Every year brings new changes as we are now in 2024, prop trading is also evolving. Prop firms provide day traders with a structured environment where they have complete access to all the funding, tools, and resources even without risking their own money. For this reason, choosing the best proprietary trading firm to use for day trading is a very important step. Let’s see in detail about the best prop firms for day trading in 2024.
What Are Prop Firms and How Do They Work?
Proprietary firms which are shortly known as prop firms are a way through which companies provide traders their own spread capital to trade in the market. In this way, traders can earn a profit of up to 90% depending on their skills. There are a huge number of traders who want to trade but they face the barrier in terms of lack of money.
Prop firms resolve this barrier and provide traders money to trade. But this is not an easy task, first traders apply for this capital then companies check traders’ skills through different evaluations that mostly consist of trading challenges or demo accounts. Those candidates who pass this evaluation can get access to the company capital. Then traders must agree on their profit-sharing model in which the partition of profit is listed. Traders can get a profit ranging from 50% to 90% depending on their terms while the companies retain the remaining profit.
Some companies also charge a monthly maintenance fee. No doubt it’s a great benefit for the traders to trade without risking their own money and get access to all the professional trading platforms, advanced tools, mentorship, and larger capital. But remember that this investment also increases the stress level of traders as success is compulsory during the evaluation process.
Top Prop Firms for Day Trading in 2024
Choosing the best prop firms is a very critical step so let’s see the top prop firms that are best for day trading in 2024.
FTMO
FTMO is included in one of the top prop firms in the industry due to its transparency and trust. They provide a very transparent evaluation process and offer traders $400,000 in trading capital. Their evaluation process provides two chances to traders if they do not succeed on the first attempt then they can also re-test to prove their skills. They provide opportunities to traders to earn 90% of profit as well as get access to multiple trading platforms like MT4, MT5, and cTrader. FTMO also provides swap-free account alternatives and makes sure that trading is simple.
Topstep
Topstep founded in 2012 is the best firm for all levels of traders. The best thing about this firm is that they provide extensive education and support to traders, which helps them enhance their skills and become masters of trading. This is the reason that Topstep is an excellent choice for beginners and experienced traders alike. They provide traders with capital of $200,000 with access to platforms including TradingView, and MetaTrader 4/5 but they have a profit split of 80/20. Topstep another best feature is that traders can create an infinite number of accounts with a very affordable plan that starts at just $49 a month.
FundingPips
FundingPips is also the best prop firm for day trading based in Dubai and provides traders with competitive capital allocation of up to $500,000, depending on traders’ pip performance during the evaluation that is based on the house-built phases model. The company focuses a lot of attention on pip-based indicators and also rewards those traders who can show consistent pip profits over time. Traders can get a profit of up to 80% and get access to the platform MetaTrader 4/5.
Key Features to Look For in a Prop Firm
Most new traders don’t have any idea about the main features of prop trading firms. This decision actually impacts the success of their trading journey so let’s give you the main idea about those features that you must have to consider while choosing a firm.
Leverage
For day traders, leverage is an essential tool because it enables them to manage larger positions in the market with just a small amount of capital. Leverage varies throughout prop businesses as some provide up to 1:100 or higher, particularly for forex trading. It is important to select a company that offers leverage that is compatible with your trading strategy and risk tolerance because no doubt higher leverage can enhance gains but it also increases risk as well. Remember that some pip firms can limit the leverage during the evaluation process but they will increase it once you’ve proven your trading skills.
Fee Structure
Every prop firm has its own fee structure but mostly consists of evaluation fees that are time payments to take part in the evaluation process and trading challenges. Then they have monthly fees that most of the firms charge for the platforms, data, and other services they provide. Another one is the profit split fee that firms take after each payout. Must ensure all these fees and choose the one that provides a transparent price with no hidden fee.
Payouts and Profit Splits
The percentage of your trading gains that you keep is decided by profit splits and it can vary greatly between companies. Some companies provide 90% profit while others may split profits 50% or less depending on their capital. So you must check whether you can withdraw your profit every week, every two weeks, or every month. Some companies restrict withdrawal to a certain level of profit.
Choose companies that provide large profit splits of at least 70% or more and flexible payout choices so that you can get your money on a regular basis without having to wait around for it.
Final Thoughts
I hope you get the best idea about the top firms of 2024 and their features that you must have to consider while choosing any firm. Focus on your needs and requirements then take the decision accordingly.
As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.
