Which Prop Firms Offer Free Trials?
The best free evaluation prop firm is The 5%ers
Best free evaluation prop firms are:
The 5%ers - Showcasing trader skills with a comprehensive free evaluation program
FTMO - Refining Forex trading abilities through a comprehensive evaluation program
City Traders Imperium - Access funding up to $4 million with profit share opportunities
|
1
|
5.7
/10
|
|
|
|
2
|
5.28
/10
|
|
|
|
3
|
6.68
/10
|
|
In the dynamic world of trading, aspiring traders often seek opportunities to showcase their skills and gain access to funding without the burden of upfront costs. In this scenario, free evaluation prop firms emerge as valuable platforms, offering traders the chance to prove their abilities and secure funded accounts. To make the search easier for aspiring prop traders, the experts at TU will, in this article, explore and highlight the best free evaluation prop firms in 2024, discussing their features, evaluation programs, and the opportunities they offer.
-
Can you earn real money on a prop firm free trial account?
No, the free trial accounts are simulated so while trading, no actual money is exchanged. Traders trade using fake money and simply gain experience.
-
What types of trading strategies can be used in free trials?
Traders can use any strategy - discretionary, algorithmic, scalping, trend following, etc. Firms encourage traders to find what works for their style.
-
Does trading well on a free trial guarantee a trader will get funded?
Not necessarily. Proprietary trading firms have rigorous evaluation processes and standards beyond just profitability that determine funding decisions.
-
Can you extend the length of the free trial if needed?
In some cases, traders can submit a request to extend the free trial if they need more time. However, firms have maximum trial lengths that cannot be exceeded.
What is a free evaluation prop firm?
In the world of financial trading, free evaluation prop firms, also known as proprietary trading firms, offer a unique avenue for traders to showcase their skills and potentially secure capital for trading activities. These firms provide traders with the opportunity to access capital without an upfront fee, enabling them to demonstrate their trading abilities and meet specific objectives during an evaluation phase.
Unlike traditional prop firms that require traders to undergo evaluations or challenges before gaining access to their trading platforms, free evaluation prop firms eliminate the initial financial barrier. Traders are not required to make any upfront payments to participate in the evaluation period. Instead, they can focus on displaying their trading acumen and meeting the predetermined performance targets set by the firm.
Free evaluation prop firms typically operate across various financial markets, including Forex, futures, and stocks. By offering capital to traders, these firms enable individuals to engage in real-time trading scenarios and prove their competence in a risk-free environment. Successful traders who meet the firm's evaluation criteria have the opportunity to progress to a funded account, where they can begin trading with real capital.
The absence of an upfront fee in free evaluation prop firms provides traders with an equal opportunity to demonstrate their trading skills, regardless of their financial resources. This model appeals to aspiring traders who may not have substantial funds to invest initially but possess the expertise and potential to thrive in the financial markets. By removing the financial burden, these firms create a level playing field, encouraging talent from diverse backgrounds to participate in the evaluation process.
Upon successfully completing the evaluation phase, traders can transition to a funded account, which opens doors to real trading opportunities with the firm's capital. This transition marks a significant milestone for traders, as it allows them to utilize the acquired capital to execute trades in the live market, potentially generating profits for themselves and the firm.
Best free evaluation prop firms in 2024
When it comes to finding the best free evaluation prop firms for scalping in 2024, three firms stand out for their free evaluation programs: The 5%ers, FTMO, and City Traders Imperium. Let's explore the features and offerings of these firms' evaluation programs:
The 5%ers:
The 5%ers offers a comprehensive free evaluation program that allows traders to showcase their skills and potentially join their Top 1% trading program on a real account. The evaluation process begins with a 3-step challenge conducted on a demo trading account.
During this phase, the fund sets specific objectives and restrictions that the trader must adhere to. The fund holds sole authority to enforce these objectives and restrictions, retaining control over the trading accounts, capital, and trading guidelines.
Prior to granting access to trading capital, the fund and the trader agree on all the trading guidelines, objectives, terms, and rules. These agreed-upon values form the basis for the evaluation process, with the fund defining and enforcing the objectives and restrictions accordingly.
It's important to note that participating in The 5%ers' Free Evaluation Program incurs a fee cost, payable only once the trader successfully completes all three steps of the challenge phase. This fee is non-refundable once trading activity has commenced. However, it is essential to understand that the signup fee is not a trading capital deposit, nor is it intended to cover trading costs or losses. Traders are allowed to utilize any trading strategy as long as it aligns with the fund's required Risk Management Guidelines.
Once the program commences, traders are not permitted to upgrade or downgrade their current plan. This ensures consistency and fairness in the evaluation process.
FTMO:
FTMO offers traders a comprehensive evaluation program designed to help them discover and refine their Forex trading abilities. The program consists of the FTMO Challenge and Verification course, providing traders with an opportunity to showcase their skills and potentially join the proprietary trading firm. The evaluation process is conducted on a demo account and focuses on assessing traders' trading performance, risk management, and adherence to FTMO's trading rules.
Successful completion of the FTMO Challenge and Verification course opens doors to managing a trading account with FTMO. The evaluation program comes with a maximum capital limit of $400,000. Traders benefit from swing accounts, which have no restrictions on holding positions over weekends or during macroeconomic releases. As traders progress, their account balance limit increases by 25% every four months, facilitating long-term growth.
FTMO operates on an 80:20 payout ratio, ensuring that traders receive a significant share of their profits. As traders reach higher account balance limits, the payout ratio adjusts to 90:10, further enhancing their potential earnings.
City Traders Imperium:
City Traders Imperium provides traders with an opportunity to access funding of up to $4 million and trade with a profit share of up to 70%. The firm offers various funding plans, including the Evaluation, Portfolio Manager, and Direct Funding Plans. Traders begin with the Evaluation Plan, and as they achieve specific profit targets, they progress to higher funding limits by upgrading their account.
City Traders Imperium offers a Demo Free Trial account, allowing traders to test trade execution speed, spreads, commissions, and lot size calculations. The account simulates the trading conditions of the firm's funding program, providing traders with a realistic experience to assess its suitability. While traders can utilize this account for testing purposes, it's important to close all trades after the testing period and avoid overusing it.
City Traders Imperium's evaluation program provides traders with a comprehensive platform to demonstrate their skills, access substantial funding, and engage in profitable trading opportunities.
Pros and cons of free evaluation prop firms
Free evaluation prop firms offer a range of advantages and disadvantages for traders considering this unique avenue for accessing capital and honing their trading skills. Let's delve into the pros and cons of engaging with these firms.
👍 Pros
•
No initial charge:
The primary advantage of free evaluation prop firms is the absence of upfront fees for the evaluation process. This is particularly beneficial for traders who are starting out and may have limited capital, as it allows them to showcase their skills without incurring any financial burden
•
Access to capital:
Successfully passing the evaluation phase grants traders access to significantly larger capital than they may possess on their own. By securing a funded account, traders can leverage this increased capital to maximize their potential earnings and explore broader trading opportunities
•
Support and mentorship:
Some free evaluation prop firms offer valuable guidance and mentorship from experienced traders. This support can prove invaluable for traders seeking to enhance their trading skills, gain insights into market dynamics, and refine their strategies through the expertise of seasoned professionals
•
Risk management:
Proprietary trading firms often have well-established risk management guidelines in place to protect both the trader and the firm. These guidelines provide a structured framework for managing risk, ensuring that traders can navigate the markets with a focus on preserving capital and minimizing potential losses
•
Learning experience:
The evaluation phase within free prop firms serves as a real-time learning experience for traders. It allows individuals to immerse themselves in realistic trading conditions without incurring personal financial losses. This invaluable opportunity enables traders to fine-tune their strategies, analyze market reactions, and gain practical insights that can enhance their overall trading performance
👎 Cons
•
Potential profits cut:
While free evaluation prop firms provide access to capital, it's important to note that a portion of the profits generated by traders will typically be shared with the prop firm. The profit-sharing arrangement may be higher compared to traditional prop trading firms, impacting the overall profitability of successful trades
•
Limitations and restrictions:
Prop firms often impose various limitations and restrictions on traders. These may include drawdown limits, maximum position sizes, and specific trading hours, among others. Such constraints can restrict the trader's flexibility and limit the implementation of certain trading strategies
•
Pressure to perform:
The evaluation period in free prop firms can induce significant pressure on traders. The need to meet specific profit targets or adhere to predefined rules and guidelines can impact decision-making processes, potentially leading to trading under stress. Traders must carefully manage this pressure and maintain a disciplined approach to ensure optimal performance
How to find the best free evaluation prop firm?
Finding the best free evaluation prop firm requires a systematic approach and careful consideration of several factors. Follow these steps to ensure you select the prop firm that aligns with your trading goals and offers a favorable evaluation process:
Conduct thorough research:
Begin by conducting extensive research on various prop trading firms. Seek out firms that offer free evaluations as part of their onboarding process. Utilize trusted sources such as Benzinga, Software Testing Help, EpiccTrader, and Fortunly for recommendations and reviews. Compare factors such as reputation, fees, profit sharing models, access to diverse markets, and the quality of trading platforms
Evaluate risks and fees:
Understand the potential risks associated with prop trading and carefully examine the fees involved in joining a prop firm. Since prop trading firms are relatively unregulated, exercise due diligence and invest only what you can afford to lose. Consider fees for software, remote trading, and any other costs that may arise. Compare these fees with those of retail trading to determine the cost-effectiveness of the prop firm
Analyze the evaluation process and requirements:
Gain a comprehensive understanding of the evaluation process employed by each prop firm under consideration. Evaluate the specific requirements, profit targets, time limits, and risk parameters set by the firm during the evaluation phase. This evaluation phase serves to assess traders' skills, consistency, and ability to generate profits. Some firms may have multiple stages in their evaluation process. Determine if you are comfortable with the evaluation process and possess the necessary skills to consistently meet the criteria
Assess funding options and profit sharing:
Explore prop firms that offer various funding options based on evaluation results. Some firms may provide standard challenge accounts or rapid challenge accounts with different leverage options. Evaluate the profit-sharing arrangement offered by the firm. Typically, firms allocate around 20% of profits to traders who have successfully completed the evaluation. Be aware that prop firms offering immediate funding access may have higher upfront fees and less favorable profit-sharing terms. Consider the financial implications of these factors before making a decision
Compatibility with trading markets:
Assess the markets in which the prop firm operates. Determine whether they provide access to the financial markets, such as Forex, futures, or stocks, that align with your trading expertise and interests. This ensures that you can fully leverage your skills within the available markets, enhancing your potential for success
Are free evaluation prop firms legit?
Free evaluation prop firms can be legitimate entities within the realm of proprietary trading. These firms provide aspiring traders with an opportunity to showcase their skills and potential without an upfront financial commitment. While it's important for traders to exercise caution and conduct thorough research before engaging with any specific prop firm, many reputable and established firms offer free evaluation programs.
Expert Opinion
Most prop firms, before providing traders with capital for trading, require them to make an initial payment for participating in the challenge. However, some companies eliminate the initial financial barrier, allowing traders to focus on trading and prove their competence in a risk-free environment. This collaboration model is attractive to experienced traders who consistently trade profitably and potentially meet the conditions for profit targets and maximum drawdown. When choosing a prop firm with a free trial version, pay attention to the reputation, profit distribution model, diversity of available markets, and the quality of client support.
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
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
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).