Best Funded Trader Programs in the USA
Best Funded Trader Program in the USA is Topstep
Best Funded Trader Programs in the USA:
-
Topstep - the best option for active traders with any trading experience
-
SurgeTrader - the best choice for professional traders, up to 90% profit sharing
-
FTMO - suitable for more experienced traders, profit up to 90%, specializes in Forex, indices, commodities, stocks, cryptocurrencies
-
Earn2Trade - for professional traders, trial period for 15 days, profit share can reach 80%
-
The5ers - great choice for traders using MT5 platform, profit up to 50%
|
1
|
5.7
/10
|
|
|
|
2
|
5.28
/10
|
|
|
|
3
|
6.68
/10
|
|
Funded programs in the USA present a great opportunity for traders to profit and enhance their trading skills without risking their own capital. Companies that offer capital for trading also stand to benefit, as they can substantially increase their profits compared to traditional broker activities, where they earn solely from commissions for managing depositors' resources.
In this article, we will explore the top funded programs for traders in the USA.
-
Is it hard to become a funded trader the USA?
Becoming a funded trader is challenging. To qualify for the program, one must possess advanced skills and knowledge, along with the mental fortitude and discipline to manage pressure and emotions while trading.
What is a Funded Trading Program?
With a funded trader program, traders have the opportunity to trade using a prop firm’s money. You and the proprietary firm share the profits you generate in the funded account.
The trading industry is a thriving field where many people are trying to learn more each day, but it's not just about knowing the basics, it's about knowing how to manage your money and being successful.
It’s becoming easier for people to learn trading skills and strategies online and become consistently profitable traders, however, many individuals don’t have very much investment capital to work with so that they can generate substantial amounts of money from their profitable trades.
By offering trader education resources, webinars, and support, good funded trader programs help you get started in trading with more than just trading capital. It's also important to have a trading platform of the highest quality and a partner company that offers funded accounts of the highest quality.
The advantage of funded trader accounts, as opposed to a Personal Forex account, is the reduced risk. Real-time data and a useful platform are available for a small monthly fee. Once you prove you possess the necessary skills, you’re granted access to a funded account. Upon getting funded, you get to keep up to 90% of the profits that you generate from trading.
👍 Pros of funded trading accounts:
• Funded traders have the benefit of being free to use the funds allocated to their accounts as they see fit.
• Funded traders have access to more immediate capital to make larger market moves than unfunded traders.
• As a funded trader, you're somewhat protected since you don't use your own money.
• Obtaining licensure and passing certification programs can be very challenging for new professionals and solo traders. When you become a funded trader, you get the necessary licenses and certifications to start trading immediately.
• Instead of requiring you to work from an office, most funded trading programs allow you to trade from anywhere you have Internet access.
👎 Cons of funded trading accounts:
• Despite nominal freedom of use, funded traders are required to follow certain rules and regulations under the sponsorship of their company. As part of these rules, there are daily loss limits, maximum positions, and other requirements.
• Being a funded trader also takes time, especially if you lack the knowledge or expertise to take a program immediately.
• It’s possible for your profits to be lower than you expected for the first few years when trading with certain trading companies because they impose enormous fees on their funded traders.
Best Funded Trading Programs in the USA
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 $50K, $100K, or $150K 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 $10,000 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.
SurgeTrader
SurgeTrader offers a 75% profit split to funded traders who meet their trading criteria. It's the perfect prop firm to diversify your investment portfolio with a variety of tradable assets. SurgeTrader has only one phase of evaluation, unlike many other prop firm trading entities that require traders to pass several levels of evaluation.
Traders can choose from six packages. With the Starter Package, you get $25,000 in instant funding and a 10% profit target. There’s a maximum trailing drawdown of 5% allowed. The Starter Package is ideal for beginners who want to avoid overly aggressive trading. With a $1 million funding size and a 75% profit split, the Master Package is the highest-tier account. A 10% profit target is set, along with a four-percent daily loss limit and a five-percent maximum trailing drawdown allowance. If you have a lot of confidence in your abilities, then this package may be for you.
This prop firm offers a wide variety of tradable securities, including crypto and gold, as well as popular stock indices. It’s possible to access leverage up to 1:10.
A top proprietary trading firm, SurgeTrader requires all of its clients to undergo evaluation. You need to pass only one phase of the SurgeTrader Audition process. It’s not necessary to earn over 10% of your account balance in order to pass the audition.
Audition fees range from $200 to $6,500 per account. There’s no limit to how many times you can take the audition. You can use credit/debit cards and PayPal to make payments and withdrawals.
FTMO
FTMO is a prop trading firm that specializes in Forex trading, and has won several awards in the field. FTMO traders received over $23,000,000 in payouts in 2021 with an average payout processing time of 8 hours.
To qualify for a funded trading account at FTMO, you must complete three steps.
-
Within 30 days, you must reach the defined profit goals of the FTMO Challenge.
-
Once you've successfully completed the FTMO Challenge, you enter the 60-day Verification process.
-
FTMO will offer you an account range of $10,000 to $400,000. This is after you pass the two-step evaluation process with the Challenge and Verification.
-
Traders keep 80% of their profits for withdrawal according to the 80:20 profit split. In addition, for funded accounts with account sizes of $2,000,000 or greater, traders have the option to increase their profit split up to 90:10 with a Scaling Plan.
There are 44 currency pairs and 10 cryptocurrencies you can trade. You can also trade stock CFDs, commodities, and indices.
FTMO excels at currency trading, while Topstep excels at futures trading.
Free versions are available of the three most popular trading platforms, MetaTrader 4, MetaTrader 5 and cTrader.
In order to participate in the FTMO Challenge, traders must pay a one-time fee. USD, GBP, EUR, CZK, CAD, AUD and CHF can be used to fund the account, but only Euro can be used to pay the challenge fee. For the $10k account, the participation fee starts at 155 EUR. For the $25k account, the cost is 250 EUR, for the $50k account, 345 EUR, for the $100k account, 540 EUR, and for the $200k account, 1,080 EUR.
Earn2Trade
For $150 a month, Earn 2 Trade offers a Gauntless Mini account with $25K. When you choose the $350 a month option, you can get up to $150K.
In the beginning, you might want to settle for the $150 monthly fee option if you are still developing your trading confidence. Within the first month of receiving this, you might aim for $1750 and above according to the mentorship you’ve been provided with.
By doing so, you won't need to spend any additional money to upgrade your account to the $350 a month option.
Additionally, achieving this feat will give you access to proprietary trading partner accounts.
Upon reaching this point, you'll have access to:
-
A beginner crash course that would otherwise cost $249
-
Access to a trading simulator
-
Access to Journalytix
The5ers
In comparison to the other programs mentioned in this list, The5%ers take an entirely different approach. The5%ers fund each funded trading account with real money, so subscribers can trade with it.
Tradeable securities include all Forex majors, such as EUR/USD, USD/CHF, and major cross pairs, such as AUD/CAD and GBP/JPY. The Level 1 Program requires every trader to achieve a profit target between 10% and 25%.
Upon reaching the profit target by trading according to the rules, the Level 1 Program will be closed. As a Portfolio Manager Partner, you will receive profits according to the profit split, and a new trading account will be opened for you on the next funding level.
A key difference between this trading account and the others is its ease of use. 50:50 profits are split between The5%ers and their members. Accordingly, the trader keeps half of the profit.
Each of the programs is hosted on the MetaTrader 5 trading platform. The participation fee ranges from $275 to $875.
Rules and Regulation
Regulation
In the U.S., prop trading isn't directly licensed because prop firms don't provide financial services to external clients. However, regulators do have indirect influence through the following means:
- Regulators can pressure brokers that work with prop firms. For example, in the past year, brokers licensed by U.S. regulators have replaced those without such licensing.
- Regulators can exert influence on prop firms through their partnerships with companies like software developers and payment systems.
Investor protection
Traders who believe their rights have been violated can file complaints with U.S. regulators. A prominent example is the ongoing CFTC lawsuit against My Forex Funds, where the regulator accuses the prop firm of defrauding traders and misappropriating over $300 million from 135,000 traders over a period of 2 years. If successful, this case could lead to compensation for affected traders.
Taxation
The taxation procedure is similar to Forex and securities market. There is a short-term and long-term capital gains rate for the tax year that is subject to the gains amount. The tax rate, potentially ranging from 0% to 37%, is further influenced by the type of asset traded (e.g., crypto assets, securities) and the trader's residency.
Funded Trading Programs in the USA Compared
For a quick overview of the funded trader programs discussed here, we compiled a table highlighting the important points.
| Best for | Trial period | Profit Share | Cost | Markets | |
|---|---|---|---|---|---|
New day traders |
14 days |
100% |
$495 for 3 month membership, $990 for 6 month membership |
Futures |
|
|
Professional traders |
Based on your plan profit target |
75%-90% |
From $200 to $6,500 |
Futures |
|
|
Experienced traders |
14 days |
Up to 90% |
$139.50 to $972 |
Forex, indices, commodities, stocks, crypto |
|
|
Professional traders |
15 days |
80% |
Bootcamp: $2,499 |
||
|
Traders using MT5 p latform |
None |
50% |
$275 to $875. |
Forex, metals, and indices |
What is the Cheapest Prop Firm?
Offering a chance for their users to trade using the firm’s funds in exchange for a share of the profits, proprietary trading accounts are heaven-sent. This is especially true for traders who have little initial investment capital and would love to gain the experience of trading.
It goes without saying then that the cheapest funded trader programs are those that offer the most minimal and sometimes free rates. While this can be a good thing, sometimes it’s worth it to pay a little more for better conditions.
Cheaper prop firms can be unreliable, and some of them might be using the traders to gain their access fee by providing them with endless challenges. It’s therefore wise to do thorough research before investing your time and your money in any account, especially the less costly ones.
However, don’t let that discourage you. Some inexpensive firms have a lot to offer, and here are three of them:
FTMO
FTMO minimum subscription fee is €155 for $10K accounts with standard profit share is 80/20. The maximum FTMO fee is €1080 for a $200K account.
Topstep
The minimum subscription cost is 165 USD. The maximum Topstep fee is $375 for a $150K account.
SurgeTrader
SurgeTrader charges a $250 minimum and a maximum of $6500 in fees.
How Do I Become a Fully Funded Trader in the USA?
To embark on a funded trading program, it is essential to thoroughly grasp the basics of technical and fundamental analysis, risk management, and master trading strategies and psychology.
Once you have acquired the necessary foundation, proceed with the following steps:
-
Begin with a demo account: Reputable companies often require trainees to start by mastering a demo account. This virtual platform enables you to refine your trading skills before engaging in real-market activities and allows funding companies to assess your long-term potential.
-
Choose a company and enroll in a competitive program: This process typically involves completing an application form, furnishing details about your experience, and undergoing an interview.
-
Complete a trial period: Upon approval of your application, you will likely undergo a trial period to demonstrate your skills and performance.
-
Actively participate: Following a successful probationary period, continue enhancing your knowledge and skills. Demonstrate your commitment to the company by taking on additional responsibilities, such as mentoring other traders or engaging in more advanced programs.
-
Manage risk and uphold accountability: While trading, adhere to your established trading plan, implement your risk management strategy diligently, and maintain thorough records of your trades and performance.
How to Choose a Funded Trading Program in the USA
Here are several crucial factors to consider when selecting a funded trader program in the US:
-
Company Experience: Evaluate the duration of the company's operations and the regulatory bodies overseeing its activities. Checking trading company profiles on the Traders Union portal can assist in this assessment.
-
Trading Conditions: Assess how well the trading conditions offered by the selected firms align with your preferences and trading style. Focus on factors such as asset selection (some firms may specialize in futures trading while others focus solely on Forex), subscription fees, and other associated costs related to trading and non-trading activities.
-
Profit Distribution: This is a key metric to examine. Typically, reputable companies offer profit distribution ratios ranging from 70%/30% to 90%/10% in favor of the trader.
-
Reviews: Take time to review feedback from other traders to gain insights into the company's specifics and gauge how closely its promises align with reality.
Are Funded Trading Programs Trustworthy?
If you choose the right company to work with, funded trading programs can be very trustworthy. Nonetheless, this is a new business model for this industry. Program quality varies from company to company. It is also possible that some scam their customers just out of greed. Due diligence and proper research are, therefore, highly recommended.
In Conclusion
Funded Trader Programs promote a mutually beneficial partnership between traders and trading firms. Traders can produce significant money from these agreements over time by adhering to a firm's guidelines and maintaining consistent, risk-managed performance.
Expert Opinion
Funded accounts seem an attractive option for many traders and are perceived by them as a risk-free path to significant earnings. However, that is not entirely true, and like any path in trading, it cannot be easy and accessible to everyone. To some extent, it can indeed be one of the development options for an experienced trader who has a chance to pass the evaluation phase. For a mid-level trader who has been trading profitably for some time with their small capital, trying copy trading programs as a source of trading signals might be more feasible. This allows for development while continuing to work with a psychologically comfortable amount. For novice traders, participation in prop trading challenges is not recommended due to the high skill requirements for candidates.
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.
Team that worked on the article
Johnathan M. is a U.S.-based writer and investor, a contributor to the Traders Union website. His two primary areas of expertise include finance and investing (specifically, forex and commodity trading) and religion/spirituality/meditation.
His experience includes writing articles for Investopedia.com, being the head writer for the Steve Pomeranz Show, a personal finance radio program on NPR. Johnathan is also an active currency (forex) trader, with over 20 years of investing experience.
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).