Proprietary trading, otherwise known as prop trading, is taking the finance world by storm. Unlike traditional investment methods, financial companies earn profits from market activity rather than client trade commissions. The prop trading industry continues to boom, with more firms joining the trend every day.
If you have a successful trading strategy and a good understanding of market trends, these firms could be the answer to your financial dreams. Prop trading firms trade in an array of financial instruments, including commodities, fiat currencies, stocks, bonds, and cryptocurrencies.
Finding the right firm for you can be a daunting task, given the multitude of options and variations. To make the process easier, we’ve made a list of the 3 best prop trading firms, so you can weigh your options and pick the perfect match for your trading style.
The Best Prop Trading Firms: The Top 3
FTMO
FTMO is a company that offers funded stock trading accounts to eligible traders. The process of qualifying involves two stages. The first step is the FTMO Challenge, which tests your ability to earn profits using a demo account. After passing the challenge, you move on to the Verification phase, where you trade with an increasing amount of funding in a live account.
One of FTMO’s key selling points is their emphasis on news trading, which is a common strategy among day traders. By reacting to national and international economic events, as well as company financial news, traders can profit off of short term market movements and volatility. FTMO recognizes the importance of this strategy and has designed their program around it.
FTMO’s success is evidenced by their repeated placement among Deloitte’s Technology Fast 50. They offer fabulous support with performance coaches and account analyses to their customers to help them succeed.
As a trader with FTMO, you’ll receive up to 90% of your profits earned from trading with the firm and its tools. You’ll also be trained in risk management strategies. The maximum capital limit is $400,000. Swing accounts have no restrictions on holding positions over the weekend.
FTMO provides custom apps for traders, including ones that help with journaling, and market analysis. Their leverage trading at 1:100 makes them one of the best Forex Prop trading firms, and their low spreads and one time fee make them a great choice for beginners. Payouts are made once a month.
Trading crypto, as well as forex, indices, commodities, stocks, and bonds, is supported on the platform.
City Traders Imperium
City Traders Imperium is a prop firm that offers traders the opportunity to be funded up to $4 million and trade for up to 70% profit share. The company offers four funding plans – Evaluation, Portfolio Manager, and Direct Funding Plans. Each account is upgraded for higher funding limits each time a trader hits a 10% profit target.
What sets City Traders Imperium apart from other prop firms is their transparency and flexibility. Instead of promising traders quick riches, they offer robust educational resources and clear expectations.
To get started with City Traders Imperium, traders must complete one of their Evaluation programs, like the Day Trading Challenge, or pay a larger sum to receive direct funding immediately.
One standout feature of City Traders Imperium is their free consultation call, where traders can speak with a trading professional who will analyze their trading approach and psychology to improve trading performance. In addition to funding, the company also provides mentorship and training programs as well as the necessary tools needed to succeed.
While the company is not as suitable for scalpers/day traders, it is highly recommended for swing traders.
Fidelcrest
Fidelcrest is a promising prop trading firm that offers a wide range of assets including stocks, indices, commodities, and forex. The firm was initially started by forex traders to help traders gain access to funds and start making significant profits.
To gain access to the Pro Trader Program, traders must first demonstrate their trading prowess by completing a two-step evaluation process. First, they must take the Fidelcrest Trading Challenge, which is a 30-day trial period. Then comes the Verification phase, which takes 60 days to pass.
Fidelcrest also offers the Micro Trader Program for beginners who want to test their trading skills before taking on the larger, Pro Trader accounts. The Micro Trader accounts range from $10,000 to $50,000.
One of the top features of Fidelcrest is the ability to scale up to $2,000,000 and keep up to 90% of profits. The pricing is also competitive with other prop firms. The main drawback to consider is the long evaluation process of 90 days.
What Is The Best Prop Trading Firm For Me?
There are countless funded trading firms out there vying for your attention, each claiming to be the best. But don’t be swayed by flashy marketing gimmicks and high profit splits alone. Before committing to a prop trading firm, there are several important factors to consider.
First, you need to determine your trading goals and preferences. Do you want to focus on day trading, swing trading, or position trading? Do you prefer trading in specific markets or assets, such as stocks, forex, or crypto? Understanding your preferences and goals will help find the right firm for you. This will help find the best way of trying to make money online with trading.
Next, consider the fees and funding requirements. How much capital are you willing to invest, and what percentage of your profits are you comfortable giving up? Also, check the commission structure, withdrawal policies, and any additional costs or fees.
Education and support are also critical factors to consider. Does the firm provide resources to help you improve your trading skills and knowledge, such as webinars, mentorship, or educational materials? Do they offer a demo or simulated trading account to practice your strategies?
Hopefully after reading these prop firm reviews, you have a better understanding of what the best companies have to offer and are one step closer to realizing your trading potential through funded accounts.
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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.
