Traders Union: Prop Firms Evaluation Methodology
At Traders Union, we’ve built a transparent and data-driven evaluation system for proprietary trading firms. This methodology incorporates more than 65 measurable parameters, including funding options, trading conditions, risk limits, platforms, and supported payment methods, all designed to help traders compare firms objectively and choose the best fit.
Prop Trading Firms Evaluation System
To provide traders with a transparent and fair assessment of proprietary trading firms, we have devised a sophisticated scoring system grounded in key performance indicators. Each parameter is assigned a specific weight based on its relevance in the prop trading landscape. The maximum score a firm can earn is 10 points.
| Parameter | Weight | Description | Key Factors |
|---|---|---|---|
| 20% | This section evaluates the difficulty and fairness of the prop firm's challenge. It focuses on specific plan parameters such as minimum price, profit targets, drawdown limits, and available funding. | Challenge entry price, 1-step profit target, daily and max drawdown limits, and managed capital offered | |
| 20% | This section assesses how favorable the trading environment is for the trader after receiving funding. It includes the percentage of profit retained by the trader, available leverage, and specific trading limitations or permissions. | Max. loss percentage maximum leverage, ability to use scalping, news trading, copy trading, expert advisors (EAs), and requirements like mandatory stop loss or position сlosure before weekends | |
| 15% | Reflects the firm’s reputation and customer satisfaction based on user reviews and feedback scores | User reviews, feedback scores | |
| 12.5% | This parameter evaluates the range of financial instruments available for trading during the challenge and after funding. A broader selection allows traders to apply their strategies across different asset classes. | Access to Forex, CFDs, indices, commodities, stocks, cryptocurrencies, futures, and options | |
| 12.5% | This criterion evaluates the range and quality of trading platforms supported by the firm. Compatibility with popular platforms and mobile devices enhances flexibility and accessibility. | MT4, MT5, TradingView, cTrader, WebTrader, NinjaTrader, proprietary platforms, and mobile apps for Android and iOS | |
| 10% | This section evaluates how efficiently, quickly, and cost-effectively a prop firm handles internal and external transactions. We focus on available funding and payout methods, supported currencies, and how often traders can withdraw profits. A broader range of options improves accessibility for traders across global markets. | Payment systems (PayPal, Bank cards, Skrill, Bank Wire, Neteller, Wise, Payoneer, crypto options like BTC, USDT, and Ethereum), supported account currencies (USD, EUR, GBP, etc.), and payout frequency types (on demand, weekly, or monthly). | |
| 5% | This criterion assesses the quality, availability, and responsiveness of the firm’s customer service. Effective support is essential for resolving issues quickly and ensuring a smooth trading experience. | Live chat availability, response time, multilingual support, and 24/7 service | |
| 5% | This section evaluates the availability and quality of educational materials provided by the firm to support trader development and success. | Tutorials, webinars, trading guides, video lessons, knowledge bases, and one-on-one mentorship | |
| 100% |
Understanding Each Evaluation Metric
Our prop firm evaluations are based on key parameters to ensure a fair and thorough assessment. This section explains each factor in detail, highlighting its importance in the overall scoring process.
Challenge conditions
We evaluate challenge rules and pricing by analyzing entry costs, profit targets, drawdown limits, and account scaling potential. Our assessment also considers whether the fees are refundable and how fair and transparent the rules are.
Each parameter in the section is assigned a specific score based on its impact on trader accessibility and the likelihood of passing the challenge.
| Parameter | Assessment Criteria | Score |
|---|---|---|
| Entry Price (min plan) |
≤ 60 61–50 150-300 > 301 |
2 1.5 1 0 |
| Managed amount up to |
≥ 300 000 150 000 - 299 000 75 000 - 149 000 ≤ 74 000 |
1.5 1 0.5 0 |
| Profit Target (1-step model) |
≤ 5% 5–8% 8-11% > 11% |
1.5 1 0.5 0 |
| Daily Loss Limit |
≥ 5% 4% ≤ 3% |
1.5 1 0 |
| Max Loss Limit |
≥ 10% 6–9% ≤ 5% |
1.5 1 0 |
| Refundable Fee |
Yes No |
1 0 |
| Minimum Trading Days |
No time limits Yes |
0.5 0 |
| No evaluation option |
Yes No |
0.5 0 |
| Free evaluation option |
Yes No |
0.5 0 |
| Total Score |
10 points |
Trading conditions
We evaluate trading conditions and profit split terms by analyzing maximum leverage, max. loss percentage, and restrictions on trading strategies such as scalping, news trading, copy trading, and the use of expert advisors (EAs). We also consider limitations such as mandatory stop-losses and weekend position closures.
Each parameter in the "Trading Conditions" section is assigned a specific score based on its impact on trading flexibility, long-term profitability, and compatibility with a range of trading styles.
| Parameter | Assessment Criteria | Score |
|---|---|---|
| Max Loss Limit |
≥ 10% 6–9% ≤ 5% |
1.5 1 0 |
| Scalping |
Yes No |
1.5 0 |
| Trading bots (EAs) |
Yes No |
1.5 0 |
| Copy trading |
Yes No |
1.25 0 |
| News trading |
Yes No |
1.5 0 |
| Mandatory position closing before the weekend |
Yes No |
0 1.25 |
| Leverage |
1:1 >1:1, but <1:10 ≥1:10, but <1:30 ≥1:30 |
0 0.5 1 1.5 |
| Max. | 10 points |
User Satisfaction
At Traders Union, we use the Customer Satisfaction Score (CSAT) as a unique metric to gauge user satisfaction. This score is based on the analysis of reviews posted by our global community on each broker's profile page. With over 13 years of collected reviews, we have developed a deep understanding of customer satisfaction across different brokerage companies.
Where:
ni = the number of reviews with i
stars
pi = the points associated with i
stars
i ranges from 1 to 5, representing the star ratings
Using the given star-to-points mapping:
- 1 star = 1 point
- 2 stars = 3 points
- 3 stars = 5 points
- 4 stars = 8 points
- 5 stars = 10 points
Supported markets
We evaluate the range of supported markets to determine how diverse and flexible the trading opportunities are. This includes access to Forex, CFDs, indices, commodities, stocks, cryptocurrencies, futures, and options.
Each parameter in the "Supported Markets" section contributes to the score based on how well the firm accommodates different asset classes and trading strategies. A broader market offering increases the firm’s appeal to various types of traders.
| Parameter | Assessment Criteria | Score |
|---|---|---|
| Futures | Yes | 3.5 |
| CFDs | Yes | 3.5 |
| Forex | Yes | 1.5 |
| Options | Yes | 1 |
| Crypto | Yes | 1 |
| Stocks | Yes | 1 |
| Indices | Yes | 1 |
| Maх. | 10 points |
Trading Platforms
We evaluate trading platforms based on their reliability, functionality, and accessibility. This includes support for industry-standard terminals like MT4, MT5, and cTrader, as well as advanced tools like TradingView and mobile or proprietary platforms.
Each parameter in the "Trading Platforms" section contributes to the score based on how well it supports a trader’s workflow across different devices and environments.
Deposit and Withdrawal
Each firm is assessed based on the diversity of supported payment systems, the flexibility of payout frequency (on demand, weekly, or monthly), and the availability of major account currencies such as USD, EUR, and GBP. These parameters help determine how convenient and globally accessible a firm's payment infrastructure is for traders.
Deposit and Withdrawal Options
| Criteria | Points | |
| Payment options | ||
| Bank Card | Yes | 1 |
| Bank Wire | Yes | 1 |
| Crypto | Yes | 0.75 |
| PayPal | Yes | 0.25 |
| Wise | Yes | 0.25 |
| Payoneer | Yes | 0.25 |
| Skrill | Yes | 0.25 |
| Neteller | Yes | 0.25 |
| Base account currency | ||
| USD | Yes | 0.5 |
| EUR | Yes | 0.5 |
| GBP | Yes | 0.2 |
| AUD | Yes | 0.1 |
| NGN | Yes | 0.1 |
| ZAR | Yes | 0.1 |
| CAD | Yes | 0.1 |
| NZD | Yes | 0.1 |
| CHF | Yes | 0.1 |
| INR | Yes | 0.1 |
| JPY | Yes | 0.1 |
| Payout frequency | ||
| On demand | Yes | 4 (Max. point for payout frequency) |
| Weekly | Yes | 3 |
| Biweekly | Yes | 2.5 |
| Monthly | Yes | 2 |
Customer Support
We evaluate the quality and availability of customer support based on response time, available communication channels, and language options. Efficient and multilingual support is especially important for global traders.
Each parameter in the "Customer Support" section affects the score depending on how accessible and helpful the firm's support team is in resolving trader issues.
Education
We assess the educational resources provided by the firm, including tutorials, webinars, knowledge bases, and trading tips. These materials are especially valuable for beginner traders.
Each parameter in the "Education" section contributes to the score based on the depth, clarity, and accessibility of educational content designed to help traders grow their skills.
Our Core Principles
Transparency: We ensure our methodology is clear and easy to understand for all traders. Transparency is essential to building trust and providing a fair basis for comparing proprietary trading firms.
Data-Driven Analysis: Our evaluations are grounded in structured data collected across more than 75 prop firms. We currently assess more than 65 measurable parameters, including challenge conditions, trading rules, supported instruments, platforms, and payment systems. The list continues to expand as the market evolves.
Objective Criteria: We apply standardized, unbiased criteria to all firms we evaluate. Each parameter is scored based on its practical impact on trader success, eliminating favoritism or subjective judgment.
Trader-Centric Focus: Our priority is to reflect the real interests of prop traders, from challenge accessibility to platform convenience and funding terms. Our comprehensive database of firm profiles is shaped by what matters most to active and aspiring traders.
Continuous Improvement: We actively refine our evaluation system to reflect market changes, user feedback, and emerging trends in the prop trading space. This helps us deliver the most relevant and up-to-date comparisons.
Team of Analysts
Our team of analysts is constantly working to improve and refine the information we provide. With a wealth of experience and expertise in the financial markets, they ensure that our evaluations are thorough and up-to-date. You can learn more about our analysts and other team members involved in this work by visiting their profiles:
Analysts
Invited experts
At Traders Union, we often bring in external experts and editors to evaluate brokers, ensuring a higher quality and more comprehensive assessment. This approach leverages diverse perspectives to enhance the accuracy and reliability of our broker reviews.
Experts and employees who are not listed in this section may also participate in the work.
How Is the final score calculated?
To calculate the overall rating for each proprietary trading firm, Traders Union experts developed a specialized scoring algorithm that processes structured data across more than 65 key parameters. This system evaluates factors such as challenge rules, profit split terms, trading conditions, supported platforms, funding options, and account flexibility.
Each parameter is weighted according to its real impact on trader success and accessibility. The algorithm then combines these scores into a single final rating, ensuring objective, transparent, and consistent evaluations across all firms.
FAQs
How many experts are involved in evaluating and rating prop trading firms?
The analytical department at Traders Union includes 15 team members who evaluate companies and compile the current rating of prop trading firms based on each reporting period.
How long does it take to calculate results for one prop trading firm?
A full evaluation of all key parameters for a single proprietary trading firm takes approximately three hours. This includes analyzing challenge rules, trading conditions, platform access, and funding terms. We regularly update ratings for over 75 firms, helping traders save time with accurate and ready-to-use comparisons.
How often do brokers check and update the Traders Union rating?
This process is conducted monthly to ensure ratings remain current and reliable.
