by-step guide

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Our trading experts have put together the guide below, which explains the exact steps you can follow to join a prop firm. 

Step 1. Find a prop trading firm

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To begin, you’ll need to find a prop firm that fits your needs. You can use the tips we’ve provided above to help you find the best prop company. It’s important to take your time during this process as many proprietary firms are available. Make sure you use one that offers the markets you want to trade, has your preferred trading platform, and acceptable profit splits.

Step 2. Join a funded trader program

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Once you’ve selected your prop firm it’s time to join its funded trader program. You will have to pay a fee to join, which will vary depending on the size of the account you choose. If you’re a beginner, it’s best to go with the smallest account as it will be the cheapest. You can also progress to a larger size as your profits grow. 

To register an account you’ll need to provide you contact information and may also need to give a form of ID, so make sure you have some with you.

Step 3. Pass your challenge account

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The trader program is sometimes referred to as a challenge account and is the firm’s way to assess your skills and ability to stay within its rules. To pass your challenge, you’ll need to earn a certain amount of profit without your account going into a predefined amount of drawdown. You should be selective with your trades and careful with your risk to pass your funded trader challenge account. 

Step 4. Pass the verification stage

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Once you’ve passed your challenge account, you’ll have another opportunity to show off your skills, this time during a verification stage. The verification stage is similar to the challenge account, although rules can be slightly different, so read the requirements carefully. 

Step 5. Become a funded trader!

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Now that you’ve passed your challenge account and verification stage, you’ll become a fully-fledged member of the prop trading firms team. You can now start trading a live account and keep a share of any profits you make while using your own trading strategies on a range of financial instruments. It’s important to remember that you’ll still be required to stay within certain limits and rules and if you break any, you’ll lose your account. 

What are the fees for using a prop firm?

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You can start with a prop trading account for as little as $99. Most of the best forex prop firms charge an initial fee to participate in a challenge or funded trader program. This fee varies depending on the account size you wish to go with, but generally ranges from $99 to $250

The fees are usually refunded if you pass your funded challenge and successfully enrol with one of the top proprietary trading firms, though you may have to pay a monthly retainer as well to keep your position.

Should I use forex prop firms?

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Prop firms can be an excellent way to earn profits from a range of financial markets without risking any of your own money. The best prop trading firms offer a way to progress through tiers and the ability to trade a larger account as your experience and profits grow. With prop trading, you can access large sums of trading capital, up to millions of dollars and earn a share of any profits you make. 

Prop trading isn’t for everybody, however, and you should only join a company if you’re confident in your ability to earn profits from the markets consistently. If you’re a novice, a few prop trading firms for beginners offer free education to help you.

Prop trading can lead to a successful and lucrative career for the best traders. Here are some of the benefits of prop trading:

  • Access to capital. Prop traders gain access to significant capital provided by the firm, allowing you to trade larger positions and potentially increase your profits.
  • Leverage and risk management. Prop firms offer leverage, which enables you to control more significant positions with less capital. However, risk management is crucial to prevent large losses.
  • Collaboration and learning. Traders in prop firms can learn from experienced colleagues, share ideas, and collaborate on trading strategies.
  • Professional environment. Prop trading firms provide a structured and professional environment for traders to thrive in.
  • Potential for profit. Successful traders can earn substantial profits, and some firms offer attractive profit-sharing arrangements.

What are the risks of prop trading?

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The main risk of using a proprietary trading company is losing money. To get funded by a prop company, you will usually have to pass a funded trader program or prop challenge account, which charges an initial fee. Some prop firms also charge a monthly fee. If you’re unprofitable, you’ll lose these fees and have to reapply if you wish to continue. 

Here are a few pros and cons of the prop trading space to help you decide if it’s the right fit for you. 

Pros

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  • Access to large sums of capital to trade
  • High profit sharing available 
  • The best prop firms offer advanced trading platforms and tools
  • You can save on trading fees and costs
  • There is the potential to earn large sums of money

Cons

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How we chose the best proprietary trading firms

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Helping people make better financial decisions is at the heart of our mission at Invezz. 

We periodically test more than 63 forex prop trading firms to provide our users with clear, accessible guidance on the investing options available. All testing is carried out by our panel of forex experts, analysts, and active traders who sign up to each broker, conduct research, and score each service.

Our tests are designed to find prop trading companies that offer a beginner-friendly, secure trading experience at a fair price. To supplement our practical testing and experience, we research each service to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.

Each forex prop firm is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit & withdrawals, investing options, range of products/markets, research & analysis tools, and the availability of educational & learning resources.

We work closely with individual firms to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process

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Sources & references
Risk disclaimer
Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.