Top 5 Prop Firms for New Traders: Where to Start Your Journey

Trading is open to virtually anyone, but if you want to break into the foreign exchange market and start earning quickly, you’ll need capital, knowledge, and a solid strategy.

To address this need, prop trading firms have emerged in recent years. As says Investment.com, these firms provide new traders with startup capital, along with the necessary tools to start trading. In return, traders get a share of any profits they make using the firm’s platform.

It sounds like a quick way to earn money, and in some cases, it can be. However, navigating the large number of prop trading firms can be tricky. There are many out there, each with its own set of pros and cons. In this article, we’ll look at prop firms that are geared toward beginner traders. Choosing the right prop trading firm is one of the most important first steps in a trading career. With so much information available, it’s easy to feel overwhelmed when deciding which firm to trust.

While trust is a key factor, other aspects to consider are the types of assets available for trading, the platforms and tools provided, execution and trading costs, the quality of customer support, and the educational resources offered to improve your performance.

Here, we highlight five prop trading firms that cater to beginner traders. Ultimately, it’s up to you, the trader, to decide which one best fits your needs.

FTMO

FTMO is one of the more established names in the prop trading world. Founded in Prague, Czech Republic, in 2014, it has grown rapidly and reached traders globally. However, becoming an FTMO trader requires more than just paying a fee and gaining access to capital. You must pass a two-phase Challenge and Verification Process. Once completed, you’ll gain access to a demo environment with $200,000 in virtual funds to practice trading. If you perform well, you can earn up to 90% of the virtual profits. Over time, successful FTMO traders can move into the firm’s premium program, which offers employment as a professional trader with a salary.

FTMO supports its traders by providing educational tools, services, and a community where traders can exchange strategies. The major drawback is the entry requirements, which are not easy. FTMO may be more suitable for traders with some experience or those who are quick learners. Keep in mind that FTMO allows trading in forex, commodities, indices, and cryptocurrencies, but not in stocks or derivatives.

The 5ers

The 5ers, also known as The5%ers, is an Israeli private equity fund established by professional traders in 2016. It caters to forex traders worldwide, helping them refine their skills while making a profit. The firm offers live trading room sessions, real-time trade notifications, and risk management training. The 5ers has four funding programs: Bootcamp, Hyper Growth, High Stakes, and Stock Trading, with funding ranging from $6,000 to $4 million. The firm uses the MetaTrader 5 (MT5) platform, enabling users to trade forex, indices, and metals. They also provide various educational programs and an informative blog.

The 5ers has a global presence with an office in the UK and clients worldwide. However, the firm takes 50% of the profits generated on its platform, which may be less attractive to some traders. The focus on forex, indices, and metals may also limit its appeal to entry-level traders looking for broader options.

WeMasterTrade (WeCopyTrade)

WeCopyTrade is a relative newcomer, launched in 2021 in Vancouver, Canada, with its own prop trading platform, WeMasterTrade, following in 2022. WeCopyTrade connects traders through a social trading platform where beginners can copy the trades of professionals to reduce risk. WeMasterTrade offers capital to traders, along with an educational platform, earning it awards such as Best Online Forex Education Provider and Best Funded Trader Copy Trading Platform.

WeMasterTrade allows traders to trade virtually but earn real profits. You can trade a variety of assets, including forex, cryptocurrencies, metals, indices, and stocks. Unlike other firms, there’s no formal evaluation process, and traders can get started by paying a small entry fee—just $50 for access to $10,000. WeMasterTrade also has a growing global presence, having expanded into Australia in 2023.

According to the founders, WeMasterTrade aims to create an educational environment where new traders can learn as they trade, offering quick access to trading capital without the need for long-term savings.

E8 Markets

Based in Dallas, Texas, E8 Markets brings a high-stakes approach to prop trading. Getting started is straightforward—simply register, choose a program, and demonstrate your trading abilities. E8 promises payouts as soon as eight days after starting. Through the E8X dashboard, traders can select their skill level (Beginner, Advanced, Professional) and customize their balance, drawdown limits, and payout shares (ranging from 40% to 100%).

E8 offers simulated trading in forex, cryptocurrencies, commodities, and equities. Traders who demonstrate skill can manage accounts with up to $1 million. The platform is transparent and easy to use, but the fees might be a drawback for some—$706 for an advanced account and $1,474 for a professional-level account.

FundedNext

FundedNext is a rapidly growing Canadian prop firm, launched just four years ago, with thousands of active traders in over 150 countries. The firm offers three funding programs: Stellar, Evaluation, and Express, each catering to different levels of traders. Stellar is a demo account for risk-free trading, while Evaluation requires passing a two-stage assessment. Express offers live trading without the need for evaluation.

FundedNext allows traders to keep up to 85% of profits, with the potential to increase to 90% through its VIP account. Traders can manage up to $4 million in capital, with amounts starting at $200,000 and scaling based on performance. FundedNext also fosters a community on Discord and provides educational resources like news and podcasts. However, customer service is available only through email and chat, which may be a limitation for some.

Conclusion

The prop trading market is booming, with numerous firms offering beginner traders a chance to enter the world of trading. FTMO, The 5ers, WeMasterTrade, E8 Markets, and FundedNext each offer something unique, from different funding models and profit splits to varying entry fees and customer service levels. It’s crucial for traders to take their time, research, and find the prop trading firm that aligns best with their needs.