Best Forex Proprietary Trading Companies in China
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If you're too busy to read the entire article and want a quick answer, the best Forex proprietary trading company in China is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Favorable trading conditions
- Performance-based payouts
Top prop trading companies in China are:
FTMO - one of the largest prop companies
Topstep - profit split up to 90%
The5ers - profit shares up to 100%
The Funded Trader - up to a 90% profit split
Funded Next - profit split up to 90%
Forex prop trading is no longer news in the Forex market, but since most prop firms are without regulation, you are at risk of losing your prop account at any time, especially if the owners of the prop firm are fraudsters. To navigate the prop trading world effectively, it is important to conduct thorough research and perform in-depth background checks on any prop trading company before using it. In this article, experts at Traders Union provide an insightful review of the top five Forex proprietary trading firms in China.
Is prop trading a good idea in China?
Proprietary trading involves individuals trading financial instruments with a firm's capital rather than their own. Traders aim to generate profits for the company, and in return, they will receive a share of the profits. It's very important to compare the advantages against the disadvantages to determine if prop trading is a good idea or not.
- Pros
- Cons
- Risk-free accounts: Prop trading often provides traders with risk-free trading accounts, allowing them to experiment with strategies and tactics without risking their personal capital.
- Skill demonstration and funding opportunities: Traders have the chance to showcase their skills and, if successful, may receive funding from the proprietary trading firm to trade larger amounts.
- Association with international companies: Many prop trading companies involved in the Chinese market are well-established international entities, providing clients with access to global financial markets and expertise.
- Qualification challenges: Qualifying for prop trading programs can be demanding. Firms may have specific criteria, including trading experience, performance metrics, and other conditions that not all individuals meet.
- Strict rules and guidelines: Prop trading comes with very strict rules and guidelines set by the firms. Traders must adhere to these regulations, limiting their flexibility in trading strategies and decision-making.
- Performance pressure: The nature of prop trading involves a performance-based model, and traders may face pressure to consistently deliver profitable results to maintain their association with the firm.
Top 5 prop trading accounts
FTMO
FTMO offers an opportunity for traders to potentially manage significant capital by demonstrating their trading skills. Their evaluation process consists of two stages - a Challenge and Verification - designed to identify disciplined traders with consistent performance.
The Challenge is the first step, where traders must adhere to specific Trading Objectives assessing risk management and trading ability. Successfully completing the Challenge allows progression to the Verification stage.
During Verification, traders continue exhibiting compliance and stable results as a final confirmation of their capabilities. Upon passing both stages, traders become official FTMO Traders with access to accounts of up to $200,000.
FTMO also offers an Account Swing option allowing weekend position holding and trades during releases. Consistent profitability leads to Scaling Plans growing balances by 25% every 4 months, incentivizing long-term growth.
For accessibility, FTMO provides a Free Trial experience without financial commitment. Traditional payout ratios are 80%, increasing to 90% under Scaling Plans. FTMO offers flexible payout options, allowing traders to request payouts on-demand after a minimum of 14 days, with the ability to select their own Profit Split Day and make changes up to three times.
To support their traders, FTMO provides a comprehensive suite of tools and resources. These include custom trading apps, performance analysis, multilingual support, educational resources, and performance coaching. FTMO maintains exceptional conditions such as low costs, 1:100 leverage, reimbursable fees, and major platform flexibility across instruments. Traders can freely utilize preferred strategies.
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 daily (payout requests made before 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.
The5ers
The5ers 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.
The5ers 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.
The Funded Trader
The Funded Trader works with the Eightcap broker. Users can trade currencies, indices, gold, and commodities; cryptocurrencies are only available during the challenges. The minimum leverage is 1:2, the maximum is 1:200. All styles of trading, including scalping, are allowed. This proprietary trading firm allows copy trading (with some restrictions).
The Funded Trader offers four account types with balances ranging from $25,000 to $400,000. The initial fee is refundable, its amount depends on the type of account and its balance. For example, the initial fee for a Standard account with a balance of $100,000 is $549.
Traders start with a profit split of 80%, but it can be increased up to 90% while the rest goes to the prop firm. A standard KYC/AML (Know Your Client/Anti-Money Laundering) protocol is in effect. The Funded Trader regularly holds promotions whereby it offers traders discounts and special conditions. It also offers a typical partnership program.
Funded Next
Bangladesh-based FundedNext offers individual funding up to $200,000, backed by a solid risk management strategy.
The platform offers up to $4 million in trading capital to consistent and profitable traders, with the option to use any type of trading strategy and to split profits up to 90%. By providing funds to traders, FundedNext aims to maximize the opportunity for traders to unlock their true potential.
For funding, a trader needs to subscribe to the platform ($99-$990 subscription fee, depending on account size and funding model) and get evaluated. This test takes the trader to a simulation of the trading world, where everything but the money is real. Following the rules and ensuring profitable trading are the key tasks.
It is only after beginner traders have proved their skills that they become eligible for real funding. A surprising number of traders fail to qualify for funding, on average, only one out of 10.
FundedNext offers two funding models: Evaluation and Express. Traders can earn up to 90% profit split based on their performance, but trading must be done within a fixed timeframe.
While the express model offers traders more time flexibility, it reduces their profit share to 60%.
Rules and Regulation
- Regulation
Operating as a trading firm in China does not require specific licenses, as traders undergo assessments on simulated accounts before opting for either mimicking signals from demo accounts or engaging with affiliated brokers. Brokers collaborating with trading firms must possess licenses issued by the China Securities Regulatory Commission (CSRC). Moreover, all trading firms operating in China are mandated to register with the State Administration for Market Regulation.
- Investor protection
In the event of infringements, traders have the option to lodge complaints with:
CSRC, if they are collaborating with a broker associated with a trading firm;
China Securities Depository and Clearing Corporation Limited (CSDC), if dealing with financial service providers;
Industry self-regulatory organizations (SROs), provided the trading firm or broker holds membership;
Local authorities, in cases of suspected financial malpractice.
- Taxation
Taxation structures in China offer adaptability and potential for optimization, particularly when employing spread-betting strategies. Distinctions are also made for capital gains. Generally, tax rates can exceed 25%.
How to choose a prop trading account in China?
When selecting a prop trading account in China, consider the following factors highlighted by TU experts to make better decisions:
Reputation: Check if the prop trading firm has a good reputation. Look for positive reviews and a history of trustworthy behaviour. Check social media, online forums, and testimonials from other traders.
Basic prop account conditions: Look at the account details. Check things like how much money you need to start, what you can trade, and the rules they have in place. Make sure these match your needs and style of trading.
Extra services for traders: See if the firm offers anything extra, like helpful tools, educational resources, or good customer support. Some firms might provide training or special software. Choose one that gives you what you need.
Proprietary account costs: Understand all the costs involved. This includes fees, commission, and account profit split percentage by the trading firm. Be aware of any hidden costs that might affect your profits. Compare the costs of different firms and choose one that fits your budget.
Is prop trading in China free?
Proprietary trading in China is not free, it comes with additional costs. Proprietary trading firms typically impose subscription fees and additional charges. Traders participating in proprietary trading with these firms may face various fees, such as account purchase fees ranging from 215 CNY to 3,588 CNY, as well as broker commissions.
How much do the best prop traders make?
The best prop traders earn from 303,962 CNY to 5,690,991 CNY a year. It is very important to note that not all prop traders achieve very high profits. A trader's total earnings can be influenced by their experience level and the profit split percentage offered by the prop firm.
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:
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Trader testimonials and reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
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Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
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Challenges and evaluation process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
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Profit split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
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Trading conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
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Platform and technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
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Education and support. Quality and availability of training materials, webinars, and one-on-one coaching.
FAQs
Is prop trading a good idea in China?
Yes, proprietary trading in China is a good idea for experienced traders because it allows them to showcase their skills, gain access to risk-free accounts, and potentially get funded.
How do I choose a reliable prop firm?
Consider factors such as the firm's reputation, basic account conditions, additional services offered, and associated costs when choosing a reliable prop trading firm. Ensure the firm is reputable, aligns with your trading style, provides essential services, and has transparent fee structures.
What are the best forex prop firms in China?
The best forex prop firms in China are FTMO, Topstep, The5ers, The Funded Trader, and Funded Next.
Do prop firms really pay?
Yes, prop trading firms usually pay traders based on their performance. Profits generated by traders contribute to their earnings. Some firms pay traders 50% to 90% of the earnings generated.
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Team that worked on the article
Winnifred Emmanuel is a freelance financial analyst and writer with years of experience in working with financial websites and businesses. Her expertise spans various areas, including commodities, Forex, stocks, and cryptocurrency. Winnifred tailors her writing to various audiences, including beginners, while also providing useful insights for those who are already familiar with financial markets.
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).
