Prop Firms Trading – An Introduction

Have you heard about firms that let you trade using their money even though you have no real experience? Makes you wonder how do prop firms make their money?

The concept is known as “proprietary trading.” Prop trading is the practice of trading commodities, stocks, bonds, derivatives, or other financial instruments on behalf of and with the clients’ funds and not your own. This method allows the firm to fully profit from trade instead of just collecting commission from handling trades for its clients.

They all share a modest pot of money. The prop firms limit how winners can trade, meaning:

  • Can use a small amount of margin at one time
  • They allow a slight drawdown
  • Can sustain only a small loss

Successful prop traders have a unique blend of superpowers including intuition, analytical prowess, foresight, and a passion for learning. Traders use strategies based on in-depth research and comprehension of market dynamics after thoroughly investigating specific opportunities and trends.

Are Prop Trading Firms Worth It?

To find the answer to this question, research any company claiming to be the best prop trading firm by comparing information. Some of the largest prop firms are in London and New York. While effective prop traders use research and analysis to identify opportunities, you should follow a few pointers when considering a prop trading firm:

  • Search businesses that share your investing goals and objectives
  • Check the company’s reviews, evaluations, and track records
  • Firms should provide exceptional customer service
  • Companies should be attentive to customer needs
  • Consider fees and hidden charges
  • Firms must ensure their trading platform is robust and user-friendly

Currently Trending Prop Firms

You can find the best prop trading firm by comparing prices, discounts, trading rules, and account information. Continue reading below for a short list of prop trading firms on the market.


Topstep maintains a spotless reputation for customer service and trading futures. Thanks to their current promotion and remarkable trader support, they have also become one of the best bargains in the business.

Though the monthly costs can add up quickly, this trading firm is generous with profit payouts. Besides that, Topstep gives you unlimited time to reach your financial goals.


FTMO is one of the most successful prop trading firms in the nation. You can trade almost any financial instrument with them, and because FTMO has over 10,000 traders worldwide, they can provide the best profit splits in the industry.

FTMO allows traders access to a specific market, so they can trade it. Still, whether they will handle all of your trades is not clear. Although you are guaranteed to collect every dollar you earn with FTMO, they impose a one-time fee making them one of the most professional prop trading firms for beginners and trained psychologists.


While SurgeTrader is a rookie in the prop trading industry, the firm has earned a fortune in attention. Although the prices are high due to one-stage evaluation and quick funding, the trading rules are pretty simple. An intermediate account will run you roughly $400 for a maximum funding of $50,000.

SurgeTrader funds traders immediately after they pass the trading audition, even though they do not have a minimum number of trading days. Just a few hours after you reach your 10% profit goal, you can see your new capital.

One of the drawbacks of an instant funding prop firm is that your profit share is never more than 50 percent. However, SurgeTrader will fund your account almost immediately and offer 75–90 percent. Your loss limit becomes your starting balance once you make a profit of more than 5%, and they eliminate the trailing drawdown.