Best Prop Firms

At H2T Funding, we understand why the idea of trading with large capital attracts so many traders. Yet the prop trading industry’s lack of regulation also exposes traders to sudden risks. Analyses from QuantVPS in 2025 show that more than 90% of traders fail evaluation challenges, a clear indicator of how demanding most prop firm assessments truly are. With many firms using complex rules, it’s essential to review each company carefully, even when considering the best prop firms.

This guide will help you understand how prop firms operate, how to identify transparent rules and fair evaluations, and how to choose a firm that gives you the strongest chance of long-term success.

1. Most popular prop firms worldwide

From my experience, choosing the right prop firm is one of the most critical decisions a trader will make. It’s about finding a partner whose rules and platform align with your unique trading style. To help you, I’ve analyzed the top industry players to give you a clear, straightforward look at what makes each one stand out.

1.1. FTMO

Established in 2015, FTMO is widely regarded as the pioneer of the modern prop trading industry. It built its reputation on a structured 2-step evaluation process designed to identify consistent traders. Their strict but clear rules are a key strength, fostering the discipline required for long-term success.

• Key highlight: A trusted industry leader known for its stability and professional environment.
• Profit split: Starts at 80% and can increase to 90% with their scaling plan.
• Time limit: Challenges have no time limits, which reduces psychological pressure.
• Trading platforms: Supports MT4, MT5, cTrader, and their proprietary DXTrade.
• Account size: Funding options range from $10K to $200K.

1.2. The5ers

Founded in 2016, The5ers differentiated itself by introducing multiple pathways to funding instead of relying solely on the traditional challenge model. The5ers is an excellent choice for traders looking for a firm that feels more like a long-term partnership. Their focus is genuinely on scaling trader accounts over time.

• Key highlight: Offers three distinct funding pathways to suit different trading styles: the Hyper-Growth (1-step), High-Stakes (2-step), and the unique Bootcamp (3-step), which pays traders as they pass each stage.
• Profit split: Varies by program, ranging from 50% to 100%.
• Time limit: No time limit for completing their evaluation programs.
• Trading platforms: Operates on the MT5 and cTrader platforms.
• Account size: Offers accounts from $5K up to $250K with a clear and aggressive scaling plan.

1.3. FundedNext

FundedNext launched in 2022 and quickly gained popularity by offering a highly competitive and feature-rich environment. What sets them apart is their commitment to rewarding traders even during the evaluation phase. FundedNext’s 15% profit share during the evaluation phase provides an uncommon incentive for traders who prefer reward-based progression.

• Key highlight: A 15% profit share from the challenge phase and flexible account options with no time limits.
• Account types: Provides various models, including 1-step, 2-step, and an Instant Funding option.
• Profit split: A generous 80% share, which can increase to 95% for top-performing traders.
• Trading platforms: Supports MT4, MT5, cTrader, and Match Trader.
• Account size: Funding ranges from $2K up to $200K.

1.4. E8 Markets

E8 Markets stands out for its straightforward rules and trader-friendly features. They have built a strong reputation for their flexible trading conditions, such as allowing news trading and holding positions over the weekend. This level of flexibility is particularly valuable for swing traders and anyone whose strategy depends on major economic or news-driven market movements.

• Key highlight: Offers no restrictions on news trading or weekend holding, providing significant flexibility.
• Account types: Features three main programs: E8 One (1-step), E8 Classic (2-step), and E8 Track (3-step).
• Profit split: A competitive 80%, with the potential to scale up to 100%.
• Trading platforms: Supports MT5, cTrader, Match Trader, and TradeLocker.
• Account size: Provides a wide range of funding, from $5K up to $500K.

1.5. Alpha Capital Group

Based in the UK, Alpha Capital Group has carved out a niche by providing traders with advanced tools and a professional environment. What we find particularly impressive is their proprietary trader dashboard, which offers in-depth performance analytics. This is a powerful resource for any trader serious about identifying their strengths and weaknesses to refine their strategy.

• Key highlight: A free, advanced trader dashboard with comprehensive analytics to help traders improve.
• Account types: Offers a clear progression with 1-step, 2-step, and 3-step evaluation programs.
• Profit split: A standard and fair 80% profit share for funded traders.
• Trading platforms: Supports MT5, cTrader, DXTrade, and the newer TradeLocker platform.
• Account size: Funding is available from $5K up to $200K.

1.6. Funding Pips 

Funding Pips has rapidly gained attention for its focus on speed and trader convenience, particularly regarding payouts. Their business model emphasizes fast payouts, with weekly withdrawal cycles that outpace many competitors. For traders who value quick and regular access to their profits, their weekly payout system is a decisive advantage that few competitors can match.

• Key highlight: Renowned for its weekly payout schedule and highly competitive, low-cost evaluation fees.
• Account types: Provides flexible choices, including 1-step, 2-step, and Instant Funding programs.
• Profit split: Starts at a generous 80% and can be scaled up to 100%.
• Trading platforms: Operates on MT5, cTrader, and Match Trader.
• Account size: Offers funding from $5K up to $100K.

As the breakdown above shows, there is no single best prop firm for everyone. The right choice depends entirely on your trading style, risk tolerance, and what you value most in a partner. The next section will guide you through the exact criteria to use when making that critical decision.

2. How to choose the best prop firms

Our evaluation process goes far beyond the headline-grabbing funding amounts and high profit splits. We focus on the details hidden in their rules and trading environment, because that’s what determines a trader’s real chance of success. Our entire framework is built on a few non-negotiable pillars.

Here are the key factors we evaluate before making a decision.

• Reputation and trustworthiness: We start by analyzing a firm’s history and real community feedback, like Trustpilot, Reddit, and Discord. A long, proven track record of consistent and on-time payouts is the absolute baseline for any consideration.
• Evaluation rules: This is where most traders fail. We will scrutinize these three core metrics:
  • Profit target: Is it realistic and achievable within the strategy?
  • Maximum drawdown: Understand if it’s based on initial balance or equity (a trailing drawdown is much harder to manage).
  • Daily drawdown: Check how it’s calculated. Some firms use balance, others use equity, which can impact your risk management.
• Profit split and scaling plan: A great prop firm shouldn’t force a trader to change a winning strategy. We look for flexibility on key issues like news trading, holding positions over the weekend, and the use of EAs.
• Trading conditions & allowed strategies: A great prop firm should not force a trader to change a winning strategy. Therefore, flexibility on key issues like news trading, holding positions over the weekend, and the use of EAs is essential.
• Payout system: A firm’s reliability is proven when it’s time to pay its traders. We prioritize firms with a history of fast, consistent withdrawals, as this is a key indicator of their financial health and trustworthiness.
• Customer support: Finally, no firm makes the list without its support channels being tested. A professional, knowledgeable, and responsive team is a non-negotiable sign of a well-run operation.

This framework allows us to filter out the noise and identify the firms that offer a balanced, fair, and supportive environment. The best prop firm for you is one that provides a genuine opportunity for a disciplined trader to build a successful career.

3. How to become a prop trader

Before you ever think about passing a challenge, you have to focus on building a trader who is actually capable of winning. This isn’t about finding shortcuts or the perfect firm. It’s about forging the skills and the mindset that make you a valuable asset. What that foundational journey will look like:

• Step 1: Learn your playground
• Step 2: Build your personal rulebook
• Step 3: Think about risk first
• Step 4: Develop a professional mindset

Dive into each step and see what becoming a real prop trader truly requires.

3.1. Step 1: Learn your playground

Every market, be it Forex, Indices, or Commodities, has its own unique personality and rhythm. Your first job is to pick one and get to know it intimately. Understand what makes it move, when it’s most active, and what news events cause it to react. Don’t try to trade everything. Become a specialist in one area first.

3.2. Step 2: Build your personal rulebook

A successful trader is a disciplined executor of a proven plan. You must develop your own trading strategy with crystal-clear rules:

• What is your exact entry signal?
• Where do you place your stop loss?
• What are your conditions for taking profit?

Write these rules down. A strategy that only exists in your head is not a strategy; it’s just an idea.

3.3. Step 3: Always think about risk first

New traders are obsessed with making money. Professionals are obsessed with not losing it. Risk management is the single most important skill you will ever learn. Before entering any trade, you must know exactly how much you are willing to lose. This isn’t just about placing a stop loss; it’s about developing a deep respect for your capital.

3.4. Step 4: Develop a professional mindset

This is the internal game, and it’s where most people fail. You must learn to separate your emotions from your trading outcomes. A winning trade doesn’t make you a genius, and a losing trade doesn’t make you a failure. Treat your trading like a business: analyze performance, stick to the plan, and show up every day with discipline, regardless of how you feel.

Becoming a prop trader is less about the final act of getting funded and more about the daily process of becoming a professional. A clear strategy, an obsession with risk management, and a disciplined mindset will make the difference. When you have these, passing a challenge is simply the next step. 

4. Step-by-step guide to joining and succeeding with prop firms

Becoming a prop trader is a clear, skill-based path, not a lottery ticket. This journey transforms you from an aspiring trader into a disciplined professional capable of managing significant capital. The process is straightforward and focuses on proving your ability through consistent action. Here are the essential steps to get funded:

• Step 1: Build a strong foundation
• Step 2: Develop and test a trading strategy
• Step 3: Prove your consistency
• Step 4: Choose the right prop firm
• Step 5: Pass the evaluation with discipline
• Step 6: Succeed long-term after getting funded

Let’s break down each step so you can follow the path with clarity.

4.1. Step 1: Build a strong foundation

First things first, you have to learn the language of the markets. Gain a solid grasp on core concepts like leverage, margin, or hedging. More importantly, make risk management your obsession from day one. This knowledge is the bedrock of your entire trading career; without it, nothing else matters.

4.2. Step 2: Develop and test a trading strategy

A profitable strategy has clear, non-negotiable rules. You need to define your exact criteria for entries, exits, and stop losses. Once you have your rules, test them relentlessly. Start with backtesting on historical data, then move to a demo account to prove it works in today’s live market conditions.

4.3. Step 3: Prove your consistency

This is the step most aspiring traders skip, and it’s a critical mistake. Before you even think about paying for a challenge, prove to yourself that you can win. Trade a demo account for at least one month, following the exact rules of your target prop firm (e.g., 5% daily drawdown, 10% max drawdown). That builds the discipline you’ll need under pressure and confirms your strategy is truly ready.

4.4. Step 4: Choose the right prop firm

Once you’re hitting your goals consistently in a demo environment, it’s time to choose your partner. Revisit the criteria we discussed earlier. Find a firm whose rules on drawdown, profit targets, and allowed strategies align perfectly with the trading style you’ve just proven to be successful.

4.5. Step 5: Pass the evaluation with discipline

Think of this as your final exam. Your one and only job is to execute the proven strategy you’ve been practicing. This is not the time to get creative or chase the profit target. Just follow your plan, manage risk meticulously, and respect every rule. Your disciplined demo trading was the dress rehearsal for this moment.

4.6. Step 6: Succeed long-term after getting funded

Passing the challenge is the starting line, not the finish. Your mindset must now shift from passing a test to running a business. Your number one job is capital preservation. Focus on trading safely to secure your first payout; this is a huge psychological milestone that builds confidence.

Once you are profitable, the real career-building begins. This is where a good prop firm becomes a powerful partner:

• Focus on scaling: Your consistent performance is the key to unlocking larger capital. Follow the firm’s scaling plan methodically. This is how you turn steady gains into a significant, professional-level income.
• Leverage the community: Don’t trade in isolation. Engage with the firm’s community on Discord or forums. Sharing insights with other funded traders is one of the best ways to stay sharp, motivated, and adapt to new market conditions.
• Use their tools: Top firms provide more than just capital. Take advantage of their performance analytics, educational webinars, and support systems. Use these resources to constantly refine your edge and treat your trading like a professional enterprise.

Remember, the entire journey is a marathon, not a sprint. Each step builds on the last, from your initial education to maintaining discipline with a live account. True success comes from treating this as a professional career, where consistent execution and disciplined risk management always win over shortcuts.

5. What are the risks of prop trading?

Prop trading may appear to offer access to large capital with minimal personal financial risk, but the reality is far more complex. The biggest dangers aren’t in the market itself, but in the prop firm model. Understanding these risks is key to protecting yourself and your investment.

• The challenge fee cycle: This is the most common trap. Your biggest financial risk isn’t a bad trade; it’s the cycle of buying and failing challenges. Many firms make most of their money from these fees. If you’re not fully prepared, you can end up spending hundreds or thousands of dollars with nothing to show for it.
• The hidden partner risk: You are placing your trust in an unregulated company. The firm could suddenly change its rules, delay payouts, or even shut down overnight, leaving you with nothing. This is why choosing a firm with a long, stable reputation is so important.
• The psychological pressure: Trading with strict rules like a 5% daily drawdown is incredibly stressful. The fear of breaking a rule can cause you to make bad decisions, like closing winning trades too early or being too scared to take a valid setup. This pressure can wreck a perfectly good trading strategy.
• Complex rules designed to fail you: Some firms use confusing rules that are easy to break by accident. A “trailing drawdown” on your equity is a classic example. It moves up with your profits, making it much harder to manage than a fixed drawdown. Always read the fine print carefully.
• Performance-based survival: You are not an employee; you are a contractor. This means there is no job security. Your access to the firm’s capital depends entirely on your consistent performance. A few bad months could mean you’re out, and you have to start the whole process over again.

These risks aren’t meant to discourage you, but to empower you. Being aware of them changes how you approach the industry. It forces you to do your homework, manage your personal finances carefully, and treat this like a serious business. Success isn’t just about good trading; it’s about navigating these challenges wisely.

6. Common mistakes when choosing a prop firm

We’ve seen traders with solid strategies fail simply because they picked the wrong partner. Your success truly starts with choosing the right firm. Getting this decision right is half the battle, and it begins with sidestepping a few common yet critical mistakes.

6.1. Mistake 1: Chasing the highest profit split

A 95% profit split may appear highly appealing, but it’s often a marketing tactic to distract you from what really matters. Instead of being drawn in by that single number, you should focus on the entire package. A standard 80% split from a firm with fair, realistic drawdown rules and a great reputation is always a much better and safer deal.

6.2. Mistake 2: Ignoring the firm’s real reputation

Don’t just trust the ads or a slick website. In an unregulated industry, a firm’s track record is everything. The smart move is to dig deeper yourself. Spend time on Trustpilot, Reddit, and the firm’s Discord channel to see what real traders are saying, especially about the speed and reliability of payouts. A long, positive track record is worth far more than any flashy promotion.

6.3. Mistake 3: Picking a firm that fights your trading style

A huge mistake is trying to change your strategy to fit a firm’s rules; this rarely works. Instead, you must find a firm that fits you. Before you even start looking, make a short checklist of your non-negotiable needs (e.g., I must be able to hold trades over the weekend). This allows you to quickly eliminate any firm whose rules conflict with your proven style.

6.4. Mistake 4: Not understanding the drawdown rules

This is probably the most expensive mistake you can make. Many traders assume all drawdown rules are the same, but they are not. To protect yourself, you must read the FAQ until you find the exact definition. 

If you’re not 100% sure how a trailing drawdown works versus a static one, ask their support for a clear example. Never pay for a challenge until you understand precisely how you can fail.

Choosing a prop firm is like choosing a business partner. You’re not looking for the one with the flashiest promises. You’re looking for a reliable, trustworthy partner whose rules align with your own strategy. A little extra research up front will save you a massive amount of money and frustration down the road.

7. Tips to succeed with prop firms

Getting the funded account is an amazing feeling, but it’s just the starting line. The real challenge, and the real opportunity, is keeping that account and growing it. I’ve noticed that successfully funded traders share a few core habits, including:

• Trade to survive, not to get rich quickly: Your number one job is no longer to hit a profit target. It’s to protect the firm’s capital. Think of yourself as a risk manager first and a trader second. Focus on small, consistent gains. The big money in prop trading comes from scaling your account over time, not from one heroic trade.
• Secure your first payout: This is a huge psychological milestone. Aim to get your first withdrawal as soon as you’re eligible, even if it’s not a massive amount. The act of getting paid proves to your brain that the process is real. That reduces pressure and helps you trade with a clearer, more confident mindset.
• Master one strategy, one setup: Don’t try to be a jack-of-all-trades. The most consistently profitable traders are masters of one or two specific setups. They know their strategy inside and out and patiently wait for their perfect opportunity. Consistency comes from repeating what works, not from chasing every market move.
• Keep a trading journal like a pro: This is non-negotiable. You must track your trades. Write down your reason for entry, your exit, and how you felt. Reviewing your journal at the end of the week is the fastest way to see your real-world mistakes and strengths. It turns trading from a guessing game into a performance-based skill you can actively improve.

Success with a prop firm boils down to professionalism. It’s about shifting your mindset from passing a test to running a business. Focusing on capital preservation, building confidence with early wins, and mastering your craft through disciplined review, you build a foundation for a long and profitable trading career.

8. FAQs

9. Conclusion

The search for the best prop firms isn’t about finding a single number one-ranked company. As we’ve explored, the ideal partner is the one that aligns perfectly with your individual trading style, risk tolerance, and long-term goals. It’s a critical decision that demands careful research and a deep understanding of what truly matters: fair rules, a solid reputation, and a supportive trading environment.

From the structured approach of industry pioneers to the flexibility of modern innovators, the right firm for you is out there. By avoiding common mistakes and maintaining a disciplined, professional approach, you can transform this opportunity into a sustainable trading career. And as always, platforms like H2T Funding are here to help guide traders toward smarter decisions and long-term success.