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Spotting Top Prop Trading Firms, Simple 4 Step Checklist

Updated: Aug 22, 2022

With lots of Top Prop Trading Firms out there, it can be difficult to distinguish the best prop firms for your forex prop trading and which ones will not help, especially when you have lots of options online. This article has every prop trader in mind and will outline key checks you can run to see if the prop firm will help your forex trading. Think of it as your “Top Prop Trading Firms Checklist”.

We will also go through some NOT SO OBVIOUS methods. Some of which you may have thought you could rely on.

Support – Especially for Traders who Don’t Succeed

The Top Prop Trading Firms provide equal support for winning and losing traders. Losing traders aren’t ignored for failing an evaluation/challenge. A prop firm that’s serious about developing its traders will guide them; this is the type of firm that will be great for your developing forex prop trading.

This support for traders that don’t succeed or aren’t currently succeeding can come in the form of providing guidance and support to help them understand their mistakes and provide feedback on improving their performance. A red flag would be ignoring them and profit by letting them purchase another challenge.

For example, City Traders Imperium (CTI) provides free Psychology and Risk Management that traders can join should they fail an evaluation. The purpose is to help them reflect and review their trading plan and follow good risk management practices.

Reviewers Aren’t Trustworthy; Adverts Are Meaningless – Your Own Research Is Best

Put simply; you cannot trust review sites, YouTubers, Instagram, or any social media reviewer; this includes review sites. They are not impartial as they make you think; they have either been endorsed by the company they are reviewing or received some form of compensation in exchange for favourable reviews. Some prop firms provide fake accounts with amazing profits. The better the review, the more compensation the reviewer received.

Also, just because you see the ads of a few prop firms everywhere, it does not make them top prop trading firms. What it means is that they invested a lot in their marketing to appear everywhere, not because of their amazing reputation.

You must research them yourself and ask the tough questions. Remember, if you are looking to invest in elevating and developing your forex trading, you are right to ask tough questions. The top prop firms can handle and answer them; the others will not be able to. You wouldn’t trade based on reviews or marketing; the same applies when selecting a prop firm.

Examine The Prop Firm Offer CAREFULLY

Don’t be fooled into thinking that top prop trading firms offer conditions that look “too good to be true” and will turn your forex prop trading journey into a get rich quick scheme.

These conditions conceal the mediocre conditions offered to traders, such as the very limited conditions placed on you, like how much you can risk, high spread, and slow execution.

Always find out what the rules are and if it is compatible with your plan; do the risk limits work with your plan or hinder it. That is something that could help develop or hinder your forex trading development. Now, while the huge sums of money prop firms paired with the scaling may look attractive, you need to look at the profit share you need to verify if the firm pays its traders.

Another thing to consider, while you may think a small profit target and high-profit share is brilliant, you need to consider what these firms are thinking; do they expect most traders to lose? Remember the Funding Talent and DT4X. Initially, these prop firms appeared legit but went bust because they couldn’t afford to pay their traders. When traders profited, they couldn’t pay and shut down. No one verified they could pay.

Yet prop firms with realistic trading conditions such as CTI can verify payments while ensuring prop trading can be a long term career.

If you use the tips outlined in this checklist, you will be miles ahead in finding the top prop trading firms to help develop your forex prop trading and compared to other traders that are unaware of the core techniques mentioned in this article.

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