Prop Firms Explained: The Best Options for Beginners
In today’s world, investing is frequently seen as one of the most profitable methods to earn money. After gaining sufficient experience, traders may want access to greater capital to trade. This can be done through proprietary trading firms, or prop firms. These are companies that trade using their capital, or money, rather than the clients’ funds.
Utilizing prop firms can have a variety of benefits for an individual. Not only does it provide access to more capital, but it also reduces financial risk, provides professional resources, and offers a variety of training opportunities. With such benefits, it would be wise for traders to begin considering a prop firm. However, there are numerous options, so traders need to select the one that suits them best. The following prop firms are all highly-rated options that are sure to produce a profit.
1. FTMO
As one of the largest prop firms available to traders, FTMO has a user-friendly website with plenty of information about how it works and the plans offered. It has numerous positive reviews and benefits, although it is challenging to become a successful trader on FTMO due to the difficult evaluation process and the complicated scaling plan.
To withdraw profits, traders must pass a two-step evaluation that includes the FTMO Challenge and verification. The FTMO Challenge consists of traders being required to meet certain trading objectives within thirty days. If successful, then they must complete the verification phase, which requires traders to meet a certain profit target within sixty days. Meeting this criterion ensures that the investors can retain consistent profits.
If traders pass the evaluation process, then they are given a funded account and can make money through a profit split with FTMO, which is usually 70% to the trader and 30% to the firm. If a trader makes a consistent profit and wishes to expand their funded account size, then they can participate in the FTMO’s scaling plan.
One of FTMO’s benefits is its one-time fee, which makes it an affordable firm. Furthermore, this fee is refunded if the trader passes the FTMO challenge and verification. As a competitive prop firm, traders have multiple opportunities to profit, and the scaling plan allows traders to make even more money when they are ready.
However, there are a few drawbacks to FTMO that should be taken into consideration. For example, most people do not pass the FTMO Challenge, and if traders do not pass the challenge, then they do not receive a refund. Moreover, the scaling plan is seen by some as overly complicated, as the fixed time limits and demanding criteria can make it excessively difficult to scale up.
Overall, FTMO can be incredibly rewarding for experienced traders who wish to expand their capital. Although the evaluation process is difficult, FTMO provides a variety of benefits for those who can maintain a consistent profit. If traders pass the FTMO Challenge and the verification phase, then they can certainly profit from this firm.
2. The5ers
The5ers is a highly respected prop firm, with unique programs that allow traders to scale at different rates. These programs may vary in price, but they also offer other benefits. Furthermore, The5ers includes bonuses like account doubling to help traders grow their profit quickly.
There are two options for clients to set up their accounts and begin trading: the Hyper Growth Program and the two-step program. The Hyper Growth Program takes only one step for traders to receive funding. Although it costs more, it allows traders to start profiting faster. The two-step program is more commonly used and requires traders to achieve an 8% profit target with strict management rules in the first step. In the second, they must hit a 5% profit target. Neither program includes a time limit, making The5ers much more attainable than other firms.
The profit split can range from 80% to 100% for the trader, and it depends on the program and performance. After a minimum of three days, traders can scale their accounts up to $500,000. Like FTMO, consistency in profits allows traders to scale their account size and manage larger capital.
As a fair and reputable firm, The5ers has several benefits that not all other prop firms offer. The attainability of The5ers is a major plus that sets it apart from other prop firms. Furthermore, its fees are reasonable and there are solid scaling options, which can aid traders in their success.
One of the only drawbacks to The5ers is the higher price for the Hyper Growth program, although this may be justified by the faster scaling it offers. Overall, The5ers is a trustworthy, affordable, and attainable prop firm that can help traders reach success without being overly demanding. With low-profit targets and a favorable profit split, The5ers is a great option for any long-term trader.
3. WeMasterTrade of WeCopyTrade
WeMasterTrade is incredibly useful for newcomers, as it provides capital for investors to trade. It also focuses on covering losses to keep both the firm and the trader safe, a major benefit that other prop firms do not focus on.
Unlike other trading firms, WeMasterTrade does not require clients to pass a challenge. Upon registering and paying a one-time fee, traders receive access to at least $10,000 to trade, which can increase to $200,000. Trading is done on the MetaTrader 5 platform, and traders receive anywhere from 50% to 90% of the profit from their trades. To help traders profit and keep them safe, WeMasterTrade implements a loss limit strategy in their packages to cover losses as long as the loss does not exceed the set limit.
With WeMasterTrade, traders can make as many trades as they want as long as they stay within the loss limits, and they can withdraw their profits at any time as well. It also includes over 5,000 financial instruments, allowing traders with expertise in any of them to use WeMasterTrade.
As a safe prop firm that prevents loss and allows for flexibility in trading, WeMasterTrade is an excellent option for any trader. The lack of a challenge and freedom to do what they wish also makes WeMasterTrade incredibly accessible to all traders, whether new or experienced.
4. E8 Markets
With a major focus on flexibility, E8 Markets sets itself apart from other prop firms by offering one-step, two-step, and three-step evaluations. With a high rating on Trustpilot, E8 Markets is a reputable prop firm that has great benefits.
Upon completion of their evaluation of choice, traders are granted access to a funded trading account. The size ranges from $50,000 to $400,000 depending on the plan they choose, and traders receive 80% to 95% of the profits they make. They can also select their drawdown limits. Traders must make sure to read all of the rules to make the right decision. Ignoring these can lead traders to make mistakes and select the wrong program, which could lead to damaging consequences.
E8 Markets provides a wide range of choices for traders to make based on their profit goals, which can be beneficial for traders who want more control over the restrictions applied to their accounts. It also includes a strong profit split and can grant large amounts of funded capital, another positive that traders may want to keep in mind.
Although E8 Markets tends to be more expensive than the competition, it is highly customizable when compared to other prop firms. Traders can choose what suits them best to maximize their profit and remain within their budget. The flexibility provided by this prop firm has allowed many traders to become successful after completing their evaluation of choice.
5. FundedNext
FundedNext is another respected prop firm that offers a variety of account types, flexible evaluation models, and competitive profit-sharing structures. Its evaluation programs are accessible to both new and skilled traders, but there are limits associated with them that not all may like.
Two evaluation programs are offered by FundedNext: A two-step evaluation and an instant funding option. Like other prop firms, the two-step evaluation makes traders meet certain criteria in two challenges to qualify for funding. However, the instant funding option does not include any challenge, but traders who use this option will have lower leverage and stricter risk parameters. Despite this, traders can grow their capital no matter which option they choose.
The profit split offered by FundedNext provides 60% to 90% of the profit to the trader, but where they start depends on the account type that they select. Account sizes range from $15,000 to $200,000, and the scaling plan offered by the firm allows traders to scale their accounts by up to 200% every four months.
The various options offered by FundedNext make it a good prop firm for traders to choose from, although they may want to gain more experience and choose a two-step evaluation account to maximize their profits. No matter what they choose, traders can remain certain that they will profit and grow due to FundedNext’s favorable profit split and its multiple scaling opportunities.
FundedNext does have a few drawbacks that traders may want to consider, such as the strict rules and limitations for those with an instant funding account. These individuals begin with a 60% profit share on FundedNext, while those who choose the two-step evaluation begin with an 80% share. Furthermore, scaling takes place every four months, which may be too slow for traders who wish to grow their capital quickly.
Although it has a few drawbacks, FundedNext is generally a great option for any trader due to the opportunities it provides. No matter what account traders choose, hard work can provide them with a 90/10 profit split and large capital to trade. Success with FundedNext has been met by several traders, making it a solid option for anyone else who wants to sign up for a prop firm.
Summary of the Top Five Prop Firms
FTMO, The5ers, WeMasterTrade, E8 Markets, and FundedNext are all great prop firms for all traders. These firms are affordable, trustworthy, and profitable, which are all important traits that will lead traders to success. They each have unique aspects that set them apart from each other and make them stand out from the competition. With such a wide variety of options to choose from, traders can select whichever prop firm suits them best.
WeMasterTrade of WeCopyTrade is a particularly beneficial option due to its attainability and the measures it takes to prevent profit loss of both the firm and the trader. With a variety of awards and certifications, such as the Best Funded Trader Copy Trading Platform of 2024, Best Online Forex Education Provider, and an International Accreditation Council certificate, traders can be sure that they will become incredibly successful through the use of this prop firm.
Additionally, WeMasterTrade does not require traders to complete a challenge, ensuring equal opportunity for novices and skilled traders alike. With great opportunities to scale their accounts and a wide variety of financial instruments to use, WeMasterTrade remains as the most flexible platform for traders to choose. The freedom guaranteed by WeMasterTrade is unmatched by any other, ultimately placing it a level above other prop firms.
