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.
FTMO
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.
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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. Use coupon code CTI10% for 10% off!
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Earn2Trade
Profit Split: 80/20
Monthly Subscription Fee: $150 to $550
Last but not least is Earn2Trade, which calls itself a “trading education company” rather than a prop firm. A unique company, Earn2Trade connects successful traders with trading firms.
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! Use coupon code modestmoney for 20% off!
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Take Profit Trader
Profit Split: 80-90%Fee: $150 – $360
Take Profit Trader is a futures-focused prop trading firm offering a streamlined approach to helping traders maximize their profit potential. With account sizes ranging from $25,000 to $150,000, traders can choose the level that best suits their needs and experience. One standout feature is that there are no minimum trading days required before your first withdrawal, and the withdrawal process is instant. I love this feature, why should we have to wait to receive our hard earned money?
What is more, Take Profit Trader offers pro accounts that come with three resets and realistic profit targets, making it ideal for traders looking for flexible terms. There’s also a wide variety of futures instruments to trade, along with access to over 30 trading platforms, which almost ensures you won’t have to switch your preferred platform. Take Profit Trader stands out with its emphasis on realistic profit goals and high-quality customer service.
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Apex Trader Funding
Profit Split: Up to 90%Fee: $157 – $677
Apex Trader Funding is a leading proprietary trading firm that provides futures traders with an innovative, one-step evaluation process. With a variety of account sizes ranging from $25,000 to $300,000, Apex Trader Funding allows traders to prove their skills and earn a fully funded account. One of its most appealing features is the flexibility of trading strategies, including news trading, without complex rules or daily loss limits.
Traders benefit from a competitive profit split of up to 90%, fast payouts, and a user-friendly interface that makes it easy for traders of all experience levels to engage with the platform. Apex Trader Funding offers great educational resources. Apex Trader Funding is a great choice for both new and experienced traders.
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FunderPro
Profit Split: Up to 90%Fee: $79 – $1199
FunderPro offers traders the chance to manage accounts up to $200,000. With a high-profit split of up to 90%, traders can focus on growing their accounts by trading forex, commodities, indices, and cryptocurrencies. FunderPro provides traders with unlimited time to prove their skills, ensuring they can trade at their own pace without the pressure of deadlines.
One of the unique features of FunderPro is its daily payout option, once a trader has a profitable trade, they can request payouts as frequently as every day, provided their profit exceeds $100. Many other prop firms only allow monthly or bi-monthly withdrawals, so this is a huge advantage. The platform also offers high leverage of up to 1:200 and access to advanced tools like the TradeLocker platform, making it an ideal choice for serious traders.
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The 5ers
Profit Split: Up to 100%Fee: $39 – $850
The 5ers is a prop firm known for offering instant funding with no evaluation phase, allowing traders to access capital up to a whooping $4 million. Specializing in forex, metals, and indices, The 5ers supports traders through their innovative platform, offering tailored account sizes and flexible trading options. With leverage options of 1:6 for low-risk accounts and 1:30 for aggressive accounts, it caters to different trading styles and risk appetites.
What sets The 5ers apart is their commitment to education. The platform provides comprehensive learning resources, from trading strategies to webinars, helping traders continuously improve. New traders can start with a demo account, while experienced traders can dive right into funded trading. With a transparent and fair evaluation process and consistent support, The 5ers is a standout in the proprietary trading space.
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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.).
