Best Forex Prop Firms in 2024
Updated March 20, 2024
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- A list of the Best Forex Prop Firms For October 2024 are
- Comparison Chart for the Best Forex Prop Firms for October 2024
- Description of the Best Forex Prop Firms for October 2024
- What Is Forex Trading?
- The Advantages of Using a Forex Prop Firm
- The Drawbacks of Using a Forex Proprietary Firm
- How to Choose the Best Prop Firm in October 2024
- How to Become a Prop Forex Trader
- Basic Strategies for Forex Trading
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- Frequently Asked Questions
- Final Thoughts
There is no doubt that the foreign exchange (forex) market can be a lucrative one for those who know what they are doing.
However, with so many prop firms offering their services in this space, it can be difficult to determine which one is the best fit for your needs.
Here, we will take a look at some of the top forex prop firms in 2024 and provide an overview of what each of them has to offer.
So, whether you are just getting started in the forex market or you are looking for a new broker to work with, read on to see what the best forex prop firms are, along with some helpful tips and advice.
A list of the Best Forex Prop Firms For October 2024 are
- FTMO
- Lux Trading Firm
- DreamTicks
- Audacity Capital
- IG
- The Funded Trader Program
- SurgeTrader
- My Forex Funds
Whether you are a beginner or a professional trader, choosing a prop firm is always challenging.
You want to get the most for your capital and find the company that offers to match your needs.
Comparison Chart for the Best Forex Prop Firms for October 2024
Company FTMO | % of Profits Retained 70-80% | Leverage Up to 1:100 | Customer Service Excellent | ||
Company Lux Trading Firm | % of Profits Retained N/A | Leverage N/A | Customer Service Excellent | ||
Company Audacity Capital | % of Profits Retained Varies | Leverage Up to 1:100 | Customer Service Good | ||
Company DreamTicks | % of Profits Retained 80-90% | Leverage Up to 1:300 | Customer Service Excellent | ||
Company
| % of Profits Retained N/A | Leverage Up to 1:200 | Customer Service Good | ||
Company The Funded Trader Program | % of Profits Retained 50-80% | Leverage Up to 1:100 | Customer Service Varies | ||
Company
| % of Profits Retained Varies | Leverage Up to 1:200 | Customer Service Good | ||
Company My Forex Funds | % of Profits Retained Varies | Leverage Up to 1:500 | Customer Service Good |
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of IG retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Description of the Best Forex Prop Firms for October 2024
1. FTMO
FTMO is another prop firm that allows traders to learn and discover their forex trading talents.
It offers a my forex funds challenge and verification course, after which new traders can join the company and manage a forex funded account within it.
You'll also gain access to performance coaches and professional account analyses once you start trading.
FTMO allows you to keep up to 90% of the return you've earned using the company's tools.
2. Lux Prop Trading Firm
Lux Trading Firm is one of the great forex prop firms and is geared towards trading experts as it offers several detail-oriented trading platforms.
The accounts are founded in several steps and are upgraded once you hit a 10% target.
There are eight levels overall. The lower one comes with a $5,000 capital, while the top level is funded up to $2.5 million.
You can see your progress from the dashboard, including the amount dealt, total value and the total number of trades.
3. DreamTicks
DreamTicks gives FX traders a real boost with up to $200,000 in capital, perfect for those wanting to dive deeper into forex without tapping into personal funds. What's more, they're all about quick payouts, so you see your earnings fast, keeping the momentum going.
Founded by traders during the 2021 lockdown, DreamTicks understands what forex traders need because that's where they come from. They have mixed their trading know-how with serious market skills to create a spot that's all about making forex trading accessible and rewarding.
Here’s the deal with DreamTicks: it’s not just a funding source. They’re focused on making traders better through education, quick support, and real market action.
For FX traders aiming for the next level, DreamTicks is a standout choice, offering the tools, speed, and capital to make it happen.
4. Audacity Capital
Developed for trading forex only, Audacity Capital provides capital and tools for professional forex traders.
After applying for a position in their firm, traders get access to professionals with experience and strategies, then invited for an in-person approval interview.
Once approved, you can choose either the Hidden Talents program or the Funded Trader Program. Both of these have different features and get upgraded step-wise after each 10% profit target.
5. IG
IG invented spread betting in 1974 and today is the world’s leading online trading provider with more traders trusting them with their money than anyone else
IG is authorised and regulated by the FCA and provides traders access to over 18,000 markets. IG offers more 24-hour indices than any other provider, and extended hours on over 70 key US stocks
For those who prefer to own the underlying asset, IG offers access to over 13,000 global shares and ETFs, or a wealth portfolio managed by one of their experts.
Benefits:
- Advanced platform and charting – L2 dealer, ProRealTime and MT4
- Demo account
- Extended trading hours
- Extensive range of products
- Daily expert analysis & educational resources
- Round-the-clock customer service
- Negative balance protection for retail clients
Based on revenue (published financial statements, October 2022). 24/7 excludes the hours from 10 pm Friday to 8 am Saturday (UK time), and 20 minutes just before the weekday market opens on Sunday night.
6. The Funded Trader Program
The Funded Trader Program is an excellent choice for beginners as it allows new traders to learn the basics of Forex trading without regulating trading styles.
It also has a reward system that enables access to profitable leverage based on trading consistency.
This system is geared towards recognizing skilled traders and helping them learn even better strategies.
Serious traders are also rewarded for their consistency, with even more advantageous leverage.
Visit The Funded Trader Program
7. SurgeTrader
SurgeTrader is one of the prop trading firms with the widest account options on the market.
It allows (and, in some cases, even requires) traders to keep up to 75% of their profits along the capital.
Not only that but your account limits are constantly adjusted based on how well you are performing.
It's a great option if you are willing to close your positions within a week and keep the maximum number of open lots equal to 1/10,000 the size of your forex-funded account.
8. My Forex Funds
My Forex Funds comes with a high-profit split, which makes it suitable for professional prop traders.
That said, there is an accelerated arrangement suitable for full-time traders, whether you are a pro, intermediate or beginner trader.
The funding programs can be tailored based on capital and experience.
It comes with a demo account (based on real market conditions) and instant funding for traders who join to trade on the platform.
What Is Forex Trading?
The name forex refers to the conjunction of the terms foreign currency and exchange.
On the forex trading market, foreign currencies are bought and sold against each other for the purposes of trading, commerce, tourism and much more.
Traders can typically buy currencies when they are worth less in one currency and wait to sell them when they are worth more.
Because it's hard to influence the currency market, forex trading is considered the most secure and profitable trading form. That said, trading currencies isn't entirely risk-free and can be a complex process.
There are typically large trade flows within the system, which makes it difficult for new traders to influence the price of a currency.
Global events and even news tend to manipulate the market to make currencies more or less valuable compared to the other ones they trade for.
On the flip side, this system helps create transparency in the market for investors.
In addition, the forex trading market is the only financial market that is always open.
There are no times when the market closes, and each trader can hold their position as long as it allows for their strategies to work.
Working with a legit forex prop firm helps you access investment capital and the help of experienced trading professionals, as well as gain your skills for successful trading.
Thanks to the advancement of digital technology, these avenues are open to individuals, groups, brokerage firms, and not just larger financial institutions, as was customary in the past.
Pros
- Leverage
- Professional support
- Access to more capital
Cons
- Stress
- Job security
- Fees
The Advantages of Using a Forex Prop Firm
There are numerous advantages for people interested in forex to use forex prop firms. These advantages include:
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Leverage – You're gaining leverage that's not available when using traditional brokers or financial institutions for trading. This allows you to take a significant position in the market while spending only a small portion of your trading capital. Leverage magnifies both profits and losses
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Professional support – The best forex prop firms offer a team of professionals with lots of trading experience to help newcomers to learn the fundamental principles of the forex trading business. Even when after learning the basics, you can still consult with experienced forex traders about future moves
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Access to more capital – The fee required for forex prop trading is small compared to the number of funds you can gain access to. If you show consistency, you'll gain access to more capital than you earn -enabling you to make even more profit
The Drawbacks of Using a Forex Proprietary Firm
There are also some disadvantages of using a forex prop firm. Here are some of those:
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Stress – The evaluation process can be very stressful. Not only are there specific profit targets to meet, but these can scale up when you've met previous targets. In addition, you're not allowed to lose above a certain amount in a single day
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Job security – The forex trading market can be challenging to maneuver, even if it can be a highly profitable venue. Those wanting to make sufficient income from forex only need to trade full-time and risk their own money to ensure good profits
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Fees – While fees are relatively small compared to the capital you can gain, there is a risk that the fees will accumulate. This can make trading a highly expensive venture by the end, especially if your costs start eating into your profits
How to Choose the Best Prop Firm in October 2024
There are numerous factors to consider when choosing between proprietary firms. Here is what to look for in a proprietary firm for trading forex:
Step 1. Reputation
One of the most important things you'll need to check is the reputation of the prop firm.
The prop firm you pick needs to have a history of profitability and delivering on promises.
You can verify this by checking their reviews on their website, review sites, such as Trust Pilot, and social media platforms.
Step 2. Available Assets
There are a variety of assets tradable, but not all firms allow you to trade with all of them.
Check which ones can be traded with at each company, so you can choose which fits your needs.
Step 3. Participation and Other Fees
Be sure to check the fee structure of each firm. For example, with some companies, some fees are one-off, while others will require you to pay them regularly.
Take your time perusing the costs of trading as sometimes they are not easy to understand.
Step 4. Trading Style and Platform
Both factors are critical to understanding, and traders must be comfortable with them.
They must suit your preferences, especially if you are interested in growing your skill set and making forex prop trading a career.
Step 5. Customer Support
Some trading firms are better than others at supporting their traders.
In addition, some companies provide more support for experienced professional traders, as they provide a larger revenue for them.
How to Become a Prop Forex Trader
Step 1. Learn the Basics
Before you start trading forex, it's important to understand the basics.
Start by learning how to read price charts and use technical indicators to analyze the market.
You should also study fundamental analysis, which involves analyzing economic and geopolitical events that may impact currency values.
Additionally, you'll need to learn how to manage risk, including setting stop-loss orders and position sizing.
Step 2. Develop Your Trading Strategy
Once you have a solid understanding of the basics, you'll need to develop a trading strategy that fits your style and goals.
Your strategy should include entry and exit points, risk management techniques, and a plan for managing emotions during trading.
Consider backtesting your strategy on historical data to see how it would have performed in the past.
Step 3. Practice Trading
Before you start trading with real money, it's important to practice your strategy in a risk-free environment.
Most forex brokers offer demo trading accounts that allow you to trade with virtual money.
Use this account to test your strategy and make adjustments before you start trading with real money.
Step 4. Gain Experience
To become a prop forex trader, you'll need to gain experience trading forex.
Consider starting with a small account and gradually building up your capital as you gain experience and confidence.
As you gain more experience, you may want to consider trading multiple currency pairs or expanding your trading strategy.
Step 5. Seek Out Prop Trading Firms
Prop firms are companies that provide traders with capital to trade on their behalf.
These firms typically offer traders a share of the profits they generate.
To become a prop forex trader, start researching and reaching out to prop firms that specialize in forex trading.
Look for firms that have a good reputation and offer a competitive compensation package.
Step 6. Pass Their Evaluation Process
Most prop firms require you to pass an evaluation process to demonstrate your trading skills and abilities.
This may involve trading a demo account or trading with a small amount of capital to demonstrate your profitability.
The evaluation process can be rigorous, so it's important to be well-prepared and confident in your trading strategy.
Step 7. Join a Prop Firm
Once you've passed the evaluation process, you can join the prop firm and start trading forex on their behalf.
You'll typically be given a trading account with a set amount of capital to trade with.
As you generate profits for the firm, you'll receive a share of the profits as compensation.
Basic Strategies for Forex Trading
There are several basic strategies for forex trading, including both the long and the short trade options. Long trade refers to when the trader banks on the currency price increase in the future and wait until the price increases.
The short trade, on the other hand, refers to strategies that involve waiting for a currency pair's price to decrease in the future.
Here are some of the trading strategies suitable for beginners and pros alike:
Scalp Trade
The positions are helpful only for a few seconds or minutes at best. While individually, these trades offer small profits, several of them can create a profitable venue.
Scalp trade is typically practiced at the busiest trading times, which further increases the chances of earning a solid return on several trades.
Day Trade
Another form of short-term trade is the positions are held for no more than a day, with trades typically lasting several minutes or hours.
It allows traders to close their positions before the trading day ends for a few trades they'll be conducting throughout the day.
Saving Trade
The trading position is held for longer than a day, usually for several days, up to a week.
Its recommended for traders who possess the necessary skill of waiting for a quality opportunity. They'll also need the experience to take advantage of it.
Position Trade
The position is held for several weeks, months, and even years.
This is an advanced strategy that requires traders to capture profits from carefully calculated long-term trend moves.
It also entails ignoring the noise of short-term events and remaining disciplined.
If you want to know more, then there are many great forex trading courses out there for you to learn more.
Frequently Asked Questions
Yes. As long as a trader can pass an evaluation, pay the necessary fees, acquire a funded account, and gains access to a prop firm's capital, their services are legit.
This applies to individuals, brokerages, groups, and companies, whereas financial institutions may be prohibited from prop trading.
There are some scams out there, and it is good to know how to spot them.
To become a proprietary trader, you must learn to use financial knowledge of the stock market, investment strategies, and hedge funds.
This usually means earning a bachelor's degree in finance or business, completing one or more internships with a trading firm to hone your skills, and applying for an entry-level proprietary trader role.
Becoming a forex trader can be challenging as it requires you to take risks, which you do with your own money.
Working with funded trading accounts has lower risks, but it still requires learning some skills and foreplanning, so you can avoid unnecessary risks.
The Funded Trader Program is the best platform for beginner traders.
It offers a Standard Challenge Account, which provides the necessary assistance and identifies skilled brokers.
Traders go through a two-phase evaluation period, and between phases, their consistency is rewarded with several benefits. It also comes with the privilege of holding trades overnight.
You can definitely make money trading forex.
How much depends on several factors, including the trader's skillset and experience.
For example, the top prop traders (those in the top 15%) can make up to $793,331 in a year.
Beginners can make up to $42,373, whereas those in the middle can earn anywhere between $203,679 and $400,084 for a median salary.
To start forex prop trading, you'll need a small capital. How much you invest depends on how much you want to earn and how much money you can safely put aside for this purpose.
You can start trading with as little as $100; however, your success will be correlated with how much you used for your capital.
Trading with a prop firm has its advantages. It saves you time, allows you to retain a large part of your returns, and cuts your potential losses to a bare minimum.
All these benefits are designed to put you in a better position than those trading independently.
Prop trading typically allows you to earn significant returns much earlier in your career.
Your overall earning potential will be much higher as well, as it's one of the most merit-based sectors of the trading industry.
Unlike in private equity or investment banking, with prop trading, you can keep a percentage of whatever amount you've earned.
As you develop your skills, you may even want to use a forex trading robot such as the GPS Forex Robot 3 to help your with the workload and better uses your time.
Final Thoughts
Trading through a forex prop firm is a great way for traders to start investing.
It allows you to use a small capital in the beginning, and after learning the ropes, you can get access to larges amounts you can use for trading.
It also comes with numerous options and benefits, including saving you time and resources.
Keep in mind that the best Forex prop firms offer at least 90% of the profit split, with you keeping the larger amount.
Some of the best firms will also provide larger capital and the possibility to diversify your trading portfolio by assessing data beyond Forex.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
