Prop firms fall into two categories: futures prop firms and forex or multi-asset prop firms. Top futures prop firms include Topstep, Apex Trader Funding, MyFundedFutures, Tradeify, and Take Profit Trader. Top forex and multi-asset firms include FTMO, FundedNext, Velotrade, Funding Pips, and The5ers. Both categories use evaluation programs to assess trading consistency before providing access to funded accounts.
What Is a Prop Firm?
A prop firm, short for proprietary trading firm, is a company that allows traders to trade using firm-provided capital rather than relying entirely on their own funds. Most modern prop firms require traders to pass an evaluation that demonstrates trading consistency and risk management before providing access to funded accounts.
Prop firms are often used by traders who want to demonstrate consistency before gaining access to larger trading resources. Instead of trading a large personal account, traders complete an evaluation that measures profitability, risk management, and rule compliance. Most firms operate through either futures markets or forex and multi-asset CFD markets, which is why understanding the difference between these categories is important before comparing platforms.
Prop Firm Key Terms
| Term | Meaning |
| Evaluation Account | An account used to demonstrate trading ability while following predefined rules. |
| Evaluation Fee | The cost paid to participate in an evaluation program. Fees vary by platform and account size. |
| Profit Split | The percentage of profits shared between the trader and the firm. Many firms offer between 80% and 90% of profits to the trader, while some offer higher percentages under certain conditions. |
| Drawdown | A risk-management limit that measures how much account value can move from a reference level before the account reaches its defined risk boundary, and trading for that session or evaluation is paused. |
| Daily Loss Limit | The maximum decline permitted during a single trading session, when this level is reached, trading pauses for the remainder of that session |
| Funded Account | The account is provided after completing an evaluation. |
| Payout | The process through which traders receive their share of profits according to platform rules. |
| Consistency rule | A consistency rule limits how much of the total profit can come from a single trading day. For example, a 50% consistency rule means one day cannot account for more than 50% of total profits used for a payout calculation. |
Learn How a Typical Prop Firm Process Works
Before comparing firms, it helps to understand the typical path from joining a prop firm to receiving payouts.
| Stage | What It Means |
| Purchase an Evaluation | Most prop firms require traders to join an evaluation program before accessing a funded account. |
| Follow Trading Rules | Traders are expected to operate within predefined risk parameters, such as drawdown limits or daily loss limits. |
| Reach the Profit Target | The evaluation usually includes a performance objective that must be achieved while following the rules. |
| Complete the Assessment | Some firms use a single-step evaluation, while others use multiple phases. |
| Receive a Funded Account | Traders who complete the assessment may gain access to a funded account. |
| Earn Profit Splits | Profits are shared between the trader and the firm according to the platform’s payout structure. |
Most firms also offer the option to reset or restart an evaluation, allowing traders to apply what they learned from the previous attempt
Why Are Futures Prop Firms and Forex Prop Firms Different?
Futures prop firms and forex prop firms are different because they provide access to different markets, use different trading platforms, and often apply different evaluation and risk-management structures. Futures firms focus on exchange-traded futures contracts, while forex prop firms typically offer currencies and other asset classes through CFD-based trading environments.
The difference goes beyond the products being traded.
The Markets They Provide Access To
Futures prop firms focus on futures contracts traded on centralized exchanges. These can include stock index futures, commodity futures, energy products, and interest-rate contracts.
Forex and multi-asset prop firms typically provide access to currency pairs, stock indices, commodities, cryptocurrencies, and shares through CFD-based trading environments. A CFD (Contract for Difference) is a financial product that allows traders to speculate on price movements without owning the underlying asset directly. This generally gives traders a wider selection of markets within a single account.
The Trading Platforms They Use
Because the markets are different, the technology used is often different as well. Futures firms commonly support platforms such as NinjaTrader, Tradovate, Rithmic, and TradingView. These platforms are designed specifically for futures market participation.
Forex and multi-asset firms often use platforms such as MT4, MT5, cTrader, DXtrade, or Match-Trader, which support a broader range of asset classes.
How Evaluation Rules Can Differ
Evaluation requirements vary across both categories, but the focus is often different.
Many futures firms emphasize consistency, drawdown management, and trading discipline within exchange-traded markets. Forex and multi-asset firms often structure evaluations around maximum daily loss limits, overall account limits, and account-specific trading conditions.
Comparing firms within the same category often provides a clearer picture because the products, platforms, and evaluation structures are designed around similar trading environments.
Comparison Table: Futures Prop Firms
| Firm | Profit Split | Main Advantage | Drawdown Style | Consistency Rule |
| Topstep | 90/10 (first $10,000 fully retained by trader) | Long operating history and TopstepX platform | End-of-Day | Yes (50%) |
| Apex Trader Funding | 90/10 (first $25,000 fully retained by trader) | Multi-account trading, Drawdown account selecting flexibility, and simplified rules | Intraday or EOD options | Yes (50%) |
| MyFundedFutures | 90/10 (first $10,000 fully retained by trader) | Fast payouts and select plans with no activation fees | End-of-Day | Yes (40%) |
| Tradeify | 90/10 (first $15,000 fully retained by trader) | End-of-Day drawdown structure | End-of-Day | No |
| Take Profit Trader | 80/20 to 90/10 | Early payout access | Live Intraday | No |
Intraday drawdown updates throughout the trading session as account value changes, while End-of-Day drawdown is calculated after the trading session closes. Some traders prefer End-of-Day models because temporary intraday fluctuations have less impact on account status.
Regional Availability Note: Most futures prop firms operate globally and support traders across Asia, Europe, North America, Australia, and parts of the Middle East. However, account availability, payment methods, and participation eligibility may vary based on local regulations and company policies. Traders should verify regional access before purchasing an evaluation.
1. Topstep – Best for Long-Term Structure
Topstep focuses on structure, longevity, and consistency. It is one of the longest-running futures prop firms and offers its proprietary TopstepX platform alongside popular third-party platforms.
Key Strengths
- Established reputation
- Proprietary TopstepX platform
- Multiple platform choices
- Strong payout history
Important Rules
- 50% payout consistency requirement
- Daily loss limits apply
Best For: Traders who value structure, consistency, and an established operating history.
2. Apex Trader Funding – Best for Multi-Account Traders
Apex Trader Funding focuses on flexibility and scalability. It has become popular among futures traders globally, particularly among traders using Tradovate, NinjaTrader, and Rithmic-based futures environments. Their recent updates simplified many legacy rules and introduced a one-time payment model for evaluations.
Key Strengths
- Up to 20 accounts can be traded simultaneously
- One-time payment evaluation structure
- Simplified rule set
- Multiple futures platforms supported
Important Rules
- Six-payout limit on certain Performance Accounts
- Overnight holding restrictions
- Payout safety-net requirements
Best For: Active futures traders who want flexible rules and the ability to manage multiple funded accounts.
3. MyFundedFutures – Best for Fast Payout Processing
MyFundedFutures emphasizes accessibility and quick payout processing while maintaining a straightforward futures-focused structure.
Key Strengths
- Select plans with no activation fees
- Fast payout processing
- Multiple futures platform integrations
Important Rules
- 40% consistency requirement
- Profit buffer requirements
- Positions must be closed before market close
Best For: Traders who prioritize payout speed and straightforward account structures.
4. Tradeify – Best for End-of-Day Drawdown Traders
Tradeify differentiates itself through its End-of-Day drawdown model, which some traders find easier to manage than continuously updating intraday calculations.
Key Strengths
- End-of-Day drawdown calculation
- WealthCharts integration
- Multiple platform choices
Important Rules
- Maximum of five funded accounts
- Scaling opportunities may differ from those of some competitors
Best For: Traders who prefer drawdown calculations that update after the trading session rather than throughout the day.
5. Take Profit Trader – Best for Flexible Withdrawals
Take Profit Trader is known for providing access to withdrawals without extended waiting periods once account requirements have been satisfied.
Key Strengths
- Flexible withdrawal structure
- Multiple futures account sizes
- Simple payout process
Important Rules
- Intraday trailing drawdown calculations
- Profit buffer requirements may apply
Best For: Traders who prioritize payout flexibility.
Comparison Table: Forex and Multi-Asset Firms
| Firm | Profit Split | Main Advantage | Market Focus | Evaluation Style |
| FTMO | 80/20 to 90/10 | Long-term reliability | Forex & CFDs | Two-Step |
| FundedNext | 80/20 to 95/5 | Evaluation of profit sharing | Multi-Asset | Multiple Models |
| Velotrade | Up to 90% | Crypto-focused trading | Crypto & CFDs | Varies |
| Funding Pips | Up to 100% | Low entry cost | Forex & CFDs | Multiple Models |
| The5ers | Up to 100% via scaling | Direct funding paths | Forex & CFDs | Growth-Based |
Regional Availability Note: Forex and multi-asset prop firms often face different regulatory requirements across jurisdictions. Platform access, CFD availability, payout options, and account types may vary by country. Traders should confirm eligibility and supported payment methods within their region before joining a program.
6. FTMO – Best for Reliability
FTMO remains one of the most recognized prop firms among European and international traders due to its long operating history and structured evaluation process.
Key Strengths
- A structured trading environment with professional-grade rules and platform options
- MT4, MT5, and cTrader support
- Established operational history
Important Rules
- Two-step evaluation
- Daily and overall loss limits
Best For: Traders seeking a structured and established forex prop environment.
7. FundedNext – Best for Payout Flexibility
FundedNext has built a particularly strong presence among traders across Asia, the Middle East, and other international markets through its multiple account models and global payout infrastructure.
Key Strengths
- Profit sharing during certain evaluation phases
- Multiple account types
- Fast payout processing
Important Rules
- Restrictions vary by account model
- News and weekend trading policies may differ
Best For: Traders who want multiple account options and payout structures.
8. Velotrade – Best for Crypto-Focused Traders
Velotrade emphasizes cryptocurrency and multi-asset trading with API-friendly infrastructure.
Key Strengths
- Supports cryptocurrency position trading alongside selected multi-asset markets
- API integration for advanced trading workflows
- Weekend trading and position holding permitted
- Designed for traders who require greater flexibility than many traditional prop firm models
Important Rules
- Trading conditions may vary during high-volatility crypto events
Best For: Traders who primarily trade cryptocurrency markets, use automated trading tools or APIs, and want the flexibility to hold positions during weekends.
9. Funding Pips – Best for Low-Cost Entry
Funding Pips is known for offering relatively accessible evaluation options and fast payout processing.
Key Strengths
- Lower-cost evaluations
- Fast payout processing
- Multiple account options
Important Rules
- Platform availability may change
- Security and account-sharing policies apply
Best For: Traders looking for accessible entry costs.
10. The5ers – Best for Growth-Focused Traders
The5ers emphasizes account growth and scaling opportunities through its funding programs.
Key Strengths
- Scaling-focused structure
- Direct funding pathways
- Long-term account growth model
Important Rules
- Strict risk-management requirements
- Defined drawdown limits that reflect the program’s growth-focused structure
Best For: Traders focused on gradually increasing account size over time.
Which Type of Prop Firm Is Better for Beginners?
Neither category is automatically better. Futures prop firms may suit traders who prefer centralized markets and simpler product selection, while forex and multi-asset prop firms may appeal to traders seeking broader market access. The right choice depends on trading goals, platform preferences, account rules, and regional considerations.
The best choice depends on:
- Markets you want to trade
- Preferred trading platform
- Evaluation structure
- Profit-sharing model
- Risk-management rules
- Available payout methods
- Regional availability and eligibility requirements
- Time-zone compatibility with market hours and account resets
- Local tax considerations related to trading income
International traders should also verify that a prop firm accepts traders from their country, supports convenient payout methods, and operates on schedules that fit their local time zone. Daily loss resets, payout calculations, and trading hours are often based on US market schedules, so understanding these timings can help traders in Asia, Europe, and Oceania plan their trading sessions more effectively.
Important Risk Considerations
Prop firm evaluations involve real fees, and funded accounts require adherence to specific rules. Completing an evaluation demonstrates that a trader can follow rules and manage risk consistently; ongoing funded account performance depends on applying those same standards across live trading sessions.
Before purchasing any evaluation:
- Review all rules carefully
- Understand drawdown calculations
- Confirm payout requirements
- Verify platform compatibility
- Check local tax obligations regarding trading income
Requirements and policies can change over time, so reviewing current platform documentation is always recommended.
Risk Disclosure: Futures trading involves substantial risk of loss and is not suitable for all traders. Past performance is not indicative of future results. Only risk capital should be used.
Conclusion
Choosing the right prop firm comes down to matching the platform to the market a trader wants to trade and the account structure that fits their goals. Futures traders and Forex traders operate in different environments with different rules, and the firm that works best is the one whose evaluation structure, risk rules, and payout process align with how a trader actually trades.
