In recent years, the prop trading firm industry has seen a surge in popularity. However, with this growth comes a wave of scam prop firms, liquidity issues, and other pitfalls that can make finding a reliable firm challenging. Many genuine firms have struggled because they underestimated the percentage of traders who make money initially, and some have failed due to liquidity issues. This article will explore the top prop trading challenges, assessing their credibility and helping you determine which funded challenge is the best for your trading aspirations.
The Current State of Prop Firms
Problems in the Industry
- Low Filtering Rate of Best Traders: Many firms use a single-step evaluation, leading to poor filtering of genuinely skilled traders.
- Liability for Trader Losses: Firms often bear the financial burden of trader losses, which can be unsustainable.
- Lack of Guard Against EAs and Passing Schemes: Publicly available Expert Advisors (EAs) and paid prop firm passing schemes can undermine the integrity of challenges.
- No Liquidity Regulations: Most firms are not regulated for liquidity, raising concerns about their ability to place trades in the market.
- Dependence on Package Sales: Many firms rely heavily on selling new packages to cover payouts, indicating they might not be placing real trades in the market.
Identifying Genuine Prop Firms
A genuine prop firm should:
- Offer robust evaluation processes to filter the best traders.
- Have sufficient liquidity to place real trades in the market.
- Be transparent and regulated.
- Survive without relying solely on the sale of new packages.
As of July 6th, here are the best prop firms that BroInFinance recommends based on our research team.
Top Prop Trading Challenges
1. FTMO
Overview
FTMO is one of the most reputable prop trading firms, known for its rigorous evaluation process and generous funding options.
Challenge Details
- Account Size: $200,000
- Fee: $1,169.32
- Evaluation: Two-step evaluation process involving the FTMO Challenge and Verification phase.
- Trustpilot Rating: 4.9/5
Pros and Cons
Pros:
- High funding potential
- Transparent evaluation process
- Excellent customer support
Cons:
- High entry fee
- Strict risk management requirements
2. Funded Trading Plus (FTP)
Overview
Funded Trading Plus offers a competitive challenge designed to provide traders with significant capital while ensuring they adhere to robust trading strategies.
Challenge Details
- Account Size: $200,000
- Fee: $1,097
- Evaluation: One-step evaluation process.
- Trustpilot Rating: 4.7/5
Pros and Cons
Pros:
- Lower entry fee compared to FTMO
- User-friendly platform
- Active trader community
Cons:
- Evaluation criteria can be stringent
- Limited to certain trading instruments
3. Audacity Capital
Overview
Audacity Capital offers a higher initial funding amount with a focus on serious traders looking to scale their operations quickly.
Challenge Details
- Account Size: $240,000
- Fee: $1,559
- Evaluation: Focuses on consistency and risk management over a series of trades.
- Trustpilot Rating: 4.6/5
Pros and Cons
Pros:
- Higher initial funding amount
- Comprehensive support system
- Flexible trading conditions
Cons:
- Higher entry fee
- Stringent evaluation process
4. The 5%ers
Overview
The 5%ers are known for their trader-friendly policies and accessible challenges.
Challenge Details
- Account Size: $100,000
- Fee: $495
- Evaluation: Designed to test consistent returns and low drawdowns.
- Trustpilot Rating: 4.8/5
Pros and Cons
Pros:
- Affordable entry fee
- Transparent evaluation criteria
- Supportive trader community
Cons:
- Lower initial funding compared to others
- Demanding evaluation process
5. E8 Markets
Overview
E8 Markets provides a comprehensive funded trading challenge with a strong community support system.
Challenge Details
- Account Size: $100,000
- Fee: $650
- Evaluation: Assesses risk management and profitability.
- Trustpilot Rating: 4.5/5
Pros and Cons
Pros:
- Competitive pricing
- Robust evaluation process
- Strong community support
Cons:
- Moderate initial funding amount
- Strict trading rules
6. MyFundedFX
Overview
MyFundedFX offers a competitive challenge with significant funding potential and transparent processes.
Challenge Details
- Account Size: $200,000
- Fee: $725
- Evaluation: Tests risk management skills and profitability.
- Trustpilot Rating: 4.6/5
Pros and Cons
Pros:
- Competitive entry fee
- High funding potential
- Transparent evaluation process
Cons:
- Rigorous evaluation process
- Limited to certain trading instruments
Comparison Table
| Prop Firm | Account Size | Fee | Evaluation Steps | Trustpilot Rating | Pros | Cons | Overall Score |
|---|---|---|---|---|---|---|---|
| FTMO | $200,000 | $1,169.32 | Two-step | 4.9/5 | High funding, Transparent process, Excellent support | High fee, Strict risk management | 95 |
| Funded Trading Plus | $200,000 | $1,097 | One-step | 4.7/5 | Lower fee, User-friendly, Active community | Stringent criteria, Limited instruments | 90 |
| Audacity Capital | $240,000 | $1,559 | One-step | 4.6/5 | High initial funding, Comprehensive support, Flexible | Higher fee, Stringent evaluation | 85 |
| The 5%ers | $100,000 | $495 | One-step | 4.8/5 | Affordable fee, Transparent criteria, Supportive community | Lower initial funding, Demanding evaluation | 88 |
| E8 Markets | $100,000 | $650 | One-step | 4.5/5 | Competitive pricing, Robust process, Strong community | Moderate funding, Strict rules | 82 |
| MyFundedFX | $200,000 | $725 | One-step | 4.6/5 | Competitive fee, High funding potential, Transparent | Rigorous process, Limited instruments | 87 |
Conclusion
Based on our research, FTMO stands out as the best-funded challenge overall due to its high funding potential, transparent evaluation process, and excellent customer support. Although the entry fee is higher and the risk management requirements are strict, the benefits far outweigh these drawbacks.
However, if you’re looking for a lower entry fee with user-friendly features and an active community, Funded Trading Plus is a strong contender. For those who prioritize higher initial funding and comprehensive support, Audacity Capital offers a great option despite its higher entry fee.
The 5%ers provide a more affordable entry point with a supportive community, making it a good choice for traders who prefer a lower risk starting point. E8 Markets and MyFundedFX also offer competitive challenges with robust evaluation processes and strong community support.
When choosing a prop trading challenge, it’s essential to consider your trading style, risk tolerance, and long-term goals. By carefully evaluating the pros and cons of each firm, you can select the best option to help you achieve your trading aspirations and secure substantial funding.
Remember, success in prop trading requires discipline, consistency, and a robust trading strategy. With the right approach and a reliable prop firm, you can achieve significant trading capital and take your trading career to new heights.
