Tips for Selecting a Prop Trading Firm

With so many options out there, picking the right proprietary trading firm can feel overwhelming. While funding requirements and costs matter, there are other critical factors to look at before deciding which firm best suits your style and goals.

Company Reputation

You can learn a lot about a prop firm by looking at reviews on platforms like Trustpilot. If a firm has numerous complaints or questionable policies, it’s a good idea to look elsewhere especially now, as new financial regulations from the CME are on the horizon. It’s often wiser to wait until a new firm has proven itself before trusting it with your trading capital.

Customer Support and Reliability

Reliable, accessible support is non-negotiable in the world of trading. Top firms typically offer multiple support channels—email, Discord, or even built-in support widgets. MyFundedFutures, for example, is known for quick response times while Topstep is known for it's supportive community and being the pioneer of this industry. No firm is ever perfect, but if you see a growing number of serious complaints, treat that as a red flag. With these 2 prop firms you shouldn't run into many problems but if venturing out to any new ones please take care and do your due diligence.  

Flexibility in Trading Platforms and Tools

New firms sometimes lack the platforms and data connections that experienced traders rely on. Adapting to an unfamiliar platform is rarely ideal, so make sure the firm you choose supports the software or strategies you prefer. For instance, NinjaTrader and Tradovate recently stopped partnering with certain newer firms, so it’s crucial to verify availability. Some firms, like Topstep and MyFundedFutures, even develop their own trading tools.

Withdrawal and Payout Policies

Some firms have hidden or convoluted withdrawal policies that can make it tough to access your earnings. Always dig into the FAQs and terms for any red flags. A speedy payout process is a major plus MyFundedFutures, for example, is known for exceptionally quick withdrawals.

Funding Costs and Fees

Look beyond the headline price to uncover all fees associated with getting funded, including evaluation and activation charges. Most prop firms have similar commission structures, but differences can add up. For example, MyFundedFutures doesn’t impose large activation fees, whereas Topstep charges $149. Keep all of these costs in mind when choosing your firm.

Be Prepared Before You Start

Don’t jump into a funded evaluation until you’re fully ready, practice on a sim account first, following the same position sizing, drawdown, and other rules required by the firm. You’ve probably heard the warning about risking only what you can afford to lose, and that definitely applies here. Set a strict monthly budget and steer clear of the cycle of constant resets if you hit a rough patch.

RISK DISCLOSURE

Never risk money you can’t afford to lose. Futures, foreign currency, and options trading involves significant risk and isn’t suitable for everyone, traders can lose more than their initial investments. Only risk capital should be used for trading, and only those with sufficient risk capital should consider it. Past performance is not necessarily indicative of future results, and most traders do not succeed.