Prop firms always look for skilled traders to join them in trading their master accounts. The earned profit is then split between the firm and the trader. The usual profit split ratio favors the traders as they enjoy 80 – 100% share. However, a trader must know the criteria for selecting a best prop firm. Let’s discuss some key factors to consider and compare the top prop firms in the industry.
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How to Get Started with a Prop Firm?
Getting started with a prop firm is straightforward. All you have to do is find a prop firm that suits your trading style, choose the package, pay the evaluation fee and start trading. Once you pass the evaluation phase, you progress to live trading, where you can get a share of earned profits.
The evaluation phases will test your trading skills and determine whether you can consistently stay profitable. Hence, you must adhere to strict risk management rules, such as daily loss limits and a maximum overall drawdown.
Key Factors to Consider While Choosing a Prop Firm
Before you sign up with any prop firm, consider the following factors:
Reputation
Always pay attention to the reputation of a prop firm. If a prop firm has plenty of negative reviews, you should avoid it. The bad reviews occur due to insufficient trading conditions, hidden rules and payout denials. You can check the reviews on TrustPilot, which filters spammy and fake reviews.
Challenge Types
Not every trader is alike, so look for different challenges and determine which would suit your trading style. These evaluations vary from one-step to three-step phases. Usually, three-step phases are cheaper but have tighter drawdown limits.
Fees
Consider the fees as one of the critical factors because this is the only cost you have to bear while trading with prop firms. You can compare the fees of different firms. A significant difference in the fees shouldn’t be ignored.
Transparency
Firms with hidden rules tend to disadvantage traders. Moreover, trading conditions lacking transparency could dampen traders’ efforts. Hence, a firm with the least transparency and hidden rules should never be chosen.
Payout History
A good prop firm never denies a payout. Always look for previous traders’ experiences with the prop firm. If a firm refuses to pay the trader his profit share, it is a red flag.
Educational Resources
A trader-centric prop firm will always invest in providing helpful resources to traders because its objective is to help them stay positive.
Top 3 Forex Prop Firms
Let’s compare the top three forex prop firms in the industry.
| Features | FundingPips | 5%ers | FundedNext |
| TrustPilot Score | 4.4 | 4.9 | 4.6 |
| Fee for $100k 2-Step | $199 | $495 | None |
| Max Scaling for 2-Step | $2 million | $500k | $4 million |
| Trading Platforms | MatchTrader, cTrader, TradeLocker | MetaTrader 5 | MetaTrader 4, MetaTrader 5, cTrader |
| Payouts | On-demand payouts after the first withdrawal | Every two weeks | First payout after 28 days, then every 14 days |
| Education | Blogs, Discord community, Dedicated Education | Blogs, Dedicated Education | Blogs |
Now, let’s discuss these three firms so you can choose the most suitable one.
FundingPips
FundingPips is rightly said to be a firm for traders by traders. It offers different types of evaluations. Such a variety doesn’t exist anywhere. For example, if you choose the 2-step challenge, you can select the account size from $5k to $100k. Then you can choose FundingPips, FundingPipsX or FundingPips Plus. Each program comes with a different scenario.
The firm regularly posts interviews of its successful traders on its YouTube channel. It has never denied a single payout. Hence, pro traders prefer FundingPips as they do not have to worry about their profit withdrawals.
FundingPips Evaluation Processes
FundingPips does not impose a time restriction on passing the evaluation. Thus, if you are a conservative trader, you can trade at your own pace, even if it takes several months to pass the phase. Moreover, the evaluation fee is refunded once you pass both phases.
The firm offers the cTrader, MatchTrader and TradeLocker platforms. Each has pros and cons, so you can choose any platform that suits your trading style. Customer support is quite vigilant, and you can get help with technical or other matters if needed.
FundingPips Customer support
Lastly, with FundingPips, traders can access a dashboard. This is a central hub where traders can manage their accounts. With the dashboard, you can access your account overview and performance matrix, and you can even integrate your economic calendar, ensuring you stay updated on economic events
5%ers
5%ers is another prop firm that is trader-oriented. The firm has a unique evaluation process with no time bar and realistic profit targets.
You can choose from various funding programs: Bootcamp, Hypergrowth, and High Stakes. Each program has unique advantages, providing flexibility in the evaluation phase. However, you may not be allowed to trade during news. Also, you may not trade a bracketing strategy.
The5ers Bootcamp Program
The firm offers spreads from 0.0 pips and has a reliable payout policy. 5%ers offer a profit ratio of up to 100%, meaning you can retain all the profits you earn from trading.
This firm’s main advantage is its focus on trading resources. With 5%ers, traders can access a Forex blog, News Sentiment, The5ers Classes, economic Forex calendar, and Forex Scaling Workshops. These resources ensure traders stay up to date and continually grow their careers.
The5ers Forex Scalping Workshop
FundedNext
FundedNext is a prop firm that aims to empower traders worldwide. Its unique evaluation stage offers three challenges: Stellar, Evaluation and Express. The evaluation challenge allows for free retakes.
FundedNext Evaluation Challenge
All three challenges have no time limits. FundedNext offers traders profit splits of up to 95%. Moreover, traders here can access leverages of up to 1:100 and spreads as low as 0.0. The firm also allows traders to trade the news.
FundedNext Key Highlights
Conclusion
Choosing the right prop firm is the first step to a successful prop trading career. FundingPips is among the best prop firms, as highlighted above. Join them today and start your prop trading career in good hands.
