Proprietary trading firms, commonly known as prop firms, offer traders the opportunity to access significant capital, enabling them to trade various financial instruments without risking their own funds.
In return, traders share a portion of their profits with the firm. This arrangement is especially beneficial for traders who wish to leverage greater capital for potentially higher earnings while firms profit from the expertise of traders.
For cost-conscious traders, selecting a prop firm involves balancing affordability with value. Below, we explore key considerations when evaluating prop firms and highlight some of the most affordable options available in the industry.
Understanding the Financial Commitment
When choosing a prop firm, traders must consider various costs and fees, which may include:
Evaluation Fees: Charges for the skill assessment process, which vary depending on the firm and account size. These fees typically represent the initial investment required to gain access to funded accounts.
Profit Splits: The percentage of profits shared between the trader and the firm. While higher splits favor the trader, some firms balance this with added support or lower evaluation costs.
Recurring Charges: Monthly fees for platform access, data feeds, or additional services. These are common among subscription-based firms and can accumulate over time.
While affordability is important, traders should also consider the full range of services a firm offers, like support, trading tools, and educational resources. Focusing only on cost, without factoring in the overall value, can result in missed opportunities or added challenges down the line.
Choosing The Right Prop Firm: Beyond Low Fees
When choosing a prop firm, traders should take the time to assess several other key aspects as well:
Spread and commissions: Choose a prop firm that offers accounts with lower spreads and commissions to maximize your profits.
Leverage: Ensure the firm offers leverage ratios compatible with your trading strategy.
Platform & Technology: Assess the platform’s reliability and features. Ensure it supports your trading style, whether you’re focused on scalping, day trading, or swing trading. Look for advanced charting tools, real-time data feeds, and execution speed that align with your technical analysis needs.
Customer Support: Opt for firms with responsive, knowledgeable support teams available during trading hours. Quick resolution of technical issues, funding inquiries, or account-related concerns is essential for smooth trading operations.
Educational Resources: Choose a firm that prioritizes education. Look for resources that go beyond basic tutorials, such as personalized coaching on developing advanced trading strategies, understanding market psychology, and improving risk management skills.
Reputation: Research the firm’s track record by checking customer reviews and testimonials, but also look into their history of payouts, reliability, and any regulatory standing. A solid reputation in the industry can offer peace of mind for long-term success.
Flexible Rules: Seek firms with reasonable time limits and drawdown policies.
Profit Sharing: Prioritize high profit splits to maximize your earnings.
Transparency: Look for firms that clearly outline their fees, rules, and terms. A transparent operation will help you avoid hidden costs or unexpected limitations that could hinder your profitability.
By carefully evaluating these factors alongside the cost, traders can make an informed decision and select a prop firm that aligns with their individual trading needs and goals.
Promo Codes and Discounts:
Many prop firms offer promo codes and discounts, allowing traders to lower evaluation fees and reduce entry costs. Seasonal discounts, special event promotions, and loyalty bonuses can cut costs by 20-30%. Firms also run limited-time offers that may include extra capital or bonus profit splits.
Best Value For Money Prop Firm: Top One Trader
Top One Trader offers challenges ranging from $5,000 to $200,000, catering to traders at all levels. Their 2-Step $5,000 challenge, priced at $69, is their most affordable option, while the $200,000 challenge costs $1,195. These prices reflect the high value of their programs and the extensive opportunities they provide for growth.
What makes Top One Trader stand out is their added benefits that justify the cost. These include generous profit splits, a strong reputation in the industry, a flexible challenge process, a transparent and fair evaluation process, and valuable educational resources and support. These features ensure that traders receive both the tools and the opportunities needed to succeed, making Top One Trader a great investment for those serious about scaling their trading career.
Here’s what sets them apart:
1. High TrustPilot Rating
With an excellent TrustPilot rating of 4.6, Top One Trader has earned high marks for its good trading experience, fast withdrawals, and reliable support, building its reputation as a trusted and well-regarded choice in the industry.
2. Fastest Payouts in the Industry
Top One Trader is renowned for its lightning-fast payments; withdrawals are usually processed in under two hours. Compared to other prop firms, which might take days or even weeks to execute payouts, this is a significant benefit. Instant access to money is hugely helpful for traders who depend on their trading revenue.
3. Generous Profit Splits
Top One Trader offers a generous profit split system that rewards consistent performance. Traders can get a Standard profit split of 75% can be increased to 90% at checkout. Most prop firms provide a 70% to 80% profit split.
4. Scalability
Traders may expand their accounts from $200,000 to $5 million with Top One Trader’s exceptional scaling plan. This scalability is designed to provide traders with a valuable opportunity to grow their capital and advance their trading careers.
5. Educational Resources and Support
Top One Trader goes above and beyond when it comes to providing instructional tools. In addition to weekly coaching from experts and market insights, traders who invest in a challenge can access comprehensive video coaching and high-quality education programs covering trading strategy, risk management, and mindset.
This kind of continuous assistance is beneficial for traders who wish to advance their trading skills. Additionally, Top One Trader provides live chat customer service around the clock, with an average response time of under 30 seconds. This guarantees that traders can always get help when needed.
6. Transparent and Fair Evaluation Process
At Top One Trader, the assessment procedure is clear-cut and unambiguous. Traders are required to finish the challenge with attainable profit targets that evaluate risk management and profitability.
The profit targets for the 2-step challenge are 8% for Phase 1 and 5% for Phase 2, which are easy to achieve. Compared to other prop firms, it’s a great deal.
7. No Restrictions on Trading Styles
Top One Trader provides traders with greater flexibility in their trading approaches. You can trade freely using EAs (Expert Advisors) and hold positions overnight and even over weekends, allowing you to execute deals whenever you see fit without restrictions.
8. No Time Limits
Unlike many firms, Top One Trader imposes no time constraints on their challenges, allowing traders to work at their own pace. This allows participants to avoid unnecessary pressure and focus on executing their trading strategies effectively.
9. Flexible Challenge Process
Top One Trader accommodates different trader needs and preferences. It offers funded trading accounts with options like a one-step challenge, a two-step challenge, and instant funding. The one-step and two-step challenges provide a phased approach for traders to prove their skills, while the instant funding option allows traders to begin with live trading capital right away, skipping the evaluation phase.
10. Trading Platforms
Top One Trader provides a range of advanced trading platforms, such as cTrader, known for its advanced analytics and automated trading features, and Match Trader and Trade Locker, both of which integrate seamlessly with TradingView. This combination with TradingView allows users to make use of simple charting tools, market insights, and customizable indicators.
Top 5 Cheapest Prop Firms
Here’s a list of the cheapest challenges in the prop trading industry:
1. The 5%ers
Known for its straightforward approach and scaling opportunities, The 5%ers is ideal for traders of all levels. It offers a balanced combination of low costs, supportive policies, and robust training programs.
Evaluation Fee: $39 for a $5,000 account. The firm’s entry-level fees are among the lowest in the industry, making it accessible for new traders.
Profit Split: 80%-100%, one of the highest offered.
Drawdown Limits: 5% daily loss limit, 10% overall.
Additional Info: Offers challenges ranging from $5,000 to $100,000, with scaling opportunities as traders prove consistent profitability.
2. E8 markets
E8 Funding stands out with its customizable options, allowing traders to tailor their experience. This flexibility makes it an attractive option for those seeking specific account parameters.
Evaluation Fee: Starting at $37 for a $5,000 account. (This challenge comes with basic terms and conditions, including a 6% overall drawdown and a 40% payout share.)
Profit Split: Varies based on chosen parameters, offering competitive flexibility between 40 % and 100%.
Drawdown Limits: Flexible options from 6% to 14%.
Additional Info: Traders can customize account size, drawdown limits, and profit splits, providing unparalleled control over their trading terms.
3. Funding pips
Rated 4.4 on Trustpilot, a Dubai-based prop firm that empowers traders from over 195 countries.
Evaluation Fee: $36 for a 5k Account (cheapest challenge).
Profit Split: Flexible.
Drawdown Limits: 5% daily loss limit, 10% overall.
Additional Info: Account sizes range from 5K to 100K. They offer 1-step, 2-step, 3-step, and instant funding accounts.
4. The Funded Trader
Affordable prop firm with frequent discounts, The Funded Trader emphasizes trader success through accessible entry points and supportive policies.
Evaluation Fee: $49 for a $5,000 account.
Profit Split: 80%-95%, ensuring traders retain a significant portion of their earnings.
Drawdown Limits: Standard industry limits.
Additional Info: Regularly offers promo codes and discounts, further reducing entry costs.
5. Goat Funded Trader
Designed for budget-conscious traders, this firm is the cheapest prop firm, offering low-cost challenges without compromising on quality or support.
Evaluation Fee: $30 for a $5,000 account; $15 for a $2,000 account.
Profit Split: Competitive profit splits Up to 95%.
Drawdown Limits: 5% daily, 10% overall.
Additional Info: Challenges range from $2,000 to $150,000, allowing traders to start small and scale up as they gain confidence.
Note: The prices of these challenges are variable and may fluctuate based on promo codes, special occasions, or seasonal discounts.
Conclusion
Choosing the right prop firm requires balancing cost with value. While low fees are enticing, they shouldn’t come at the expense of quality tools, transparent rules, and reliable support. The best firms offer a combination of affordability and features that genuinely help traders succeed.
Top One Trader stands out by providing competitive pricing, flexible evaluation processes, fast payouts, and top-notch educational resources. Whether you’re an experienced trader or just starting out, they deliver the tools, opportunities, and support you need to scale your trading career effectively. By focusing on both cost and value, you can position yourself for success and take your trading to the next level.
