What is the best trading prop firm? – analysts answer

As an aspiring trader, accessing sufficient capital and resources is vital for success. That’s where trading prop firms come into play. These firms provide traders with the opportunity to trade with their capital while offering support, tools, and guidance. However, with numerous options available, it can be challenging to determine the best prop firm for funded trading but we have the best reported by Traders Union. 

In this blog, we will delve into the expert reviews conducted by Traders Union, focusing on three renowned prop firms: FTMO, SurgeTrader, and Topstep. 

Read on to find out the answer to the question: what is the best trading prop firm? And how to choose the ideal prop firm for your funded trading journey.

Understanding Funded Trading and Prop Firms

Before we dive into the reviews, let’s briefly understand funded trading and how prop firms operate:

1. Funded Trading: Funded trading involves trading with the capital provided by a prop firm, where traders share their profits with the firm based on predetermined terms.
2. Prop Firms: Proprietary trading firms, also known as prop firms, invest their own capital and offer traders the opportunity to trade that capital. Traders benefit from the firm’s resources and support while sharing the profits.

Criteria for Choosing the Best Prop Firm

According to Traders Union, When selecting a prop firm for funded trading, it’s crucial to consider the following criteria:

1. Capital Allocation: The amount of capital provided by the prop firm for trading.
2. Trading Costs: Evaluating fees, commissions, and other expenses associated with trading.
3. Trading Platforms: Assessing the quality, functionality, and ease of use of the trading platforms offered.
4. Risk Management: Examining the firm’s risk control measures and support provided to traders.
5. Profit Split: Analyzing the profit-sharing structure between traders and the prop firm.
6. Support and Education: Considering the level of support, mentorship, and educational resources provided by the firm.

Many novice traders ask themselves: are prop firms legal? Indeed, there are dubious firms, but if you take the above criteria responsibly, then you can easily find a reliable and legal prop firm.

FTMO

• Capital Allocation: Offers substantial capital allocation to traders based on their performance and evaluation.
• Trading Costs: Competitive fee structure with low commissions and no hidden charges.
• Trading Platforms: Utilizes popular platforms like MetaTrader 4 and MetaTrader 5, known for their versatility and features.
• Risk Management: Provides risk management tools, guidelines, and support to traders.
• Profit Split: Transparent profit-sharing model with up to 70% profit allocation to traders.
• Support and Education: Offers educational materials, webinars, and personalized feedback to enhance traders’ skills.

SurgeTrader

• Capital Allocation: Provides varying levels of capital allocation based on traders’ experience and performance.
• Trading Costs: Low commissions and spreads, ensuring cost-effective trading.
• Trading Platforms: Offers a proprietary web-based trading platform with intuitive features and customization options.
• Risk Management: Emphasizes risk control and provides traders with risk management tools and guidelines.
• Profit Split: Competitive profit-sharing structure with up to 80% profit allocation to traders.
• Support and Education: Provides personal coaching, trade analysis, and access to a community of traders for support and collaboration.

Topstep

• Capital Allocation: Offers different account sizes, allowing traders to choose based on their preferences.
• Trading Costs: Transparent fee structure with low commissions and no platform fees.
• Trading Platforms: Utilizes the widely used NinjaTrader platform, known for its advanced charting and analysis capabilities.
• Risk Management: Implements strict risk control measures and provides ongoing risk management guidance.
• Profit Split: Fair profit-sharing model with up to 80% profit allocation to traders.
• Support and Education: Offers educational resources, daily webinars, and a supportive community of traders.

Conclusion

Choosing the best prop firm for funded trading requires careful consideration of the criteria mentioned above. Based on Traders Union’s expert reviews, FTMO, SurgeTrader, and Topstep emerge as top choices. Evaluate the capital allocation, trading costs, platforms, risk management, profit split, and support provided by each firm to make an informed decision aligned with your trading goals. Remember, a prop firm with the right combination of capital, support, and resources can significantly enhance your trading journey and increase your chances of success.