How to find the best (suitable) foreign exchange dealer? ​

How To Find The Best (Suitable) Prop Firm?

Find The Best Forex Prop Firm

There is an observed increase in emerging Prop Firms, which provide funding for traders from various countries worldwide. However, the rules vary among different Prop Firms, making it increasingly difficult to choose which one to engage with.

When choosing a funding plan from a Prop Firm, there are many factors to consider. These include profit targets, drawdown, leverage, challenge time, minimum trading days requirement, reputation, ease of withdrawals, profit sharing ratios, and other rules and regulations. It's also crucial to consider your own trading style and characteristics to select a company that suits your needs best.

Prop Firms offer various types of funding programs, with some providing direct funding and others requiring an evaluation process. However, the most common funding program currently is the 2-Step evaluation model. In this model, traders go through two stages of evaluation, and upon passing both stages, they can obtain a funded trading account. Here are some Prop Firms that primarily offer the 2-Step evaluation model (but not limited to), providing reference for traders aspiring to become Funded Traders.

This site has compiled several Prop Firms to offer aspiring Funded Traders more choices."Prop Firm Overview",And add filter parameters, so that everyone no longer has to go everywhere to collect.

At the same time also added "Prop Firm Ranking" function, you can vote for different characteristics as a reference for others to choose.

Understand your own trading style,
This is the initial step in choosing a Prop Firm.
Forex Niche

A Funded Trader typically goes through the following process: 80% of traders initially engage with the market using their own funds through a broker. As they become aware of funding programs and Prop Firms, about 30% start signing up for evaluations. Of those, only 10% successfully pass the evaluations. Finally, the traders who consistently profit from their funded accounts and can withdraw funds make up just 1% or less of the initial group.

Use of own funds (Broker)
80%
Funding program challenge
30%
Pass the challenge
10%
Continue to make profits in Funded Account
Continuous profit 1%

(The proportional value is only schematic)

The following describes a few steps on how to choose and find the one that suits you(Prop Firm):

Check the reputation or users' reviews of Prop Firm. in Trustpilot andWebsites that provide user reviewsChecking reviews and star ratings is important, but what's more crucial is ensuring that they pay profit shares to clients and that there are no slippage or server issues.

Verify the profit targets that need to be met. If the required profits cannot be achieved in a personal account, it may be necessary to choose a prop firm with lower target requirements. Be cautious not to select a company solely based on high profit sharing or low profit targets allure.

Check the trading rules to ensure they align with your trading style. For example, if you're a scalper, make sure the prop firm doesn't have a maximum lot size restriction.

Check the minimum trading days requirement. Some prop firms require trading for a certain number of days to be eligible for profit sharing. Choose a prop firm with a minimum trading days requirement that fits your criteria.

Review profit sharing arrangements. Some prop firms pay out profits on a 7, 14, or 30-day cycle. Be mindful of prop firms with longer payout cycles, as they may lead to overtrading and losses.

FundedNext

12,392 Ratings (4.7/5)
4.7/5

Profit sharing starts at 80% upon passing the two stage evaluation, with the potential to scale up to a maximum profit share of 90%. 

Evaluation mode: 10%/5%

  • Daily Drawdown: 5%
  • Max Drawdown: 10%

Profit sharing of 15% offered during the challenge stage. 15%

The Stellar model offers both 1-step and 2-step types, both of which are no time limit evaluations.

Refund

100% of the registration fee will be refunded for the first withdrawal after passing the challenge

Unlimited

The two-stage challenge offers unlimited challenge periods with no time pressure.

No retakes and extensions

Due to the new rule of unlimited challenge time, the old system has been discontinued.

Stellar (2-Step)
Account 1
Account 2
Account 3
Account 4
Account 5
Account 6
Account size
$6000 USD
$15000 USD
$25,000 USD
$50,000 USD
$100,000 USD
$200000 USD
Daily Drawdown
5%
5%
5%
5%
5%
5%
Max Drawdown
10%
10%
10%
10%
10%
10%
Time Limit
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Trading Days
5 days
5 days
5 days
5 days
5 days
5 days
Profit Target
8%/5%
8%/5%
8%/5%
8%/5%
8%/5%
8%/5%
Leverage
1:100
1:100
1:100
1:100
1:100
1:100
Challenge Fee
$59 USD
$119 USD
$199 USD
$299 USD
$519 USD
$999 USD
More Info
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7% Discount: pfx168

After passing the two-stage assessment, the profit distribution starts at 80%, and 90% of the purchase option can be used as the initial profit distribution.

2-Step mode: 10%/5%

  • Daily Drawdown: 5%
  • Max Drawdown: 10%

Collaborate with multiple reputable brokers, and upon successful completion, fund the account with real funds held in licensed major brokerage firms.

Refund

100% of the registration fee will be refunded for the first withdrawal after passing the challenge

Mandarin Chinese

The first Prop Firm for the Chinese market

Time Limit

The 2-Step mode has a challenge time limit

1-Step
Account 1
Account 2
Account 3
Account 4
Account 5
Account 6
Account 7
Account 8
Account 9
Account size
$5,000 USD
$10000 USD
$15000 USD
$20,000 USD
$25,000 USD
$50,000 USD
$100,000 USD
$200000 USD
$400000 USD
Daily Drawdown
3%
3%
3%
3%
3%
3%
3%
3%
3%
Max Drawdown
6%
6%
6%
6%
6%
6%
6%
6%
6%
Time Limit
30 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days
Trading Days
3 days
3 days
3 days
3 days
3 days
3 days
3 days
3 days
3 days
Profit Target
8%
8%
8%
8%
8%
8%
8%
8%
8%
Leverage
1:30
1:30
1:30
1:30
1:30
1:30
1:30
1:30
1:30
Challenge Fee
$80 USD
$140 USD
$200 USD
$300 USD
$400 USD
$450 USD
$750 USD
$1,500 USD
$3000 USD
More Info
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Start
Start
Start
Start
Start
Start
Start
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2-Step
Account 1
Account 2
Account 3
Account 4
Account 5
Account 6
Account 7
Account 8
Account 9
Account size
$5,000 USD
$10000 USD
$15000 USD
$20,000 USD
$25,000 USD
$50,000 USD
$100,000 USD
$200000 USD
$400000 USD
Daily Drawdown
5%
5%
5%
5%
5%
5%
5%
5%
5%
Max Drawdown
10%
10%
10%
10%
10%
10%
10%
10%
10%
Time Limit
30/30 days
30/30 days
30/30 days
30/30 days
30/30 days
30/30 days
30/30 days
30/30 days
30/30 days
Trading Days
3 days
3 days
3 days
3 days
3 days
3 days
3 days
3 days
3 days
Profit Target
10%/5%
10%/5%
10%/5%
10%/5%
10%/5%
10%/5%
10%/5%
10%/5%
10%/5%
Leverage
1:100
1:100
1:100
1:100
1:100
1:100
1:100
1:100
1:100
Challenge Fee
$60 USD
$123 USD
$165 USD
$200 USD
$250 USD
$350 USD
$550 USD
$1,000 USD
$1999 USD
More Info
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Start
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30% Discount: 2024beapro (30 limits)

10% Discount: beapro (Regular)

FTMO

10,470 Ratings (4.9/5)
4.9/5

Profit sharing starts at 80% upon passing the two stage evaluation, with the potential to scale up to a maximum profit share of 90%. 

Normal: Stage One 10%; stage two 5%

  • Daily Drawdown: 5%
  • Max Drawdown: 10%

You can apply for a free trial of the demo account at no cost, with the option to reapply after the 14-day expiration period.

Refund

100% of the registration fee will be refunded for the first withdrawal after passing the challenge

Unlimited

The two-stage challenge offers unlimited challenge periods with no time pressure.

No retakes and extensions

Due to the new rule of unlimited challenge time, the old system has been discontinued.

2-Step
Account 1
Account 2
Account 3
Account 4
Account 5
Account size
$10000 USD
$25,000 USD
$50,000 USD
$100,000 USD
$200000 USD
Daily Drawdown
5%
5%
5%
5%
5%
Max Drawdown
10%
10%
10%
10%
10%
Time Limit
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Trading Days
4 days
4 days
4 days
4 days
4 days
Profit Target
10%/5%
10%/5%
10%/5%
10%/5%
10%/5%
Challenge Fee
€155 Euro
€250 Euro
€345 Euro
€540 Euro
€1080 Euro
More Info
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There are different profit sharing ratios according to different account sizes

Varies depending on the account size (8% to 10%).

  • Daily Drawdown: 5%
  • Max Drawdown: 10%

One-stage funding challenge, upon completion, directly enters the scaling plan.

Refund

100% of the registration fee will be refunded for the first withdrawal after passing the challenge

Unlimited

The two-stage challenge offers unlimited challenge periods with no time pressure.

2 commodities challenge types

Provide CFD and futures commodity type challenges

1-Step (CFD)
Account 1 (Lite)
Account 2 (Standard)
Account 3 (Executive)
Account 4 (VIP)
Account size
$10000 USD
$20,000 USD
$50,000 USD
$100,000 USD
Daily Drawdown
4%
4%
4%
4%
Max Drawdown
7% (Trailing)
7% (Trailing)
7% (Trailing)
7% (Trailing)
Time Limit
Unlimited
Unlimited
Unlimited
Unlimited
Trading Days
5 days
5 days
5 days
5 days
Profit Target
10%
10%
10%
8%
Challenge Fee
$99 USD
$179 USD
$399 USD
$999 USD
More Info
Start
Start
Start
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E8 Funding

1,608 Ratings (4.7/5)
4.7/5

The profit share after passing the two-stage challenge is fixed at 80% 

  • Daily Drawdown: 5%
  • Max Drawdown: 8%

There is no time limit for all three modes

Refund

100% of the registration fee will be refunded for the first withdrawal after passing the challenge (E8 Account/E8 Track)

Unlimited

The two-stage challenge offers unlimited challenge periods with no time pressure.

No retakes and extensions

Due to the new rule of unlimited challenge time, the old system has been discontinued.

2-Step (E8 Account)
Account 1
Account 2
Account 3
Account 4
Account size
$25,000 USD
$50,000 USD
$100,000 USD
$250,000 USD
Daily Drawdown
5%
5%
5%
5%
Max Drawdown
8%
8%
8%
8%
Time Limit
Unlimited
Unlimited
Unlimited
Unlimited
Trading Days
0 days
0 days
0 days
0 days
Profit Target
8%/5%
8%/5%
8%/5%
8%/5%
Leverage
1:100
1:100
1:100
1:100
Challenge Fee
$228 USD
$338 USD
$588 USD
$988 USD
More Info
Start
Start
Start
Start

8% discount code: REB8

The5%ers

2,796 Ratings (4.8/5)
4.8/5

The profit sharing starts from 80% after passing the two-stage challenge, and the maximum profit sharing is 100% when reaching the condition of scaling plan. 

High Stakes: 8%/5%

  • Daily Drawdown: 5%
  • Max Drawdown: 10%

The 2-Step High Stakes mode has no time limit and can be challenged without time pressure.

Refund

100% of the registration fee will be refunded for the first withdrawal after passing the challenge (Only High Stakes)

Free retake

No retakes

No extensions

No extension conditions provided

2-Step (High Stakes)
Account 1
Account 2
Account 3
Account 4
Account size
$5,000 USD
$20,000 USD
$60000 USD
$100,000 USD
Daily Drawdown
5%
5%
5%
5%
Max Drawdown
10%
10%
10%
10%
Time Limit
Unlimited
Unlimited
Unlimited
Unlimited
Trading Days
3 days
3 days
3 days
3 days
Profit Target
8%/5%
8%/5%
8%/5%
8%/5%
Leverage
1:100
1:100
1:100
1:100
Challenge Fee
$39 USD
$165 USD
$300 USD
$495 USD
More Info
Start
Start
Start
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what is forex prop FIRM?

What is a Prop Firm?

The service provided by the Proprietary Trading Firm is a Funding Program to find amateur traders. It provides the company's funds to traders who sign up. If traders pass the challenges, prop firms will provide funds to them. Prop Firms are responsible for losing money, and they can share the profits with traders when making money. It is a low-threshold plan that everyone can participate in.

This type of forex prop firm is one of the categories of prop firms. They mainly use Contracts for Difference (CFD) as their main trading products. There are also prop firms in other categories who mainly provide futures commodities, such as: Topstep Mainly futures commodities, but both are ways of providing funds under the Funding Program.

Generally speaking, what is commonly heard is a broker, that is, you go to a broker to open an account, deposit your own funds, and bear the profits and losses yourself.

Compared with the number of brokers, the number of prop firms providing such services is relatively small. However, it has been observed that more and more new prop firms are joining, but the quality is uneven. Therefore, those who want to participate in the project need to rely more on English and Ability to do your own research.

Or use the information compiled by this site Prop Firm Overview

How many prop firms are there?

How many prop firms are there?

From the past to the present, some prop firms have failed due to poor management, and some have had cash flow problems. As of now, it is known that more than dozens are still operating in various countries, especially those in the United States, Canada, and Europe.

This kind of forex prop firms that provides funds is still a relatively new industry in the market. Compared with prop firms that mainly focus on futures, the funding model and company business model behind them are very different. Therefore, the rules and charging standards of each category are also different, and the operation model of forex prop firms is more similar to that of financial technology companies.

If we only focus on Forex Prop Firms, there are currently at least 40+ of them globally, with FTMO being the first choice.

However, traders who are interested in participating in this plan still need to understand that this industry is still new and changes rapidly. One day, established prop firms may also have problems (or be frozen by regulators), so it is best to stay vigilant at all times and do their own research. The purpose of traders is to choose the best prop firm (suitable for your own trading characteristics). While the company is still there and can withdraw funds smoothly, traders should seize the opportunity to pass the challenge, earn profit sharing, and finally operate with their own funds.

FAQ

Most frequent questions and answers

Forex brokers are where investors use their own funds deposited into accounts opened with the broker, bearing all risks and profits themselves. On the other hand, Prop Firms are where traders undergo a challenge with a Prop Firm, and upon passing, use the firm's account for trading. The risk of account loss is borne by the firm, while profits can be shared with the traders.

The primary trading instruments are major and minor pairs in forex, but they also offer indices, metals, stocks, and other commodities.

For traders aspiring to participate in the program, besides the varying trading instruments offered by each Prop Firm, factors such as server environment, spread sizes, slippage, leverage, weekend holding or trading policies, and other rules also need to be considered. It is recommended to understand the rules and details of each firm's offerings thoroughly.

No. However, there will still be many prop firms who are just like the real ones, so the research on prop firms is very important.

Since the rise of this model, many companies have experienced fraud, inability to withdraw funds, and poor management. According to my observation, many emerging prop firms are run by Traders, but after all, trading and operation management are different. ability, so those who are interested in funding challenge must do their own research.

In the same market, there are also many scams by brokers, and these prop firms need to be studied more. For example, the brokers that prop firms cooperate with (here you can start from "prop firms need to cooperate with brokers" You can see that the two models are different), you also need to understand the rules, user reviews, smooth withdrawals, various evaluations, etc. This is an area that requires a lot of homework.

After collecting and sorting out the information of these prop firms, and using it with my friends, the withdrawals went smoothly, so it is now known that this model is not a scam.

But because the industry is alsoNo corresponding regulation has yet appeared, so some of them are under the guise of smooth lending and withdrawal, but actually harm the rights and interests of traders, so you need to choose carefully.

Most people who are exposed to CFD trading are mainly brokers (Brokers) and deposit their own funds for trading.

The prop firms model first emerged from abroad, and now trading circles are almost talking about which prop firm has discounts, or what activities are held, etc. In short, it is quite popular, and many successful traders are from this kind of model. To start with the model, first use their rules to help you develop trading discipline. After trading for a period of time and having profit-sharing funds, you can then open an account with a broker and operate with your own funds.

Funding Program is the main service provided by these prop firms. Most of these funding plans are launched by prop firms after designing rules. The main types are direct funding types and evaluation model funding types. The evaluation mode type can also be divided into one stage, two stages, three stages, etc., which vary according to the design rules of each company.

Both plan types require registration fees. The registration fee for the direct model is usually higher and the fees are not refundable. The company also has to bear the risk of immature traders obtaining funds and operating randomly, while the fee for the evaluation model type is more reasonable. Most prop firms will also refund fees after passing the challenge. Traders who obtain capital accounts are relatively mature. The company provides funds to traders with profit-making skills. The company can make profits and grow, and traders can cultivate trading discipline and earning profits.It is beneficial to both companies and traders.

The registration fee for each prop firm will be different due to comprehensive evaluation such as account funds, rules, profit target setting, challenge period, etc.

When registering for the challenge for the first time, traders who care about price can choose accounts with the same model in different prop firms to compare prices and fees. For example, compare the 100K in the 2-step challenge model of company A with the 2-step challenge model of company B. (You can use this site’s Prop Firm Filterfor query)

In addition, if you have the ability to pass the challenge, most prop firms will refund the registration fee after passing, so it can be measured against your own trading ability and reasonable registration fees.