If you’re a forex trader looking to grow your capital without risking personal funds, proprietary trading firms (prop firms) offer a powerful solution. These firms let you trade their money after passing a structured challenge. This guide breaks down everything you need to know about prop firms, including how they work, how to pass the challenge, and which ones are most trusted in 2025.
Top Prop firm Comparison Table
| Prop Firm | Model | Max Capital | Profit Split | Drawdown | Platform | Fee (Base) |
|---|---|---|---|---|---|---|
| FTMO | Two-Phase | $400,000 | Up to 90% | 5% / 10% | MT4 / MT5 / cTrader | €155 (10k) |
| The Funded Trader | 2-Phase / Instant | $600,000 | Up to 90% | 6% / 12% | MT4 / MT5 | $139 (25k) |
| Top One Trader | One-Phase | $200,000 | Up to 90% | 5% / 10% | MT4 / MT5 | $89 (10k) |
| FundedNext | Two-Phase / Instant | $300,000 | Up to 90% | 5% / 10% | MT4 / MT5 | $99 (15k) |
| The5ers | Instant / Challenge | $400,000+ | 50% – 100% | 4% – 6% | MT5 / Web | $85 (6k) |
| MyForexFunds | Evaluation / Instant | $2,000,000 | Up to 85% | 5% / 12% | MT4 / MT5 | $84 (10k) |
| True Forex Funds | Two-Phase | $200,000 | Up to 80% | 5% / 10% | MT4 / MT5 | €89 (10k) |
| E8 Funding | Two-Phase | $250,000 | 80% | 5% / 8% | MT4 / MT5 | $138 (25k) |
| Alpha Capital Group | Two-Phase | $200,000 | Up to 90% | 5% / 10% | MT5 | £125 (10k) |
| Lux Trading Firm | One-Phase | $2,500,000+ | Up to 75% | 4% / 6% | MT4 / MT5 / DXTrade | €349 (25k) |
| The Trading Pit | Evaluation | $500,000 | 50% – 80% | 5% / 10% | MT4 / MT5 | €99 (10k) |
What Are Prop Trading Firms?
Prop trading firms fund skilled traders with virtual capital usually between $10,000 to $400,000. In return, they take a share of your profits (typically 10–25%) while you keep the rest.
The catch? You must pass a challenge to prove you’re consistent, disciplined, and profitable.
How Do Prop Firm Challenges Work?
Before you’re funded, you go through an evaluation stage. Common challenge rules include:
- Profit Target: 8%–10% within 30 days
- Drawdown Limit: 5% daily and 10% total
- Time Limit: 30–60 days depending on the firm
Each firm has different terms. For example, Top One Trader offers a one-phase model with weekly payouts, while FTMO uses a more traditional two-phase process (FTMO Review).
How to Pass a Prop Firm Challenge
Passing the challenge is the hardest part. Here’s what matters:
- Stick to proper risk management (1–2% per trade max)
- Avoid revenge trading and overtrading
- Use a consistent strategy (scalping, swing, etc.)
- Trade only during high-probability setups
We’ve written a detailed section on this here: How to Pass a Prop Firm Challenge (upcoming post).
Best Prop Firms in 2025 (Reviewed)
We’ve personally reviewed and compared top prop firms this year:
- FTMO: Transparent, global, and ideal for structured traders
- The Funded Trader: Community-focused with high profit split
- Top One Trader: Fast payouts and low-cost entry
- FundedNext: Unique scaling plan and dual challenge options
Each firm has pros and cons depending on your strategy, drawdown tolerance, and payout expectations.
Prop Firm Evaluation Models
There are three main types of funding models:
- Two-Phase Challenge – Used by FTMO & FundedNext
- One-Phase Model – Preferred by Top One Trader
- Instant Funding – Limited risk but smaller split
Some firms offer both. For example, The Funded Trader has both challenge-based and instant options.
Payouts, Profit Splits & Rules Comparison
When choosing a prop firm, consider:
- Payout Frequency: Weekly or Monthly
- Profit Split: Ranges from 75% to 90%
- Rules: Some firms are strict on consistency or news trading
You can read how this works with real examples in our FundedNext review.
Which Prop Firm Is Best for You?
- New Traders: Try Top One Trader (one-step, no pressure)
- Experienced Swing Traders: FTMO or FundedNext
- High-Frequency Scalpers: Choose firms with flexible lot sizing and no trading restrictions
Also explore forums like Forex Factory or r/Forex to see real trader feedback.
Frequently Asked Questions
Is prop firm trading legit?
Yes — as long as you choose a firm with transparent rules, fair funding models, and a track record.
What happens if I fail the challenge?
You lose the fee. Some firms offer discounts or retry programs.
Can I use EAs or bots?
Most firms allow it, but always check the rules.
Can I trade crypto with prop firms?
Yes, many firms allow crypto pairs on MT5 platforms.