Last Updated: February 02, 2023.
Forex trading can be very profitable, but you need at least some initial capital to make serious profits on the market. However, many traders don’t have enough funds to fuel a really profitable account, so they turn to proprietary trading companies that provide funding in exchange for a share of profits.
It is a great way to start your trading career, and experienced traders can also find these funded accounts very beneficial.
To help you understand how these companies work, TU experts have analyzed them, found the most important aspects you should consider, and identified the most novice-friendly option among prop platforms.
Note: Neither we own any trading portals nor we encourage investing in Forex trading unless your local laws permit to do so.
Most important aspects
The experts have compared prop companies using a set of crucial aspects that determine whether a company is reliable and user-friendly or not.
This set includes security, legal status, and regulation as well as reputation: analyzing the latter requires that you pay close attention to online reviews since it’s a great source of first-hand information about any broker.
The experts have also analyzed conditions, account types, and additional features like educational programs and bonuses. All in all, there seems to be one company that really stands out of the crowd: TopstepTrader. Let’s take a closer look at it.
What is a prop trading company? Basically, it’s a financial intermediary that allows you to trade on the market with its own funds in exchange for some compensation.
TopstepTrader follows that scheme: it gives you up to $500,000 for management, and you can use that deposit to trade futures or currency pairs.
However, you can’t just take the money and do whatever you want: first, you have to prove that you understand how trading works and show your skills during the two-stage trial period.
You have to finish the test successfully to be able to create a real account, but you can use a simulation account for practice without any limits.
You have to pay a monthly fee to keep using the platform, and you also pay 20% of your profits back to the company. But these conditions are pretty decent, and just about every TopstepFX review calls them favorable.
There’s also a great educational program that includes everything you need to know about Forex trading, so you can really use it to learn. But there are no passive income options, so if you don’t want to trade actively, you should look elsewhere.