Are you a newbie interested in prop trading but unsure where to begin? Prop trading firms offer a unique opportunity for traders to access large amounts of capital and potentially earn significant profits, but they aren’t all created equal!
For new traders, it can be challenging to find a prop trading firm that meets your needs. But don’t worry; we’ve tried out each prop firm and got you covered!
This article will explore some of the top prop trading firms for beginners. We’ll discuss the key benefits of each firm, including educational tools, mentorship programs, and funding opportunities.
Keep reading for a breakdown of the best prop trading firms for beginners and a general guide to how prop trading firms work!
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4.7FTMO is the premier proprietary trading firm for forex traders. FTMO has a unique 2-step evaluation process to discover trading talent. Successful traders can remotely manage an account with a balance of up to $400,000. FTMO's educational resources, account analysis, and performance coaching provide traders with the tools and support to achieve financial independence. Join FTMO and start trading with confidence.
Join Now Our ReviewChallenge Difficulty:4.3Profit Share:5.0Educational Resources:5.0Customer Support:5.0Community Engagement:4.0Pros:- Well-established and trusted
- Fast scaling plan
- Access data from liquidity providers
- No swing trading limits
- 1:100 leverage
Cons:- Limited trading platforms
- Challenging evaluation process
- Slightly more expensive than alternatives
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4.7Topstep Trading is the ultimate choice for traders looking to excel in the futures market. With a rigorous evaluation process, traders gain access to our state-of-the-art technology, funding opportunities, and support from trading experts. Join Topstep Trading and start trading with confidence.
Join Now Our ReviewChallenge Difficulty:4.0Profit Share:5.0Educational Resources:5.0Customer Support:4.8Community Engagement:4.5Pros:- Access to trading coaching programs
- Well-established and trustworthy
- Access to a dedicated coach
- High payouts and excellent profit splits
- Great community
Cons:- Only 50K, 100K, and 150K funding options
- Non-refundable registration fee
- Limited to futures
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4.5City Traders Imperium is one of the best prop firms on the market. It offers generous profit splits, programs that support different trading styles, and access to top-tier educational content. While the fees are slightly above average, CTI is worth it.
Join Now Our ReviewChallenge Difficulty:3.5Profit Share:4.3Educational Resources:5.0Customer Support:4.0Community Engagement:4.5Pros:- Scaling profit shares up to 90%
- Instant funding available
- Good to educational resources
- Excellent community
- Free trials
Cons:- Slightly higher fees
- No crypto trading
- No 24/7 customer support
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4.2The 5%ers is an excellent prop firm with a great reputation. It offers instant funding, helpful trading resources, and programs for all traders. While the profit split is initially limited, it is still one of the best prop firms.
Join Now Our ReviewChallenge Difficulty:4.4Profit Share:4.0Educational Resources:4.5Customer Support:4.2Community Engagement:4.2Pros:- Instant funding accounts
- Trade up to $4,000,000 (with best spreads, executions, and rules)
- Valuable trading resources and 24/7 customer support
- Fantastic Discord community managed by a $1.2M funded trader
- Some traders may reach a 100% profit share with salary
Cons:- Limited profit split depending on program
- No futures trading
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4.1Lux Trading Firm is a solid prop firm for forex trading and more. It offers massive amounts of capital, attainable profit targets, and the option for one-on-one mentoring. While the profit split is limited, Lux Trading Firm is still an overall excellent choice for traders.
Join Now Our ReviewChallenge Difficulty:4.0Profit Share:3.5Educational Resources:4.5Customer Support:4.5Community Engagement:4.0Pros:- Trade up to $10M
- Quick scaling plan
- Trade multiple assets
- Refundable fees
- Reliable customer support
Cons:- Pricey fees if you don't pass
- Average profit splits
- Challenging drawdown limits
A Closer Look at Our Top Prop Trading Firms for Beginners
FTMO: Best for Forex Category
- What we love about FTMO: FTMO is a reputable prop trading firm that offers fantastic payouts, accelerated growth plans, and educational resources to assist traders of all skill levels.
- Who FTMO is good for: Beginner and expert traders seeking skill development and interested in Forex. FTMO’s Trading Academy provides valuable resources for learning about trading and enhancing your strategies. You can also use FTMO apps to improve your understanding of the markets and analyze why your trades succeed or fail.
Learn more about this prop firm in our FTMO Review!
Topstep: Best for Futures Category
- What we love about Topstep: With competitive payouts, valuable educational tools, and a solid reputation, joining Topstep is a fantastic way to start your futures trading journey.
- Who Topstep is good for: Beginner futures traders. With expert mentors and various educational coaching programs, Topstep is highly beneficial for inexperienced traders who want to enhance their strategies and broaden their knowledge of the futures market.
Learn more by reading our Topstep Review.
City Traders Imperium: Best for Profitability Category
- What we love about CTI: City Traders Imperium provides fast scaling options, unmatched profit-sharing opportunities, and great educational courses that assist traders in achieving success.
- Who CTI is good for: New traders seeking more significant profits. CTI traders can advance through a scaling plan and earn a remarkable 100% profit split! To reach this profit-sharing target, you can enhance your skills using CTI’s various educational courses, including Forex for Beginners and a Build Your Edge psychology course.
Dive into our comprehensive City Traders Imperium Review.
The 5%ers: Best for Instant Funding Category
- What we love about The 5%ers: The 5%ers is a reputable proprietary trading firm that provides instant funding, useful trading resources, and inclusive programs for traders of all levels.
- Who The 5%ers is good for: New traders seeking fast funding. Typically, we don’t suggest instant funding for novice traders. However, The 5%ers has a vast collection of trading resources that can assist beginners in getting funded fast.
This includes educational blogs, classes, videos, courses, and workshops aimed at helping new traders make informed trades. Additionally, they have a Bootcamp Program that allows traders to test their skills before going live.
Learn more at our comprehensive 5%ers Review.
Lux Trading Firm: Best for Big Balances Category
- What we love about Lux Trading Firm: Lux Trading Firm offers new and experienced traders achievable profit targets, substantial account balances, and the opportunity for mentorship from experts.
- Who Lux Trading Firm is good for: New traders seeking massive funding. Lux provides one-on-one mentorship and coaching to help new traders learn and allows traders to manage accounts with up to $10,000,000! If you’re a new trader with big dreams, Lux is an excellent option.
We shine further light on this firm at our Lux Trading Review.
A Beginner’s Guide to the Top Prop Trading Firms for Beginners
What is a prop trading firm?
Prop trading firms offer funded accounts, advanced tools, and educational resources for traders. In exchange, firms receive a share of traders’ profits.
Pros and cons of prop trading firms for beginners
Here are the pros and cons of joining prop trading firms for newbies!
Trade with more capital and less risk
Learn trading tips using the firm’s educational resources
Get help from a community of fellow traders
Potential to earn more than a traditional finance job
Some prop firms have challenges that are difficult for beginners
Not all prop firms offer educational content
Prop trading firms keep some of your profits
Who should not join a prop trading firm?
Prop trading isn’t the best career choice for everyone! It’s not a get-rich-quick scheme, and success is never guaranteed.
If you prefer the predictability of a steady job with a fixed salary, a prop trading firm may not be the best fit for you. However, the rewards can be significant for those who are willing to take on the challenge and have a passion for trading.
How we choose our top prop trading firms for beginners
Our list of the top prop trading firms for beginners has been ranked based on their performance in several essential categories, including:
- Challenge difficulty— How difficult is the evaluation process? Will beginners be able to pass?
- Profitability— Can traders keep a good amount of their profits? Is there opportunity for profit growth?
- Educational resources — What educational support does the prop firm offer new traders?
- Customer support — Can you rely on the customer support team to answer your questions anytime?
- Community engagement — What is the prop firm’s community like? Do they have a platform where traders can discuss their experiences?
Frequently Asked Questions
Are prop trading firms worth it for beginners?
Proprietary trading firms offer beginners a valuable entry point into the trading world, providing financial backing, cutting-edge platforms, and experienced mentorship. Be prepared for stringent screening processes, associated fees, and strict risk management measures; thorough research is crucial before joining a prop firm.
What kind of support do prop trading firms offer for beginners?
Many firms support beginners with educational resources, mentorship, and risk management oversight. Choose a beginner-friendly firm with clear evaluation rules and ample instructive tools.
Do I need experience before joining a prop trading firm?
Prop trading firms often prefer experienced traders, but it’s not always mandatory. Some firms offer demo accounts for skill testing and confidence building before live trading. This allows platform familiarization, strategy practice, and simulated environment assessment.
What are the most common mistakes beginner prop traders make?
Beginner traders frequently commit errors causing unnecessary losses. Common mistakes include overtrading, poor risk management, straying from a solid trading plan, and emotion-driven decisions.
The Bottom Line
If you’re a beginner in the prop trading world, the firms we’ve ranked here offer a great starting point to commence your trading career. From educational resources to mentorship programs, these firms provide a solid foundation for traders looking to gain experience and strengthen their skills.
Remember to do your research, evaluate your options, and choose a firm that aligns with your goals and skill level. There are plenty of prop firms out there, and we encourage you to explore them all with our list of the Best Prop Firms for traders. May your journey as a prop trader bring you great success!
