Best Prop Trading Firms for Scalping Trading Strategy
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If you're too busy to read the entire article and want a quick answer, the best prop trading firm for scalping trading strategy is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Lower trading costs
- Favorable trading conditions
Best prop trading firms for scalping are:
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Earn2Trade - Convinient scaling plans (relatively low profit goal, account upgrades after withdrawing first profit target)
- FXIFY - Diverse trading plans (1,2, and 3 phases, with 10k-400k funding)
- Blue Guardian Capital - Minimum trading limits (no min trading days, copiers and martingale allowed)
- Funded Trading Plus - Instant funding accounts without profit target (max drawdown 6%)
Scalping, a popular trading strategy aimed at capitalizing on small price movements, requires skill, precision, and access to suitable resources. Understandably, in the fast-paced world of scalping, choosing the right prop firm can significantly impact a trader's success. So, in this article, the experts at TU will explore and highlight the top prop firms that cater specifically to scalpers, enabling them to thrive in the dynamic and exciting world of scalping.
Best prop firms for scalping in 2025
We selected these parameters for comparison because they reflect the critical aspects that traders, especially scalpers, consider when choosing a proprietary trading firm. Support of scalping is a key factor, as not all firms support high-frequency trading strategies. If a prop firm supports scalping, it typically has a broker partner that acts as a liquidity provider. This partner is crucial for ensuring fast execution speeds and low commissions, both of which are essential for successful scalping. Profit split indicates the potential earnings traders can retain, an important motivator for those pursuing fast profits. "Funding Up To" and "Max. Leverage" are essential for traders aiming to scale their strategies, providing insight into available capital and leverage. The "Min. Price" of trading plans allows users to assess affordability.
| Scalping allowed | Profit split up to, % | Funding Up To, $ | Max. Leverage | Assets | Open an account | |
|---|---|---|---|---|---|---|
| Yes | 90 | 200 000 | 1:30 | CFDs on: currency pairs, gold, oil, global indices, stocks, cryptocurrencies, ETFs | Open an account Your capital is at risk.
|
|
| Yes | 80 | 400 000 | 1:30 | Futures and micro futures | Open an account Your capital is at risk. |
|
| Yes | 90 | 4 000 000 | 1:30 | Currency pairs, stocks, indices, gold, and cryptocurrencies | Open an account Your capital is at risk.
|
|
| Yes | 85 | 2 000 000 | 1:100 | Currency pairs, cryptocurrencies, indices, commodities, and gold | Open an account Your capital is at risk. |
|
| Yes | 90 | 400 000 | 1:30 | CFDs on currency pairs, indices, precious metals, energies, and cryptocurrencies | Open an account Your capital is at risk. |
Prop Firms for Scalping - Challenge Conditions
We compared the challenge conditions across different proprietary trading firms, focusing on key factors relevant to scalpers. Specifically, we analyzed the minimal trading plans offered by each firm, along with the associated price (in USD or EUR) to participate in these challenges. Additionally, we evaluated the profit target that traders must achieve, as well as the daily loss limits and maximum loss thresholds, which are critical for managing risk during the challenge.
| Trading Plans | Price, USD or EUR | Profit target, $ | Daily loss,% | Max. loss, % | Managed amount, USD | |
|---|---|---|---|---|---|---|
|
Essential |
119 |
2000 |
5 |
6 |
20 000 |
|
|
TCP |
75 |
1750 |
2,2 |
6 |
25 000 |
|
|
One Phase |
75 |
1000 |
5 |
6 |
10 000 |
|
|
Unlimited |
65 |
800 |
4 |
8 |
10 000 |
|
|
Experienced |
119 |
1200 |
4 |
6 |
12 000 |
What should scalpers look for in prop firms?
When selecting a prop firm as a scalper, it's crucial to consider several important factors. Here are key considerations for scalpers when evaluating prop firms:
Challenge level:
Assess the prop firm's rules and evaluation process to determine the level of difficulty. Some firms may have more stringent requirements, while others may be more suitable for beginners. Choose a prop firm that aligns with your skill level to ensure a suitable trading environmentProfit sharing and scaling plan:
Examine the profit-sharing structure offered by the prop firm. Understand the percentage of profits retained by the firm and whether they provide a scaling plan. A scaling plan enables traders to gradually increase their trading capital over time, offering opportunities for growth and expanded trading potentialEducational resources:
Look for prop trading firms that provide comprehensive educational resources and materials. Access to educational content can greatly benefit scalpers by enhancing their trading strategies, technical analysis skills, and risk management techniques. These resources can empower traders to make informed decisions and improve their overall trading performanceCustomer support:
Evaluate the quality of customer support provided by the prop firm. Efficient and responsive customer support is essential for addressing queries, resolving technical issues, and receiving timely assistance when needed. A prop firm with reliable customer support can ensure a smooth trading experience and help scalpers overcome any obstacles they may encounterCommunity engagement:
Consider whether the prop firm fosters a sense of community among its traders. Look for platforms or communities where traders can interact, share insights, discuss strategies, and learn from one another. Engaging with a community of like-minded traders can provide valuable networking opportunities, mentorship, and a supportive trading environment
Key tips for scalpers in prop firms
Here are some expert tips to help scalpers thrive in prop firms:
Develop a scalping strategy:
Create a well-defined and tested scalping strategy that aligns with your trading style. This strategy should involve quick trades with small profit targets. Utilize technical analysis indicators, such as moving averages or oscillators, to identify favorable trading setupsPractice patience and discipline:
Patience and discipline are paramount for successful scalping. Stick to your trading plan and avoid impulsive trades. Exercise patience by waiting for setups that meet your strategy's criteria, rather than chasing trades or forcing trades that don't align with your planEffective risk management:
Implement robust risk management techniques to protect your capital. Set stop-loss orders to limit potential losses and establish profit targets to secure profits. Determine your risk-reward ratio for each trade, ensuring it aligns with your overall risk toleranceFocus on liquid markets:
Scalping is most effective in highly liquid markets that facilitate quick entry and exit. Seek prop firms that offer access to liquid markets, such as major Forex pairs, actively traded stocks, or popular commodities. Liquidity ensures efficient trade execution and minimizes slippageMonitor the market diligently:
As a scalper, closely monitor the market and stay informed about price movements, news events, and overall market conditions. Leverage real-time market data and advanced trading platforms provided by the prop firm to make well-informed trading decisions in a timely mannerUtilize protective stop losses:
Given the fast-paced nature of scalping, it's essential to use protective stop-loss orders. Determine appropriate stop-loss levels based on your risk tolerance and the volatility of the specific market you are trading. Protective stop losses help limit potential losses and protect your capital
Pros and cons of scalping
Scalping as a trading strategy offers both advantages and disadvantages. Let's explore some of the pros and cons of employing this approach:
- Pros
- Cons
- Profitability:
Scalping can be highly profitable as it capitalizes on small price differentials. By focusing on short-term fluctuations, scalpers can accumulate profits over time, irrespective of the overall market trend - Non-directional strategy:
Scalping is a versatile strategy that can be applied in both rising and falling markets. This flexibility allows scalpers to seize opportunities based on short-term price movements, enabling them to adapt to various market conditions - Automation potential:
Many scalping strategies can be automated within trading systems. By programming predefined technical criteria, scalpers can automate trade execution, saving time and reducing the need for constant manual monitoring
- Transaction costs:
Due to the high number of trades involved, scalping can result in increased transaction costs. Traders need to pay commissions on each trade, which can impact overall profitability. It is essential to carefully consider these costs and ensure that potential profits outweigh the transaction fees - Time-consuming:
Scalping demands a significant time commitment from traders. Executing dozens or even hundreds of trades per day requires constant market monitoring and quick decision-making. This intensive approach can be mentally and physically exhausting - Psychological pressure:
Scalping requires traders to make swift decisions and manage multiple trades simultaneously. The fast-paced nature of this strategy can create psychological pressure and stress, particularly for less experienced traders. Emotional discipline and the ability to handle rapid market fluctuations are crucial for success in scalping
Scalping vs Intraday trading
| Parameter | Scalping | Intraday Trading |
|---|---|---|
| Holding period | Very short (seconds to minutes) | Short to medium term (hours to end of day) |
| Number of trades | High frequency, multiple trades/day | Moderate frequency, fewer trades/day |
| Profit potential | Limited per trade, small gains | Moderate to higher per trade, larger gains |
| Risk management | Tight stop-loss orders, limited risk | Stop-loss orders, risk per trade can vary |
| Time commitment | Requires constant monitoring, quick decision-making | Requires monitoring throughout the day |
| Technical analysis | Relies heavily on technical analysis indicators | Relies on technical analysis, may consider fundamentals |
| Market exposure | Limited time exposure, quick entry and exit | Longer time exposure, potential for overnight positions |
| Liquidity | Requires adequate liquidity for frequent trading | Requires liquidity, but not as much as scalping |
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
Do prop firms allow scalping?
Yes, many prop firms allow scalping as a trading strategy. However, it is advisable to review the specific rules and policies of each prop firm regarding scalping before joining.
Which Forex prop firm is best?
FTMO is considered one of the best Forex prop firms for traders due to its unique evaluation process, high capital allocation, and comprehensive support resources. Other top Forex prop firms for scalpers include City Traders Imperium (CTI), FundedNext.
Which prop firm is the cheapest?
The cost of joining a prop firm can vary based on factors such as profit splits, fees, and services offered. While CTI and FundedNext are known for their competitive fees, it's important to consider the overall value and benefits provided by a prop firm rather than solely focusing on the cost.
Who are FTMO competitors?
FTMO's competitors in the prop trading industry include City Traders Imperium (CTI), FundedNext.
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Team that worked on the article
Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.
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.
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).
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