Best Forex Prop Firms Without Challenge
Best prop firm without challenge is The 5%ers
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The 5%ers - best instant funding account, no subscription fee
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SurgeTrader - only one evaluation phase, profit share up to 90%
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FTUK - zero commission or swap fees, weekend and overnight positions allowed
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If you're an aspiring or experienced Forex trader seeking a platform to showcase your skills and enhance your financial prospects, prop trading might be the thing for you. To explain further, the experts at TU will introduce you to some of the top Forex prop firms that provide a supportive and rewarding environment, allowing you to focus on what truly matters – making profitable trades.
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What do prop firms look for before approving trader funding?
Prop firms normally review past trading performance statements for evidence of consistency, ability to manage risk, and overall profitability. Some may require verification of identity as well.
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Do traders have to pay fees or commissions to trade with prop firms?
Once a trader is funded, most prop firms do not charge commissions or fees to trade. However, some may charge small monthly data or platform fees.
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How quickly can I expect to receive my initial funding deposit?
Leading prop firms fund trader accounts quickly in as little as 24-48 hours after approval, ensuring efficient onboarding so traders can capitalize on current markets.
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Do prop firms allow trading of binary options or cryptocurrencies?
Some prop firms permit crypto trading, however most do not allow binary options given higher risks and regulatory uncertainty around binaries in many regions.
What is an instant funding prop firm?
An instant funding prop firm is a unique financial institution that functions in providing traders with immediate access to capital for executing trades. Unlike traditional prop firms or banks, which often have lengthy approval processes and require traders to use their own funds, instant funding prop firms offer a swift and streamlined approach.
The primary goal of these firms is to eliminate the need for traders to rely solely on their personal capital. By offering instant funding, they empower traders to seize market opportunities without delay, maximizing their potential for profits. This funding can be crucial, especially in fast-paced markets where timing is of the essence.
Instant funding prop firms typically operate by providing traders with a dedicated trading platform. This platform serves as a gateway to various financial markets, such as stocks, options, futures, or foreign exchange. Traders can utilize the firm's capital to execute trades, leveraging their expertise and strategies to generate returns.
In addition to funding, these firms often offer a range of support services to assist traders in their endeavors. This may include comprehensive training programs to enhance traders' skills and knowledge, as well as access to advanced analytical tools and research resources. Risk management tools and guidance are also commonly provided to help traders make informed decisions and mitigate potential losses.
Top 5 prop firms without challenge
Based on a strict framework, the experts have analyzed various prop trading firms to come up with this list of top 5 prop firms without challenge. Also, the selection includes companies where you can get funds for trading in the shortest possible time.
The 5%ers - Best Instant Funding Account
The 5%ers have established themselves as a leading instant funding prop firm due to their straightforward, trader-friendly rules and benefits. They instantly fund real accounts, creating an environment for immediate trading. They are open to all trading systems, promoting a diverse, inclusive community of traders.
One of the notable features of The 5%ers is their rapid growth plan, which allows traders to upscale their trading activities swiftly, without the usual time constraints. They levy a one-time fee, ensuring there are no recurring costs. Their transparent policies make trading more straightforward, with no hidden terms or unexpected costs.
Importantly, The 5%ers operate without a subscription fee, significantly lowering the participation costs for traders. They also offer trading resources and foster an active traders community, providing valuable support and learning opportunities. Furthermore, there is no profit target, providing traders with the freedom to strategize the trades without undue pressure.
SurgeTrader - Only One Phase of Evaluation
SurgeTrader offers 75% profit splits to funded traders and a variety of tradable assets, including cryptocurrencies and gold. They have a one-step evaluation process and offer different account packages suited for traders of all skill levels.SurgeTrader has distinguished itself with a straightforward evaluation process requiring only one phase. The prop firm offers traders a highly beneficial profit share of up to 90%, with a realistic profit target of 10%.
The firm imposes a daily loss limit of 5% and a maximum trailing drawdown of 8% to maintain healthy risk management. Traders enjoy the advantage of high leverage up to 20:1, offering the potential for significant returns.
A broad range of trading instruments are available, including a variety of CFD market instruments, Forex, and cryptocurrencies. SurgeTrader has simple trader requirements; the only mandate is adherence to their trading rules.
The evaluation process is refreshingly uncomplicated, with traders required to hit a 10% profit target without violating any rules. There's no pressure of minimum trading days or 30-day assessments.
For registration, traders may need to provide personal information. SurgeTrader stands out for its simplified process and generous trading conditions.
FTUK - Best for High Rewards
FTUK, based in London, is renowned for high rewards and flexible trading options. Offering instant funding, FTUK allows you to select from a variety of Forex, indices, commodities, and metals to trade. With an initial balance of $14,000, traders must hit a certain profit target to scale their account. Successful completion of their program can reward traders with a 50-80% profit split and a doubled account balance.
Unique features like zero commission or swap fees, the ability to manage up to $6,720,000 capital, and allowing weekend and overnight positions make it stand out. The firm's generous offering is somewhat offset by low leverage (10:1 & 30:1) and a strict 1.5% Max stop loss risk limit. Yet, FTUK's high reward potential makes it a compelling choice for traders.
BluFX - Best for Experienced Traders
BluFX is a renowned proprietary trading firm, particularly appealing to seasoned traders seeking flexibility and low fees. They offer two funded account packages, Lite and Pro, starting at $25,000 and $50,000 respectively. With instant funding of up to $100,000, forex traders can begin their trading journey immediately.
In terms of profit share, BluFX retains a modest 50%, a notably lower percentage compared to many competing firms. While this is appealing, traders must bear in mind the monthly membership fee necessary to access the trading platform. These fees scale according to the account size.
Withdrawal options at BluFX are unique, allowing for increments of 5%, preventing the entire balance withdrawal at once.
Offering lenient trading parameters, BluFX enables more creative trading strategies. Alongside simple rules and automated risk management tools, traders can protect their capital with ease.
Despite impressive features, traders should consider the profit share, membership fees, and withdrawal restrictions. BluFX shines with 24/7 platform access and a range of forex pairs, making it an enticing option for experienced traders.
Audacity Capital - Ideal for Active Traders
Founded in 2012 and regulated, London-based Audacity Capital offers a unique prop trading environment. They start traders with a $15,000 account, allowing any trading strategy, even on weekends. A 10% drawdown results in program suspension, but 10% profit allows for balance doubling, up to $480,000.
An account can be opened without the need to complete any challenges. Upon a successful interview and acceptance, you will immediately gain access to a live account with a starting balance of $15,000. However, the initial fee of £149 and the 50/50 payout ratio may be off-putting.
Successful challenge completion improves the payout ratio to 75/25 and provides a refund. Leverage stands at 1:100, facilitating quick profit growth. The company boasts excellent educational courses and a strong partnership program, making it a top choice for traders of all experience levels.
How to choose the best Forex prop firm?
The experts have delved into the factors that can influence the trading experience with prop firms and determine if there are firms that offer a smooth trading journey:
Reputation: A crucial aspect to consider is the reputation of the prop trading firm. The presence of bad actors within the industry necessitates thorough research. Examining user reviews and feedback provides valuable insights into the company's track record and how it handles issues faced by its traders. Complaint resolution and the firm's Trustpilot rating can indicate its reliability. Additionally, factors like the firm's onboarding process efficiency and timely payments contribute to its overall reputation
Available assets: Different prop firms specialize in various approaches. Some firms offer a diverse range of assets for trading, while others may focus on specific markets. Traders may have the opportunity to trade futures, stocks, Forex, cryptocurrencies, or precious metals. It also happens that even though certain firms are labeled as Forex prop firms, they may provide options to trade other instruments as well. At the end, assessing the available assets is advisable as it aligns with identifying one's preferred trading areas
Fees: Financial considerations are significant when selecting a prop firm. Traders need to evaluate the fees and profit margins associated with each firm. A financial commitment, such as an initial one-time evaluation fee, is often required before becoming a regular trader. It's essential to compare the fee structures and determine if they align with one's trading goals. Some firms even offer the possibility of fee refunds, which can be advantageous
Trading platform and trading style: The choice of a suitable trading platform and compatible trading style is crucial. Most prop firms employ popular platforms like MT4, MT5, or cTrader for Forex trading. However, differences may exist in terms of the emphasis placed on technical analysis versus fundamental analysis. Traders should evaluate the platform's features, user-friendliness, and compatibility with their preferred trading style to ensure a seamless trading experience
Customer support: Adequate customer support is vital for a positive trading experience. Traders may encounter questions or issues related to payments, profit splits, platform features, or general inquiries. Accessible and responsive customer support can be invaluable in resolving these matters efficiently. A prop firm that offers readily available support and an extensive knowledge base can save traders valuable time that would otherwise be spent on research and problem-solving
Are instant funding prop firms legit?
Indeed, instant funding prop firms have established themselves as reputable and trustworthy entities within the realm of proprietary trading. Their legitimacy and safety stem from their well-defined business models and adherence to industry regulations.
These firms have gained recognition for their commitment to providing traders with a reliable and efficient funding source. By offering instant access to capital, they eliminate the lengthy approval processes and time-consuming paperwork commonly associated with traditional funding methods. Traders can quickly secure the necessary funds and focus on executing trades promptly, capitalizing on market fluctuations and maximizing their potential returns.
The legitimacy of instant funding prop firms is further reinforced by their adherence to industry regulations and compliance requirements. Established firms operate within the legal frameworks of the jurisdictions they operate in, ensuring that they meet the necessary licensing and regulatory standards. This helps to safeguard the interests of traders and maintain the integrity of the financial markets.
How can you become a prop trader?
Becoming a prop trader requires a strategic approach and a thorough understanding of the process involved. Here is a step-by-step guide to becoming a prop trader:
Build a strong trading foundation: Develop a solid foundation in trading by acquiring knowledge about financial markets, trading strategies, technical and fundamental analysis, risk management, and trading psychology. This can be achieved through self-study, online courses, seminars, or formal education in finance or related fields
Gain trading experience: Practice trading in real market conditions to gain practical experience and hone your skills. Open a personal trading account and start executing trades using your own capital. This will help you familiarize yourself with different trading platforms, tools, and market dynamics
Research and select proprietary trading firms: Conduct thorough research to identify reputable prop trading firms that align with your trading goals and preferences. Look for firms with a solid track record, positive reviews, and a transparent evaluation process. Consider factors such as the firm's reputation, available assets, fees, trading platform, and customer support
Prepare for evaluation: Prop firms typically require traders to pass an evaluation process to qualify for their programs and receive funding. Familiarize yourself with the firm's evaluation criteria, trading rules, and risk management guidelines. Practice trading within those parameters to demonstrate your skills and ability to follow the firm's guidelines
Complete the evaluation process: Submit your trading performance and meet the evaluation requirements set by the prop firm. This may involve executing trades within specific risk parameters, achieving target profits, or demonstrating consistent performance over a defined period. Adhere to the firm's rules and guidelines throughout the evaluation process
Receive funding and start trading: Upon successfully completing the evaluation, you will receive funding from the prop firm. The amount of funding can vary based on the firm's policies and your performance. Start trading with the firm's capital, utilizing their resources, trading platforms, and risk management tools
Adhere to firm's rules and risk controls: Follow the prop firm's trading rules, risk management guidelines, and any ongoing evaluation requirements. Stay within defined risk limits, manage positions effectively, and adhere to the firm's reporting and compliance procedures
Monitor performance and withdraw profits: Regularly review your trading performance, assess your strengths and weaknesses, and make necessary adjustments. Take advantage of regular profit payouts offered by the prop firm to withdraw your earnings. This allows you to manage your finances and potentially reinvest profits for further trading opportunities
Continuously improve and adapt: Maintain a growth mindset and continuously work on improving your trading skills and strategies. Stay updated with market trends, study new trading techniques, and adapt to changing market conditions. Seek feedback and guidance from experienced traders within the prop firm's community
What is Evaluation and Why do Prop Firms Require it?
The evaluation phase, also commonly referred to as the "challenge" or "assessment," is an initial stage that most proprietary (prop) trading firms use to assess the skills, strategies, and risk management capabilities of prospective traders.
During this phase, the trader is typically given a simulated trading or a demo account with a predefined balance. They are expected to reach certain profit targets while adhering to specific risk management rules. These rules often include a maximum daily loss limit, a maximum overall drawdown limit, and sometimes other conditions, such as a minimum number of trading days.
The purpose of this evaluation is twofold. Firstly, it allows the firm to identify traders who can consistently generate profits while effectively managing risk, which is essential for the firm's profitability. Secondly, it helps to filter out traders who may not be ready for the responsibility of managing a larger account size, reducing potential losses for the firm.
By passing the evaluation, traders demonstrate their ability to profit under controlled risk conditions, proving their readiness to handle the larger funded accounts.
Pros and Cons of Prop Firms Without Evaluation
Proprietary (prop) trading firms that don't require an evaluation process offer a different trading environment, allowing traders to get started more quickly. While this approach can bring certain advantages, it also comes with potential downsides. Here are some of the main pros and cons:
👍 Pros of instant funding prop firms
•Considerable time savings: One of the major advantages of instant funding prop firms is the significant time savings they offer to traders. By providing immediate access to capital, traders can bypass lengthy approval processes and funding delays associated with traditional methods. This allows them to quickly seize trading opportunities and capitalize on time-sensitive market movements
•Unlimited scaling: Instant funding prop firms enable traders to scale their trading activities without limitations. Traders are not restricted by their personal capital or borrowing limits, as the firm provides the necessary funds. This scalability empowers traders to pursue larger positions and explore a wider range of markets, potentially increasing their profit potential
•No delay in trading opportunities: With instant funding prop firms, traders can take advantage of trading opportunities without any delay. They can swiftly execute trades as soon as they identify profitable setups, allowing them to capitalize on market fluctuations and potentially generate higher returns. This real-time access to funds eliminates the need to wait for personal funds to become available, enhancing trading efficiency
•Better risk management: Instant funding prop firms often provide traders with robust risk management tools and support. They offer comprehensive training programs, mentorship, and risk assessment resources to help traders develop effective risk management strategies. By providing these resources, prop firms aim to enhance traders' skills in analyzing and managing risk, ultimately reducing the potential for significant losses
👎 Cons of instant funding prop firms
•Strict trading rules and drawdown limits: Instant funding prop firms typically have strict trading rules and drawdown limits that traders must adhere to. These rules are designed to mitigate the firm's risk exposure and maintain overall stability. Traders may need to follow specific guidelines regarding position sizing, trading frequency, or risk thresholds. While these rules are intended to protect both the firm and the trader, they can impose limitations on trading strategies and flexibility
•Limited profit-sharing: Another consideration is that instant funding prop firms usually have profit-sharing arrangements in place. While the firm provides traders with capital, a portion of the profits generated from trading activities is shared between the trader and the firm. This means that traders may not retain the entirety of their profits, as a percentage must be allocated to the firm. However, it is important to note that the profit-sharing structure varies among firms, and some may offer more favorable terms than others
Evaluation vs Instant Funding: Which is Better?
There is an ongoing debate in the prop trading community around which type of firm tends to be a better overall fit for most traders - those that require completing an evaluation period or instant funding models that grant access to real capital immediately. Both approaches certainly have their advantages.
Firms with evaluations do provide a valuable trial period where traders can hone their skills under simulated conditions while getting feedback, ensuring they are properly prepared before jumping into the live markets. This extra training is particularly beneficial for newcomers to trading. However, the evaluation process does come with an additional time commitment of weeks or even months before funding is obtained.
On the other hand, instant funding prop shops allow traders to get right to it and see how their strategies hold up in real-time market conditions, which some see as preferable to accelerate the learning process and profit-making potential. Of course, this route does carry more risk if a trader's abilities haven't been properly proven yet through an evaluation. There is also typically a higher split of profits required by these firms compared to evaluated traders.
Ultimately, both models can work well depending on factors like a trader's experience level, risk tolerance, and priorities around speed versus additional mentoring. Significant research is important to identify the best individual fit considering one's unique situation and trading goals.
Expert Opinion
Prop trading firms with instant funding offer very tempting conditions. This approach can be a practical solution for a trader with a time-tested profitable trading strategy, as well as experience and psychological stability in managing a significant sum. In this case, collaboration with such a company serves as a relatively safe leveraging tool for one's trading capital. However, for a novice trader or someone just starting on the path of profitable trading, obtaining instant prop trading capital may not be the best solution. Statistics show that up to 90% of such traders cannot meet trading targets on the account, resulting in wasted time and a certain amount of money on commissions.
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).