Proprietary trading firms have become increasingly popular among retail traders seeking access to capital without risking personal funds. These firms provide traders with significant capital in exchange for a share of the profits, aiming to support skilled traders in maximizing their potential with fewer financial barriers. In addition, if you’re considering joining a prop firm in 2024, this guide highlights some of the most trusted options available. We’ll delve into how these firms operate, what they offer, and why choosing one could benefit your trading journey. Moreover, we will outline funded account prices offered to traders in Kenya.
What is a Prop Trading Firm?
A proprietary trading firm provides traders with capital to trade financial markets, including stocks, forex, and cryptocurrencies. Instead of using their own money, traders use the firm’s funds and split the profits. Typically, the firm takes 5-20% of the trader’s earnings. Most prop firms require traders to pass an evaluation process to demonstrate their skills to qualify for funding.
Why Choose a Prop Firm in 2024?
As financial markets grow more competitive, many traders turn to prop firms for several key benefits:
- Access to Capital
Prop firms offer access to substantial trading capital, allowing traders to scale their efforts in markets like forex, stocks, and commodities without tapping into personal savings. Moreover, given the considerable capital provided by prop firms, traders can reap huge profits to fund their accounts. - Reduced Personal Risk
By using the firm’s funds, traders minimize personal financial risk. This allows them to focus more on improving their strategies than worrying about losses. Moreover, reduced risk of personal capital provides a trader with the emotional stability essential for trading. In addition, given the cheap nature of challenges, traders can purchase new prop accounts with little financial strain. - Supportive Trading Environment
Many prop firms provide capital, professional tools, educational resources, and mentorship programs to help traders enhance their skills and become more consistent. More so, based on the strict rules one has to adhere to to pass the challenge, traders develop positive habits essential for trading. In addition, prop firms offer monthly competitions that allow traders to showcase their trading skills.
Top Prop Firms to Consider in 2024
Here are some of the most trusted prop firms for the upcoming year:
Funding Pips
Funded account prices offered by funding pips
1 Step Challenge
$5000 Account at $59
$10,000 Account at $99
$25,000 Account at $199
$50,000 Account at $299
$100,000 Account at $499
- 10% overall Profit Target
- 6% Max Overall Loss
- 4% Max Daily Loss
2 Step Challenge
$5000 Account at $36
$10,000 Account at $66
$25,000 Account at $156
$50,000 Account at $266
$100,000 Account at $444
- 8% Overall Profit Target
- 10% Max Overall Loss
- 5% Max Daily Loss
3 Step Challenge
$10,000 Account at $59
$25,000 Account at $139
$50,000 Account at $219
$100,000 Account at $349
- 5% Overall Profit Target
- 6% Max Overall Loss
- 4% Max Daily Loss
2 Step X Challenge
$5000 Account at $32
$10,000 Account at $60
$25,000 Account at $150
$50,000 Account at $250
$100,000 Account at $399
- 10% Overall Profit Target
- 8% Max Overall Loss
- 4% Max Daily Loss
Maven Trading
Funded account prices offered by Maven
1 Step Challenge
$2000 Account at $15
$5000 Account at $19
$10,000 Account at $38
$20,000 Account at $76
$50,000 Account at $190
$100,000 Account at $379
- 8% Overall Profit Target
- 5% (from your highest equity) Max Overall Loss
- 3% Max Daily Loss
2 Step Challenge
$2000 Account at $15
$5000 Account at $19
$10,000 Account at $38
$20,000 Account at $76
$50,000 Account at $190
$100,000 Account at $379
- 8%/ 5% Overall Profit Target
- 8% Max Overall Loss
- 4% Max Daily Loss
Alpha Capital
Funded account prices offered by Alpha Capital
Alpha Pro: Phase 1
$50,000 Account at $297
$100,000 Account at $497
$200,000 Account at $997
- 10% Overall Profit Target
- 10% Max Overall Loss
- 5% Max Daily Loss
Alpha Pro: Phase 2
$50,000 Account at $297
$100,000 Account at $497
$200,000 Account at $997
- 5% Overall Profit Target
- 10% Max Overall Loss
- 5% Max Daily Loss
Alpha Swing: Phase 1
$5,000 Account at $70
$10,000 Account at $147
$25,000 Account at $247
- 10% Overall Profit Target
- 10% Max Overall Loss
- 5% Max Daily Loss
Alpha Swing: Phase 2
$5,000 Account at $70
$10,000 Account at $147
$25,000 Account at $247
- 5% Overall Profit Target
- 10% Max Overall Loss
- 5% Max Daily Loss
The 5%ers
Funded account prices offered by The 5%ers
Hyper Growth Program
$5,000 Account at $260
$10,000 Account at $450
$20,000 Account at $850
• 10% Profit Overall Target
• 6% Max Overall Loss
• 3% Max Daily Loss
High Stake Challenge
2-step evaluation
$5,000 Account at $39
$20,000 Account at $165
$60,000 Account at $300
$100,000 Account at $495
• 8%/5% Profit Overall Target
• 10% Max Overall Loss
• 5% Max Daily Loss
Funded Next
Funded account prices offered by Funded Next
1-step challenge
$6000 Account at $65
$15,000 Account at $129
$25,000 Account at $219
$50,000 Account at $329
$100,000 Account at $569
$200,000 Account at $1099
• 10% Overall Profit Target
• 6% Max Overall Loss
• 3% Max Daily Loss
2-step challenge
$6000 Account at $59
$15,000 Account at $119
$25,000 Account at $199
$50,000 Account at $299
$100,000 Account at $549
$200,000 Account at $999
• 10%/5% Overall Profit Target
• 10% Max Overall Loss
• 5% Max Daily Loss
Goat Funded Trader
Funded account prices offered by Goat Funded Trader
1-step challenge
$15,000 Account at $170
$25,000 Account at $230
$50,000 Account at $339
$100,000 Account at $590
$200,000 Account at $1050
• 10% Overall Profit Target
• 6% Max Overall Loss
• 4% Max Daily Loss
2-step challenge
$5,000 Account at $30
$8,000 Account at $48
$15,000 Account at $88
$25,000 Account at $138
$50,000 Account at $238
$100,000 Account at $398
$150,000 Account at $598
• 8%/6% Overall Profit Target
• 10% Max Overall Loss
• 4% Max Daily Loss
Blue Guardian
Funded account prices offered by Blue Guardian
2-step challenge: Unlimited
$10,000 Account at $73
$25,000 Account at $148
$50,000 Account at $224
$100,000 Account at $373
$200,000 Account at $748
• 8%/4% Overall Profit Target
• 8% Max Overall Loss
• 4% Max Daily Loss
2-step challenge: Elite
$10,000 Account at $105
$25,000 Account at $210
$50,000 Account at $300
$100,000 Account at $465
$200,000 Account at $900
• 10%/4% Overall Profit Target
• 10% Max Overall Loss
• 4% Max Daily Loss
1-step challenge: Rapid
$10,000 Account at $73
$25,000 Account at $148
$50,000 Account at $224
$100,000 Account at $373
$200,000 Account at $748
• 10% Overall Profit Target
• 6% Max Overall Loss
• 4% Max Daily Loss
For Traders
Funded account prices offered by For Traders
1-step challenge
$6,000 Account at $50
$15,000 Account at $99
$25,000 Account at $178
$50,000 Account at $254
$100,000 Account at $450
• 9% Overall Profit Target
• 6% Max Overall Loss
• 3% Max Daily Loss
2-step challenge
$6,000 Account at $50
$15,000 Account at $99
$25,000 Account at $178
$50,000 Account at $254
$100,000 Account at $450
• 8%/5% Overall Profit Target
• 10%/5% Max Overall Loss
• 3% Max Daily Loss
What to Consider When Choosing a Prop Firm
Selecting the right prop firm for your trading career depends on various factors:
1. Funding Amount
Different prop firms offer varying levels of capital. Some firms offer starting capital of $5,000, while others provide up to $300,000. However, choosing a firm that aligns with your trading goals is essential. Moreover, traders are likely to be enticed by significant challenges at a lower fee, but it is always necessary to check the conditions of the prop account.
2. Evaluation Process
The evaluation process can vary widely from firm to firm. Some firms have simple and fast evaluations, while others may require more stringent performance tracking over a more extended period. Additionally, choosing a funded account that aligns with the trader’s trading mode is vital. Moreover, it is crucial to understand the criteria that could terminate the evaluation process, such as the number of trading days offered by the prop firm.
3. Trading Rules
Check out the firm’s trading rules, including drawdown limits, profit targets, and risk management requirements. Moreover, these factors can influence your decision, especially if you have a specific trading style.
4. Profit Sharing and Payouts
Most prop firms offer profit splits ranging from 80% to 90%, depending on your performance and the firm’s policies. Moreover, be sure to understand how and when you can withdraw profits.
How to Choose the Right Prop Firm for You
Choosing the right prop firm involves understanding your trading style, risk tolerance, and goals. Here are a few considerations:
- Trading Style: Are you a day trader, swing trader, or long-term investor? Each prop firm may have different rules that better suit different types of traders. Moreover, going through challenge rules comes in handy to prevent unexpected failures in the challenge.
- Risk Tolerance: Some firms cater to conservative traders, while others are more suitable for high-risk traders. Also, some firms have different drawdown rules that the trader must know before indulging in the challenge.
- Fees: Consider the fees for signing up and the evaluation process. Moreover, it is essential to choose your preferred mode of payment and withdrawal, given the fact that some payment methods are unavailable in some countries.
Conclusion
Prop trading firms offer a unique opportunity for traders to access significant amounts of capital and grow their trading careers. In 2024, there are numerous reputable firms to choose from, each offering different benefits, rules, and levels of support. However, take the time to research and find the one that best fits your trading style and goals.