Best Prop Firm Contests: Terms And Prizes
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If you're too busy to read the entire article and want a quick answer, the best prop firm contests reviews is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Honing trading skills and developing effective strategies
- Risk-free environment for practice and learning
Best prop firm contests:
- Hola Prime - A prop trading firm licensed by the FSC of Mauritius that provides funding up to $500,000 with the potential to scale accounts to $4 million
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Instant Funding - Prop firm offering instant funding with account sizes up to $80,000
- GoatFundedTrader - A proprietary trading firm registered in Saint Lucia and Hong Kong, offering simulated capital of up to $400,000 for Forex and CFD trading.
- Earn2Trade - Convinient scaling plans (relatively low profit goal, account upgrades after withdrawing first profit target)
Prop trading firm contests provide a platform for traders to showcase their trading skills and strategies in real market conditions. These contests are held in a challenge format, where prop firms select funded traders who will be provided with capital to trade. This review will cover the main contests, their terms, available prizes, and basic entry requirements. It offers valuable information for both experienced traders and newbies looking to expand their trading capabilities.
Best prop firm contests
Prop firm contests are events where participants trade using simulated funds in real-time market conditions. The aim is to achieve the highest profits within a set time frame or with given capital. Traders compete for prizes like cash rewards, funded accounts, or career advancement opportunities within the prop firm. These contests provide a platform for traders to improve their strategies, gain recognition, and secure financial support for their trading careers.
| Contests | Funding Up To, $ | Profit split up to, % | Max. Leverage | Min Trade Days | Trading period | No-Evaluation | Open an account | |
|---|---|---|---|---|---|---|---|---|
| Yes | 4 000 000 | 95 | 1:100 | 2 | Unlimited | Yes | Open an account Your capital is at risk.
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| Yes | 200 000 | 90 | 1:30 | No time limits | Unlimited | No | Open an account Your capital is at risk.
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| Yes | 2 500 000 | 90 | 1:100 | 3 | Unlimited | Yes | Open an account Your capital is at risk.
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| Yes | 2 000 000 | 95 | 1:100 | 3 | Unlimited | Yes | Open an account Your capital is at risk.
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| Yes | 400 000 | 80 | 1:30 | 10 | Unlimited | No | Open an account Your capital is at risk. |
How to choose the best prop firm contest?
To choose the best prop trading firm contest, especially if you're interested in Forex trading or want to use Expert Advisors (EAs), here are some key factors to consider:
Firm's reputation and reliability
Research the prop firm. Look for a firm with a strong reputation in the industry, known for fair practices and reliable payouts.
Reviews and feedback. Check trader reviews on trusted sites like Trustpilot, and Reddit for experiences with past contests.
Regulation. While not all prop firms are regulated, choosing a reputable prop firm with transparent terms can add security.
Contest rules and objectives
Trading requirements. Understand the rules around trade volume, risk limits, and trading hours. Some firms may restrict specific strategies, such as high-frequency or grid trading.
Profit targets and drawdown limits. Ensure the profit targets and maximum drawdown limits are achievable for your trading style. These limits directly impact your ability to qualify or win.
Prizes and rewards
Funding opportunities. The best contests often offer funded accounts as prizes, which can allow you to scale up your trading without risking your capital.
Payout structure. Understand how payouts work, including any profit-sharing percentage. Some firms may offer a high initial profit share to contest winners.
Bonus benefits. Certain contests may offer additional perks, like waived fees, reduced profit splits, or other benefits for high-performing traders.
Contest frequency and duration
Length of contest. Determine whether the contest duration aligns with your trading style. Longer contests favor traders with more consistent strategies, while shorter contests may be better for high-risk, high-reward approaches.
Frequency. Some firms hold frequent contests, while others may offer only one or two annually. Frequent contests offer more chances to participate and win.
Risk management policies
Daily loss limits. Some contests have daily loss or risk limits, so ensure these are feasible for your strategy.
Leverage. Check the leverage provided in the contest; high leverage can increase both risk and reward, depending on your approach.
By considering these factors, you can better identify a prop firm contest that aligns with your trading goals and offers a genuine opportunity to showcase your skills.
Should you participate in prop trading contests?
Traders' union experts point out several reasons for participation:
Skill development. Prop firm contests provide an opportunity to refine trading strategies in a controlled environment. Traders can test different approaches and gain a deeper understanding of market behavior.
Practical experience. Participation in contests allows you to apply theoretical knowledge without risking your own funds, which helps build confidence and improve competencies.
Prize awards. Some contests offer cash rewards, trading capital, or job offers, which attracts and further motivates participants.
Networking. Contests can lead to useful contacts with professionals in the financial industry and open up new career opportunities.
Risk management. Participants learn to comply with established risk parameters, which helps develop capital preservation skills.
Career growth. Successful participation or victory in such contests can strengthen a trader's reputation and increase their competitiveness in the industry.
What are the pros and cons of prop firm contests?
Participating in prop firm contests offers several advantages and disadvantages for traders.
- Pros
- Cons
Access to capital. Successful participants often receive funding from the firm, allowing them to trade larger positions without using their own funds.
Skill development. These contests provide a real-market environment to refine trading strategies and improve decision-making.
Professional exposure. Strong performance can lead to recognition within the trading community and open up career opportunities.
Educational resources. Many firms provide training materials and mentorship during contests to support trader development.
High pressure. The competitive nature can create stress, leading to impulsive decisions.
Strict rules. Participants must follow specific guidelines, which can limit trading flexibility.
Entry fees. Some contests have fees, posing a financial risk if the trader doesn't perform well.
Profit sharing. Even after winning, traders usually share a portion of their profits with the firm, reducing their overall earnings.
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.
Choose contests that provide educational support and realistic trading environments
Leverage contests with educational support. Choose competitions that offer more than just cash prizes. Some firms provide mentorship, access to advanced trading tools, or educational resources as part of their contests. Joining these competitions helps you improve your trading skills and learn from experienced professionals, which is crucial for growth. For example, some prop firms offer structured challenges that simulate real trading environments, helping you build discipline and fine-tune your strategies.
Focus on contests with realistic trading conditions. Look for competitions that replicate actual market conditions, with real risk parameters and trading rules. This approach ensures that the skills you develop during the contest can be directly applied to live trading. Participating in these contests prepares you for both the mental and technical aspects of real trading, making the transition to using actual capital smoother. Some platforms emphasize real trading conditions, providing practical experience.
Conclusion
Prop house competitions are a great opportunity for traders to test their skills, improve their strategies, and potentially win valuable prizes or trading capital. While there are risks associated with participating, these competitions offer a chance to apply theoretical knowledge and gain a better understanding of real-world market conditions. Choosing a competition with the right conditions and format can significantly increase your chances of a successful performance. By participating in competitions, traders can also expand their professional networks and enhance their reputation in the industry. For those seeking career advancement and advanced learning, participating in prop house competitions can be a significant step forward.
FAQs
How to prepare for a prop firm contest?
First of all, study the contest rules and risk requirements. Prepare your strategy taking into account the contest limits and practice it on a demo account. This will help reduce the likelihood of mistakes when working on a real account.
What types of strategies are best suited for contests?
Short-term and aggressive strategies are often more successful in tight deadlines. However, it is important to choose a strategy that you are confident in working with and take risks into account, since contests often require quick decision-making.
Can participating in a contest help improve risk management skills?
Yes, contests set strict risk limits, which forces traders to carefully monitor trades. This is a valuable experience that allows you to learn how to conserve capital and avoid overtrading, which is useful in real trading.
Should you use the same strategy in a contest as in real trading?
It depends on the conditions of the contest. If they are similar to your trading style, the strategy can be kept. However, in competitions with tight time frames, adaptation to a faster or more aggressive approach may be required.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
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).
Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.
Forex trading, short for foreign exchange trading, is the practice of buying and selling currencies in the global foreign exchange market with the aim of profiting from fluctuations in exchange rates. Traders speculate on whether one currency will rise or fall in value relative to another currency and make trading decisions accordingly. However, beware that trading carries risks, and you can lose your whole capital.
Proprietary trading (prop trading) is a financial trading strategy where a financial firm or institution uses its own capital to trade in various financial markets, such as stocks, bonds, commodities, or derivatives, with the aim of generating profits for the company itself. Prop traders typically do not trade on behalf of clients but instead trade with the firm's money, taking on the associated risks and rewards.
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
