Cheapest Prop Firm

Typically, traders are required to pass an evaluation or challenge, where they must prove their trading skills within certain risk parameters. Once they pass, they receive access to a funded account, allowing them to trade with the firm’s money.

Best Cheap Prop Firms

Account size up to:
$650,000

*Choose your account type and start trading
Account size up to:
$300,000

*Choose your account type and start trading

What Makes a Prop Firm “Cheap”?

The “cheapest” prop firm is not just about low fees or minimal capital requirements. To ensure long-term success, there are several factors to consider when assessing a firm’s affordability:

  1. Evaluation Fees: Many prop firms require an initial evaluation to assess the trader’s abilities. The cost of these challenges can vary greatly between firms, with some offering relatively low fees.
  2. Profit Split: The profit split refers to the percentage of profits that a trader keeps after trading. Lower splits mean less profit for the trader, so it’s essential to strike a balance between an affordable evaluation fee and a competitive profit split.
  3. Account Sizes and Leverage: A cheaper prop firm might offer smaller account sizes, which can affect your potential profit. Be sure to check the account sizes offered and their associated leverage ratios to determine if the firm’s offerings align with your trading goals.
  4. Monthly Fees: Some firms charge a monthly subscription or maintenance fee for their services. These ongoing costs can eat into your profits, so it’s important to consider the monthly fees in your budget.
  5. Risk Management Rules: Different firms have varying risk management rules, such as maximum drawdown limits and daily loss limits. Some firms have more lenient policies, which can be more appealing to traders looking for flexibility.
  6. Customer Support: Affordable firms with poor customer support can lead to frustration when you need help with issues like account funding, technical difficulties, or withdrawal requests. A cheaper firm with great customer service might offer more value in the long run.

Top Budget-Friendly Prop Firms

Here are some prop firms known for their relatively low costs and good value for traders looking for cheaper options:

  1. FTMO
    • Evaluation Fee: Around $155 for a $10,000 account
    • Profit Split: 70% – 90% (varies by account size and performance)
    • Max Leverage: 1:100
    • Description: FTMO is one of the most well-known prop firms, offering a relatively affordable entry point with one of the highest profit splits in the industry. Their evaluation fees are reasonable, and they provide high-quality customer service and a variety of tools for traders.
  2. The Trading Pit
    • Evaluation Fee: Around $80 for a $10,000 account
    • Profit Split: 75%
    • Max Leverage: 1:100
    • Description: The Trading Pit is a low-cost prop firm offering traders access to capital with minimal fees and straightforward profit-sharing agreements. It’s particularly known for its simple evaluation process.
  3. SurgeTrader
    • Evaluation Fee: Around $99 for a $10,000 account
    • Profit Split: 75% – 80%
    • Max Leverage: 1:100
    • Description: SurgeTrader stands out with affordable pricing and a relatively lenient approach to trading rules. They offer low evaluation fees and a reasonable profit split, making them one of the more cost-effective choices in the industry.
  4. OneUp Trader
    • Evaluation Fee: Starting at $25 for a $50,000 account (special promotions may lower costs)
    • Profit Split: 75%
    • Max Leverage: 1:50
    • Description: OneUp Trader offers one of the most affordable evaluations in the market. Their challenge fees are extremely low, making them ideal for new traders. While their profit split is not the highest, their low entry costs are appealing.
  5. Leeloo Trading
    • Evaluation Fee: Starts at $99 for a $25,000 account
    • Profit Split: 80%
    • Max Leverage: 1:100
    • Description: Leeloo Trading is a firm that offers affordable evaluation fees and a good profit split. They offer a variety of account sizes to choose from and have a decent support system.

Key Considerations When Choosing the Cheapest Prop Firm

While cost is an important factor in your decision, you should also think about other elements that impact your trading experience and success:

  • Risk Management: Look for firms with flexible risk management rules. If a firm’s rules are too strict, you may find it difficult to keep your account funded, especially if you face a losing streak.
  • Withdrawal Process: Ensure that the firm offers a reasonable and quick withdrawal process. Some firms have restrictions on how often you can withdraw or charge extra fees for it.
  • Trading Platforms and Tools: The tools and platforms offered by the prop firm should be compatible with your trading style. Some firms offer trading platforms like MetaTrader 4/5, cTrader, or proprietary platforms with different features.
  • Community and Education: A strong community or educational resources can provide great value, especially if you’re new to prop trading. Some firms offer mentoring or trading forums to help traders improve.

Frequently Asked Questions (FAQs) About the Cheapest Prop Firms

1. What is a prop firm?

A proprietary trading firm (prop firm) provides traders with capital to trade financial markets in exchange for a portion of the profits generated. Traders must typically pass an evaluation or challenge to demonstrate their trading skills before receiving access to a funded account.

2. How do I choose the cheapest prop firm?

When selecting the cheapest prop firm, consider factors such as evaluation fees, profit splits, account sizes, leverage, monthly fees, and risk management rules. A firm with low evaluation fees and competitive profit splits, alongside flexible risk management rules, can be considered the most affordable option.

3. Are the cheapest prop firms reliable?

While some cheaper prop firms may have lower upfront costs, it’s important to ensure they are reliable. Look for firms with good customer support, clear withdrawal policies, and a reputation for transparency. Research user reviews and ratings before committing to a firm.

4. What are the typical costs associated with prop firms?

Most prop firms charge evaluation or challenge fees, which can range from $50 to $200 depending on the firm and account size. Additionally, some firms may have monthly subscription or maintenance fees, while others take a percentage of your profits as a profit split (usually between 70% – 90%).

5. How do profit splits work?

Profit splits refer to the percentage of profits a trader keeps after trading with the firm’s capital. For example, if a trader makes $1,000 in profits with a 80% profit split, they would receive $800, while the firm keeps $200. Lower profit splits mean the trader keeps less of the profits.

6. What are the risk management rules at prop firms?

Prop firms have risk management rules in place to protect both the trader and the firm’s capital. These rules typically include maximum drawdown limits (the maximum loss allowed before the account is terminated) and daily loss limits. Each firm has different risk management policies, so be sure to understand them before signing up.

7. How do I qualify for a funded account?

To qualify for a funded account, most prop firms require traders to pass an evaluation or challenge. The evaluation process usually involves trading with a demo or simulated account under specific conditions, such as meeting profit targets and adhering to risk management rules. If you pass the challenge, you are given access to a live funded account.

8. What happens if I fail the evaluation?

If you fail the evaluation, you may not receive the funded account. However, many prop firms allow traders to retake the evaluation after a certain period or with additional fees. Some firms may also offer a money-back guarantee or partial refunds for failed evaluations, depending on their policies.

9. Can I trade any instrument with a prop firm?

The instruments available for trading depend on the prop firm’s offerings. Most firms allow trading in popular markets like Forex, stocks, and commodities, while some may also offer access to cryptocurrencies, futures, and indices. Be sure to check the specific assets supported by the firm you are considering.

10. Can I withdraw profits from a prop firm account?

Yes, most prop firms allow you to withdraw your profits after meeting certain conditions. Withdrawal rules vary between firms, with some limiting the frequency or charging withdrawal fees. It’s important to understand the firm’s withdrawal policies before committing.

11. Do I need experience to join a prop firm?

While prior trading experience can be helpful, it is not always required. Many prop firms accept traders with varying levels of experience. However, you will usually need to pass an evaluation challenge that demonstrates your skills, even if you are new to trading. Some firms may also offer educational resources to help beginners.

12. Is it possible to make a full-time income with a prop firm?

Yes, it is possible to make a full-time income with a prop firm, but it depends on your skill level, risk management abilities, and the size of the funded account. Keep in mind that the firm’s risk management rules and profit split will affect your overall income. Some traders do make a steady income by consistently meeting profit targets, but success takes time and discipline.

13. How long does it take to get funded by a prop firm?

The time it takes to get funded varies depending on the firm’s evaluation process and your performance. Most firms provide a timeframe of anywhere from 1 to 2 weeks to complete the evaluation. Once you pass the evaluation, you’ll typically gain access to the funded account immediately.

14. What happens if I break the rules of the evaluation?

If you break the rules during the evaluation, such as exceeding the drawdown limits or trading outside the allowed risk parameters, you may fail the challenge and lose access to the evaluation account. Be sure to thoroughly read and understand the firm’s rules before starting the evaluation to avoid mistakes.

15. Are there any hidden fees with prop firms?

Reputable prop firms are transparent about their fees and policies. However, it’s always a good idea to read the fine print before committing. Watch out for hidden fees such as withdrawal charges, inactivity fees, or maintenance fees that could eat into your profits.

Conclusion

Finding the cheapest prop firm involves more than just evaluating the initial costs. Consider long-term factors such as profit splits, risk management rules, leverage, customer support, and available trading tools. By taking a holistic view of what each firm offers, you’ll be better equipped to make an informed decision.