Best Forex Prop Trading Firms

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Contributor, Benzinga
March 19, 2024

Forex trading can be a difficult task, and retail trading can be a lonely road. Many forex retail traders lose money, and much of it can come down to inexperience, a lack of skill or a lack of sufficient funding. Each trader's experience may be unique, but everyone's aims are consistent profits.

A prop firm provides its traders with access to capital in return for a portion of the profits generated. 

A proprietary trading firm hires and sometimes teaches traders to trade. It provides them with capital. While the firm benefits by taking a cut of the profits, this model can also be helpful for traders as they do not need to risk their own funds. Here are some of the best prop trading firms.

Quick Look: Best Forex Prop Trading Firms

Best Proprietary Trading Firms for Forex

Traders join forex prop trading firms to boost their profits by benefiting from the potential funding these companies offer. However, it is crucial to know that some prop firms aren’t regulated. If it is also operating as a broker-dealer, a prop trading firm must register with the U.S. Securities and Exchange Commission (SEC) and a registered national securities association such as the Financial Industry Regulatory Authority (FINRA); however, some firms (including a few listed below) are not broker-dealer and may not be regulated. Therefore, it is essential to conduct due diligence.

1. Best for Beginner Futures Traders: Apex Trader Funding

Apex Trader Funding makes it possible for you to get qualified in as little as 7 days, keep the first $25,000 you earn and scale up to a 90% profit split, if you like. You can connect with Rithmic or Tradovate, choose from around 20 account types and avoid daily drawdowns all on this platform.

There are no caps on your payouts, and you can work as your own pace as you grow as a trader and build your portfolio.

Pros

  • Because you get to keep your first $25,000, you have the chance to establish yourself as a trader early on
  • There are so many account types that you can get into a specific program that works for your situation

Cons

  • Some traders may not want to get qualified as fast as the program allows

2. Best for All Experience Levels: Axi

  • Axi Funded Trader
    Best For:
    Forex Traders
    securely through Axi Funded Trader's website

    Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.

Axi Select stands out as a unique capital allocation program tailored to support professional traders in achieving success. Axi Select has a generous initiative that aims to empower traders by providing funding up to $1 million USD within a well-structured framework. Aspiring traders are encouraged to enhance their skills, deepen market knowledge and embark on a transformative trading journey through Axi Select.

An aspect worth noting is the program's commitment to inclusivity, as it offers a free membership without any registration fees. Traders of diverse abilities and strategies can progress through six stages, seizing profit-sharing opportunities of up to 90%. Axi Select recognizes the challenges traders face in finding a suitable capital allocation program and aims to address this by maintaining an inclusive, fair, and transparent process.

To improve the likelihood of achieving ambitious goals, participants gain access to advanced trading tools, technical expertise, market analysis, live educational content, and a community network of experienced traders. 

Pros

  • No registration or monthly fees
  • Profit sharing up to 90%
  • Access to advanced trading tools, technical expertise and analysis

Cons

  • Standard trading fees still apply
  • Not available for AU, NZ, EU and UK residents

3. Best for Experienced Traders: FXIFY

FXIFY is a new proprietary trading firm that offers access to up to $400,000 for those who pass the site’s assessment. With profit shares as high as 90%, you can scale your account up to $4 million. 

If you’re intrigued, you simply need to decide if you want to complete the One-Phase or Two-Phase assessment. Review the terms and conditions of each assessment before beginning so that you know you’re taking the right path. 

Trading is available on MT4 or MT5 and assorted trading platforms through the firm’s partnership with FXPIG. 

Because you’re interested in forex trading, FXIFY is a great place to start with commission-free trading. This allows you to access the fx market along with stock indices, precious metals, etc. if you so choose. There are relatively tight spreads, no trading restrictions, customizable leverage and more. Plus, you can use expert advisors or other automated strategies to get the best results. 

With instant payouts, no consistency rules, unlimited trading days and a 125% refund on your assessment fee with your first payout, FXIFY is an attractive option for those looking to break into prop trading.

Pros

  • Because you can use MT4 and MT5, you have multiple options for trading
  • Forex offerings come through a trusted partner
  • The massive refund on your assessment helps you invest further and save money

Cons

  • Yes, you can access up to $4 million, but with this money comes quite a lot of responsibility

4. Best for Undercapitalized Futures Traders: MyFundedFutures

Yes, when you trade futures, you’re entering a risky space. Plus, you will need funding to get your portfolio started. This can be a difficult position for many traders, and that’s why they turn to platform’s like MyFundedFutures. This prop firm offers the capital and software you need to enter the market and succeed.

MFFU stands apart by offering capital, trading resources and risk management tools. Plus, there is expert guidance available on the site that helps you learn about futures and improve your odds of success. The site also offers:

  • 1-step evaluation
  • Transparent and affordable fees
  • Competitive payout ratios
  • Fast withdrawals
  • Quality customer services

You can trade on a range of platforms and earn the ability to manage up to $600,000 in capital at a time. The first $10,000 in profits you get to keep and there’s a 90% split after that. You can use Tradovate, NinjaTrader and TradingView, access the CME, CBOT, COMEX and NYMEX and avoid scaling or consistency rules with an Expert account. 

All-in-all, this is the lowest “all-in” cost on the market.

Pros

  • Access to a range of markets and platforms
  • You can take home your first big profit all for yourself
  • You can get started for less

Cons

  • This platform is designed expressly for futures investors

5. Best for Experienced and Beginner Forex, Indices and Metal Traders: The 5ers

The 5ers is a prop trading firm that makes it easy to access the prop trading market and affordable to get started. On the platform, you can trade forex, metals and indices, pay as little as $95 for a demo account and get several benefits, including:

  • Instant trading access after passing the evaluation
  • Freedom to develop your own trading strategy
  • No subscription fees
  • MT5 trading
  • Profit splits up to 100%
  • Exclusive resources
  • Salary offers on some of the higher-stakes programs
  • Easy scaling options

Pros

  • Because you can get a 100% profit split, you have the most earning potential here
  • Because there are no hidden or little fees, you can see more of your earnings reach your bank account

Cons

  • You can’t use MT4, which could be an issue for many traders

6. Best for Seasoned and Undercapitalized Traders: Top One Trader

Forex trading is something that may intrigue you, but you may not know where to start or which platform can provide you with the funding that you need. When you use Top One Trader, you can try either the 1 or 2-step trading evaluation that will allow you to get from $200,000 to $5 million in funding. You even get a full refund on your challenge fee with your first payout.

There are no minimum or maximum trading days, you’re allowed to do weekend and news trading, you can use EAs, profit splits rise up to 90% and there are bi-weekly payouts.

Pros

  • You can choose the challenge plan that works best for you
  • There is a large range of funding that can help you scale your career

Cons

  • Copy trading is not allowed, even though you may use EAs

7. Best for Accelerated Trader Funding: SurgeTrader

SurgeTrader is one of the most prominent figures in the prop trading scene. When you want to invest with the massive funds available for a larger trading house, you can turn to a prop trading firm. SurgeTrader offers a range of benefits, including:

  • Quick trader funding after your evaluation
  • Quick account setup
  • Powerful educational tools
  • High profit shares (up to 90%)
  • Several account styles
  • A simple platform that’s easy to use

Pros

  • SurgeTrader is easy to manage, offers high profit shares and multiple account styles
  • The platform is simplified so that newer traders can get started with confidence

Cons

  • Yes, you can access quick funding, but you might want to move slower if you’re a newer trader

8. Best for a Multi-Asset Platform: The Trading Pit

At The Trading Pit, you can entire the funded trading space with help from up to $5M in funding and up to an 80% profit share. The process is simple, and you can start trading CFDs as soon as you get your account set up. You can also look into multi-asset trading of:

  • Futures
  • Crypto (coming soon)
  • Stocks (coming soon)

Plus, you can choose from multiple account styles, including:

  • Lite—3 days of trading minimum, 90 day challenge periods, $1,000 profit target
  • Standard—3 days of trading minimum, 90 day challenge periods, $2,000 profit target
  • Executive—3 days of trading minimum, 90 day challenge periods, $5,000 profit target
  • VIP—3 days of trading minimum, 90 day challenge periods, $8,000 profit target

All you need to do is pass the challenge for your account type, and when you do, you will become a funded partner with $5 million in funding where you will keep 80% of your profits. With simple rules, easy setup, real learning tools and quick payouts, you can start prop trading on your timeline.

Pros

  • The ability to scale up to $5 million in funding makes it easy for experienced traders to establish a homebase
  • The range of accounts makes it easier for traders to choose the right path for their trading journey

Cons

  • Profit splits could turn out to be lower than some other platforms you might try

9. Best for Beginner Retail Traders: Tradiac

Tradiac helps experienced forex traders (and beginners alike) to get the funding they need so that they can trade as a career. There are no roadblocks, no add-ons, a single-phase evaluation and maximum drawdowns as you trade. The funds are provided by hedge funds in London that offer the best risk management support and:

  • Up to $100,000 in initial funding
  • Up to a 15% to 30% daily loss limit
  • Instant 90% profit splits
  • Scaling up to $1 million
  • Weekend and overnight positions
  • Optional use of EAs
  • Excellent customer support
  • Up to 20:1 leverage

Pros

  • SurgeTrader is easy to manage, offers high profit shares and multiple account styles
  • The platform is simplified so that newer traders can get started with confidence

Cons

  • Yes, you can access quick funding, but you might want to move slower if you’re a newer trader

10. Best for Swing and Day Traders: Traders With Edge

Traders With Edge is one of the most popular prop trading platforms and a prop trader favorite because of its flexible and easily accessible trading features. Founded in 2022, a team of experts manages the platform, planning to fund up to 25,000 traders by 2025.

As a result of its unique structure, Traders With Edge offers:

  • An 80% profit payout
  • Diverse tradable assets
  • The cheapest evaluation—challenge accounts starting from $55.

There’s a comprehensive support structure that makes it easier for traders to get the information they need, along with core assistance on their accounts. There are several account sizes to choose from, and up to $3 million of capital could be accessible. 

Pros

  • The affordable evaluation is a good place to start for most investors, especially when you’re on a budget and not established
  • The high level of funding is helpful for experienced or advanced traders

Cons

  • The profit splits could turn out to be lower than some competitors

11. Best for Day Traders: FundedNext

FundedNext is a unique prop trading platform that’s new to the market and allows you to access $300,000 in funding, but also, you can scale up to $4 million when you’re an advanced trader. Even when you get started, you can earn a 15% profit split that you’re earning as you’re learning. Afterwards, you can earn up to a 90% profit split.

For example, the Stellar Challenge account comes with no time limits, a balance-based drawdown and 15% profit splits during the challenge. You may also choose from the Evaluation and Express models, depending on your comfort level.

You can trade on MT4 or MT5, pay low commissions and feel comfortable even if you’re a beginner. That makes this is a good place for underfunded traders, beginners and those who want to turn investing into a career.

Pros

  • The scale-up program allows you to get far more funding than most platforms can offer
  • You can earn while in the evaluation period, helping feel like you’re getting something out of the evaluation
  • You can trade from nearly 200 different countries
  • Fast payouts
  • Trusted by organizations worldwide

Cons

  • You may or may not be able to get the profit splits you were hoping for

How Do Forex Prop Trading Firms Work?

Here are the main points for how forex prop trading firms work.

Capital

Prop firms funds trader accounts. The traders then use those funds to trade financial instruments such as forex. Traders can increase their account size and not have to take risks with their own hard-earned funds.

Profits

Prop trading firms live on the funded traders' profits. If its traders are making a profit, then the company takes a cut. The split is usually in favor of the trader, but for a forex prop firm to be profitable, its traders must be successful, making its selection process all the more vital. Firms also make money by charging fees for the initial audition process.

Training

Not only do prop trading firms provide capital, but many provide education. A team of experienced traders can provide training through support and mentorship, which then helps less experienced traders learn and boost profits — for themselves and the firm.

Benefits of Working With Prop Trading Firms

Let's take a deeper look into the main benefits of working with prop trading firms:

  • Access to capital: The most significant benefit of trading with prop firms is the amount of capital retail traders can use to trade. Traders work with large accounts, allowing them to take larger positions and achieve higher profits, although more considerable losses are a risk.
  • Support and teamwork: Retail trading can be lonely and requires self-discipline. Joining a team of traders and having mentorship can make a difference. Traders can bounce ideas off each other and learn from more experienced individuals.
  • Risk: Risk can be one of the most challenging areas to manage as a trader. Traders may view their risk strategies differently, but no one wants to lose money. Having a risk management team in place at prop firms can benefit new and experienced traders and ensure risk is managed each day effectively.
  • Technology: Prop firms offer rapid access to data, news and advanced technological tools to give traders an extra edge. 

Frequently Asked Questions

Q

Are there any legit prop trading firms?

A

Yes, many legit prop firms exist, and there is nothing inherently bad about the business models of prop firms. SMB Capital is just one of the many legit prop trading firms around for traders to join.

Q

Are prop trading firms legal?

A

Prop trading firms are entirely legal, and many have helped traders achieve significant growth and profits. However, some prop firms attempt to scam people, and others may not need to be regulated, so it is important to do your research before signing up.