Best Forex Prop Trading Firms 2023 – Insider’s Guide
The foreign exchange market has an extensive daily turnover and liquidity and has emerged as a popular activity for forex traders worldwide.
Proprietary firms or prop firms provide a unique opportunity for traders in a vibrant forex trading ecosystem and allow them to maximize their trading potential.
While the forex prop trading realm has many choices, even the most professional traders require a robust platform to start their trading journey.
This article will explore the best forex prop trading firms or best forex proprietary trading firms and shed light on their structures.
List of the Best Forex Prop Trading Firms 2023 – Our Picks:
- The 5%ers – Best Funded Trader Programs for Forex Traders
- FTMO – Best Forex Trading Condition
- Fidelcrest – Exceptional Customer Support, Always There to Help
- Fundingpips – Best Forex Prop Firm for Beginners Due to Low Fees
- Myfundedfx – The Most Trader-Friendly Prop Firm
Top Forex Proprietary Trading Firms 2023 – An In-depth Analysis
1. The 5%ers
The 5%ers is the ultimate forex proprietary trading firm that deploys its capital towards pursuing profits while trading forex, metals, indices, and stocks. It allows new traders to trade with the private equity fund of up to $4,000,000.
With The 5%ers, experienced traders can get daily live trading room, trading performance statistics, real-time trading notifications, free webinars, risk management and trading plan education, extensive trading resources, and dedicated support from professional traders.
Traders can participate in the forex trading world in a simulated environment during a trading challenge and get funded after passing the challenge.
Furthermore, The 5%ers has a two-step challenge, a one-step challenge, and an instant funding program for traders to choose from.
Features
- Profit split – 50%
- Registration fees – €235
- Evaluation – 2 levels, and after signup, you directly enter level 1; the trader must perform under the program requirements to enter the next level.
- Supported Forex currency – 8 currencies and 28 currency pairs, including AUD/JPY, AUD/USD, NZD/JPY, AUD/GBP, CAD/JPY, and more
- Leverage for Forex pairs – 1:30
- Max Capital – $4,000,000
- Price compared to another platform – Moderate
Pros
- Trader-friendly forex trading parameters and financial instruments
- Relaxed trading rules for swing traders, scalpers, and retail traders
- Easy payout process
- Expert Advisors and Hyper-Growth plan pays out profits during the evaluation program
Cons
- Payouts may scale up to 100% and start at around 75% for a funded trader
- Low leveraged trading
FTMO is the best prop trading firm for forex traders who can earn forex funds by undergoing a two-step evaluation program focusing on rule adherence and profit targets.
FTMO mainly focuses on the forex market and encompasses indices, crypto, and commodities.
The forex proprietary firm’s unique approach involves the Verification and the Challenge stage, both essential to enhance the potential of forex traders. Additionally, the prop firm has many advanced tools to help traders with trading journals, a statistical app, a mentoring app, an equity simulator, and many more.
The business model of FTMO is essentially based on the success of funded trading, creating a win-win situation for both the proprietary trading firm and the funded trader.
Features
- Profit split – up to 90%
- Registration fees – €155 refundable fee
- Evaluation – FTMO Challenge and Verification
- Supported Forex currency – USD, GBP, EUR, CZK, CAD, AUD, CHF
- Leverage for Forex pairs – 1:100
- Max Capital – $200,000
- Price compared to another platform – Moderate
Pros
- A wide selection of tradeable fiat currencies and cryptocurrencies
- 90% profit share
- A refundable fee after the evaluation program
- Get education and customer support for the best forex trading talents
- Trade forex with funded trading without risking
Cons
- Two verification phases need to be completed
- Not suitable for derivatives or stock investments
3. Fidelcrest
Fidelcrest is a globally operating forex proprietary trading firm headquartered in Nicosia, Cyprus, established in 2018. It gives prop traders access to forex funds worth up to $400,000, allowing them to make significant differences in their lives.
The management team at Fidelcrest consists of forex professionals and traders with 10 years of experience or more in the niche.
Fidelcrest helps traders make funded profits in the long run. The proprietary firm also has a wide variety of account sizes tailored to suit all kinds of traders with different levels of needs and expertise.
Fidelcrest is one of the best forex prop firms because of the variety of trading instruments offered, with more than 1000 options for traders to complete the challenge within the Fidelcrest evaluation program.
Features
- Profit split – 80% to 90% of profits
- Registration fees – €999
- Evaluation – Challenge Phase, Verification Phase, Professional Phase
- Supported Forex currency – USD, EUR, and more
- Leverage for Forex pairs – 1:100
- Max Capital – $400,000
- Price compared to another platform – High
Pros
- Traders can manage funded forex accounts of up to $400,000 without requiring any complex scaling plan
- Offers a profit split scheme of up to 90% for a beginner prop trader and a professional trader
- Generous max loss levels of up to 20%, making it one of the best prop firms for forex
- Supports a variety of trading platforms, including MetaTrader 4 and MetaTrader 5, with algorithmic trading
Cons
- A lengthy evaluation process that can take up to 90 days
- Limited tools and education materials compared to other online forex prop firms. The best prop firms for forex may offer more educational materials.
Funding Pips is one of the best forex prop firms, designed to offer traders an opportunity to profit and be shielded from the labyrinth of financial scams.
Funding Pips is more than just a platform or a broker; it can operate as a vigilant partner, fully committed to its traders’ well-being. This is why it is widely considered to be the best forex prop firm.
It takes a unique approach by embracing an evaluation process that acknowledges all types of skilled traders and allows them to emerge in daily trades with instant funding.
The evaluation program is innovative and meticulously designed to take traders through the journey of growth and evaluation of their skills.
Features
- Profit split – up to 90%, making it a worthy name for the title of the best prop firm for forex
- Registration fees – Starting at $32
- Evaluation – Two phases – Student-Practitioner and Funded (Master)
- Supported Forex currency – Over 100 currency pairs, including USD/EUR, GBP/CAD, GBP/JPY, EUR/JPY, EUR/AUD, and more
- Leverage for Forex pairs – 1:100
- Max Capital – $300,000
- Price compared to another platform – Low
Pros
- Lowest evaluation fees
- Maximum allocation of up to $300,000 with a leverage of 1:100
- Flexible trading of foreign currencies with no minimum days, scaling plans, and no minimum trading period
- Profit sharing of up to 90% with weekly payouts
- Allows overnight holding and weekend holding
Cons
- No 24×7 live chat support is available
- Mandatory rule for stop-loss.
5. Myfundedfx
MyFundedFx is one of the best proprietary trading firms that offers traders up to $600,000 of simulated capital with a profit-sharing of up to 80% without any scaling plan required.
Among other forex trading firms, MyFundedFX has gained rapid prominence in the industry and has attracted a swarm of swing and day traders currently seeking funding.
Like best prop trading firms, MyFundedFX also has an innovative 1 step funding process that allows traders to secure their own funds with a single trade.
Moreover, MyFundedFX is built on Eightcap, making it the best prop firm to offer forex trading on weekends, appealing to both new forex and crypto traders.
Features
- Profit split – 80%
- Registration fees – Refundable fee of $50
- Evaluation – Challenge, Verification, Get Live Simulated Account
- Supported Forex currency – Forex majors, minors, and exotics, including AUD/CAD, EUR/CAD, NZD/CAD, GBP/HUF, CAD/JPY, and more
- Leverage for Forex pairs – 100:1
- Max Capital – $600,000
- Price compared to another platform – Low to Moderate
Pros
- Instant funding via 1-step procedure
- Active Discord community with more than 8000 members
- Regular promotions and competitions with amazing cash prizes
- Generous profit split of 80%
- Weekend trading with Eightcap
Cons
- No demo mode or free trial
- Inadequate record of the platform’s performance
- Lack of educational resources
What Are Forex Prop Trading Firms?
A Forex proprietary trading firm is a company that evaluates the skills of its traders generally through trading challenges and assigns its trading capital for the traders to operate with.
The objective of the evaluation or challenge period is to learn about the qualifications and capabilities of the traders trading under the money management rules of the company.
The difference between conventional forex trading platforms and forex proprietary firms is that the latter invest their funds and effectively act as both clients and brokers.
Traders employed by forex proprietary trading companies are also referred to as prop traders who do not risk their own capital funds but use the money of the form to trade.
How Do Forex Prop Firms Work?
A forex proprietary trading firm generally does not offer demo accounts. They essentially hire proprietary traders to trade forex on their behalf by giving a certain percentage of the capital based on their skills. When traders profit, the forex and crypto props firms deduct the amount depending on the pre-made agreement. The agreement usually varies, but the best forex prop firms usually give a profit split of 80%-20% depending on the skills of the traders. However, most prop firms may charge a desk fee for trading software, personnel wages, terminals, and utilities.
Benefits of Working With a Forex Prop Trading Firm
A forex trader using a proprietary forex trading platform can enjoy numerous advantages. Some of the benefits of working with the prop forex trading firm have been mentioned below –
- Access to high-leverage: A forex prop trading firm typically offers greater access to maximum leverage that amplifies profits and losses. Hence, it is advantageous for traders on the best firms to manage their risks effectively.
- Tight spreads: A forex prop firm has access to tight spreads that lead to greater profits on all forex trades.
- Advanced trading technology: A forex proprietary trading firm usually has access to modern trading technologies that allow traders to make informed decisions and execute their trades efficiently.
- Mentorship and support: The best prop firms offer mentorship and support to new traders from experienced analysts and traders in the trading industry. This tends to be an invaluable resource for beginners who wish to improve their forex trading skills.
- Greater liquidity: It is known that the foreign exchange market is the most liquid and largest in the world, offering greater access to a wide variety of liquidity providers and allowing them to enter or exit trades efficiently.
- 24/5 trading: The foreign exchange market is open 24×5, allowing traders to participate in forex trading during convenient trading hours.
- Global reach: The foreign exchange market has a global reach as geographical restrictions do not bind it. This gives traders the freedom to trade their choice of currencies using different trading styles and trading strategies from every corner of the world.
Disadvantages of Working With Forex Prop Trading Firms
While traders heavily benefit from being a part of the proper trading community, there are potential drawbacks to working with a forex proprietary trading firm. Some of the disadvantages have been discussed below –
- Higher costs: A proprietary forex trading firm typically charges traders a wide range of fees, including monthly fees, performance fees, and account registration fees. This can cost traders a part of their profits, especially if their trading styles are unsuitable or do not incorporate risk management strategies.
- Lower profit sharing: A forex proprietary trading firm often takes a huge cut of the client’s profits, ranging between 50% to as high as 90%. Traders must work hard to generate considerable income and avoid potential losses.
- Less freedom: A proprietary forex trading firm usually has strict trading regulations and rules that traders must abide by. This often limits their ability to trade according to their will and make profits based on their skills.
- Greater risk: Forex trading is inherently risky, like futures trading or crypto trading. Additionally, prop traders may need to use high leverages and aggressive trading styles or goals while using a prop firm.
- High spreads: A proprietary forex trading platform does not typically negotiate its spreads with forex brokers; hence, traders are often stuck with the spreads offered by these companies.
- Complex trading environment: The forex market, being complex and ever-changing, can make it challenging for traders to implement efficient forex trading strategies. Moreover, not all forex proprietary trading firms provide the required resources and support to succeed in such a difficult trading environment.
Tips for Choosing the Right Forex Prop Trading Firm
There are many factors to consider while choosing the right forex prop trading firm. Here are some of the tips that traders can use while choosing their best foreign exchange proprietary trading company –
- Reputation: Choose an industry-leading and reputable prop firm from the forex industry. Read testimonials and reviews of other experienced traders to get a background check of the firm’s reputation.
- Funding options: Consider the company’s funding options before trading with funded forex. Choose a platform that fits your trading style, profit target, account limits, and budget.
- Trading platform: It is important to ensure that the chosen company uses secure trading platforms such as MetaTrader 4/5.
- Profit split: Compare the profit target or profit splits available. While most firms provide traders with a profit target of 60/40 or 50/50, others may offer favorable splits for professional traders.
- Tradable assets: Most firms offer forex trading across majors, minors, and exotic pairs, while others may also allow traders to participate in forex, indices, commodities, and crypto.
- Commissions and spreads: Check out the commissions and spreads that traders and investors must pay. Choose a firm that offers competitive spreads to make prop trading profitable.
- Risk management tools: It is important to employ risk management tools and strategies such as take-profits and stop-losses while participating in forex trading with funded trading capital.
- Evaluation process: Check out the evaluation process of the chosen firm and find out if there is any demo account challenge.
- Customer support: Before creating a forex prop trading account, ensure the chosen firms, whether it is crypto prop trading firms or forex prop trading firms, have helpful and responsive customer support agents.
Is Forex Proprietary Trading Legal?
Whether prop trading with foreign currencies is legal or not depends on the trader’s jurisdiction. Generally, it is legal for traders to trade with prop trading capital. However, consulting a local lawyer before creating a trading account with a prop trading platform is safe.
How to Stay Safe When Trading With a Forex Prop Firm
To participate in safe forex prop trading, traders must understand each and every term and condition of their chosen platform and be aware of all the risks and challenges involved in this form of trading. They must also ensure they use the best platform among all financial institutions, diversify their trading portfolio, and post their queries on the customer support page whenever required. These essential steps can help traders trade with security and confidence and maximize their gains.
Conclusion
Trading through the best forex prop trading platforms is an excellent way to start trading and reach a good profit target. They allow traders to use funded capital and get access to money in large amounts that can be used for trading. Remember that the best forex prop firms offer profit splits between 80% and 90%, with traders keeping the large amount. It is also important to conduct extensive research, develop solid trading strategies, and manage risks carefully while choosing the best forex prop trading firm.
Prop Firm Evaluation: Delving Into Our Methodology
- Difficulty: Challenges or evaluations are usually beginner-friendly, requiring a few steps.
- Trading platforms: Many trading platforms are supported, such as MetaTrader 4, MetaTrader 5, or proprietary trading platforms.
- Customer support: The best prop firms generally have efficient customer support, offering their service via a 24*7 live chat facility.
- Profit split: Most of the firms in our list of forex prop firms have a profit split between 70% and 90%.
- Instruments: Traders can find a wide range of tradeable instruments, including forex, indices, crypto, commodities, CFDs, stocks, derivates, and more.
- Cost: On average, a forex-funded account may cost anywhere between $100 to $1000.