Forex prop trading firms have gained immense popularity among traders, offering them the chance to trade with significant capital while sharing a portion of their profits. These firms evaluate a trader’s skills, usually through an assessment phase, and provide access to funded accounts once the evaluation is passed. For traders, especially those looking to scale without risking their own funds, these firms are game changers. In this article, we will explore the six best forex trading prop firms for 2024, outlining their features, benefits, and why they stand out in the competitive world of forex trading.
What Is a Forex Prop Trading Firm?
A forex proprietary (prop) trading firm offers traders access to capital after they pass a rigorous evaluation process. These firms split the profits with traders, typically offering between 70% to 90% to the traders. By joining a prop firm, traders benefit from larger capital without risking their own money, allowing them to focus on honing their strategies.
Let’s dive into the top forex prop trading firms for 2024.
1. FTMO
FTMO remains one of the top choices for forex prop traders, thanks to its structured and transparent evaluation process. FTMO stands out for its strict risk management rules and the potential to scale accounts significantly.
Key Features:
Evaluation Process: FTMO requires traders to pass a two-step evaluation phase. The first phase asks traders to reach a 10% profit target with no more than 5% daily drawdown. In the second phase, the target drops to 5%, making the process rigorous but fair.
Profit Split: FTMO offers an 80/20 profit split in favor of the trader, allowing traders to retain a significant share of their profits.
Capital Scaling: Traders can scale their accounts by 25% every four months if they consistently hit profit targets and adhere to risk management rules.
Case Study:
A trader who joined FTMO in early 2023 started with a $100,000 account and earned over $10,000 in profits within three months by following FTMO’s rules. The trader successfully scaled to a $200,000 account and is now earning $16,000 quarterly through disciplined trading.
2. MyForexFunds
MyForexFunds has quickly emerged as one of the most flexible prop trading firms, catering to both beginners and experienced traders. The firm offers a variety of account types with low entry fees, making it accessible for traders at all levels.
Key Features:
Multiple Account Types: Traders can choose between rapid, evaluation, or accelerated accounts. The rapid accounts allow beginners to start immediately, while evaluation accounts offer a more traditional route to funding.
Profit Split: Up to 85% of the profits are retained by traders, making it one of the most generous profit-sharing models.
Flexible Entry: The evaluation process is affordable, and traders can start with as little as $50 for some account types.
User Feedback:
Traders appreciate the flexibility and quick funding opportunities MyForexFunds offers. Many highlight the “rapid accounts” as an easy entry point into the world of prop trading without the need for a lengthy evaluation process.
3. The5ers
The5ers is a unique prop firm that emphasizes long-term growth and sustainability. It allows traders to build their accounts steadily with a more lenient risk management structure, making it ideal for swing traders and those using long-term strategies.
Key Features:
Scaling Plan: Traders can scale their accounts up to $4 million, offering ample opportunity for growth as long as they meet consistent performance metrics.
Profit Split: Traders start with a 50/50 profit split, but this can increase as they scale their accounts and demonstrate strong performance.
Relaxed Risk Management: Unlike other firms, The5ers has more lenient drawdown and risk management rules, which benefit swing traders and those who trade less frequently.
Case Study:
In 2022, a trader started with a $25,000 account at The5ers. By utilizing a long-term strategy and maintaining risk discipline, they grew the account to $100,000 over 12 months. This success led to more relaxed profit split terms and continued growth opportunities.
4. Topstep Forex
Topstep Forex is ideal for traders who are looking for both education and funding. The firm focuses on helping traders develop solid risk management practices and encourages them to refine their trading strategies through feedback and coaching.
Key Features:
Coaching Support: Topstep offers feedback and coaching to help traders improve their trading habits and risk management skills, making it particularly appealing for beginners.
Profit Split: Topstep offers a generous 90/10 profit split, allowing traders to retain the bulk of their earnings.
Two-Phase Evaluation: The evaluation process ensures that traders meet profit targets while maintaining proper risk management, emphasizing consistency and discipline.
User Feedback:
Traders appreciate Topstep’s emphasis on education and coaching. Many report improvements in their trading skills after receiving personalized feedback from the firm’s experienced mentors.
5. Fidelcrest
Fidelcrest is known for its straightforward evaluation process and high capital access, making it a solid choice for experienced traders who want to access larger funds quickly. The firm offers both standard and aggressive accounts, catering to different risk appetites.
Key Features:
Large Capital Access: Fidelcrest provides traders with access to up to $1 million in capital, depending on the account type they choose.
Profit Split: Traders start with an 80/20 split and can increase it based on performance.
Straightforward Evaluation: The firm’s evaluation process is simple, and traders appreciate the lack of hidden rules or fine print.
Case Study:
A trader in 2023 completed Fidelcrest’s evaluation and gained access to a $200,000 funded account. Over the next six months, they earned $18,000 in profits, keeping 80% of the earnings. Fidelcrest’s straightforward evaluation and transparent rules helped the trader focus on generating consistent returns.
6. E8 Funding
E8 Funding is a newer entrant in the prop trading space, but it has gained rapid popularity due to its focus on technology and fast evaluation process. Traders benefit from real-time analytics and performance metrics to help them refine their strategies.
Key Features:
Fast Evaluation: Traders can complete the evaluation process in as little as eight days, giving them quick access to funded accounts.
Profit Split: Traders receive an 80/20 split, which can increase based on performance.
Advanced Analytics: E8 Funding provides traders with detailed performance dashboards, offering real-time feedback on risk exposure, drawdown, and win rates.
User Feedback:
Traders love the speed at which E8 Funding provides access to capital. The firm’s use of advanced analytics tools has also been praised, as it helps traders make more informed decisions during the evaluation process.
Trends in Forex Prop Firms for 2024
1. More Flexible Evaluation Processes
Prop trading firms are increasingly offering flexible evaluation processes to accommodate different trading styles. Firms like MyForexFunds and The5ers allow traders to complete evaluations at their own pace, providing more opportunities for success.
2. Higher Profit Splits
As competition among prop firms grows, many are offering higher profit splits to attract top talent. Firms like Topstep and MyForexFunds are leading the way with generous 90/10 and 85/15 splits, respectively.
3. Integration of Advanced Technology
Several firms are now integrating advanced performance tracking tools to help traders analyze their trading strategies in real-time. Firms like E8 Funding are spearheading this trend, using analytics to help traders refine their risk management and improve profitability.
Conclusion
The best forex prop trading firms of 2024 offer a combination of generous profit splits, flexible evaluation processes, and opportunities for traders to scale their accounts. Whether you’re a beginner looking for educational support or an experienced trader aiming to access larger capital, firms like FTMO, MyForexFunds, The5ers, Topstep Forex, Fidelcrest, and E8 Funding provide the tools and resources necessary for success.
