Proprietary (prop) trading is when traders use the money of a company to trade. They do not use their own money. Prop firms provide funding to traders who pass an evaluation process. After that, traders can trade and whatever profits they get, they share it with the company.
Table of contents
- How Do Prop Trading Firms Work?
- How to Choose a Prop Firm
- Top Prop Trading Firms in 2025
- Conditions and Requirements for Traders
- Trader Reviews on Prop Firms
- Tips for Successful Prop Trading
- Conclusion
How Do Prop Trading Firms Work?
Prop trading firms request traders to pass an evaluation program. They shall meet specific profit targets. If the trader does it properly, the company provides the trader with a funded account, and the trader can use it. When trading with the company’s funds, the trader shall follow strict rules imposed by the company, such as drawdown limits and profit splits. All profits that the trader earns he shares with the company. The company also charges fees for the evaluation process.
Why Is Funded Trading Becoming Popular?
Funded trading is gaining popularity because it lowers the entry barrier for traders. Traders do not have a lot of money to start trading, instead, they can use the funds of the company. With it, they limit personal risks but in return, they share their profits with the company. Now, when there is the internet, prop trading has become very accessible.
How to Choose a Prop Firm
When selecting a prop trading firm, you should consider the following details.
- Reputation and credibility: Always check reviews and trader feedback. Look for a firm with a track record of satisfied traders and timely payouts.
- Payout history: Make sure that the company pays traders on time and doesn’t have too strict restrictions on withdrawals.
- Trading instruments: Make sure that the company supports the markets you like, in this case, it is crypto. This will help you to feel confident.
- Fee structure: Check what are the evaluation fees, monthly costs, and especially potential hidden charges. This will help you to avoid unexpected expenses.
- Risk management rules: Check drawdown limits, consistency requirements, and other trading restrictions because they may affect your strategy.
Some firms have challenging tests, while others offer more flexible conditions. This is why choose one that doesn’t have too strict evaluation requirements and suits your trading style. It is better to choose companies that offer proper payouts, normally, those are 80% and more.
Some companies allow bi-weekly or monthly withdrawals, and some can be very restrictive. It is better to choose a prop trading company that offers a more flexible withdrawal schedule.
Which Prop Firms Actually Pay?
There are many prop trading companies that promise a lot but don’t deliver payouts. This is why choose a company that has a track record of fair payments and transparent policies.. In 2025, some of the best firms with proven payouts include FTMO, Topstep, and Supertrade.
Top Prop Trading Firms in 2025
The best prop firms with reliable payouts are the following.
- FTMO: This is one of the most well-known prop firms. FTMO provides funding for forex, indices, and crypto traders. It has a structured evaluation process, clear risk management rules, and a history of timely payouts.
- Topstep: This company specializes in futures trading. It is known for a well-structured evaluation process with clear guidelines and no hidden fees.
- Supertrade: This is a growing firm that has already gained popularity because of its transparency, high profit splits, and reliable withdrawals. It supports crypto trading and offers flexible trading conditions.
- Earn2Trade: This prop trading firm focuses not only on funding but also on education. This is why it is an excellent choice for beginners.
- MyForexFunds: This company is very popular among forex traders. It has flexible evaluation models and high-profit splits
If you are looking for the best prop firm for futures trading, you may want to consider one of the following:
- Topstep: This company is futures-focused, it allows traders to gain funding after passing an evaluation, it has clear rules and no hidden fees.
- Earn2Trade: This prop trading firm provides futures traders with educational resources. It offers structured evaluations and strong risk management policies.
- SuperTrade: This prop trading firm supports futures trading with high leverage. It has a fair evaluation system and reliable payouts.
- For traders who prefer forex trading, we recommend the following companies to look at:
- FTMO: This leading forex prop firm offers a well-structured evaluation and strict risk management rules.
- MyForexFunds: This company offers multiple account options with different levels of funding. It allows traders to choose the most suitable plan.
- Traders who are into crypto can check the following options:
- FTMO: This company supports cryptocurrency trading alongside forex and indices.
- Supertrade: This prop trading firm offers crypto funding with flexible trading conditions.
- Funding Talent: This company specializes in cryptocurrency trading accounts.
Conditions and Requirements for Traders
Prop trading companies always have specific requirements for traders. We will check the main of them.
Minimum Deposits and Fees
Most prop firms charge an evaluation fee. It may range from $50 to over $500 and depends on the account size. Some firms have recurring monthly fees, while others only charge the fee one time only. So, always check all the hidden costs before you sign up.
Evaluation and Selection Process
Traders must pass an evaluation to get funded. The most common requirements include the following: Profit targets: Within a predetermined period, the trader shall reach a profit of 5%-10%. Drawdown limits: Firms impose restrictions on daily and overall losses. Consistency rules: Many firms require traders to show steady performance instead of one or a couple of profitable trades.
Leverage and Trading Limits
- Leverage: The leverage normally ranges from 1:10 to 1:100 and depends on the company and the market.
- Lot size restrictions: Some companies limit the maximum trade size per position. It helps to manage risks.
Withdrawal Conditions
Most firms have structured withdrawal policies.
- Profit split: Traders typically receive between 70%-90% of their earnings.
- Minimum withdrawal: Some firms require traders to reach a minimum profit threshold (e.g., $100), only after that, they can withdraw funds.
- Payment frequency: Companies can offer weekly, bi-weekly, or monthly withdrawals.
Trader Reviews on Prop Firms
We have checked traders’ reviews on the top prop trading firms, and here are the conclusions. The best companies are FTMO, Supertrade, and Topstep. They consistently pay traders and are known for fast payouts and fair conditions.
The companies that have negative reviews are Funding Talent (it had some issues and delays with withdrawals in the past), and some emerging firms.
Tips for Successful Prop Trading
Here are some useful tips that will help you succeed in prop trading.
How to Pass a Prop Firm Evaluation
It is needed to pass a prop firm evaluation to get a funded account, and it is difficult to do so. To succeed, always stick to risk limits, manage drawdowns, and make sure you understand all the rules that the company imposes.
Trading Strategies for Funded Traders
Finally, if you have handled the evaluation, you can start with trading. Here are some tips that will help you to manage it and not lose your funding. Place quick trades with small profits (scalping).
Do not ignore swing trading where you hold positions for days. Finally, always analyze the market to identify key levels where price movements accelerate and allow you to earn more.
Manage risks. Always place stop-loss orders, it will help you to limit losses. Risk only 1-2% of the available capital per trade. Always review and analyze past trades to improve decision-making and avoid the same mistakes.
Conclusion
If you want to trade and earn without risking your money, prop trading is the right option. However, it is important to choose the correct prop trading firm. Write a list of your criteria, check if the selected firm complies with them, and move on with evaluation and trading.
