Prop Firms: Which Prop Trading Firm is Better? A Comprehensive Comparison for 2025

Prop Firms: Which Prop Trading Firm is Better? A Comprehensive Comparison for 2025

In the competitive world of trading, proprietary trading firms (prop firms) have emerged as game-changers for traders seeking access to significant capital without risking their own money. But with dozens of options available, determining which prop firm is better for your specific needs can be challenging. This comprehensive guide examines the top prop trading firms of 2025, comparing their features, requirements, and benefits to help you make an informed decision based on your trading style, experience level, and financial goals.

What Are Prop Trading Firms and How Do They Work?

Proprietary trading firms, commonly known as prop firms, are financial companies that provide traders with access to their capital in exchange for a share of the profits generated. Unlike traditional trading where you risk your own money, prop firms absorb the losses while sharing the profits with successful traders.

The basic business model works as follows:

Evaluation Process: Most prop firms require traders to pass a prop firm challenge or evaluation to demonstrate their trading skills and risk management abilities.

Capital Allocation: Upon successful evaluation, traders receive access to a funded trading account, typically ranging from $10,000 to $2,000,000 depending on the firm and program.

Profit Sharing: Profits generated from trading are split between the trader and the firm according to predetermined agreements, usually ranging from 50% to 90% in favor of the trader.

Risk Management: Prop firms implement strict risk parameters, including maximum drawdown limits and daily loss restrictions, to protect their capital.

This model creates a win-win situation: traders gain access to substantial capital without personal financial risk, while prop firms leverage the skills of talented traders to generate returns on their investments.

Types of Prop Trading Firms

The prop trading industry has evolved to accommodate different trading styles, asset classes, and experience levels:

By Asset Class

  • Forex Prop Firms: Specialize in currency trading (FTMO, The 5%ers, FundedNext)
  • Stock/Options Prop Firms: Focus on equities and derivatives (Trade The Pool, Funder Trading)
  • Futures Prop Trading Firms: Concentrate on futures contracts (Topstep, Apex Trader Funding)
  • Multi-Asset Prop Firms: Offer trading across multiple markets (The Trading Pit)

By Business Model

  • Challenge-Based Firms: Require passing trading challenges before funding (FTMO, Topstep)
  • Instant Funding Firms: Provide immediate access to capital with certain restrictions (The 5%ers)
  • Education-Focused Firms: Emphasize trader development alongside funding (Funder Trading, Maverick Trading)

Understanding these distinctions is crucial for selecting a prop firm that aligns with your trading preferences and career aspirations.

Key Factors to Consider When Choosing a Prop Firm

Before diving into specific firm comparisons, let's examine the essential criteria for evaluating prop trading firms:

1. Evaluation Process and Requirements

The path to receiving funded capital varies significantly between firms:

  • Challenge Difficulty: Some firms require achieving 8-10% profit targets within strict time frames, while others have more flexible requirements.
  • Time Constraints: Evaluation periods range from 7 days to unlimited timeframes.
  • Risk Parameters: Maximum drawdown limits typically range from 5% to 12% of account equity.
  • Minimum Trading Days: Requirements vary from 1 day to 10+ days of active trading.

2. Account Sizes and Scaling Opportunities

Consider both initial funding and growth potential:

  • Starting Capital: Entry-level accounts range from $5,000 to $50,000.
  • Maximum Funding: Top-tier accounts can reach $2,000,000 or more.
  • Scaling Programs: Many firms offer capital increases based on consistent performance.

3. Profit Split Arrangements

Prop firm profit split models impact your earning potential:

  • Standard Splits: Most firms offer 70-80% to traders.
  • Performance-Based Splits: Some firms increase your percentage (up to 100%) as you demonstrate consistent profitability.
  • Payout Frequency: Options range from weekly to monthly withdrawals.

4. Trading Conditions and Restrictions

Trading rules can significantly affect your strategy implementation:

  • Allowed Trading Styles: Some firms restrict scalping or news trading.
  • Trading Hours: Restrictions may apply during high-volatility periods.
  • Position Holding: Policies on overnight and weekend positions vary.
  • Instrument Selection: Available markets and specific instruments differ between firms.

5. Platform Compatibility and Technology

Technical infrastructure impacts your trading experience:

  • Supported Platforms: Common options include MetaTrader 4/5, NinjaTrader, and proprietary platforms.
  • Execution Quality: Latency and slippage considerations vary by firm.
  • Data Feeds: Access to market data and analysis tools differs.

6. Costs and Fee Structure

Financial considerations beyond profit splits:

  • Evaluation Fees: One-time challenge costs range from $50 to $1,500+.
  • Subscription Fees: Some firms charge monthly maintenance fees.
  • Reset Costs: Fees for restarting after failing evaluations vary.

7. Educational Resources and Support

Value-added services enhance your development:

  • Training Materials: Webinars, courses, and strategy guides.
  • Mentorship Programs: One-on-one coaching opportunities.
  • Community Access: Forums and trader networks.
  • Customer Service: Response times and support channels.

Detailed Comparison of Top Prop Trading Firms in 2025

Now, let's examine how the leading prop firms compare across these critical factors:

Best Forex Prop Trading Firms

FTMO

  • Account Sizes: $10,000 to $2,000,000 (with scaling)
  • Profit Split: 80-90%
  • Evaluation: Two-phase challenge over 30 days
  • Platforms: MetaTrader 4/5
  • Unique Strengths: Strong reputation (4.8/5 on Trustpilot), automatic scaling program
  • Drawbacks: Not available for US traders, relatively strict evaluation criteria
  • Best For: Experienced forex traders seeking large accounts and established reputation

The 5%ers

  • Account Sizes: $25,000 to $200,000
  • Profit Split: Starts at 50%, scales up to 100% for top performers
  • Evaluation: One-step program with instant funding options
  • Platforms: MetaTrader 4/5
  • Unique Strengths: Salary offers, up to 100% profit split potential, excellent reputation (4.9/5 on Trustpilot)
  • Drawbacks: Lower initial profit splits compared to competitors
  • Best For: Traders seeking flexible profit splits and clear scaling pathways

FundedNext

  • Account Sizes: $10,000 to $200,000
  • Profit Split: 70-90%
  • Evaluation: Two-phase challenge similar to FTMO
  • Platforms: MetaTrader 4/5
  • Unique Strengths: Available for US traders, competitive entry fees
  • Drawbacks: Less established reputation than top competitors
  • Best For: US-based forex traders looking for FTMO alternatives

Best Stock and Options Prop Trading Firms

Trade The Pool

  • Account Sizes: $20,000 to $160,000 (with scaling)
  • Profit Split: Up to 80%
  • Evaluation: Similar to The 5%ers (same parent company)
  • Platforms: Proprietary platform
  • Unique Strengths: Unlimited buying power, specialized for stock trading
  • Drawbacks: Limited to stocks and ETFs
  • Best For: Dedicated stock traders seeking specialized infrastructure

The Trading Pit

  • Account Sizes: $5,000 to $150,000 (scalable up to $5M)
  • Profit Split: 70-80%
  • Evaluation: Multi-stage evaluation process
  • Platforms: Multiple options
  • Unique Strengths: High scalability potential, founded by experienced traders
  • Drawbacks: Newer to the market (est. 2021)
  • Best For: Advanced stock traders seeking significant capital growth potential

Funder Trading

  • Account Sizes: Various options
  • Profit Split: 100% up to $6,000, then 80/20
  • Evaluation: Challenge-based system
  • Platforms: Proprietary
  • Unique Strengths: Only firm offering options funding without certification, free coaching included for all members
  • Drawbacks: Limited to US traders
  • Best For: Beginner stock/options traders seeking educational support

Best Futures Prop Trading Firms

Topstep

  • Account Sizes: $50,000 to $500,000
  • Profit Split: 80-90%
  • Evaluation: Single-phase evaluation without time limit
  • Platforms: NinjaTrader
  • Unique Strengths: 13+ years in business, strong reputation, extensive educational resources
  • Drawbacks: Monthly subscription fees ($129-199)
  • Best For: Serious futures traders seeking established reputation and comprehensive support

Apex Trader Funding

  • Account Sizes: Multiple options
  • Profit Split: 100% of first $25,000, then 90/10
  • Evaluation: Quick evaluation process (qualify in as little as 7 days)
  • Platforms: Rithmic or Tradovate
  • Unique Strengths: Cheapest option for futures traders, no daily drawdowns, up to 20 accounts active simultaneously
  • Drawbacks: Less established than competitors like Topstep
  • Best For: Budget-conscious futures traders and beginners

MyFundedFutures

  • Account Sizes: Up to $600,000
  • Profit Split: 100% of first $10,000 above buffer zone, then 90/10
  • Evaluation: One-step, simple evaluation
  • Platforms: Not specified
  • Unique Strengths: No daily loss limits, only one minimum trading day required
  • Drawbacks: Less comprehensive educational resources
  • Best For: Traders seeking flexible drawdown rules and minimal trading requirements

Which Prop Firm is Better for Different Trader Types?

The "best" prop firm varies significantly depending on your specific circumstances:

For Beginner Traders

If you're new to trading or prop firms, prioritize:

  • Educational resources and support
  • Lower evaluation costs
  • Reasonable profit targets
  • Clear, transparent rules

Top Recommendations for Beginners:

  1. Funder Trading: Free coaching included, beginner-friendly for stocks/options
  2. The 5%ers: Flexible profit splits, good for forex beginners
  3. Apex Trader Funding: Cheapest option for futures traders, beginner-friendly

For Advanced Traders

Experienced traders should focus on:

  • Larger account sizes
  • Higher profit splits
  • Advanced platform capabilities
  • Rapid scaling opportunities

Top Recommendations for Advanced Traders:

  1. FTMO: Large account sizes up to $2M, high profit splits
  2. The Trading Pit: Scalability up to $5M for stock traders
  3. Topstep: Established reputation, advanced platform for futures

For Day Traders

Day traders benefit from:

  • Low-latency execution
  • Competitive intraday margin requirements
  • Flexible intraday drawdown rules

Top Recommendations for Day Traders:

  1. FTMO: Strong platform for intraday trading
  2. Trade The Pool: Unlimited buying power for stock day traders
  3. Apex Trader: No daily drawdowns, good for futures day trading

For Swing Traders

Swing traders should prioritize:

  • Overnight position allowances
  • Reasonable weekend holding policies
  • Longer evaluation periods

Top Recommendations for Swing Traders:

  1. The 5%ers: Flexible holding periods
  2. Maverick Trading: Comprehensive training for longer-term strategies
  3. MyFundedFutures: Flexible drawdown rules beneficial for swing trading

Common Questions About Prop Trading Firms

Are Prop Trading Firms Legitimate?

Yes, legitimate prop trading firms operate as real businesses that provide capital to skilled traders. However, the industry also attracts questionable operators. Verify legitimacy through:

  • Trader reviews and testimonials
  • Transparent terms and conditions
  • Consistent payout history
  • Years in operation
  • Regulatory compliance where applicable

How Do Prop Firms Make Money?

Prop firms generate revenue through:

  1. Evaluation fees from traders attempting challenges
  2. Their share of trading profits from successful traders
  3. Subscription or maintenance fees in some cases
  4. Educational products and services offered alongside funding

Can Beginners Succeed with Prop Firms?

Yes, beginners can succeed with prop firms, but the learning curve is steep. Success factors include:

  • Choosing beginner-friendly firms with educational resources
  • Developing and testing strategies before attempting evaluations
  • Focusing on risk management over profit targets
  • Starting with smaller account sizes and scaling gradually

What Happens If I Lose Money?

If you exceed the maximum drawdown limits:

  • Your funded account is typically terminated
  • You may need to pay a reset fee to attempt the evaluation again
  • Some firms offer "second chance" programs with modified terms
  • Your personal funds are not at risk beyond evaluation fees

Which Prop Firm is Best for US Traders?

For US traders looking for the best prop firms, consider:

  1. FundedNext: Good alternative since FTMO left the US market
  2. Funder Trading: Specializes in stocks and options for US traders
  3. Topstep: Established futures prop firm available to US traders
  4. Apex Trader Funding: Budget-friendly option for US-based futures traders

Conclusion: Finding Your Ideal Prop Trading Firm

Selecting the right prop trading firm is a highly personalized decision that depends on your trading style, experience level, financial goals, and preferred markets. Rather than searching for the "best" prop firm overall, focus on finding the firm that best aligns with your specific needs and circumstances.

Consider starting with these steps:

  1. Identify your primary asset class (forex, stocks, futures, options)
  2. Assess your experience level honestly
  3. Determine your trading style (day trading, swing trading, etc.)
  4. Calculate your budget for evaluation fees
  5. Research firms specializing in your areas of interest
  6. Compare evaluation requirements against your trading capabilities
  7. Read trader reviews from multiple sources
  8. Test the waters with smaller account sizes before committing to larger programs

Remember that the prop trading landscape continues to evolve, with firms regularly updating their offerings and terms. Stay informed about industry developments and be prepared to adapt your approach as the market changes.

By conducting thorough research and aligning your choice with your trading profile, you can find a prop trading firm that provides the capital, conditions, and support needed to elevate your trading career to new heights in 2025 and beyond.

‍