A detailed review of 5 top prop trading firms
Best prop trading firms for UK traders
Choosing a prop firm can feel overwhelming with so many options out there. Some are quality and pay out consistently, while others are just collecting challenge fees with no intention of actually funding traders.
We’ve done the research, looked at real user reviews, checked payout proof, and tested the rules to find firms that actually work for traders. Our picks include OneFunded, FTMO, FundedNext, Topstep, and The Funded Trader. Continue reading this guide to discover what makes these firms ideal for traders.
A brief overview of prop firms
Prop trading firms allow you to trade their money instead of yours. Here’s how it works: you pay for an evaluation challenge to prove that you can trade profitably while following certain standardized rules like maximum drawdown and profit targets. Pass the challenge, and you have a funded account at your disposal. It can be $25,000, $200,000, or more.
You get to keep a percentage of the profit you make from trading, typically 75-90%, with the firm pocketing the rest. It’s an opportunity to trade with real money, even if you don’t have thousands of dollars in your account. When trading on such platforms, you must have discipline and be good at risk management, as well as be able to consistently stick to rules.
Our picks for the 5 prop trading firms
Many prop trading firms are available to choose from, but only a few deliver a quality experience and ensure you get paid after making successful trades. Here are our picks of the best brands:
- OneFunded – Best for Simple and Transparent Trading
- FTMO – Best for Experienced Traders
- FundedNext – Best for Multi-Asset Traders
- Topstep – Best for Futures Trading
- The Funded Trader – Best For Beginners
OneFunded
- Origin country: United Kingdom
- Headquarters: London, UK
- Year founded: 2024
- User ratings on Trustpilot: 4.4/5 stars
- Funded account sizes: $2,000 to $100,000 (max $200,000 total per trader)
- Available programs: 1-Step Challenge, 2-Step Challenge, 1F Limited Challenge
- Tradable instruments: 58 Forex pairs, 23 Cryptocurrencies, Indices, Metals (Gold, Silver), Stocks
Even though it just started operating in 2024, OneFunded has attracted a good number of traders, and now it’s the fastest-growing prop firm. One of the finest things about the brand is that there’s no limit on time. In other words, you can take your time passing those challenges without feeling rushed. They offer 90% profit shares, and best of all, they give you back your challenge fee with your first payment.
OneFunded is legitimate, as it’s registered in the UK. You can use the cTrader and TradeLocker platforms for your trading. Account sizes begin at $2K, which is beginner-friendly.
Another top aspect is that the rules are simple with a 5% daily drawdown and max 10% drawdown. There are no lot size requirements, so you can trade whatever is comfortable for you.
FTMO
- Origin country: Czech Republic
- Headquarters: Prague, Czech Republic
- Year founded: 2015
- User ratings on Trustpilot: 4.8/5 stars
- Funded account sizes: $10,000 to $200,000
- Available programs: FTMO Challenge (2-Step), FTMO Verification, Swing Trading Program
- Tradable instruments: Forex, Metals, Indices, Commodities, Energy, Cryptocurrencies, Stocks
Many traders regard FTMO as one of the best prop firms because it offers swift payouts and an excellent user experience. The brand has been around since 2015 and has funded thousands of traders worldwide. With an impressive 4.8 rating on Trustpilot from over 32,000 reviews, the brand is doing something right.
The FTMO Challenge is a rigorous two-phase evaluation, featuring a 10% profit target in Phase 1, then 5% in Phase 2. It’s not easy, but it’s fair. Once you’re funded, you keep up to 90% of your profits with biweekly payouts. They support MT4, MT5, cTrader, and DXTrade, giving you plenty of platform options.
What sets FTMO apart is its comprehensive trader development approach. The site offers the FTMO Academy, performance coaching, and analytical tools to actually help you improve. Yeah, the rules are strict with a 5% daily loss limit and a 10% max loss, but that’s what makes funded traders from FTMO legit. If you can pass their challenge, you can trade anywhere.
FundedNext
- Origin country: United Arab Emirates
- Headquarters: Ajman, UAE
- Year founded: 2022
- User ratings on Trustpilot: 4.5/5 stars
- Funded account sizes: $15,000 to $300,000 (scalable to $4,000,000)
- Available programs: Evaluation Model (2-Step), Express Model (1-Step), Stellar (Instant Funding)
- Tradable instruments: 46+ Forex pairs, Indices, Commodities, Cryptocurrencies
Since launching in 2022, FundedNext has become a top option for traders. The brand is one of the most searched prop firms globally, and for good reason. What makes them stand out? They pay you a 15% profit share even during the evaluation phase.
The firm is backed by Eightcap broker and offers account sizes up to $300K, with a scaling plan that can take you all the way to $4 million in funding. You can also get super-fast payouts. Average payout time is just 5 hours, with some traders getting paid in 24 hours, or they pay you an extra $1,000.
Founded by Bangladeshi entrepreneur Syed Abdullah Jayed, FundedNext operates globally from offices in the UAE, USA, UK, and Bangladesh. They accept crypto deposits and have no time limits on challenges. The flexibility here is unreal.
Topstep
- Origin country: United States
- Headquarters: Chicago, Illinois
- Year founded: 2012
- User ratings on Trustpilot: 4.3/5 stars
- Funded account sizes: $50,000 to $150,000
- Available programs: Trading Combine (Evaluation), Express Funded Account
- Tradable instruments: Futures only (CME, NYMEX, COMEX, CBOT products)
Topstep is one of the leading futures prop trading firms. Founded by Michael Patak, a former Dow futures trader, back in 2012, they’ve been funding traders longer than most firms have existed.
When using this firm, you keep 100% of your first $10K in profits, then 90% after that. The Trading Combine requires a 6% profit target, with a 2% max daily loss and trailing drawdown limits. After passing, you get an Express Funded Account where payouts can come as fast as daily once you hit 30 winning days.
Topstep is futures-only, which might turn some people off, but if you’re focused on this trading instrument, they’re ideal. The brand offers extensive educational resources, live coaching sessions, and a tight-knit trading community. Topstep has been on the Inc. 5000 list multiple times and recognized as one of the best places to work in Chicago.
The Funded Trader
- Origin country: United States
- Headquarters: Liberty Hill, Texas
- Year founded: 2021
- User ratings on Trustpilot: 3.3/5 stars
- Funded account sizes: Up to $600,000 (scalable to $1.5 million)
- Available programs: Standard Challenge (2-Step), Rapid Challenge (2-Step), Royal Challenge (2-Step), Knight Challenge (1-Step), Dragon Challenge (3-Step)
- Tradable instruments: Forex, Indices, Commodities, Cryptocurrencies
The Funded Trader started operating in 2021 and has grabbed the attention of many traders. Founded by Angelo Ciaramello, Blake Olson, and Carlos Rico Jr., they’ve paid out over $55 million to traders with 100,000+ active traders on the platform.
Many traders love the variety that TFT offers, including five different challenge types to fit different trading styles. The profit split starts at 80% but can reach 90% through their scaling plan. Plus, their entry fees are low and refundable, making them accessible.
The brand partners with Eightcap and Purple Trading as brokers, supporting MT4 and MT5 platforms. You’ll also find the rules to be friendly compared to some firms: 5% daily drawdown, 10% max drawdown, with no time limits. You can trade forex, indices, commodities, and crypto all in one account.
How to choose a reliable prop firm
Choosing a reliable and quality prop firm is non-negotiable if you want a quality experience and to be able to withdraw your winnings. Here are some factors you should consider:
Start with the money-back guarantee
Many legit prop firms have enough confidence in their evaluation process to give you a refund if you pass. If a firm doesn’t refund your challenge fee when you graduate as a funded trader, that should be a red flag. It indicates they’re more in the business of collecting evaluation fees than truly funding successful traders.
Check their track record
Research to find out if the prop firm is legit and trustworthy. Consider how long the brand has been here. A firm that’s been in business for a few years has shown that it can survive doing whatever it does. Search also for verified payout proof on sites like Trustpilot or Reddit.
Be careful of firms that are suddenly everywhere with massive marketing budgets but zero verifiable history. Sometimes newer firms are fine, but you need to be extra careful.
Read the fine print on trading rules
Every prop firm has rules, but some are designed to help you succeed, while others seem designed to make you fail. Pay attention to:
- Daily drawdown limits: Are they reasonable for your trading style?
- Consistency rules: Some firms penalize you for having one really good day that makes up most of your gains, which is honestly ridiculous.
- Prohibited trading strategies: Can you trade during news? Hold overnight? Use EAs?
Look at their scaling plan
A good prop firm wants you to grow. They should have a clear path for increasing your account size as you prove yourself. If they’re vague about scaling or make it nearly impossible to move up, they might not be planning for long-term relationships with their traders.
Test their support
Contact support with questions before you even enroll in a challenge. How fast do they respond? Do you find their answers useful or kind of generic bot replies? You will be needing help at some point; perhaps there’s a technical problem, or you have a question about a rule.
Watch for red flags
Here are a few red flags to be on the lookout for:
- Withdrawal delays or traders saying I can’t be paid
- Rules that change once you’ve started
- Pressure tactics to upgrade or buy add-ons
- Nothing much is known about the people who run this company
- Targets that seem impossibly difficult to hit
If you see any of this stuff, stay away and find other prop firms.
Platform requirements for trading
Before you even think about passing a prop firm challenge, you need to make sure your setup can actually handle it. Most prop firms work with one of these platforms:
- MetaTrader 4 or 5 (MT4/MT5): This is the most common. It’s free, works on pretty much any device, and most firms use it. If you’re trading forex or indices, you’ll probably be using one of these.
- cTrader: Some firms offer this as an alternative. It’s cleaner and faster than MT4, but fewer firms support it.
- TradingView: A few newer firms are starting to integrate with TradingView, which is great if you already do your analysis there.
- Proprietary platforms: Some firms have their platforms. Be careful with these and make sure they’re stable and well-reviewed before you commit.
Drawdown rules at prop firms
Simply put, drawdown limits indicate the maximum loss allowed before your account is terminated. For instance, if the daily drawdown limit is 5% on a $100,000 account, you are not permitted to lose more than $5,000 in a day. Keep in mind that even if you exceed the limit by even $1 at any point, you’ll lose your account.
You’ll find two major drawdown rules at prop firms, and understanding the difference can save your account. We’ve discussed them below:
Daily drawdown limit
The daily loss limit indicates the amount you can lose within one trading day, covering both realized and unrealized losses. Typically, companies establish this limit at 3% to 5% of your capital.
Keep in mind that if your equity falls below the threshold momentarily because of open positions, you’ll lose the account. So, if you have a trade that’s losing 4.5% briefly and your limit stands at 5%, you’re exposing yourself to significant risk.
Maximum drawdown
This is the total percentage of your account equity that can be lost before breaching your account, often set at 10%. On a $100K account, if your balance ever drops below $90K, you’re out.
There are two calculation methods here:
- Static (balance-based): Your drawdown is always calculated from your starting balance. If you start with $100K and have a 10% max drawdown, your account breaches at $90K. Even if you grow to $120K and then drop back to $91K, you’re still safe because you’re above that $90K threshold.
- Trailing (equity-based): This one moves with your account growth. If you start with $100K and grow to $120K, your new breach point becomes $108K (10% below $120K). Trailing drawdown is the toughest type and works best for traders who like tight control and small losses.
How firms calculate drawdowns
Each of the prop firms we’ve discussed has different methods of calculating their drawdown. Check out the details below:
- OneFunded: Uses a trailing drawdown that moves up with your profits, then becomes fixed once it reaches the starting balance.
- FTMO: Uses a static 5% daily loss limit that resets at midnight CET.
- FundedNext: Offers fixed daily loss limits of 3%, 4%, or 5% depending on your challenge plan.
- Topstep: Uses a trailing drawdown during the evaluation, then locks it into a fixed level once you hit a profit milestone.
- The Funded Trader: Most accounts use fixed daily and total drawdown limits that never trail your equity.
Account scaling: Growing your capital
Once you have cleared the challenge and received your funding, you can begin planning to scale your account. This is the method you can use to progress from operating a $50K account to handling $500K, $1 million, or beyond.
Prop firms that offer scaling programs enable you to raise your capital allocation by showing consistent results. This provides a pathway to manage bigger trades without exposing your own funds to risk.
Types of scaling plans
Scaling structures come in different types. Below are the categories you are likely to come across:
- Fixed scaling: You receive an increase in capital by achieving specific goals.
- Scaling by percentage: Here, your account increases by a percentage, such as 25% or 30%, whenever you fulfill the requirements. Many companies use this method.
- Risk-adjusted scaling: The company evaluates your returns after accounting for risk rather than raw earnings.
- Rapid/unlimited scaling: As you achieve a cumulative 10% growth on your account, your account size will be doubled, providing access to 2x capital. This is for skilled traders who can consistently perform.
How scaling plans work
Let’s break down some real examples from top firms we’ve reviewed:
- OneFunded
Unlike other companies in the industry, OneFunded has yet to introduce an auto-adjusting plan. They place an overall account balance cap of $200,000. If you want to increase that amount, then you need to continue stacking accounts (up to the $200K cap) after completing extra challenges.
- FTMO
Once you finish the two phases of their evaluation, you can begin trading on a funded account. Scaling is available after your first four months of funded trading, provided you meet the criteria of at least 10% in net profits, continuous profitability, and following the rules. If you meet all the conditions, they allow an initial scaling of up to $400K, and then you can scale all the way to $2 million, spread out over multiple accounts.
- FundedNext
If you complete a four-month period with continuous account growth of 10%, two payouts, and account growth of at least 10%, then you are eligible to scale. They allow scaling of up to a staggering $4 million, and you can receive up to 95% profit shares at the top tiers. Overall, the profit split improves at every tier as you scale.
- Topstep
Topstep does scaling a little differently because they’re more focused on futures. Instead of increasing balances, they scale based on a contract. A $50K account starts with two contracts, scales to three above $1,500 profit, and reaches five contracts past $2,000. Your restrictions will increase as your equity grows, giving you more buying power over time.
- The Funded Trader
The Funded Trader has varying scaling programs based on the type of trading challenge. For the Rapid Challenge, you can still keep scaling their account by making at least 10% on the demo initial balance. Meanwhile, the standard and royal challenges require you to reach a profit target of 6% or more within three months, where two out of three months were profitable.
Conclusion
Prop firms can be a major boost to your trading career if you use them properly. The companies we’ve discussed, including OneFunded, FTMO, FundedNext, Topstep, and The Funded Trader, provide services to enhance your trading journey and help you secure your profits when you succeed.
If you want to come out on top, trade conservatively, protect your account, and understand drawdown limits inside and out. Make sure you also respect the rules and avoid chasing unrealistic gains. Finally, pick a firm that matches your trading style, master their rules, stay disciplined, and the money will follow.
FAQs
What is the best prop firm?
It all depends on your trading style and preferences. Each of the brands we’ve discussed, including OneFunded, FTMO, FundedNext, Topstep, and The Funded Trader, all offer quality services and have positive ratings from users.
What is the price to begin?
You’ll find challenge fees from $150 for $25,000 accounts to $1,000+ for $200,000 accounts. Most firms offer one-time payments or monthly subscriptions. Top firms refund your fee after you pass and get your first payout.
How long does it take to get funded?
Realistically, 3-6 months from start to first payout. The challenge takes 1-2 months, verification another 1-2 months, and then most firms require a 30-day waiting period before your first withdrawal.
What happens if I fail the challenge?
You lose your challenge fee unless the firm offers retries. Most require you to purchase a new challenge to try again. Some firms give discounts or free retries to traders who came close or were previously funded.
Can I have multiple accounts?
Many firms allow multiple accounts, either with them or across different firms. This lets you diversify strategies and increase earning potential. Just make sure you can manage the mental load and any additional monthly fees involved.
Can I withdraw profits anytime?
Most firms have scheduled payout periods, like biweekly or monthly. There’s usually a minimum withdrawal amount and a longer wait for your first payout. Read the withdrawal terms carefully. Consistent delays beyond stated timelines are major red flags.