In recent years, new and seasoned traders have enjoyed various activities to help diversify their profiles. Proprietary trading, or simply prop trading, refers to the recruitment of skilled traders and providing them with tools and funding. It’s a golden opportunity if you want access to capital while being backed by a reputable financial institution.
For aspiring traders, the best forex prop firms offer bridges in gaps concerning real-time data, ever-evolving technologies, and training resources. Prop trading companies will give you the helping hand you need to find success in this field.
Discover the top-picked forex prop trading firms by checking out this guide!
How it Works
Operational structures may vary per proprietary trading company. Nevertheless, the best forex prop firms establish physical offices that are conducive to traders’ professional growth. Other trading houses may implement a remote work setup to broaden their workforce pool on a global scale.
Conventionally, trading companies allow newcomers to explore their options via a demo account. However, many prop trading firms prefer granting qualified traders a real account and giving a certain amount of capital.
Once you start generating profits, the trading house will take a portion of what you made. The value will depend on the agreed upon terms you signed as the company’s prop trader. For instance, some of the best forex prop firms may share a 50/50 split with you. Others may work on an unequal split based on various factors set by the agency.
In some cases, you may have to shoulder a ‘desk fee’ for resources such as software and utilities. It’s best that you consider such charges before offering your trading skills in proprietary trading.
5 Best Forex Prop Firms Reviewed
These popular forex proprietary trading companies are abuzz in the market today. Find the reasons why we handpicked these firms below!
1. FTMO
Based in Prague, FTMO is a reputable prop trading company established in 2015. It provides various tools and rich educational resources, which are mainly the reasons why traders aspire to join this firm.
This trading house features the ‘FTMO Challenge’, which is a rite of passage for new traders. At the beginning, you will get a demo account and review materials to go over. Passing each step including the evaluation process grants you access to payouts once you start trading.
- Well-respected prop firm with high trust scores.
- Transparent terms and fees.
- Traders can enjoy as much as 90% profit share.
- Substantial leverage
- cTrader, MT4, and MT5 accounts
- More broker information is lacking
2. Fidelcrest
One of the best prop firms today is Fidelcrest, lauded for its security and generous profit splits. Founded in 2018, this trading house grants you the freedom to choose a challenge. You have the chance to go the ‘high risk, high reward’ route or trade as normal. Either way, you can enjoy flexible trading parameters, which not many companies offer.
Fidelcrest is the perfect choice if you want to explore your potential in trading. That said, you should also come in with a handful of tricks up your sleeve to make the most profit.
- Profit splits as much as 90/10 in favor of the trader.
- Flexible account size to accommodate all kinds of traders.
- MT4 and MT5 accounts with algorithmic trading.
- Nearly 175+ assets spanning 5 sectors.
- No management team details.
3. Optiver
Boasting several decades of trading expertise, Optiver rightfully joins this best of the best list. Headquartered in Amsterdam, it is a top market maker with many offices across Europe. The company also has a global presence, providing liquidity and smooth trading even when market conditions are volatile.
Risk management and transparency are some of the strengths of Optiver. Additionally, its technological advancement is noteworthy—a great reason why it’s still here despite being founded in 1986.
- High trust rating due to transparency policies.
- Leader in market making.
- Robust risk management systems.
- Intense, internally competitive prop trading house.
4. Elite Trader
A relatively new prop firm, Elite Trader is another popular choice for best forex prop firms. It offers access to as many as twenty trading accounts. It also has praiseworthy customer service, which is a delight if you prefer a responsive trading company.
There are minimal rules in Elite Trader, which grant you freedom to trade in markets and instruments you choose. It rewards exemplary traders with a favorable profit split, as well as news trading and monthly discounts.
- Free trial account available.
- Multiple accounts (up to 20).
- Traders can get as much as 90% profit share.
- No overnight trades.
- Lacking educational sources.
- Funded accounts follow consistency rules.
5. Funded Traders
At the top of asset selections is Funded Traders, a market leader that boasts over 300 assets. Although it is one of the strictest companies, it can lure you in with its discounts and 75% profit share. It features a one-step evaluation, making it easier for traders to get on the fray faster.
- Six account options for qualified prop traders.
- 75/25 profit split in favor of the trader.
- One-step evaluation period.
- Strict drawdown rules.
- Lacking information regarding withdrawals.
Best Forex Prop Firms: Explaining the Concept
Proprietary trading is the practice wherein a financial organization or entity offers various trading instruments to traders. One of the vital provisions is access to capital in exchange for a cut in the generated profits.
Since prop trading features a specialized setup, it also aims to recruit proficient traders who know how the industry ticks. You can delve into different markets and put your skills into trading in stocks, futures, commodities, currencies, and the like. The main objective is to maximize the capital allocated by the company by generating profit.
While many companies focus on prop trading solely, there are other financial institutions that practice it, too. Commercial and investment banks, hedge funds, commodity trading firms, and more may also involve themselves in this sector.
Benefits of trading with forex prop firms
Is foreign exchange prop trading worth trying for you? Here are some of the advantages you can score once you get onboard.
Access to Capital
Forex prop companies will provide you with ample starting capital for you to try trading different financial instruments. It’s a great opportunity to grow your account and discover markets that you have yet to experience.
Support from Experts
The best forex prop firms have a team of experts who can offer mentorship and guidance for you. There are many things to learn from experienced prop traders, including strategies and ideal industry practices.
Trading Technology
The trading industry is highly competitive, which is why many companies invest in advanced trading tech. You can access sophisticated platforms, analytics, and data feeds that give you an edge in the market.
Training and Education
Whether you are just starting out or a seasoned trader, there are still many things to learn about the industry. Many prop trading houses offer training and courses to boost your skills and strategies.
Managing Risks
Every trader faces certain risks, regardless of their aggressiveness in the market. As such, it’s crucial that you understand what is at stake when you start trading. Fortunately, the best forex prop firms have risk managers to help traders make suitable choices.
How to choose the best forex prop firms
With many options in the prop trading sector, how can you choose the best company to start your career? Firstly, your skills and preferences will matter in your selection. Not all forexproprietary trading agencies will have the same offers, which is why you must weigh the pros and cons before joining.
There are several pointers you can look out for when choosing a prop trading house. You must evaluate not only their fees and conditions, but also notice the withdrawal process. Is it easy? Is it too restrictive? Often, how a firm approves withdrawal requests demonstrates your freedom as a prop trader.
In addition, you should review the risk management parameters and if they are appropriate for your risk appetite. It’s good to join a company that will have your back regardless of your trading strategies.
Lastly, you can check for their compliance, educational tools, and other factors that affect their legitimacy. You will fare better as a trader in a company that prioritizes the safety and security of its talent pool.
Make sure to read the terms and conditions to learn more about the forex prop firm you are eyeing. Doing so helps you arrive at a sound, informed decision that could potentially enrich your trading experience!
Bottom Line
The best forex prop firms deliver the right opportunities, tools, and learning you will need as a trader. You need to align yourself with a company that implements the best strategies and boasts a competitive edge in the sector.
This guide is just a way to help you start in forex proprietary trading. Over time, you can explore more options and discover why so many traders are getting into this business!
