In the dynamic trading world, the landscape of proprietary trading firms is ever-evolving. Prop trading firms provide traders access significant capital due to funded accounts and profit-sharing.
Yet, identifying the best prop trading firm can be a daunting task. Especially when considering profit splits, trading rules, and cost-effectiveness.
To ease this process, we’ve evaluated many prop firms and compiled a detailed comparison. Especially focusing on the cheapest prop firms that offer large value.
We analyze different trading styles, including both forex trading, and other financial instruments. We aim to support traders in choosing a prop trading firm that aligns with their trading skills and financial goals.
What Are Proprietary Trading Firms?
Proprietary trading firms, or prop firms, trade financial instruments (stocks, bonds, commodities, and forex) with their funds, not clients’.
This model lets firms enjoy successful trades, aligning their interests with trading performance. In their competitive, fast-paced trading world, they need profound trading skills and a solid grasp of risk management.
Evolution of Prop Trading Firms
Prop trading has evolved over the years. These firms operated in physical trading pits, with traders shouting and signaling orders.
Today, the landscape of financial markets has shifted towards electronic and algorithmic trading, enabling faster and more efficient trading strategies.
The Life of a Funded Trader
To become a funded trader, one typically undergoes an evaluation process by a prop firm. This process assesses the trader’s ability to meet certain profit targets while adhering to the firm’s trading rules.
Successful traders are then given access to substantial capital andto a funded trading account, where they trade using the firm’s capital.
Profit Targets and Split
Each prop firm sets specific profit targets that traders must achieve to maintain their funded status. Additionally, profit splits are a crucial aspect of this relationship.
Profit-sharing splits between traders and firms range from 50/50 to as high as 90/10 in favor of the trader.
Exploring Different Types of Prop Firms
Forex Prop Firms
Forex traders find a welcoming space in forex prop firms, which focus on currency markets. These firms often offer leverage, allowing traders to control large positions with a small amount of capital.
Equity and Commodity-Based Firms
Other prop firms specialize in equities, commodities, or a mix of various financial instruments. The trading style and strategies employed can vary, catering to the diverse skill sets of professional traders.
How to Choose the Best Prop Trading Firm
When choosing a prop trading firm, several factors come into play. These include:
The reputation and track record of the firm.
The profit split and potential earnings.
Trading conditions include minimum trading days, offered leverage, and the variety of tradable instruments.
The cost structure, including any monthly fees or upfront costs.
Best Prop Trading Firms
Identifying the best prop trading firms requires thorough research. Consider factors such as features in funded trading programs, proprietary trading tools, legal frameworks, and the firm’s ethos.
More funding options have been introduced in the industry to support skilled traders.
8 Cheapest Prop Trading Firms in 2023
Goat Funded Trader
Goat Funded Trader is one of the cheapest prop firms in the industry, offering traders access to significant capital and a range of benefits. As a proprietary trading firm, Goat Funded Trader provides traders with the opportunity to trade financial markets without risking their own capital, instead receiving a percentage of the net profits generated. The firm offers a range of account funding amounts, starting from as low as $2,000, and provides traders with advanced platforms, analytics, mentorship, and an environment to focus purely on trading.
Goat Funded Trader is known for its affordability, with a profit split of 70% or higher, which favors the trader. This means that if a trader generates $100,000 in net profits, they would receive $70,000 or more.
The firm also offers a transparent evaluation process, where traders undergo an evaluation combine to demonstrate their skills in areas like risk management. This ensures that only quality traders receive funding, making it an attractive option for aspiring forex traders looking to take their skills to the next level.
In addition to its affordability, Goat Funded Trader provides traders with access to deep pockets of trading capital, high funding ceilings, and attractive profit sharing. This allows skilled traders to earn strong income from market swings and grow their capital under management without the need to work with an additional prop firm.
The firm appeals most to seasoned traders with proven track records, but also caters to traders of all experience levels, offering educational resources and support to help traders perfect their trading strategies.
Funding Pips
Funding Pips is one of the cheapest prop firms in the industry, offering traders access to significant trading capital without the burden of risking their own funds. With a reputation as a reliable and reputable prop firm, Funding Pips offers a range of funding options, including a $5K funding account for just $32.
This affordable option allows traders to access wider markets with limited risk, making it an attractive choice for both beginner and experienced traders.Funding Pips’ two-stage evaluation account is designed to support a variety of trading styles, with low entry fees and competitive profit sharing. The firm also offers trading conditions that facilitate trader growth, along with strong community support to help traders achieve their trading goals.
In addition to its affordable pricing, Funding Pips offers a range of benefits to traders, including limited risk, learning opportunities, strategy testing, growth potential, and access to larger markets. The firm’s focus on education, mentorship, and trading tools also makes it an attractive choice for traders looking to hone their skills and advance their careers in the global financial markets.
The Funded Trader – Royal Challenge Account
The Funded Trader is a cheap prop trading firm that helps traders start their careers easily. This analysis looks at important things like trading rules, support and resources, profit targets, and adapting trading styles.
The Funded Trader stands out with its Royal Challenge Account, providing a $50,000 balance for a mere $289. Traders experience a two-step evaluation process, offering a profit split ranging from 80% to an impressive 90%. The firm maintains a stringent yet flexible approach with a Phase I profit target of 8% and a maximum daily loss of 5%.
Traders at The Funded Trader enjoy a supportive environment. The firm permits the use of Expert Advisors, Trade Copiers, and imposes no lot size limits in its Royal Challenge. Traders use resources to improve their trading journey, including drawdown options and managing more initial capital.
The Funded Trader sets clear profit targets for its traders. Phase I requires a virtual profit target of 8%, followed by 5% in Phase II. The firm’s scaling plan offers the potential to trade up to $600,000 on a TFT Account. With experienced traders receiving up to 95% of the earnings, this demonstrates a commitment to rewarding successful traders.
The Funded Trader provides traders with the opportunity to trade various assets. This includes Forex, Indices, Commodities, Metals, and Cryptocurrencies, with leverage of up to 1:200. This adaptability allows traders to diversify their portfolios and explore different markets.
You can check out the full review by clicking here, and make sure to use the code “PW” for a 5% discount.
Smart Prop Trader
Smart Prop Trader stands out as one of the cheapest prop firms in the market, offering instant funding and a funded trader program with attractive benefits. This prop firm provides traders with access to significant capital for trading various financial instruments like futures, indices, forex, and crypto.
Smart Prop Trader’s evaluation process involves two phases with specific profit targets and drawdown rules, ensuring traders are well-prepared before becoming funded traders. With a focus on trading skills improvement, this firm offers a free trial and monthly trading competitions.
Additionally, Smart Prop Trader boasts low prices for challenge accounts, starting at $97 for a $10,000 account and $997 for a $200,000 account.
Traders can benefit from an 85% profit split and a refund upon passing the verification phase during a limited-time promotion. Overall, Smart Prop Trader is known for its cost-effective trading opportunities, making it an excellent choice for both aspiring and experienced traders looking to enhance their trading career
Bespoke Funding
Bespoke Funding is one of the cheapest prop firms in the industry, offering a range of account prices and funding options to suit traders of all levels. With a minimum trading day requirement of just 5 days, traders can start with a small account of $5,000 and work their way up to a maximum funding of $100,000. The profit split is also very competitive, with traders receiving 80% of their profits after an initial profit target is met
Bespoke Funding is a reputable prop firm that offers access to significant capital for traders who are looking to start or advance their trading careers. With a focus on risk management and skilled traders, the firm provides a range of educational resources and trading tools to help traders develop their skills and succeed in the financial markets.
One of the key benefits of Bespoke Funding is its low trading costs, which makes it one of the most affordable prop firms in the industry. Traders can access a range of tradable assets, including forex, stocks, and futures, and can start trading with a small account of just $5,000. The firm’s evaluation process is designed to ensure that only the most skilled traders are funded, and the firm offers a range of funding options to suit traders of all levels.
FXIFY
FXIFY is one of the cheapest prop firms in the industry, offering some of the most competitive account prices and profit splits. The firm provides traders with access to significant capital, allowing them to trade with confidence and maximize their potential profits.
FXIFY’s maximum funding is $500,000, which is higher than many other prop firms, and their profit split is 70/30, with traders keeping 70% of their profits. This is higher than the industry average, making FXIFY an attractive option for experienced traders looking to maximize their returns.
Additionally, FXIFY has a minimum trading day requirement of 10 days per month, which is lower than many other prop firms, allowing traders more flexibility in their trading schedules.
Overall, FXIFY’s competitive pricing, high maximum funding, and favorable profit split make it one of the best prop trading firms for traders looking to access significant capital and maximize their trading profits
FundedNext
FundedNext is one of the cheapest prop trading firms, offering a range of balance options to cater to traders’ needs. The company offers traders a maximum funding of $200,000 and a plan to grow their business up to $4 million. Traders can earn up to 90% of the profit share to increase their income.
FundedNext offers a flexible trading environment. Traders can use leverage of 1:30 or 1:100 to trade Forex, Indices, and Metals. Traders can achieve this through a straightforward one-step or two-step process.
FundedNext provides a friendly environment for traders, with a personal account manager to help them succeed in their own trading career.
Traders can initially earn a 15% profit share. If they remain consistent and make profits, they have the opportunity to increase it to 95%. If they have $4 million in their account, they can receive a 40% increase in their balance every 4 months. This increase can continue until their balance reaches $4 million.
FundedNext helps traders choose the trading styles they prefer, like Forex and Crypto, among others.
To join FundedNext’s prop trading firm program, traders need to select their funding model, trade, and prove their skills. The firm offers a one-step challenge with an 80% profit share by default, with the potential to scale up to 90%. They also provide a two-step process, with profit share percentages of 8% (Phase I) and 5% (Phase II).
Don’t forget to check out our review for FundedNext and use code “SHINY10” for a 10% discount when you’re ready to get started!
The Funded Trading Plus
Funded Trading Plus is a reputable prop firm that stands out as one of the cheapest in the industry, offering innovative trading solutions to aspiring traders. The company provides a simulated-live environment where traders can access significant capital without risking their own funds. Funded Trading Plus offers various programs with competitive pricing, transparent rules, and exceptional support, ensuring a seamless user experience. Traders can access funded accounts ranging from $5,000 to $2,000,000, keeping up to 100% of their profits with profit splits ranging from 70% to 90%.
The platform supports various trading strategies, including news trading, and provides educational resources and training courses to help traders develop their skills and succeed in the financial markets. Funded Trading Plus is committed to creating a supportive environment for traders of all levels, backed by a team of experienced professionals dedicated to helping traders thrive in their trading careers
Legal and Regulatory Aspects of Prop Trading Firms
Prop trading firms trade financial instruments like stocks, options, futures, and currencies using their capital. Their popularity has risen due to their potential for high profits and their ability to trade with minimal capital. However, there are legal and regulatory aspects that many prop trading firms must adhere to to operate within the law.
Regulatory Framework
Prop trading firms follow regulations from the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) to safeguard investors and uphold fair, transparent markets.
The Volcker Rule, a key regulation, requires prop trading firms to comply by prohibiting banks from engaging in proprietary trading. There are exceptions for certain types of trading, such as market making and hedging. However, there are exceptions for certain types of prop trading companies do, such as market making and hedging.
The Dodd-Frank Act mandates proprietary trading firms to register with the CFTC and follow reporting and record-keeping requirements.
Legal Considerations
Prop trading firms must also consider various legal issues, such as intellectual property rights, employment law, and contract law. This involves ensuring trading strategies don’t infringe on others’ intellectual property rights and verifying the legally binding and enforceable nature of employment contracts.
In addition, prop trading firms must ensure that they comply with all applicable tax laws and regulations. This includes paying taxes on any profits earned from trading activities.
How much do prop traders make?
In most professions, the compensation of Prop trader varies by the quality of work. In a prop firm like that on Wall Street, you will earn more than $50,000 in salary, with an increase in potential earnings on a percentage of your trade profit.
Prop traders with funds only make money from the trading profits. Once you have passed the initial evaluation stage you will be considered an accredited trader. You can make 99% profit as a financial investment. When you’re not earning, there will not be any money.
Methodology: How to choose the best proprietary trading firms?
Selecting reputable trading firms is crucial for optimizing trade profits, as the consequences of an erroneous choice can result in significant time waste.
The decision-making process should not be approached casually; therefore, we sought a meticulous and transparent methodology to establish the basis for our rankings. Our approach commenced with a comprehensive list derived from my personal entrepreneurial experiences, supplemented by recommendations from my extensive network of friends and associates, as well as thorough research on Google.
In an industry witnessing the emergence of seemingly new proprietary trading companies monthly, our objective was to compile a catalog highlighting firms that have consistently demonstrated reliability and credibility.
Frequently Asked Questions
What is the cheapest prop firm challenge?
The cheapest proprietary trading firm in 2023 offer various account sizes with different fee structures. The Royal Challenge Account offers a $50k balance for $289, with alternative account sizes at varying fees.
FTMO, like other firms, is known for being affordable and offers substantial funding with a profit-sharing model. Consider evaluation costs, profit split schemes, and trading rules when selecting a prop firm.
Each firm has its own characteristics and fee structures, so it’s essential to carefully compare them to find the most suitable option.
Are there any free prop firms?
Some prop firms offer free trials or demo accounts, such as FTMO and The Funded Trader. The cost of joining a prop firm varies, with some firms charging a one-time fee, while others charge a monthly subscription. The profit split between the trader and the company also varies, with some reputable prop firms offering up to a 90% profit split. Prop firms have unique trading rules, and traders need to adhere to them.
How much is a prop firm?
Some prop firms charge a one-time fee, while others charge a monthly subscription fee. The cost of joining a prop firm varies widely, with some firms offering affordable evaluation costs. The profit target and minimum trading days also vary depending on the firm. Some firms offer instant funding programs, while others have scaling plans that allow traders to increase their account size as they meet profit targets.
What is the best funded prop firm?
The best-funded prop firm depends on individual preferences and trading styles. However, some of the top proprietary trading firms in 2023 include:
TopTier Trader
TopstepTrader
LuxTradingFirm
Belvedere Trading
Chicago Trading Company
My Forex Funds
Take Profit Trader
Elite Trader Funding
These firms offer various funding options, profit splits, and evaluation processes. These firms provide various funding options, profit splits, and evaluation processes.
For instance, TopTier Trader offers funding up to $600k. These funds allow traders to keep up to 90% of profits.
Funded Trading Plus offers various funding options, including one-stage and instant funding, as well as a traditional two-stage model, beginning with a $12,500 balance.
City Traders Imperium offers instant funding programs with various account sizes, ranging from $4,000 to $80,000, and profit targets of up to 10%.
Keep in mind that the least expensive prop firm might not be the most suitable. Traders should also weigh other factors like trading conditions, support, and risk management.
To help you make an informed decision, our website offers a comparison of the best no-evaluation prop firms with instant funding. These firms generally have higher prices compared to evaluation-based options, but they provide you with the opportunity to start trading on a funded account right away.
For those seeking cost savings, you can visit our prop firms discounts section, where you’ll discover discount coupons, promo codes, and special offers to secure the best pricing for the top prop firms available in the market. This way, you can optimize your choice based on your unique trading characteristics.
Which is the cheapest prop firm challenge?
5ers offer the cheapest prop firm challenge in the industry – offering $550 trading capital per 5k account for just $39. It is a twofold procedure. The 5ers are known for their excellent reputation.
