Prop trading gives traders access to a firm’s capital instead of relying on their own funds. The arrangement is simple: the trader generates profits in the market, and those profits are shared between the firm and the trader based on a predefined split. These programs cover a wide mix of markets, including forex, indices, stocks, commodities, futures, and cryptocurrencies.
For beginners, prop trading firms create an entry point that feels structured and realistic without requiring a large upfront investment. Each firm offers its own style of evaluations, rules, and profit-sharing models, which means the experience can vary widely. Some firms focus on flexibility and accessibility, while others emphasize discipline, risk management, or a strong educational foundation.
Among the current options, five firms stand out for new traders:
- OneFunded – the most beginner-friendly option with flexible rules and low fees
- FTMO – strong structure for disciplined, systematic traders
- FundedNext – the most aggressive profit potential
- Topstep – ideal for futures traders
- The Funded Trader – popular for its community
Understanding how these firms operate makes it easier to choose one that aligns with your goals.
How Prop Trading Works
Most prop firms use a “Challenge” or “Evaluation” to test you. This is a test to see if you can trade well and manage risk. Once you pass, you get a funded account.
There are two main challenge formats you will see:
- The 2-Step Challenge: This is the most common. You must hit a profit target in Phase 1, and then again in Phase 2, while following all the risk rules.
- The 1-Step Challenge: A simpler, faster path. You only need to pass one phase to get funded.
Features of Prop Trading for Beginners
With so many options available, we knew we needed a clear and fair method to find the best prop firms for traders, closely examining each firm against a strict checklist.
Our goal was to identify which companies offer the most value, fairness, and support to their traders. We focused on the factors that truly matter to you when you’re risking your time and money on an evaluation. We judged each firm on these five key pillars:
- The Challenge Rules: We looked for fair and achievable profit targets. More importantly, we scrutinized the drawdown rules, whether it’s a static (fixed) or a trailing drawdown, as this is one of the most critical factors for a trader’s success.
- Profitability for You: This goes beyond the profit split percentage. We considered the starting split, how it can grow, the speed and reliability of payouts, and whether the firm refunds your evaluation fee.
- Costs & Value: It’s not just about the price tag. We asked: Is the challenge fee reasonable for the opportunity? Are there hidden costs? Does the firm offer good value for what you pay?
- The Trading Experience: A firm can have great rules, but if it doesn’t support your style, it’s a bad fit. We evaluated the trading platforms offered, the assets you can trade, and the flexibility for different strategies like news trading or using EAs.
- Support & Growth: We valued firms that invest in their traders’ success. This includes strong customer support, educational resources, clear scaling plans to grow your account, and a proven track record of paying traders.
Quick Comparison Table
| Firm | Min Account | Max Profit Split | Challenge Fee (Min) | Key Assets | Trading Platforms |
| OneFunded | $2,000 | 90% | $23 | Forex, Crypto, Stocks, Indices, Metals, Commodities | cTrader, TradeLocker |
| FTMO | $10,000 | 90% | €89 | Forex, Indices, Commodities, Crypto, Futures | MT4, MT5, cTrader, DXTrade |
| FundedNext | $6,000 | 95% | $119 | Forex, Indices, Commodities, Metals, Crypto, Energy | MT4, MT5, cTrader, TradingView |
| Topstep | $50,000 | 100% | $49 | Futures, Indices, Metals, Commodities, Crypto, Energy | TradingView, Bookmap, Tradovate, NinjaTrader |
| The Funded Trader | $5,000 | 90% | $65 | Forex, Indices, Commodities, Crypto, Gold | MT5, cTrader, Match Trader |
Risk & Reward
Risks
- The evaluation fee may be lost if profit targets aren’t met.
- Drawdown limits restrict how large losses can go during challenges.
- Market volatility can cause fast, unexpected losses.
Rewards
- Access to professional-level capital without using personal funds.
- High profit splits (in some cases up to 95 %).
- Potential to scale into larger accounts.
- A structured environment that simulates real trading.
List of Best Prop Firms for Beginners
1. OneFunded – Best Overall Choice for Beginners
- OneFunded Founded: 2024
- Min Account: $2,000
- Max Profit Split: 90%
- Challenge Fee: $23–$395
- Key Assets: Forex, Crypto, Stocks, Indices, Metals, Commodities
- Trading Platforms: cTrader, TradeLocker
- Payout Methods: Bank Transfer, Crypto
Evaluation Types Table
| Feature | One-Step Challenge | Two-Step Challenge | 1F Limited Challenge |
| Profit Target | 10% | 8% / 5% | 7% / 4% |
| Max Daily Loss | 4% | 5% | 5% |
| Max Drawdown | 6% | 10% | 11% |
| Challenge Fee | $29–$395 | $23–$361 | $25–$135 |
| Account Sizes | $2,000–$100,000 | $2,000–$100,000 | $2,000–$25,000 |
| Payout Schedule | Bi-weekly / weekly | Bi-weekly / weekly | Bi-weekly / weekly |
2. FTMO – Structured and Professional
- Founded: 2015
- Min Account: $10,000
- Max Profit Split: 90%
- Challenge Fee: €89–€439
- Key Assets: Forex, Indices, Commodities, Crypto, Futures
- Trading Platforms: MT4, MT5, cTrader, DXTrade
- Payout Methods: Bank Transfer, Skrill, Crypto
Evaluation Table
| Feature | Two-Step Challenge |
| Profit Target | 10% / 5% |
| Max Daily Loss | 5% |
| Max Drawdown | 10% |
| Challenge Fee | €89–€439 |
| Account Sizes | $10,000–$100,000 |
| Payout Schedule | On-demand after 14 days |
3. FundedNext – Maximum Profit Potential
- Founded: 2022
- Min Account: $6,000
- Max Profit Split: 95%
- Challenge Fee: $119–$15,000
- Key Assets: Forex, Indices, Commodities, Metals, Crypto, Energy
- Trading Platforms: MT4, MT5, cTrader, TradingView
- Payout Methods: Bank Transfer, Crypto
Evaluation Table
| Feature | Stellar 1-Step | Stellar 2-Step | Stellar Lite | Express Model |
| Number of Phases | 1 | 2 | 2 | Varies |
| Time Limit | Unlimited | Unlimited | Unlimited | Varies |
| Minimum Trading Days | 2 | 5 | 5 | 10 |
| Profit Target | 10% | 8% / 5% | 8% / 4% | 25% / 5% |
| Max Daily Loss | 3% | 5% | 4% | 5% |
| Max Overall Drawdown | 6% | 10% | 8% | 10% |
| Challenge Fee | $49+ | $99+ | $32+ | Varies |
| Profit Split | Up to 90% | Up to 90% | Up to 90% | Up to 90% |
| Account Sizes | $5,000–$200,000 | $5,000–$200,000 | $5,000–$200,000 | Varies |
| Payout Schedule | 5 days then bi-weekly | 21 days then bi-weekly | 21 days then bi-weekly | Bi-weekly |
4. Topstep – Focused on Futures Trading
- Founded: 2011
- Min Account: $50,000
- Max Profit Split: 100%
- Challenge Fee: $49
- Key Assets: Futures, Indices, Metals, Commodities, Crypto, Energy
- Trading Platforms: TradingView, Bookmap, TopstepX, Tradovate, NinjaTrader, Quantower, Sierra Chart, MultiCharts, MotiveWave
- Payout Methods: ACH, Wise, Bank Wire
Evaluation Table
| Feature | Trading Combine (Evaluation) |
| Number of Phases | 2 (Step 1 and Step 2) |
| Time Limit | No Limit |
| Minimum Trading Days | 2 (Per Phase) |
| Profit Target | Varies by account size |
| Maximum Daily Loss | Varies by account size |
| Maximum Overall Loss | Trailing drawdown (End of Day) |
| Challenge Fee | Monthly Subscription (Starts at $49) |
| Profit Split | 100% of the first $10K, then 90% |
| Account Sizes | $50,000 – $150,000 |
| Payout Schedule | Daily/Weekly (after 5 winning days) |
| Scaling Plan | Yes |
| Trading Instruments | Futures |
| Trading Platform | TopstepX, NinjaTrader, TradingView |
| EAs Allowed | Yes (with restrictions) |
| Copy Trading | Yes (on TopstepX and Quantower) |
5. The Funded Trader – Community and Promotions
- Founded: 2021
- Min Account: $5,000
- Max Profit Split: 90%
- Challenge Fee: $65
- Key Assets: Forex, Indices, Commodities, Crypto, Gold
- Trading Platforms: MT5, cTrader, Match Trader
- Payout Methods: Riseworks, Crypto
Evaluation Table
| Feature | Instant Funding | One-Step Challenge |
| Number of Phases | 0 (You are funded immediately) | 1 |
| Time Limit | No Limit | No Limit |
| Minimum Trading Days | 1 | 5 |
| Profit Target | No Target | 8% |
| Maximum Daily Loss | 5% | 5% |
| Maximum Overall Loss | 10% (Trailing) | 10% (Trailing) |
| Challenge Fee | $149 – $899 | $50 – $375 |
| Profit Split | 80% – 90% | 80% – 90% |
| Account Sizes | $25,000 – $150,000 | $25,000 – $150,000 |
| Payout Schedule | Every 2 weeks | Every 2 weeks |
| Scaling Plan | Yes | Yes |
| Trading Instruments | Futures | Futures |
| Trading Platform | NinjaTrader, Tradovate, TradingView | NinjaTrader, Tradovate, TradingView |
| EAs Allowed | Yes | Yes |
| Copy Trading | No | No |
Final Thoughts: Your Path to Funding
The world of prop trading offers an incredible opportunity for traders to break free from their own minuscule capital. You now have a clear, detailed picture of the five best firms ready to back you.
The perfect firm for you depends entirely on your personal trading style, goals, and personality. Use this guide as your roadmap, take your time to consider what matters most to you, and take that first confident step toward trading with the capital you deserve.
FAQs
1. Are prop trading firms suitable for beginners?
Yes. Many firms provide clear rules, risk management frameworks, demo accounts, and educational resources to support learning.
2. What is the average cost to start a prop trading challenge?
Challenge fees range from $23 (OneFunded) to over $15,000 (FundedNext large accounts), depending on account size.
3. Which platforms are most commonly used?
MetaTrader 4/5, cTrader, TradingView, and proprietary platforms like TradeLocker are widely used.
4. How much profit can beginners keep?
Profit splits generally range from 80%–95%, with some firms offering up to 100% on specific programs (Topstep).
5. Are automated trading strategies allowed?
Yes, firms like OneFunded and FundedNext allow Expert Advisors (EAs) and copy trading.