When it comes to trading, having access to capital is crucial. Many talented traders may not have the necessary funds to start trading on their own, which is where funded trader programs come in. These programs offer funding to traders in exchange for a percentage of their profits.
This article will review the three best-funded programs available: FTMO, TopStep, and The%5ers. Each program has its own unique features and requirements, so it is essential to carefully consider which one may be the best fit for you. So, let's dive in and learn more about these top-funded trader programs.
Comparison between FTMO, TopStep and The5ers
Let's dive into the comparison.
FTMO
FTMO is a proprietary trading firm that offers funded trading accounts with up to 90% profit sharing. To become an FTMO trader, you must complete the FTMO Challenge, a 30-day trading competition during which you trade according to specific parameters, including a maximum loss limit and a profit target. If you meet or exceed the profit target, you will be given the opportunity to trade with an FTMO account.
Two risk levels are available for the FTMO Challenge, Normal and Aggressive, which determine the maximum daily loss, maximum loss, and overall profit target. The FTMO Challenge is designed to test a trader's ability to generate consistent profits while adhering to sound risk management principles.
YouTube Video: Best Prop Trading Programs
TopStep
TopStep is a funded futures trading program that allows traders to make real money without risking their own capital. To join the program, traders must first pass through the Trading Combine, a series of steps that test their trading skills. Once they have completed the Trading Combine, traders can choose between a standard or pro account and move on to a live-funded trading account where they can trade with real money and keep their profits. TopStep has a good reputation and has funded over 8500 accounts in 2022.
There are a few drawbacks to consider when applying to TopStep, such as the complicated payout system and the potential for confusion with the number of account options.
The cost of TopStep depends on the funded trading account option chosen, with monthly fees ranging from $165 to $375. Customer support is available through phone, email, and chat during business hours.
Overall, TopStep may be a good fit for aspiring traders looking to get started in futures trading but may not be suitable for more experienced traders.
The5ers
The5ers is a funded trading platform and growth program that aims to help talented forex traders become full-time professionals. It offers various instant funding account options, including low-risk and aggressive-risk models with account sizes ranging from $6,000 to $20,000 that can be scaled up to $4,000,000. The company also offers a Bootcamp program, where traders can prove their skills through demo stages with a target profit of 6% and a maximum loss limit of 5%.
If traders successfully complete the demo stages, they can move on to live trading stages and earn profits while being eligible for growth every time they reach a profit milestone. In addition, The5ers claims to provide its members with professional training, coaching, and access to a private community of traders.
However, it is important to consider the risks and requirements of joining The5ers before deciding.
FAQs
How do funded trader programs work?
Funded trader programs typically work by providing traders with capital to trade with in exchange for a percentage of their profits. The trader is responsible for managing the trade and making decisions about what to buy and sell, and the prop funding firm takes a cut of the profits as a fee for providing the capital. Some funded trader programs may also offer additional support and resources to traders, such as educational materials, trading tools, and access to a community of successful traders.
What are the benefits of becoming a funded trader?
Some benefits of becoming a funded trader include access to a larger account size, which can potentially increase earning potential, and the opportunity to trade with professional-level capital and resources. Funded trader programs may also offer additional support and resources to traders, such as educational materials, trading tools, and access to a community of successful traders.
How do I apply for a funded trader program?
To apply for a funded trader program, traders typically need to fill out an application and provide information about their trading experience, risk tolerance, and financial goals.
Some funded trader programs may also require traders to pass an evaluation process, which may involve trading a simulated account or providing a track record of profitable trades. Therefore, it is crucial for traders to carefully research the requirements and terms of the funded trader program they are interested in and make sure they are comfortable with the terms before applying.