Best Prop Firms for Day Trading: Maximize Your Profits in 2024

Day trading is a competitive market and in this higher competition, it is very difficult to choose the right prop firms. This decision of choosing a prop firm is very critical for increasing your profitability and getting more chances of success. Prop firms provide traders an opportunity to trade using the firm’s capital instead of their own money. These prop firms benefit those traders who don’t want to take risks with their own money or don’t have enough money to trade. Through this approach, traders get access to a larger trading pool as well as reduced personal risk. But all this success of traders is dependent on the right prop firms. So when traders choose the prop firms it is important to first understand some factors and top firms that help them to make the right decision. So let’s start it!

What is a Prop Trading Firm?

A prop trading firm is a company that provides traders with capital to trade financial instruments like stocks, forex, futures, and cryptocurrencies. Best Prop firms help traders make large profits by utilizing advanced algorithms, trading platforms, and market expertise. The firm in return to these findings keeps a portion of its profits that mostly range from 20-50%. These firms charge a small evaluation or entry fee and generate income while providing talented traders the leverage to trade on a larger scale without risking their own funds. These firms have a structure in which traders first pass an evaluation and meet the criteria that firms provide and prove their skills. After passing this evaluation they can access the firm’s capital, earning a share of the profits they generate.

How to Choose the Right Prop Trading Firm

It is very important to first consider some factors before choosing a prop trading firm. So let’s see some important factors. 

Profit Split

Profit split is the first you consider when choosing a prop firm. Firms with higher splits like FTMO and Topstep allow traders to keep a larger portion of their earnings. You must choose a firm that provides profit splits of 70% or higher if maximizing earnings is your primary goal.

Evaluation Process

Most of the firms use an evaluation process to check the skills of a trader. These processes consist of one-step and multi-step models and are usually designed to build discipline. Here you need to analyze the complexity and duration of their evaluation process, especially if you prefer instant funding options.

Fee Structure

Some prop firms also charge upfront evaluation fees or a subscription fee. This fee can be refundable once traders are successful in the evaluation process. Firms like FTMO and My Forex Funds provide a refundable evaluation fee after the successful completion.

Supported Markets

If you have experience in a specific market like forex or stocks then must ensure that the firm provides access to those assets. Some firms only focus on options trading while others like The5ers are best for forex traders. Choose a company that matches your market preferences to increase your trading efficiency. 

Top Prop Firms for Day Trading in 2024

TopStep Trader

TopStep Trader is known as one of the best prop firms for day traders as well as for both beginners and experienced traders. This firm has expertise in futures trading and provides a unique evaluation process to make sure traders are ready to handle firm capital.

• Evaluation Process: TopStep has a simple evaluation process that traders need to pass to prove their skills. Once they pass, traders are funded by the firm.
• Profit Split: Traders can get a profit split up to 80% and the firm retains 20%.
• Platform and Tools: TopStep Trader uses TradeStation and Ninjatrader platforms that are known for their charting tools and order execution features.
• Fees and Requirements: The company charges a monthly membership cost that is decided according to the size of the account. Usually, prices fall between $150 to $375.

FTMO 

FTMO is also one of the top names in proprietary trading due to its advanced trading environment and high success rate. They have a two-step evaluation process that traders need to complete and also prepare them for real market scenarios. The restrictions and regulations of the platform are designed to get disciplined traders and FTMO provides high-performing traders profit shares of up to 90%. They support MetaTrader 4, MetaTrader 5, and cTrader.  

• Minimum Capital Requirement: None
• Profit Split: Up to 90%
• Key Features: Risk management guidelines, trading performance coaching, customizable account types 

FundingPips:

FundingPips is also another top name in the prop trading space. It provides an amount of capital to the forex traders with a simple evaluation process and minimal restrictions. FundingPips is also known for its flexibility and transparent guidelines and provides up to an 80% profit split for its traders.

• Minimum Capital Requirement: None
• Profit Split: Up to 80%
• Evaluation Fee: Yes, competitive and refundable after passing
• Trading Platforms Supported: MetaTrader 4, MetaTrader 5

The5ers

The5ers is an Israeli-based prop firm that offers both instant funding and accelerated programs and is best for forex traders. The firm has flexible funding programs for both beginners and experienced traders. 

• Minimum Capital Requirement: None
• Profit Split: Up to 75%
• Evaluation Fee: Yes
• Trading Platforms Supported: MetaTrader 4, MetaTrader 5

Conclusion:

When you choose a prop firm to start your trading journey then it is important to first know the important factors like their profit split and evaluation process. You can also choose from the best prop firms for day trading that are listed above.