TopstepTrader, now commonly known as Topstep, is a proprietary trading firm established by Michael Patak in 2012. Located in Chicago, it originated on the floor of the Chicago Board of Trade. The company quickly gained traction, becoming one of the US’s fastest-expanding prop trading firms, according to INC.5000.
As evidence of its global reach and robust trading community, Topstep has traders from 143 countries and offers trading accounts in 10 different currencies. Topstep supports 14 trading platforms, with NinjaTrader, TradingView, and TSTrader among the most recommended.
Whether you prefer to trade futures, forex, or stocks, Topstep aims to provide the tools and resources to help you become a consistently profitable trader. Here is a detailed Topstep Trader review outlining its pros and cons.
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The Pros of Trading with TopstepTrader
One of the best things about TopstepTrader is that you don’t need a lot of real capital to get started. You can open an account with just $500, and Topstep will provide you with a “funded account” with $50,000 in buying power once you pass their two-step evaluation process. This allows you to trade without risking a lot of your own money upfront.
Topstep supports many popular trading platforms like NinjaTrader, TradeStation, and MetaTrader 4. Whatever platform you prefer, Topstep has you covered. They also offer a solid range of educational resources to help improve your trading. This includes live webinars, video courses, trading ebooks, and more.
Another pro is Topstep’s 14-day trial. You can test drive their trading combine and funded trader program for two weeks to see if it’s the right fit before committing any money. This is a great way to experience Topstep’s platform and community with zero risk.
If you’re looking for a way to trade the financial markets without a huge capital outlay, TopstepTrader is worth considering. Their program provides the funding, technology, and support needed to give aspiring traders a real shot at success. For many, Topstep can be an ideal path to becoming a professional trader.
The Cons of Trading With TopstepTrader
TopstepTrader has some significant downsides to consider before joining.
High Membership Fees
To become a funded trader at TopstepTrader, you have to pay high monthly subscription fees. While the fees do provide access to educational resources, metrics, and trading simulators, the cost can be prohibitive, especially if you struggle to pass the two-step evaluation tests and combine stages.
High Bar for Funding
It is difficult to become a funded trader with TopstepTrader. According to their website, only about 10% of traders who start the evaluation program make it through the entire Combine program to become funded. You have to demonstrate consistent profitability across multiple stages to qualify for funding, and if you fail at any point, you have to go back to the beginning.
TopStepTrader offers four membership options for simulation traders at different price points. There’s something for every budget, whether you’re just getting started or ready to take your trading to the next level.
$50k Buying Power
For $165 per month, you get $50,000 in buying power to trade up to 5 futures contracts at a time, with a daily loss limit of $1,000 and a maximum drawdown of $2,000. The real profit target to advance to the next “step” is $3,000. This is a great starter plan if you’re new to trading or want to start small.
$100k Buying Power
The $325 per month mid-level membership provides $100,000 in buying power to trade up to 10 contracts with a $2,000 daily loss limit and $3,000 maximum drawdown. The profit target increases to $6,000 per step. This plan suits thousands of traders looking to increase their position sizes and profit share potential.
$150k Buying Power
For experienced traders and active traders, the $375 per month pro membership offers $150,000 in buying power to trade up to 15 contracts with a $3,000 daily loss limit and $4,500 max drawdown. The profit target is $9,000 per step. This plan is ideal if you’re ready to take your simulated trading to the highest level.
Fees for Blowing Up Your Account
It’s important to note that if you “blow up” your account by exceeding the loss limits during simulation trading, TopStepTrader will charge a $100 reactivation fee. You’ll have to start over at the first step to work your way back up. Manage your risk carefully to avoid additional fees.
Is TopstepTrader The Right Prop Firm for You? The Key Takeaways
TopstepTrader offers a lot of educational resources and tools for inexperienced traders to learn the ropes of day trading. The array of educational content can enable you to take your day trading to the next level using simulated environment trading capital in the Trading Combine.
However, the fees from the Trading Combine can add up quickly, especially if you constantly need to reset. This doesn’t mean you won’t be able to earn a funded account, but you’ll need to weigh the costs versus the benefits.
Click here to check out their day trading platform and start your 14-day free trial to see if it suits your needs. This comes with no credit card or debit card requirement. With the right dedication, TopstepTrader could be your ticket to a lucrative career as a day trader. Remember to look out for promo codes and coupon links to save on sign-up costs.
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