Top FX Prop Firms in 2023

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Top FX Prop Firms in 2023

<p class="MsoNormal">One of the most common causes of failure in trading is undercapitalisation. Even if a trader becomes consistently profitable, it's unlikely that he or she can make a living out of it without first having some big capital to trade. </p><p class="MsoNormal">That's because on average the best traders in the world make say 30% per year, and you can already see that if you have a 10K trading account and make even 50% per year, you can't live off of it. In fact, many undercapitalised traders end up trading too often and risking too much because they try to achieve impossible gains eventually blowing up.</p><p>What Are FX Prop Firms?</p><p class="MsoNormal">Forex prop firms try to fill this gap between good traders and lack of capital by providing their own. These companies look for skilled traders to trade their money and then split the profits that range from 50% to 90% for the trader.</p><p class="MsoNormal">Before getting to trade a live account, generally, a trader needs to pass a challenge on a demo account with a set of rules and profit target to prove his skills. Once the trader passes the challenge, he or she gets the live account to trade and those can range from 200K to even 2 million dollars. </p><p>The Best FX Prop Firms</p><p>myForexFunds</p><p class="MsoNormal">One of the leaders in this space is undoubtedly <a href="https://myforexfunds.com/" target="_blank" rel="follow">myForexFunds</a>, a Canadian company that since its inception in 2020, has grown rapidly and now boasts more than 80k traders from 150 different countries. </p><p class="MsoNormal">One of the features that probably made this company come up on top is the possibility of managing a live account right from the start without going through a challenge. myForexFunds in its aim to be the best has also one of the highest profit splits (up to 90% for the trader) and one of the highest account sizes (up to 2 million). </p><p class="MsoNormal">myForexFunds doesn't apply restrictions on the trader regarding the strategies, sizes or times of the trades and even allows trades to be left open from one day to the next and one week to the next. The only limits come of course in the form of risk management. </p><p class="MsoNormal">This is one of the most important parts for a trader, so the company cares about it the most. In fact, the common rule for passing the challenges is generally a maximum 5% daily drawdown and 12% overall maximum drawdown. </p><p class="MsoNormal">The three programmes are rapid, evaluation and accelerated. In the rapid programme, the trader doesn't have a profit target and gets evaluated during the 3 months of trading but gets paid 12% of the profits for the time spent doing the evaluation. </p><p class="MsoNormal">In the evaluation programme, the trader needs to pass a two-step verification with an 8% profit target for the first step and 5% for the second one. </p><p class="MsoNormal">You will need to pass each step within 30 days, with a minimum of 5 days of trading. Finally, the accelerated programme gives the trader a funded account right from the start without doing a challenge and the account gets scaled up every time the trader achieves a 10% profit.</p><p class="MsoNormal">Features:</p><p class="MsoListParagraphCxSpFirst">· 3 different programmes including one without a challenge.</p><p class="MsoListParagraphCxSpMiddle">· Trading accounts up to 2 million dollars.</p><p class="MsoListParagraphCxSpMiddle">· Profit split up to 85% for the trader (90% for VIP programme)</p><p class="MsoListParagraphCxSpMiddle">· 24/7 support.</p><p class="MsoListParagraphCxSpMiddle">· MT4 & MT5 trading platforms.</p><p class="MsoListParagraphCxSpMiddle">· Up to 1:500 leverage</p><p class="MsoListParagraphCxSpMiddle">· Registration fee refunded on your first profit split.</p><p class="MsoListParagraphCxSpLast">· CFDs on Forex, Indices and Commodities.</p><p class="MsoNormal">All you have to do is head over to their website, choose the programme that suits you best, and begin your prop trader career. </p><p>FTMO</p><p class="MsoNormal">FTMO was founded in 2015 and can be considered a direct competitor to myForexFunds, but the overall offers are more limited. With FTMO you can't get to trade an account right away, but you must first go through the evaluation phase consisting of two steps: the challenge and the verification. </p><p class="MsoNormal">Once you pass the evaluation phase you will get to trade the account size you selected in the beginning, which ranges from 10K to 200K and can be scaled to 2 million following a specific plan.</p><p class="MsoNormal">Regarding the profit split, FTMO rewards the trader with 80% of the profits, but there's also a scaling plan that can get you up to 90% of the profits. The drawdown limits are more rigid with 5% for the daily limit and 10% for the overall drawdown limit. </p><p class="MsoNormal">If you want bigger limits, you can select the aggressive risk level plan and the limits increase to 10% for the daily drawdown and 20% for the overall drawdown, but your profit target also increases from 10% to 20%. </p><p class="MsoNormal">In the first step of the evaluation phase, the trader needs to reach a 10% profit target within 30 days of trading for a minimum of 10 days. The maximum daily loss limit is 5% and the maximum overall drawdown limit is 10%. </p><p class="MsoNormal">Once you pass the first step, then you move on to the second one where the risk limits remain the same, but you need to reach a 5% profit target within 60 days this time with a minimum of 10 days of trading. </p><p class="MsoNormal">Features: </p><p class="MsoListParagraphCxSpFirst">· One programme with different plans consisting of a challenge.</p><p class="MsoListParagraphCxSpMiddle">· Trading account scalable to 2 million.</p><p class="MsoListParagraphCxSpMiddle">· Profit split scalable to 90%.</p><p class="MsoListParagraphCxSpMiddle">· MT4, MT5 and cTrader trading platforms.</p><p class="MsoListParagraphCxSpMiddle">· Up to 1:100 leverage.</p><p class="MsoListParagraphCxSpMiddle">· 24/7 support.</p><p class="MsoListParagraphCxSpMiddle">· Registration fee refunded on your first profit split.</p><p class="MsoListParagraphCxSpLast">· CFDs on Forex, Indices, Commodities and Cryptocurrencies.</p><p>The 5%ers</p><p class="MsoNormal">The 5%ers was launched in 2016 with the goal of providing skilled traders with capital. The 5%ers allow a trader to get instant funding upon paying the registration fee. </p><p class="MsoNormal">Although the instant funding capital is low, which ranges from 6K to 20K, when the trader reaches the first profit target, the account increases by four times and after that doubles every time the trader makes 10% more in profits. The maximum an account can be scaled to is 4 million dollars. </p><p class="MsoNormal">The evaluation phase requires the trader to reach a profit target following a set of rules. The trader can choose between a low-risk and aggressive type of challenge. </p><p class="MsoNormal">The main difference between the two types of challenges lies in the profit target, which is 6% for low risk and 12% for aggressive, and the maximum time in which you must complete the challenge, which is 180 days for low risk and 60 days for aggressive.</p><p class="MsoNormal">The maximum loss a trader can incur is between 4% and 6%, depending on the size of the account, and the profit split is 50% for the trader. The funding programme focuses mainly on forex with very limited support for commodities and indices trading. The trading platform is the MetaTrader 5. </p><p class="MsoNormal">Features: </p><p class="MsoListParagraphCxSpFirst">· One instant funding programme with different plans consisting of a challenge.</p><p class="MsoListParagraphCxSpMiddle">· Trading account scalable to 4 million.</p><p class="MsoListParagraphCxSpMiddle">· Profit split 50% to the trader.</p><p class="MsoListParagraphCxSpMiddle">· MT5 trading platform.</p><p class="MsoListParagraphCxSpMiddle">· Up to 1:30 leverage.</p><p class="MsoListParagraphCxSpLast">· CFDs on Forex, Commodities, and Indices</p><p>T4TCapital</p><p class="MsoNormal">T4TCapital is another prop firm that requires a trader to pass a challenge before giving a funded trading account, which is scalable up to 1 million dollars for those who choose the 100K account plan. The profit split can go up to 80% for the trader if he or she manages to make a 20% profit on the live account. </p><p class="MsoNormal">The challenge is called 'practical assessment' and the trader needs to achieve an 8% profit target with a win rate that is higher than 45%. There's no time limit to achieve the target, but you will have to pay an 'extension fee' every 6 months. All the trades must also have a stop loss attached to them otherwise the positions will be automatically closed by the system. </p><p class="MsoNormal">The maximum weekly loss limit is 2% and the maximum overall drawdown limit is 5%. A trader also cannot carry positions over the weekend and any open trade will be automatically closed at the end of the trading week on Friday's New York close.</p><p class="MsoNormal">Features: </p><p class="MsoListParagraphCxSpFirst">· One programme with different plans consisting of a challenge.</p><p class="MsoListParagraphCxSpMiddle">· Trading account scalable to 1 million.</p><p class="MsoListParagraphCxSpMiddle">· Profit split up to 80% for the trader.</p><p class="MsoListParagraphCxSpMiddle">· MT4, MT5 and TradingView trading platforms.</p><p class="MsoListParagraphCxSpMiddle">· Up to 1:10 leverage.</p><p class="MsoListParagraphCxSpLast">· CFDs on Forex, Indices and Commodities.</p><p>TopStep</p><p class="MsoNormal">TopStep was founded in 2012 and it focuses on futures trading. The traders keep 90% of the profits but the maximum account size is only 150K. You can trade futures on different asset classes like equities, commodities, and bonds, but from 2022 they decided to remove forex for new users. </p><p class="MsoNormal">The challenge consists in a two-step verification phase called 'trading combine', which has no time limit to complete, but you need to pay a fee each month until you achieve the target. In the first step, you need to reach a 6% profit target with a 2% daily loss limit and a 4% overall drawdown limit. You will also have to trade for a minimum of 5 days. </p><p class="MsoNormal">In the second step everything resets, and you need to achieve again a 6% profit target with a 2% daily and weekly loss limit and 4% maximum overall drawdown. In the second step, you cannot trade during major economic releases which makes passing the challenge harder. </p><p class="MsoNormal">Features: </p><p class="MsoListParagraphCxSpFirst">· One programme with different plans consisting in a challenge.</p><p class="MsoListParagraphCxSpMiddle">· Trading account up to 150K.</p><p class="MsoListParagraphCxSpMiddle">· Profit split at 90% for the trader.</p><p class="MsoListParagraphCxSpMiddle">· 14 trading platforms including TSTrader, NinjaTrader and TradingView.</p><p class="MsoListParagraphCxSpLast">· Futures on Equities, Commodities and Bonds.</p>

This article was written by Finance Magnates Staff at www.financemagnates.com.

Source: Top FX Prop Firms in 2023