Day trading is now a very popular trade for the traders. As day traders get the benefits from small price movements they need the quick buying and selling of securities within a single trading day. Now traders can easily trade with the help of Prop firms that provide them the amount of capital for trading. But they need financial independence so it is very important to choose the right prop firms. But which prop firm is best for day traders? If you don’t know then you need to read this guide as we are going to review the top-ranked prop firms for day trading. So let’s start it!
What Is Proprietary Trading?
Proprietary trading, also known as prop trading, is when a company uses its own money to trade financial markets. Traders can use the firm’s funds, which lowers their personal risk and increases their earning potential. The firm makes money from the trader’s success by taking a share of the profits in return for providing funding and support.
How to Choose the Right Prop Firm
When selecting a prop trading firm, consider these important factors:
- Funding Amount: Check how much funding the firm offers and if you can grow it over time.
- Profit Split: Look at how much profit you get to keep versus the firm’s share.
- Platform Features: Verify if the company provides advanced tools, analytical software, and access to global markets.
- Fees and Costs: Check the upfront and ongoing costs for evaluation processes or membership.
- Support and Education: Some firms not only provide capital but also provide training and mentorship that help traders improve their skills.
Choosing the best prop firms for day trading can make a big difference in your success as a trader.
Top Proprietary Trading Firms for Day Trading in 2024
FTMO
FTMO is a leading name in prop trading that allows skilled traders to access large amounts of capital. It is known for its challenging evaluation process, which rewards consistent and disciplined trading. They believe that only those traders who actually deserve this can access their capital.
Key Features
- Capital Access: Traders can get up to $400,000 in funding but also with a scale-up option.
- Profit Split: start from 80/20% and scale up to 90/10% profit share.
- Evaluation Process: A two-step challenge that is mainly focused on consistency and risk management.
- Trading Platforms: Compatible with MetaTrader 4/5 and cTrader.
Pros
- High profit splits.
- Comprehensive trader analytics.
- Flexible trading conditions.
Cons
- Strict evaluation process.
- Not ideal for beginner traders.
TopStep
TopStep is a trusted name in futures trading that provides features of advanced screening. Their main focus is to provide traders with development with their evaluation process.
Key Features
- Focus: Futures trading with real-time market data.
- Evaluation: A two-step process ensuring sound risk management.
- Profit Split: Provide profit of up to 80% to the traders.
- Training: This firm also provides detailed coaching with educational resources as well as personalized guidance.
Pros
- Great support for futures traders.
- Clear rules and straightforward payouts.
- Freedom to trade any strategy without restrictions.
Cons
- Focuses mainly on futures, which limits options for other types of trading.
FundingPips
Funding Pips is a Dubai-based proprietary trading firm that provides excellent opportunities to traders to manage account sizes ranging from $5,000 up to $100,000.
Key Features
Funding Programs: Provides five funded account challenge options, including one-step, two-step, and three-step evaluations.
Profit Split: Traders can keep up to 100% of their profits which is most unique.
Evaluation: Realistic goals with no limit on the number of trading days.
Trading Platforms: Works with Match-Trader, cTrader, and TradeLocker.
Support: Includes features like unlimited trading time, a scaling plan, and drawdown flexibility.
Pros
- Number of funding programs to choose from.
- High profit splits for traders.
- Flexible trading rules and conditions.
Cons
- The evaluation process can be difficult for some traders.
The 5%ers
The 5%ers focus on low-risk Forex trading and provide consistent opportunities for growth.
Key Features
- Capital Access: Start with $24,000 and traders can scale up to $1.28 million.
- Profit Split: Traders keep 50-70% of their profits at the start.
- Evaluation: Focuses on long-term success instead of short-term results.
- Risk Policy: Promotes disciplined and controlled trading.
Pros
- They encourage safe and low-risk strategies.
- Clear path for growth and scaling.
- Ideal for traders who prefer quick and long-term success.
Cons
- Profit splits are lower than some competitors.
- Starting capital is smaller as compared to others.
Conclusion
Choosing the right prop firm for day traders is a very challenging task. But you can choose the best one from the firms listed above. All these firms provide day traders unique features according to traders needs. Just understand the rules of firms and their resources so you can make the right decision easily. Also check the factors like their funding models, profit-sharing, and support systems and then align your goal with one that best suits you.