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Written By
G. Dautovic
Updated
February 23,2024
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In the world of proprietary trading, the decision of which prop firm to join is a critical one for traders. While profitability is the ultimate goal, the importance of affordability cannot be understated. In this article, we will explore the key factors that traders should consider when seeking cost-effective offers from proprietary trading firms. We will delve into aspects such as fees, profit splits, account sizes, and trading platforms, guiding you through the process of identifying the most affordable options available.
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Cheapest Prop Firms in 2024
Topstep
4.9 stars Our Rating
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Get Funded
Topstep
4.9 stars Our Rating
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
TRADABLE ASSETS: Futures, Contracts
PROFIT SPLIT: Initial profit split of 100% on the first $10,000, followed by a 90% profit share after
EVALUATION: Yes
REFUNDABLE REGISTRATION FEE: Non-refundable registration fee
TRADING PLATFORMS: Trading platforms include TSTrader, Quantower, Sierra Chart, T4, MotiveWave, and more
LEVERAGE: Leverage offered up to 1:100
PRICE: Starting price from $49
MAXIMUM CAPITAL: $150,000
KEY FACTS
OVERVIEW
ABOUT THE COMPANY
- Trading in futures
- Guidance through digital coaching
- Access to futures with a buying power of up to $150,000
Topstep is renowned as a top-tier proprietary trading firm specializing in futures trading. It caters to traders with varying experience, from seasoned professionals to newcomers, with a primary focus on nurturing sound trading practices. The firm prides itself on its support team, comprising industry experts dedicated to helping traders achieve their financial goals.
Diverse Account Options:
Topstep's platform is designed to serve a diverse audience of full-time traders and enthusiasts, offering a range of futures trading accounts. These accounts provide traders with the flexibility to choose their preferred buying power, with options ranging from $50,000 to $150,000. Each account comes with distinct profit targets, maximum drawdowns, and loss limits. For instance, the smallest account starts with a daily loss limit of $2,000, while the $150k account has a limit of $4,500. It's important to note that an evaluation process is mandatory to attain a live trading account with Topstep, and the company does not offer a refundable registration fee.
Support for Beginners:
Topstep excels in providing valuable resources and support for beginners in the world of proprietary trading. The Group Coaching program, led by seasoned traders, offers a structured learning experience for those looking to refine their trading skills and enhance their individual performance. Additionally, the platform offers Digital Coaching, a real-time trading guide designed to assist traders in crafting effective trading plans and accelerating their progress toward achieving their trading goals.
Topstep, established in 2012 and headquartered in Chicago, has garnered a global presence, attracting traders from 143 different countries. In the year 2020 onwards, Topstep's user base successfully withdrew over $23 million in payouts for funded traders. The company enjoys a stellar rating of 4.4 out of 5 on Trustpilot and has achieved recognition on Inc. Magazine's prestigious list of the 5,000 fastest-growing private companies in the United States.
What to Consider when Looking for Cheap Prop Firms
To understand the significance of affordability, let's first look at how costs influence a trader's choice of prop firm. Proprietary trading firms vary widely in their fee structures, profit-sharing models, and account size requirements. Some firms may charge high fees and demand larger account sizes, while others offer more favorable terms. As a trader, it's essential to balance the potential for profit with the costs involved.
Identifying Affordable Offers:
Affordable offers typically include favorable profit splits, low-cost evaluation processes, and transparent fee structures. Traders should look for firms that provide a clear breakdown of their costs, enabling them to calculate potential earnings accurately.
Critical Factors for Traders:
Affordability doesn't mean compromising on important factors like leverage, trading strategies, and platform choices. These elements can significantly impact overall costs in prop trading:
- Leverage: Choose a firm that offers competitive leverage ratios to maximize your trading potential while keeping costs in check.
- Trading Strategies: Consider a firm that allows you to implement your preferred trading strategies without excessive restrictions.
- Platform Choices: Opt for a trading platform that aligns with your trading style and provides essential tools and data.
Additional Benefits:
Also look for firms that provide:
- Robust customer support to address your queries and concerns promptly.
- Access to educational resources to enhance your trading skills.
- Advanced trading tools and analytics to make informed decisions.
Navigating Promotions and Discounts:
To further reduce costs, traders can take advantage of promotions, discount codes, and other offers provided by prop firms. Keep an eye out for promotional periods and special offers that can provide additional savings.
A Short Guide on How to Maximize Profits when Trading
Maximizing profits in trading requires a combination of strategy, risk management, and discipline. It's crucial to approach every trade with a well-thought-out plan. Here are some tips that may help to maximize profits when trading.
Choose the Right Broker:
Start by selecting a reputable and regulated prop firm and broker. Ensure they offer a wide range of assets, fair payout percentages, and competitive pricing.
Educate Yourself:
Invest time in learning about trading and the underlying assets you intend to trade, taking advantage of the education systems provided by your prop firm. Understanding market trends, analysis methods, and economic events can further improve your decision-making when making trades.
Develop a Trading Strategy:
Create a clear and tested trading strategy that includes entry and exit points, risk management rules, and criteria for selecting trades. Strategies could include trend following, range trading, or news-based trading.
Practice with Demo Accounts:
Most brokers offer demo accounts that allow you to practice trading without risking real money. Use these accounts to test your strategies and gain confidence before trading with real funds.
Manage Risk:
Never invest more than you can afford to lose in a single trade. Set a maximum risk per trade, typically between 1-5% of your total trading capital. This helps protect your account from significant losses.
Diversify Your Portfolio:
Don’t put too much of your funds into a single trade. Diversify your trades across different assets and timeframes to spread risk.
Use Technical and Fundamental Analysis:
Analyze both technical charts and fundamental data to make informed decisions. Technical analysis can help with entry and exit points, while fundamental analysis can assist in predicting market sentiment.
Stay Informed:
Keep track of economic calendars, news releases, and market events that can influence the underlying assets you are trading. Sudden market movements can impact binary options.
Use Risk-Reward Ratios:
Calculate your potential risk and reward for each trade. Ensure that your potential reward justifies the risk you are taking. A common rule is to aim for a risk-reward ratio of at least 1:2.
Set Stop-Loss and Take-Profit Orders:
Some brokers allow you to set stop-loss and take-profit orders, even in binary options. These can help you automatically exit trades at predetermined levels.
Keep Emotions in Check:
Emotions like greed and fear can lead to impulsive decisions. Stick to your trading plan and avoid chasing losses or overtrading.
Review and Analyze Trades:
After each trade, evaluate your performance. Identify what worked and what didn't. Adjust your strategy based on these insights.
Continuous Learning:
The binary options market is dynamic, and it's essential to adapt and refine your strategies as market conditions change. Stay up to date with market developments and trading techniques.
Remember that trading involves risk, and there is no foolproof strategy to guarantee profits. However, by following these tips and maintaining discipline, traders can increase their chances of success and maximize profits while managing risk effectively.
Frequently Asked Questions
Which prop firm has the lowest fees?
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The 5%Ers offer a very inviting deal for $39 which gets you $5000 in trading capital. This 2-step trading challenge is possibly the cheapest currently available.
Are there free prop trading firms?
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No. If you wish to practice trading without paying for a service upfront consider making a demo account through a regular brokerage. You can read up on these free offers on our dedicated paper trading page.
How much does a prop firm charge?
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It varies a lot depending on your account type, level of account and success record. Prop firms may take anywhere from 20% to 50% of profits you make, possibly more, depending on the terms of your account. Make sure to look around before signing up.
Which is the most trusted prop firm?
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All of the firms featured on this page service thousands of accounts daily and are well-known brands and companies in the prop trading industry. Popular prop firms such as The 5%Ers, Topstep, Fidelcrest, FTMO, FundedNext, to name a few, are popular and well-recognized as a result of years of successful trader funding and talent nurturing.
How do I choose a good prop firm?
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Make sure to sign up with a firm that will allow you to trade in the way you wish to trade. Your trading strategy should be at the forefront of the evaluation process you implement when searching for a suitable prop firm. Secondly, consider the fee structure and profit splits depending on account tier. If you’re happy with these terms and think you can reach the profit targets required, then consider signing up. There is no one ‘best’ prop firm, rather it's much more personal and tailored to each trader’s needs and trading strategies.
