Many retail forex traders face a common challenge that leads to their downfall: inadequate capital. Even if someone achieves consistent profitability, sustaining a livelihood solely through trading becomes challenging without a substantial amount of funds at their disposal.
The most skilled traders in the business make around 25%-30% profit per year on average. So, let’s say you have a trading account of £10,000 and manage to make a 50% return in a year – that still wouldn’t be enough to support yourself. Sadly, a lot of undercapitalised traders end up taking on too many trades and risking too much, all because they’re trying to make gains that just aren’t possible in the long run.
This is where forex prop firms come in. These companies bridge the gap between talented traders and a lack of capital by providing their own funds for trading. These firms actively seek out skilled traders to trade their money and then split the profits, with the trader typically receiving anywhere from 50% to 90% of the profits.
However, before a trader can start trading with a live account, they generally need to pass a challenge by trading on a demo account with a set of rules and profit targets to demonstrate their skills. Once a trader successfully passes the challenge, they’ll be given a live account to trade on.
Best Forex Prop Firms 2023
We’ve done the work of sifting through the rubble to bring you a curated list of the best forex prop firms – the most reputable and trustworthy firms that have a solid track record.
FTMO
Czech-based firm FTMO↗︎ is a bigwig in the forex prop trading business, they are a highly respected and well-known forex proprietary trading firm that offers two types of trading accounts: FTMO and FTMO Swing.
If you go for the FTMO Swing account, you’ll get a maximum leverage of 1:30, which means you can keep trades open overnight, and on weekends, and you can trade during big news events.
But, before you can start trading, you’ve got to pass a two-part evaluation process. The good news is that FTMO no longer has a time limit (previously 90 days) so you can take as long as you want to achieve the required profit targets. During the challenge, you need to achieve a total profit of either 15% or 30% (if you’re feeling extra aggressive) to be considered for funding.
Once you’ve made it through the evaluation, you get to trade with the account size you picked out at the start – anywhere from £10,000 to £200,000, with the potential to scale up to £2,000,000!
The profit split at FTMO is pretty good – traders get to take home 80% of the profits they make. And if you’re really killing it, there’s a scaling plan that could bump that up to 90%. But, it’s important to keep in mind that the drawdown limits are pretty tight – there’s a daily limit of 5% and an overall drawdown limit of 10%.
FTMO offers traders the opportunity to try before they buy. They have a unique feature where traders can take demo challenges, which as far as I know, no other forex prop firm offers.
The trading platforms available with FTMO are MT4, MT5 and cTrader. Markets available to trade are forex, commodities, crypto, stocks and indices.
The 5%ers
Launched in 2016, The 5%ers↗︎ is an Israeli-based forex prop firm.
The company offers three funded programs to traders, namely $100k Bootcamp, Instant Funding and Freestyle.
The $100k / $250k Bootcamp program↗︎ follows a three-stage evaluation process with a 6% profit target for each stage. The evaluation entry fee for this program is relatively low, costing only €95 / €225 euros. If you pass all three stages, you can gain access to a fully funded account by paying a one-time fee of €205 / €350 euros.
The Instant Funding↗︎ program, now called Hyper Growth, allows traders to start earning immediately once they meet the first target of 10%. This plan offers leverage of 1:30 and a starting payout share of 50%, the profit split increases with every 10% milestone you reach.
The High Stakes↗︎ program is a two-step evaluation that has a profit target of 8% for the first milestone and 5% for the second. There is no time limit, and you get access to 1:100 leverage.
Depending on the program you choose, the profit split offered by The 5%ers ranges from 50% to 100%.
The trading platform provided by The 5%ers is exclusively the MT5 platform. Markets available to trade are forex, commodities (Gold + Silver) and indices.
My Forex Funds
My Forex Funds (MFF) have ceased trading after being sued by the CFTC↗︎. We are not sure if MFF will continue to trade, but it looks highly unlikely. (Last Updated Sep 2023).
My Forex Funds↗︎ is a Canadian prop firm that launched in 2020 and has rapidly gained a solid reputation in the space. The firm provides three funding programs, namely Rapid, Evaluation, and Acceleration, and promises to pay between 2% and 4% right from the start.
The Rapid program is geared towards traders who are still in the learning phase. Although there are no targets set, traders can only receive a 12% share of profits made.
The Evaluation program is a two-phase evaluation test where traders must achieve a profit of 8% in phase 1 and 5% in phase 2 before being funded. The profit split begins at 75% in the first month, rises to 80% in the second month, and reaches 85% from the third month onwards.
The Accelerated program is tailored for traders to start trading on a live account from the outset. The profit split for this program is 50%, with no profit targets or time limits. The goal is to scale your available funds for every 10% of profit made, with the most significant accounts scaling up to $2 million.
The trading platforms available with My Forex Funds are MT4, MT5 and cTrader is said to be coming soon. Markets available to trade are forex, commodities and indices.
E8 Funding
At US based E8 Funding↗︎, traders are encouraged to focus on long-term consistency and disciplined risk management in order to achieve success. The firm offers opportunities to manage account sizes of up to $1,000,000, with traders taking home profit splits of 80% by trading a variety of instruments including forex, commodities, indices, equities, and cryptocurrencies.
E8 Funding is a relatively new proprietary trading firm established in November 2021, with offices in Dallas and Texas in the USA and Prague in the Czech Republic. They are proud to be one of the first prop firms based in the heart of the USA offering worldwide funding, and they have partnered with a tier-1 liquidity provider to offer traders direct market access.
The evaluation program consists of two phases, with phase one requiring traders to reach profit targets of 8% and 5% within 30 calendar without a time limit and without exceeding their 5% maximum daily loss or 8% maximum loss rules. Upon successfully completing both phases, traders are awarded a funded account with no profit targets but must continue to respect the maximum loss rules.
Traders receive their first payout eight calendar days after placing their first position on the funded account, with subsequent withdrawals available on a bi-weekly basis. The profit split is 80% based on the profits made on the funded account. It’s worth noting that the maximum loss rule increases by 1% with each successful withdrawal received, up to a maximum of 14%.
The trading platforms available with E8 Funding are MT4 and MT5. Markets available to trade are forex, commodities, stocks, crypto and indices.
Audacity Capital
Audacity Capital’s Funded Trader Program is a fantastic opportunity for highly skilled and experienced forex traders that have a proven, profitable strategy. What sets Audacity apart from other prop firms is their thorough interview process, which can be quite intimidating for some traders. This process ensures that only the most qualified and experienced individuals join their team.
Audacity Capital↗︎ offers a 50/50 split on profits made, along with a leverage of 1:5 and a maximum funded account of $480,000. Audacity Capital is definitely worth considering if you’re a skilled trader looking to take your career to the next level.
The trading platform available with Audacity Capital is MT4. You can only trade forex with Audacity Capital.
If you’re looking for trustworthy and highly recommended forex funding programs that have been tried and tested, these five options are at the top of the list. If I had to pick one for new traders it would have to be FTMO↗︎. Mainly because they offer free trials which give you full access to account metrics that will help you test and analyse your strategy before taking on a challenge.
A Look At Prop Firms That Use EightCap
I’ve had some less-than-stellar experiences with EightCap, but it seems that many proprietary firms have forged partnerships with the Australian-based forex broker.
Here are some of the reasons they have given:
Firstly, they say that EightCap has an excellent reputation in the forex industry for providing reliable, low-latency access to liquidity providers, which is crucial for prop firms that require fast and reliable trade execution.
Secondly, EightCap offers competitive pricing with no hidden fees, making it an attractive option for prop firms looking to keep their trading costs low.
Thirdly, EightCap’s sophisticated trading infrastructure and tools, such as VPS hosting and FIX API connectivity, can help prop firms to execute complex trading strategies and manage risk more effectively.
Finally, EightCap’s regulatory status as a regulated broker ensures that prop firms can trade with confidence, knowing that their funds and trades are protected by strict regulatory oversight.
So partnering with EightCap appears to offer significant benefits to prop firms, including fast and reliable trade execution (which is questionable), competitive pricing, advanced tools, and regulatory protection.
The following firms use EightCap:
FundedNext
FundedNext↗︎ is a new player in the forex prop firm industry, that launched in 2021.
FunedNext has taken a different approach from most prop firms, they offer a profit share of 15% right from the get-go. Once you pass the challenge this increases to 80% and can be scaled to 90% if you are consistently profitable.
The prop firm has two funding models available: Evaluation and Express.
The Evaluation model comprises two assessment phases. In the first phase, traders must hit a 10% profit target within four trading weeks while following all the rules. Upon successfully completing the first phase, traders move on to the second phase, where they must hit a 5% profit target within eight trading weeks while following all the rules.
The Express model targets are a bit more ambitious. Traders must achieve a profit of 25%, but there’s no specified time limit. Once traders hit the target, they can start trading on a funded account with a profit split of 60%. Based on traders’ performance, the profit split percentage can be increased all the way up to 90%.
The trading platform available with Funded Next is MT4. Markets available to trade are forex, commodities and indices.
The Funded Trader
The Funded Trader↗︎ operates much like FTMO in that traders must pass a two-phase 95-day challenge before they can be funded.
Traders have the option to choose between two different account types: Swing and Regular. While the Swing account allows for more flexibility in holding positions over the weekend, it comes with less leverage.
When it comes to challenges, The Funded Trader provides traders with three distinct options: Standard, Rapid, and Royal. Each challenge type has its own set of rules and leverage allowances that traders must adhere to.
The trading platform available with The Funded Trader is MT4 and MT5. Markets available to trade are forex, commodities, crypto and indices.
Staying within a 4% daily drawdown and a maximum trailing drawdown of 5% while achieving a profit target of 10% is challenging. We, therefore, recommend SurgeTrader, along with most prop firms, for advanced investors only.
Surge Trader
Surge Trader↗︎ was created in the United States by an institutional trader, venture capitalist, and forex trader, aiming to establish a prop firm that streamlines the path to trader funding by offering uncomplicated trading regulations and minimal constraints.
The prop firm offers a profit split of up to 90%, supporting a wide variety of trading instruments beyond individual stocks, having no minimum trading days requirement, and allowing traders to apply any strategies they choose to maximise profits.
SurgeTrader sets uniform trading rules for all account levels, such as a 4% daily loss limit, a 5% maximum drawdown, and a 10% profit target. The platform supports various trading methods such as news trading, algorithmic trading, and hedging. It also provides educational resources to its members.
The trading platform available with Surge Trader is MT4 and MT5. Markets available to trade are forex, commodities, crypto and indices.
Other EightCap prop firms:
Have we missed your prop firm? Let us know!
