Examples of Prop Firms

Futures Prop Firm Example: Topstep

Overview:

• Topstep is a well-known futures prop firm that allows traders to earn funding by proving their skills in a simulated environment.

Evaluation Process:

• Two-Step Evaluation:

  • Step 1: Meet profit targets while following risk management rules.

  • Step 2: Demonstrate consistency and adherence to rules over an additional period.

Key Features:

• Account Sizes: Ranging from $50,000 to $150,000 in virtual capital.

• Risk Management Rules:

  • Daily Loss Limits: Maximum amount you can lose in a day.

  • Consistency Rule: Encourages steady performance rather than big, risky trades.

• Fees:

  • Monthly subscription fees vary based on the chosen account size.

• Profit Split:

  • Traders keep the first $5,000 in profits, then an 80/20 split thereafter.

Example Breakdown:

• Trader Chooses a $50,000 Account:

  • Monthly Fee: $165

  • Profit Target: $3,000 in Step 1

  • Daily Loss Limit: $1,000

  • Total Loss Limit: $2,000

• Upon Passing:

  • Trader gets a funded account and can start trading real capital.

Forex Prop Firm Example: FTMO

Overview:

• FTMO is a leading forex prop firm offering funding to traders who can demonstrate their abilities.

Evaluation Process:

• Two-Phase Evaluation:

  • Phase 1 (Challenge): Achieve a 10% profit target in 30 days.

  • Phase 2 (Verification): Achieve a 5% profit target in 60 days.

• Risk Management Rules:

  • Maximum Daily Loss: 5% of the account balance.

  • Maximum Overall Loss: 10% of the account balance.

Key Features:

• Account Sizes: From $10,000 to $200,000.

• Fees:

  • One-time fee varies based on account size (e.g., €155 for a $10,000 account).

  • Fees are refunded upon successful completion of the evaluation.

• Profit Split:

  • Up to 80% to the trader, with potential increases to 90% for consistent performance.

• Other Benefits:

  • Access to performance coaches.

  • Account analysis and feedback.

Example Breakdown:

• Trader Chooses a $100,000 Account:

  • One-Time Fee: €540 (refunded after passing verification).

  • Phase 1 Profit Target: $10,000 in 30 days.

  • Phase 2 Profit Target: $5,000 in 60 days.

  • Risk Limits: Daily loss limit of $5,000; maximum loss of $10,000.

• Upon Passing:

  • Trader receives a funded account and keeps 80% of the profits.