Proprietary trading firms, also known as prop firms, are financial entities that provide funding to skilled traders. These include experienced and professional traders who wish to participate in financial markets. The firms extend support to traders who have valuable trading skills and experience but may lack the necessary capital.
Profit Splits in Prop Firms
In return for the provided funding, the prop firms receive a share of the traders’ profits. This arrangement is commonly referred to as profit splits. High payout percentages are a key characteristic of top forex prop firms.
Choosing a Prop Firm: Important Factors
When choosing a prop firm, traders should consider several important factors:
- Track Record: Check reviews and ratings on platforms like TrustPilot to gain insights into the firm’s reputation and performance.
- Withdrawal Policies: Understand how and when you can access your profits.
- Customer Support: The level of customer support can impact your trading experience significantly. Check whether they offer live chat, email, or phone support.
- Fees: Ascertain the firm’s fee structure. This could include monthly or one-time fees that traders pay for the capital and resources provided.
Revenue Sources for Prop Firms
Prop trading companies usually derive their revenue from two main sources:
- Commissions: This is the share of the profits that the prop firm takes. Ideally, the best firms offer a commission range between 10-25%.
- Fees: These can be monthly or one-time fees. Monthly fees can vary, typically ranging from $50 up to $150 or more.
Trading Styles and Strategies
Prop firms cater to a variety of trading styles and strategies, ranging from short-term day trading to long-term swing trading. They cater to both retail traders and professional traders.
Evaluation Stages in Prop Firms
Before receiving funding, traders usually need to go through evaluation stages. This often involves a two-step evaluation process. First, traders demonstrate their skills using a demo account. Then, they move on to trade with real money. Prop firms set Profit Targets and may require a minimum number of trading days. Successful traders can then enjoy instant funding benefits.
10 Highest Paying Prop Trading Firms
Now that you know more about prop firms and their fees, let’s take a look at seven of the highest paying prop trading firms so you can keep as much of your profits as possible.
Profit Split: 90/10 (100% for first $5k)
Monthly Subscription Fee: $116-$122 per month
TopStepTrader is our first prop trading firm that features a high payout rate. This is a fast-growing prop firm, and many traders are clearly succeeding with TopStep, as more than $2 million of profits were withdrawn in 2020.
While not all prop firms have great track records, TopStepTrader boasts a 4.5/5 rating on Trustpilot (1,500+ reviews), so you can rest assured this is a trustworthy prop firm to work with.
Just remember that to get started with prop firms like TopStep, you’ll need to prove your ability to earn consistent profits. So, depending on your ability level, you may need to educate yourself and learn effective trading strategies first.
Click here to check out TopStepTrader for yourself and start a 14-day free trial.
Profit Split: 75/25 or 90/10
Audition Fee: $250-$6,500
SurgeTrader is next up, and this prop trading firm has straightforward rules and a streamlined process for funded trading. Compared to some of its competitors, which require more complicated onboarding, SurgeTrader offers a one-step process. Plus, it allows for nearly any type of trading activity, including forex, commodities, and more.
The SurgeTrader platform provides a profit split of 75% that can be increased up to 90% with an add-on purchase. The audition fee ranges from $250 ($20,000 account) all the way up to $6,500 ($1 million account).
With SurgeTrader there are also no minimum trading days requirement, which is helpful for traders who can’t commit to trading each and every day. SurgeTrader generally keeps things simple, with a 4% daily loss limit, 5% maximum drawdown, and 10% profit target, no matter your account level. This makes it easy to grow to larger accounts without adjusting your math.
To explore SurgeTrader for yourself, click here so you can see if it might be right for you.
Profit Split: 80/20 or 90/10
FTMO Challenge Fee: 155 EUR to 1,080 EUR (refundable fee)
Next up is FTMO, a well-known prop firm that provides funded trading accounts to eligible traders.
There’s a one-time refundable fee to partake in the FTMO challenge. Upon successful completion and account verification, this fee will be refunded to you. When it comes to splits, FTMO’s default is 80/20, though it does go up to 90/10 for traders who meet the condition of their Scaling Plan.
The process to gain eligibility with FTMO involves two parts. To get your funded account, you must first pass the FTMO Challenge. It works by asking you to prove your trading abilities with a simulated account. You then move onto a live account in order to pass the Verification phase.
FTMO sports an excellent track record, with repeated awards for Deloitte’s Technology Fast 50. If you want to explore FTMO’s offerings and take advantage of a free trial, click here.
Profit Split: Up to 90/10 (100% for first $10k)
Monthly Subscription Fee: $125-$650
OneUp Trader is a fast-growing provider of funded accounts, with accounts ranging from $25,000 to $250,000.
The monthly subscription fee ranges from $125 to $650, and the profit split goes as high as 90/10 depending on the account choice traders make during evaluation. For the 90/10 split, traders will keep 100% for the first $10k. OneUp Trader also has no data fees, which some of its competitors have.
Traders can get going quickly with OneUp’s simple one-step onboarding process. This allows you to get started quickly. Once you start trading, you must trade for fifteen days or more to meet your profit target. After that, you’ll be placed with one of their funding partners.
While many prop firms don’t have a strong track record, that’s not the case with OneUp Trader. Currently holding a 4.7/5 score on TrustPilot, OneUp Trader is a service you can count on.
To check out OneUp Trader for yourself, simply click here so you can learn more and start your free trial.
Profit Split: Up to 90%
Evaluation Fee: $99-$999
FundedNext, established in 2022 by Abdullah Jayed, has quickly risen to prominence in the prop trading scene, having already backed over 17,000 traders with funded accounts. The firm has also boasted an impressive track record, having paid over $22,000,000 to its traders with an average payout time of only five hours.
FundedNext offers a wide range of tradable assets, including forex, indices, and commodities. Currently, the platform only supports MetaTrader 4, but they have plans to add more trading platforms in the future. It offers two types of evaluation models, both with unique rules and profit targets. The standard model offers a two-step evaluation process, while the Express Model offers a one-step evaluation with a higher profit target. The profit split starts at 60-80%, depending on the account type, and can go up to 90% for successful traders.
One of the unique features of FundedNext is that it allows traders to keep 15% of their profits even during the evaluation phase. The firm offers various account sizes with varying buying power, ranging from $15K to $200K, though the $200K balance is not available for Non-Consistency Accounts. FundedNext also offers an active Discord community with 24,000 members, a dedicated 24/7 account manager, and a mobile app for real-time trading updates.
The Evaluation and Consistency Express Account fees range from $99 to $999, while the Non-Consistency Express Account fees range from $199 to $699. These fees are fully refundable after passing the evaluation process.
Click here to check out FundedNext today.
Profit Split: 75/25 or 50/50
Fee: $129 (refundable) or $299 (joining fee) + $99 (monthly fee)
AudaCity Capital, a popular forex prop firm, offers two unique pathways to secure a funded trading account: The Ability Challenge and the Funded Trader Program. Each of these options provides traders with the flexibility to choose the route best suited to their trading style and confidence level.
The Ability Challenge is perfect for those who want to showcase their trading skills. After a refundable fee of $129, traders embark on a two-phase journey consisting of a Challenge and Verification period. Once these are successfully completed, the trader is awarded a live account, where they enjoy a 75/25 profit split.
The Funded Trader Program, on the other hand, is designed for experienced traders ready to dive into live trading immediately. This program offers a 50/50 profit split and requires a $299 joining fee along with a $99 monthly fee. What sets this program apart is the fast scaling feature, allowing traders to double their account at every 10% profit made.
AudaCity Capital stands out for its integration with MetaTrader 4, offering quick trades and tight spreads, essential for forex traders. Additionally, its track record speaks volumes, with nearly 1,000 reviews on Trustpilot and an excellent rating of 4.7/5.
If you are considering a prop firm with a strong reputation and flexible options, AudaCity Capital is worth exploring. Click here to learn more about their offerings and decide if it’s the right fit for you.
The Funded Trader
Profit Split: Up to 90%
Evaluation Fee: $0-$1399
Adding to the list of top-paying prop trading firms, The Funded Trader Program (TFTP) is one to watch. This program gives traders the opportunity to unlock trading accounts of up to $600,000 and earn substantial profits while gaining professional experience.
The program consists of a two-phase challenge, each with its own set of requirements and objectives. The first phase, known as the ‘TFT Challenge’, lasts 35 days and carries an entry fee of $1,399. Traders are tasked with reaching a profit target set at 8% of the initial account balance. Successfully meeting the challenge requirements allows traders to progress to the second phase, known as ‘Verification’, which is free of charge and lasts for 60 days. In this phase, traders are required to reach a profit target of 5% of the account balance.
Upon successful completion of both phases, traders are officially made members of TFTP’s Proprietary Trading Firm and start their journey as funded traders. They receive up to 90% of the profits from their trades, and their performance is evaluated every three months. Consistent and successful traders have the potential to scale their account balance up to a whopping $1,500,000.
One of the standout features of The Funded Trader Program is its commitment to fostering good risk management. Traders who don’t meet the profit target in either phase but maintain a profitable account balance by the end of the period are given a free repeat of the challenge, offering unlimited attempts to succeed.
Interestingly, TFTP offers a unique benefit for its funded traders: the initial fee paid for the TFT Challenge is refunded with the first profit split. This means that successful traders essentially get their start in the program for free.
Profit Split: 80/20 (Normal) or 90/10 (Aggressive)
Challenge Fee: 349 EUR to 1,399 EUR (refundable)
Fidelcrest is another options prop trading firm that allows traders to access a huge variety of assets, including stocks, indices, commodities, and forex.
Fidelcrest offers Normal and Aggressive plans for its Pro Trader and Micro Trader accounts. The Normal profit split is 80/20, while the Aggressive split is 90/10. There’s also a one-time challenge fee that’s refunded to traders that pass the challenge.
To get into Fidelcrest’s Pro Trader Program, you must complete a two-step process. First, there’s the aforementioned Fidelcrest Trading Challenge, which is a 30-day trial period. After that, you go to the Verification phase, which is similar but requires 60 days.
Micro Trader accounts span from $10,000 to $50,000, while the Pro Trader accounts span from $150,000 all the way up to $1 million.
City Traders Imperium
Profit Split: Up to 100/0
One-Time Fee: $99 to $949
City Traders Imperium is another top prop firm when it comes to funded options trading. While many prop firms play into the idea of getting rich quickly to entice new traders, City Traders Imperium offers robust educational resources and is straightforward about what to expect.
For example, there are no hidden or monthly fees with CTI. There’s a one-time fee of $99 to $949 depending on your account, with higher fees to receive direct funding. Profit splits go up to 100%, which is as good as it gets.
Traders can either pass the Day Trading Challenge (for forex, indices, and commodities) or pay a larger sum to receive direct funding immediately.
Click here to check out City Traders Imperium and become a funded trader through one of their evaluation plans or by opting for direct funding.
Profit Split: 80/20
Monthly Subscription Fee: $150 to $550
Earn2Trade has many different programs, including the Gauntlet, Gauntlet Mini, and Trader Career Path. The fees depend on the program, but all Earn2Trader programs offer an 80/20 split.
Founded in 2016 and currently holding a score of 4.8/5 on Trustpilot, Earn2Trade provides traders with a reliable option to funded trading.
Click here to learn more about Earn2Trade and see if it’s right for you!
Choosing the Highest Paying Prop Firms
The best prop trading firms will have a streamlined process and pay traders a high percentage of their profits. The highest paying prop trading firms, like those covered above, generally pay out around 80-90%.
Once you’ve ensured a prop firm pays out well, then you can consider other factors, such as the process to get a funded account and the various rules they have (e.g. daily drawdown, withdrawal minimums, etc.).
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