Best Forex Proprietary Trading Companies in Germany
Best Forex prop firm in Germany is Topstep
Top Forex prop firms in Germany are:
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Topstep - best for futures trading
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FundedNext - beginner-friendly offers
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Traddoo - loyal trading conditions
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The 5%ers - best instant deposit prop firm
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FTMO - up to 2M funding account
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Earn2Trade - 10% profit target
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E8 Funding - Wide choice of challenge terms
Are you looking to break into the world of Forex trading and experience the potential for big returns? If so, then you may be interested in learning about the best Forex prop companies in Germany.
Proprietary trading firms are a great way to get started on your path to success, as they provide risk-free accounts and allow traders to demonstrate their skills while being funded by an experienced international player.
This article will provide a definition of prop trading, discuss its pros and cons, list the top 7accounts, explain if it is legit in Germany, give tips on how to choose one's account, discuss subscription fees and answer some FAQs related to prop trading in Germany.
Is Forex prop trading a good idea in Germany?
Forex prop trading is a type of trading program offered by certain companies, where traders are provided with an account funded by the company and can trade on behalf of the company.
This type of trading is becoming increasingly popular in Germany as it provides traders with the opportunity to demonstrate their skills and be rewarded for their efforts.
The main benefits of Forex prop trading programs in Germany are that they provide risk-free accounts, allowing traders to hone their skills without risking their own capital.
Additionally, many of these companies are well-known international players, providing German clients with access to a wide range of markets and products.
However, there are also some drawbacks to consider when considering Forex prop trading programs in Germany. Qualifying for these programs can be difficult as they often have strict rules and requirements which must be met before being accepted into the program. Additionally, fees may apply for transactions that can add up over time.
Top 7 prop trading accounts
1 Topstep
With its brand power and reputation as an industry innovator and one of Inc 5000’s fastest-growing companies, Topstep has earned the trust of many traders. To participate in the funded account program, all traders begin with the Trading Combine. You can open a real-time simulated futures account with $150K, $200K, or $300K buying power.
During the Trading Combine, you can earn a funded trading account if you demonstrate consistent profitability and manage risk appropriately. Using Topstep's capital, you can trade in real time without personal financial risk, with funds provided by Topstep.
As quickly as within eight trading days, traders can qualify to receive a funded account (the amount of funding provided is determined by the Trading Combine plan)
The first $5,000 in profits you make can be withdrawn in full, and 90% of profits exceeding that amount can be withdrawn
With Topstep, payout requests are processed on a daily basis (payout requests made prior to 10 a.m. CT are processed on the same day)
Topstep’s trader development services include instruction from professional traders, tools, and daily live videos, along with personalized analytics on performance and bonuses for traders
Trading platforms supported include TSTrader, TradingView, NinjaTrader, Sierra Chart, MultiCharts, R|Trader Pro, and many more.
For a $50k account, Topstep pricing starts at $165 per month. $100k accounts cost $325 per month, and $150k accounts cost $375. Free trials are also available for 14 days.
2 FundedNext
FundedNext offers skilled traders an opportunity to showcase their expertise and potentially manage a substantial trading account. Through a structured challenge system, successful participants can start trading with up to $200,000 in capital and retain up to 95% of the profits generated.
The firm provides three distinct challenge types: Evaluation, Express, and Stellar (+Stellar Lite), each tailored to accommodate various trading styles and preferences. These challenges are designed to identify and nurture trading talent, offering different profit targets, time constraints, and profit split arrangements. Traders can increase their profit split by participating in the scale-up program and opting for exclusive add-on features. The cost of the most affordable 5k account at Stellar Lite Challenge is only $32 and the fee is refundable.
FundedNext distinguishes itself by offering a range of features to support and incentivize traders, including a 15% profit share from challenge phase profits, no time limits on the challenge phase, and a unique approach to drawdown calculation based on account balance.
The firm supports multiple trading platforms, such as MetaTrader 4, MetaTrader 5, and cTrader, while providing advanced tools, expert advisors, and robust security measures.
3 Traddoo
Traddoo offers traders two challenge pathways to qualify for funded account access: the 1-Step Challenge and the 2-Step Challenge.
The 1-Step Challenge provides a streamlined option for traders confident in their ability to be consistently profitable while managing risk. Traders must meet a single objective benchmark to receive funding.
Alternatively, the 2-Step Challenge features a two-phase structure. In Phase 1, traders aim to achieve a 10% profit target while observing strict risk controls like a maximum 5% daily loss and 10% overall drawdown. Successfully completing Phase 1 leads to Phase 2, where traders must gain an 8% profit under the same risk parameters.
Additionally, Traddoo allows traders to scale their account size through demonstrated performance over time. Consistently achieving a 10% profit across 3 months rewards traders with a 50% increased account balance.
To assist traders, Traddoo supplies educational resources, trading tools, and a supportive community. Webinars, courses, and one-on-one coaching help traders sharpen their skills and bolster their chances of funding qualification.
4 5%ers
The 5%ers are known for their unique ways of handling forex funded accounts. These methods may be beneficial to traders who would like to try something different.
The 5%ers take a completely different path from the other apps on this list. Each funded trading account is a live, real-money funded trading account funded by The5ers and tradeable by subscribers.
All forex majors such as EUR/USD, USD/CHF, and key cross-currency pairs such as AUD/CAD and GBP/JPY are tradable assets. Each trader must complete the Level 1 Program with a profit target ranging from 10% to 25%.
The Level 1 Program will be closed once the profit target has been archived by trading according to the guidelines. Profit will be distributed in accordance with the profit split, and a new trading account on the next higher financing level will be established with you as a Portfolio Manager Partner. The entry cost ranges from $275 to $875. The 5%ers offer a 50/50 split on profits.
5 FTMO
FTMO is a trustworthy prop trading company with a focus on Forex trading. You must go through three steps before getting a funded trading account:
Before you can meet the profit goals, you have to complete the FTMO Challenge in 30 days
The 60-day Verification Phase follows, wherein you must demonstrate that you can replicate your FTMO Challenge success
After you complete the FTMO Challenge and the Verification two-step assessment process, FTMO extends an invitation to trade their funds on accounts with balances ranging from $10,000 to $400,000
The trader retains 80% of the profits. For accounts that have already been funded, however, an extra scaling plan lets traders increase the profit split in their favor for up to 90/10 with account levels as high as $2,000,000.
Trading is possible with 44 currency pairs and 10 of the biggest and most well-known cryptocurrencies. Some cash indices, stock CFDs, and commodities can also be traded. The fees on FTMO start at 155 euros and go up to 1080 euros.
6 Earn2Trade
Earn2Trade provides three distinct funded trading programs - The Gauntlet Program, The Gauntlet Mini, and the all-new Trader Career Path Program.
A one-time payment is required for the Gauntlet program. Traders manage a $25,000 virtual account for 60 days, during which they must trade on at least 30 days and at least once every week. If they follow the guidelines and meet the 10% profit target; successful candidates will receive a guaranteed funding offer from Helios Trading Partners or Appius Trading.
Topstep Futures and Topstep Forex are similar programs to the Gauntlet Mini. Traders pay a monthly fee and must follow the guidelines. The monthly fee includes trading classes, webinars, and access to Journalytix (TM). Qualifying traders will then receive an offer of a funded trading account.
Earn2Trade's newest program is the Trader Career Path. Traders begin with a $25,000 virtual capital account and are funded with a $25,000 real money account if they pass the Evaluation. After the Evaluation, traders can develop their trading careers and handle assets worth up to $200,000 without paying a monthly subscription fee.
Earn2Trade has the largest variety of trading platforms to choose from, with close to 20 options, including NinjaTrader and Finamark, R|Trader, and MultiCharts.
7 E8 Funding
E8 Funding is a renowned proprietary trading firm, recognized for its versatile platform and attractive profit-sharing model. With flexible account options and a diverse range of trading instruments, traders can align their account size with their goals and explore various markets.
The firm stands out by eliminating monthly fees and adopting a transparent fee structure, ensuring cost-effective trading. Advanced features like weekend trading, advisors, and copy trading, along with the popular MetaTrader platforms, enhance the trading experience. Traders benefit from an 80% profit share and the opportunity to progress through challenges, fostering risk management and discipline.
E8 Funding requires a minimum initial cost of $138 to join their platform. The charge varies depending on the type of account.
At E8 Funding, traders enjoy a favorable profit-sharing structure, with 80% of profits retained. Such a favorable profit-sharing arrangement sets E8 Funding apart and enhances its appeal among traders.
Rules and Regulation
Regulation
German residents can open accounts with foreign prop firms, unless prohibited by the firm's jurisdiction.If traders work with a partner broker, a license allowing it to operate in Germany is required. Such licenses can be issued by CySEC (the Cyprus Securities and Exchange Commission) or BaFin (the Federal Financial Supervisory Authority | Germany).
Investor protection
To view the blacklisted prop firms and their partner brokers, visit websites of BaFin, CySEC, FCA (the Financial Conduct Authority), and other European regulators. If your rights have been violated, file complaints with the above regulators, local law enforcement bodies, or registration authorities in firms’ jurisdictions.
Taxation
The tax rate depends on the declared income for the year. The rate for trading investment assets is up to 25%.
How to choose a prop trading account in Germany?
When looking for a prop trading firm in Germany, here are a few tips to consider:
Do your own research: Research all available firms, both small and large, to find the one that best suits your needs. Be sure to ask questions about their experience and track record, as well as any trading strategies they may be able to offer you
Look at their reputation: Make sure the firm you choose has a good reputation in the industry. Check into customer reviews, read up on the company's history, and understand what kind of experience they have when it comes to trading Forex
Consider capital scaling options: A prop trading firm should give you the option to scale your trading capital up or down, depending on your needs. This is important if you're just starting out in the industry. It lets you trade with as much or as little money as you want at any given time
Don't forget about education & support: Look for a firm that offers educational resources and mentorship programs. These can be invaluable in helping you understand the Forex market and get started on the right foot
Look for an open community: Find a prop trading firm that encourages participation in an open community of other traders. This allows you to share ideas, discuss strategies, and get advice from more experienced traders
Considering these tips, you can ensure that you choose the right prop trading firm in Germany for your needs.
Is prop trading in Germany free?
While it is possible to attract funds for prop trading in Germany, many prop firms charge subscription fees. These fees can vary depending on the firm and the services they provide, but they are generally required to cover the cost of funding and risk management.
Here are some examples of subscription fees for popular prop trading firms:
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The 5%ers: fees start at €235
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Topstep Forex: fees start at $165/month
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FTMO: fees start at €155
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Earn2Trade: The Gauntlet Mini program offers five different account sizes with their respective prices: $150 for $25,000, $170 for $50,000, $245 for $75,000, $315 for 100,000, and $350 per month for the $150,000 account
It's important to note that while prop trading firms do charge subscription fees, they also provide traders with a number of benefits, such as access to trading capital, risk management tools, and training programs. Additionally, many prop firms offer profit-sharing arrangements, which means that traders can earn a percentage of the profits they generate.
So while prop trading in Germany may not be free, many traders find that the benefits outweigh the costs, making it a worthwhile investment.
FAQs
What are the best Forex prop firms in Germany?
The best Forex prop firms in Germany include, The 5%ers, Topstep, FTMO, Earn2Trade. These firms provide access to trading capital, risk management tools, and training programs, as well as profit-sharing arrangements for traders.
Is prop trading legit in Germany?
Yes, prop trading is considered to be a legitimate form of investment in Germany, and there are many reputable international prop trading firms operating in the country. The regulator requires these companies to comply with certain standards and meet certain requirements in order to operate legally.
How can I withdraw money from a prop trading account?
You can withdraw money from a prop trading account by submitting a withdrawal request to the proprietary trading firm by the time limit set by the company. Alternatively, you can click the Withdraw Profits button in your trader dashboard and enter the amount to withdraw. Some firms also allow traders to withdraw their profits in whatever way is most convenient for them.
Is prop trading difficult?
Prop trading can be hard, but if you learn the right strategies and use them well, it is possible to make money. Begin by practicing on a demo account, and familiarize yourself with the tools and strategies used in prop trading.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
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Team that worked on the article
Gianluca is an experienced financial and regulatory advisor and analyst with over a decade of professional experience in the banking sector, trading, and investment services. He currently holds two Economics and Finance Master’s Degrees from Sorbonne University in Paris.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).