Imagine being able to trade financial instruments like Forex, futures, and commodities with large capital at no personal risk. Think of the freedom you would enjoy, being able to open more positions and make more profit per trade. Although most traders still dream of achieving this someday, Prop trading firms have made such a life a reality today.
Prop firms are companies that make their capital available to traders for a percentage of potential profits. The problem is that there are so many of them these days, and uninformed traders may make the wrong choice. The sole purpose of this article is to cut through the noise, presenting the five best Prop firms for 2025. Pay attention to our key comparison guide. It will make your selection process easier.
What is a Proprietary Trading Firm (Prop Firm)?
A Proprietary Trading Firm is a financial entity that provides capital to professional traders who generate a profit from trading activities; profit that is shared in a pre-determined percentage split.
The Basic Principle
Although prop firm trading has little to do with gambling, the firms operate much like casinos when they provide the chips that players use to enter the game. Traditionally, the Prop firm model is that the firm provides the money, the trader the skill, and the profit is shared.
The Modern Model
In the modern model, prop firms use the funded challenge or evaluation method to discover and select only the most talented traders. Where the traditional model would have taken on a crop of promising traders and evaluated their skills without the traders ever needing to pay any money, funded challenges typically require the trader to pay a one-time fee for a 1-phase,2-phase, or 3-phase challenge, where the skills of trader will be evaluated and vetted.
Upon passing the challenge (evaluation) phases, the trader gets real funding, and some firms even return the one-time fee the trader initially paid for the challenge with the first payout the firm makes after splitting profits.
Why Use a Prop Firm?
The most obvious reason for Prop firm trading is access to significant capital. Once in a while, you may find retail traders who can provide and fund their accounts with the kind of capital that Prop firms offer, but this happens occasionally. In such a case, the trader still has to bear the personal financial risk on every trade and may not have access to professional trading tools that a Prop firm can offer.
Prop firms also offer trading communities where prop firm traders can connect with each other and provide much-needed support back and forth in terms of knowledge and advice. To spell it out clearly, consider our comparison table.
| Feature | Trading with Your Own Money | Trading with a Prop Firm |
| Capital | Limited to your personal funds. | Access to substantial firm capital. |
| Financial Risk | You risk your own money; all losses are your responsibility. | Your personal risk is limited to the evaluation or subscription fee. |
| Profit | You keep 100% of your profits. | Profits are split between you and the firm (e.g., 80% to you, 20% to the firm). |
| Control | Complete freedom over your strategy, schedule, and assets. | Must adhere to strict risk management rules, daily loss limits, and other restrictions. |
| Tools & Support | Access to tools is limited based on your personal budget. | Provided with advanced trading platforms, analytics, and professional support. |
| Entry | You can start trading at any time with a personal brokerage account. | You must first pass a rigorous and often paid evaluation or “challenge.” |
How We Chose and Ranked The Best Prop Firms
We did the hard bit for you and reviewed several prop firms, trying to find the best ones right now. We quickly discovered a number of key factors that separate excellent prop firms from the not-so-reliable ones. Some of these factors include profit split and scaling, TrustPilot rating and review volume, payout speed, challenge rules and fairness, Transparency of terms, and Quality of support.
We also heavily weighted longevity and reputation to ensure traders’ safety. Based on these factors, the following Prop firms stood out to us as the Top five Prop Trading firms of 2025. They are OneFunded, FTMO, FundedNext, TopStep, and The Funded Trader. Let’s go into the finer details of what each Prop firm offers.
#1 OneFunded: The Best Overall Prop Firm in 2025
OneFunded is the top Prop firm of the modern age in that it combines all the best features of all the other prop firms into an ultimate, trader-friendly package. In times past, it was common to find a mix of perks and limitations.
The prop firm offers both great profit splits and flexible trading conditions. OneFunded currently shines as the all-encompassing answer.
Key Features
OneFunded’s features that are worth mentioning include:
- Attractive Profit Split: Onefunded’s basic profit split structure is 80% to the trader and 20% for the firm.
- Variable Account Sizes: One funded offer account sizes from $2000 to $100,000. This gives traders the flexibility to trade whatever account size is most suitable for their trading style.
- Trustpilot Rating: OneFunded has a TrustPilot rating of 4.2 out of 5 total reviews. We particularly liked that the company is active on the platform, responding to both positive and negative reviews.
- No Time Limits: Unlike other platforms that give traders time restrictions, OneFunded has no time limit, and this is done to remove trading pressure. Traders can pass the evaluation in a few days or take months if needed. This feature reduces psychological pressure.
- Payout Frequency: After your first payout, you can request further payouts for every 14 days. For bank payments, payouts have to be at least $1000. Normal payouts, however, have to be at least $100.
- Unique Selling Proposition: Of all the prop firms on the market, OneFunded leads the pack in its unique blend of flexible rules and rapid scaling.
The OneFunded Advantage
OneFunded is lenient with its maximum daily drawdown (5%) in comparison to other prop firms on the market. The firm also allows traders to hold their trades overnight and during the weekend, although swap fees and other commissions may apply.
Most importantly, traders will be pleased to learn that there are no maximum trading days. This removes from traders the pressure of having to hit the required profit target within a specified number of days.
OneFunded allows its clients to engage in simulated trades of Forex, crypto, indices, commodities, and stocks. This wide access allows traders to stick to their preferred instruments rather than being forced into a narrow selection.
Who is OneFunded Ideal for?
This Prop firm is most suited to day traders who are looking for rapid scaling opportunities and swing traders who hate restrictive daily rules. Swing traders will especially love the fact that they can hold their trades overnight and over the weekend. Day Traders who can stay consistent over a period of time will also love the increased payout incentive they get as they scale up.
Pros and Cons
Although OneFunded has many advantages, the firm is not without its cons. Suppose you’re looking to trade with this prop firm, you should be well aware of both sides of the coin.
Pros
- High profit splits.
- Challenge fee refund policy
- Excellent support.
- Industry-leading rules.
- No time limits on the evaluation process.
- Multiple withdrawal methods
Cons
- Fewer publicly available trading platform options
- The simulated trading platform means no real market exposure.
Traders who are ready to scale up quickly and enjoy flexible trading rules can get started with OneFunded today.
#2 FTMO: The Industry Pioneer and Most Trusted Name
Many traders trust FTMO because it has been around the longest and is reputable. Think of the firm as the gold standard of Prop firm trading. Most up-and-coming prop firms aspire to be like FTMO, and most prospective prop firm clients typically weigh other Prop firms and their services against FTMO’s for quality.
Key Features
FTMO’s key features include:
- Profit Split: FTMO shares the profit, with 80% going to the trader and 20% going to the firm. When a trader meets FTMO’s scaling requirement, the profit split can grow to 90/10 (90% for the trader nd 10% for the firm).
- Account Sizes: FTMO offers account sizes from a minimum $10,000 to $200,000.
- Trustpilot Rating: FTMO has over 20,000 reviews on TrustPilot and an average rating of 4.8. Suffice it to say that the greater percentage of the firm’s clients had only good things to say about its services.
- Payout Frequency: FTMO allows first-time payouts anywhere between 14 to 60 days after your first trade. There is no minimum profit requirement. The firm simply pays your percentage of whatever profit you have made. Subsequently (after your first payout), all other payouts will be bi-weekly.
- Unique Selling Proposition: The key properties that set FTMO apart are its trust, clear reputation, and reliability.
The FTMO Journey: The Two-Step Evaluation
FTMO’s classic 2-phase evaluation process, which consists of the FTMO Challenge and Verification, is designed to test a trader’s discipline and consistency. A trader must pass both phases on a simulated demo account before being offered an FTMO account with virtual funds.
In the first phase (challenge), traders are required to achieve a 10% profit. Even though there is no time limit for this phase, traders will be required to have a trade open on at least 4 separate trading days. Also, traders must not hit or exceed a 5% loss of the starting capital on a daily basis, and must not lose more than 10 percent of the starting capital throughout the entire period of the challenge.
The second phase is the verification and final phase. It is designed to confirm the trader’s ability to maintain their strategy profitably and consistently over the long run, although it has a lower profit target of 5%. Every other rule (daily drawdown, overall drawdown, and time limit) remains the same as in the challenge.
After successfully passing both phases, the trader will become an “FTMO Trader.” They will be given an FTMO account with the same initial balance they traded during the evaluation. On this account, the profit target no longer applies, and traders are eligible to receive up to 90% of generated profits.
Who is FTMO Ideal For?
FTMO’s classic two-phase evaluation process is designed to filter for consistent and disciplined traders. The prop firm is ideal for traders who thrive on structured risk management, want to demonstrate their abilities to a legitimate firm, and are already consistently profitable on demo accounts.
Pros and Cons
Some of the pros and cons of FTMO include:
Pros
- Generous profit split
- Emphasis on risk management and discipline
- Wide selection of trading platforms
- Excellent educational resources
- Excellent reputation in the prop firm trading community
Cons
- Strict rules and high pressure during evaluation
- Little offering for futures and advanced stock traders.
- Demo trading for funded accounts.
Visit the FTMO website for more details on their trusted evaluation process.
#3 FundedNext: The Best for High Profit Splits and Crypto
FundedNext is known for offering some of the industry’s highest profit splits and its strong focus on crypto trading, an area where many prop firms still hesitate. With FundedNext, you get a platform that feels tailor-made if you want both flexibility and cutting-edge opportunities.
Key Features
FundedNext is a popular simulated prop trading firm that provides traders with various funding models, emphasizing flexibility and speed.
- Profit Split: FundedNext’s profit split starts at 80% (for the trader) and can be scaled up. It starts at 90% for some challenge types (Stellar 1-Step and 2-Step). FundedNext offers a 15% profit share on profits earned during the evaluation phases. This profit is paid out upon a trader’s first withdrawal from their funded account.
- Account Sizes: FundedNext offers account sizes from $5,000 to $200,000, and scaling can happen to a maximum of $4 million based on consistent performance.
- Trustpilot Rating: FundedNext has over 40,000 individual reviews on Trustpilot with a rating of 4.6 out of 5.
- Payout Frequency: Payout frequency depends on the specific challenge model chosen. After the first payout, traders can withdraw every 5 business days for the Stellar 1-Step. For the Stellar 2-Step and Lite, the first payout can be requested after 21 days, and subsequent payouts are available every 14 days.
- Unique Selling Proposition: FundedNext rewards traders even during the challenge phase with a 15% profit share. The firm operates on a balance-based drawdown and flexibility for diverse strategies like news trading and EAs.
Who is FundedNext Ideal For?
FundedNext is suitable for beginners and seasoned professionals. Traders who particularly want early rewards, fast and reliable payouts, use MetaTrader and cTrader, and desire compatibility with varying strategies will love this firm. The firm’s attention to cryptocurrency also makes it suitable for cryptocurrency traders.
Pros and Cons
Prospective FundedNext traders need to consider the following pros and cons before joining the firm:
Pros
- Multiple funding models
- tiered profit split
- No time limits on challenges
- Balance-based drawdown
- Guaranteed fast payouts
Cons
- Strict trading rules
- No direct live market access
- Limited asset offerings on some platforms.
Join FundedNext today and enjoy dedicated crypto trading with high profit splits.
#4 TopStep: The Premier Futures Prop Firm
TopStep is a well-established name in the prop firm world, specifically tailored for futures traders. Unlike many prop firms that focus on forex or crypto, TopStep has carved out a niche as the go-to firm for futures trading. This specialization, combined with a decade-long track record, has made it a trusted name in the futures trading community.
Key Features
TopStep’s main features are designed to help futures traders hone their skills and get funded. These features include:
- Profit Split: TopStep’s profit split is among the most generous in the industry. Traders get to keep 100% of their first $10,000 in profits and 90% of all profits thereafter.
- Account Sizes: The firm offers various account sizes, from $50,000 to $150,000.
- Trustpilot Rating: TopStep boasts a strong reputation, with a 4.3 out of 5 rating on Trustpilot based on over 11,000 reviews.
- Payout Frequency: TopStep has a flexible payout policy. Once you are funded, you can request a payout as often as four times a month.
- Unique Selling Proposition: TopStep’s key selling point is its specialized focus on futures trading and its highly effective educational resources and coaching.
The TopStep Trading Combine
To get funded with TopStep, traders must pass a two-step evaluation process called the “Trading Combine.” This program is designed to test their trading skills and discipline in a simulated environment. The rules are straightforward:
- Profit Target: To pass, traders must hit a specific profit target, which varies by account size. For example, the $150,000 account has a target of $9,000.
- Daily Loss Limit: Traders must not exceed a 4% maximum overall loss, but TopStep calculates this at the end of the trading day, not on an intra-day basis.
- Consistency: Traders must have at least two profitable trading days, and their best trading day’s profit cannot exceed 50% of their total profitability.
This process is challenging but fair, and there is no time limit to pass the evaluation, which removes a major source of pressure for many traders.
Who is TopStep Ideal For?
TopStep is perfect for futures traders who want to work with a reputable firm that focuses on their specific market. It is also an excellent option for disciplined traders who appreciate the emphasis on risk management and consistency. The extensive educational resources and live coaching make it an attractive choice for those looking to improve their trading skills.
Pros and Cons
Like any prop firm, TopStep has its advantages and disadvantages.
Pros
- High profit splits, including 100% of the first $10,000 in profits.
- A long-standing and trustworthy reputation.
- No time limits on the evaluation process.
- Excellent educational resources and coaching.
- Frequent payouts.
Cons
- Strictly for futures trading, making it unsuitable for forex or stock traders.
- High monthly fees for the evaluation, which can add up if you don’t pass quickly.
- The strict 4% maximum loss limit can be restrictive for some traders.
For dedicated futures trading and more payout requests per month, join TopStep Prop Firm.
#5 The Funded Trader: The Best for Flexible Challenges
The Funded Trader (TFT) is a rising star in the prop firm industry, known for its incredible flexibility and a wide range of challenge options. While many firms offer one or two challenge types, TFT provides multiple paths to funding, catering to various trading styles and preferences. This freedom, combined with some of the highest profit splits in the industry, has made it a popular choice for traders looking to get funded quickly and efficiently.
Key Features
TFT’s main features include:
- Profit Split: Highly competitive profit split, starting at 80% for the trader and scaling up to 90% with consistent performance. Some specific challenge types, such as the Stellar 1-Step, start at an even higher 90%.
- Account Sizes: The firm offers a wide range of account sizes, from $5,000 up to $200,000, with a generous scaling plan that can increase your capital to a maximum of $4 million.
- Trustpilot Rating: With over 40,000 reviews on Trustpilot and an average rating of 4.6 out of 5, TFT has a strong reputation within the trading community.
- Payout Frequency: Payouts are fast and flexible, depending on the challenge model you choose. For some challenges, you can request your first payout as soon as 21 days after your first trade, with subsequent payouts available every 14 days or even every 5 days for the Stellar 1-Step.
- Unique Selling Proposition: TFT stands out with its diverse range of challenge models and its generous 15% profit share on evaluation earnings, paid out with your first funded account withdrawal.
The Flexible TFT Challenge Options
The Funded Trader offers multiple evaluation programs to fit different trading strategies, including:
- Standard Challenge: A classic two-phase evaluation with a 10% profit target in Phase 1 and a 5% target in Phase 2.
- Rapid Challenge: Designed for speed, this challenge has an 8% profit target and no minimum trading days, allowing you to get funded in as little as three days.
- Knight Challenge: This is a one-phase evaluation with a 10% profit target and no minimum trading days, perfect for traders who want to get funded fast.
The firm’s flexibility extends to its trading rules, allowing for diverse strategies like news trading, holding trades over the weekend, and using Expert Advisors (EAs).
Who is The Funded Trader Ideal For?
The Funded Trader is best suited for traders who want a variety of options to get funded. Whether you prefer a quick, one-step process or a more traditional two-phase evaluation, TFT likely has a program that fits your style. It is particularly popular with traders who use EAs or want to take advantage of high-impact news events, as the firm is less restrictive than many of its competitors.
Pros and Cons
Before signing up with The Funded Trader, consider the following pros and cons.
Pros
- Extremely high and scalable profit splits.
- Multiple challenge options to suit different trading styles.
- Fast payout times, with some challenges offering payouts in as little as five business days.
- Allows for news trading, swing trading, and EAs.
- A large and active community on Discord.
Cons
- The many challenge types can be confusing to a new trader.
- Some complaints about system glitches during competitions.
- The firm’s strict trading rules, while flexible in some areas, can lead to breaches if not followed precisely.
For traders who are interested in scaling quickly or trading with a firm that allows news trading or EAs, get started with The Funded Trader today.
Conclusion
Trading with prop firms can be complicated, but most traders remain interested in it because it potentially grants them access to significant funding. Before joining any of these top firms, ensure that the terms of service and trading guidelines align with your trading style and personal risk management practices.
Read the fine print and, most importantly, remain up-to-date on what other users are saying about the firm on review websites like Trustpilot.
Frequently Asked Questions (FAQ)
How Does a Prop Firm Evaluation Work?
The evaluation process typically involves one or two phases where traders must prove they can trade profitably while adhering to strict risk management rules.
Is Prop Trading a Scam?
No, not all prop firms are scams. The business model is not inherently fraudulent, but like any industry, it has bad actors. To identify a legitimate firm, look for transparency in its rules and payout process, read independent reviews on sites like Trustpilot, and be wary of unrealistic promises.
A legitimate firm earns revenue primarily from a combination of challenge fees, profit splits, and spreads, but focuses on the long-term success of its traders.
How do Prop Firms Make Money?
Most prop firms make money from challenges, profit splits of funded traders, and copying the trades of their most successful traders. Some firms also charge a fee for platform access, data feed, and account resets.
Can I Trade With Real Money?
No, with most modern retail prop firms, you trade on a simulated demo account, even after getting “funded.” The firm provides virtual capital, and profits are paid out as a reward based on simulated performance. Some firms may choose to mirror profitable trades internally on live accounts.
What Happens if a Rule is Violated?
Whenever a risk management rule is violated, such as the maximum daily or overall drawdown, the account will be terminated. The evaluation or funded account will be lost, and a new challenge or reset must be purchased to continue.
