- Trade with Confidence: Obtain Funding Today
- Trade with Confidence: Obtain Funding Today
Our Top 5 Best Prop Trading Firms for Beginners
Foreign exchange (forex) trading has opened doors for many to earn extra income or even start careers in simulated trading. If you're interested in forex trading, you'll need to open an account with a broker or work with prop simulated trading firms.
Prop simulated trading firms provide traders with a portion of their capital, allowing them to apply their own market strategies. Traders then receive a share of any virtual profits made using the firm's capital.
With the growing interest in trading, numerous prop simulated trading firms have emerged in recent years. Choosing the right one can be challenging. To simplify your decision, we’ve researched the pros and cons of the most popular prop simulated trading firms. Here are five leading forex firms that are particularly well-suited for beginners.
1. Vertex Forex Funds
Vertex Forex Funds is a top choice for both new and seasoned traders in the prop simulated trading space. Founded in the United States in 2023, this platform offers transparent and user-friendly challenge rules and verification processes.
How It Works: Vertex Forex Funds operates with a two-step testing challenge. The challenge is rigorous, but successful candidates are given the opportunity to manage an account remotely with a balance of up to $2,000,000. The platform monitors all transactions, and traders receive 80% of the profits in their first successful round of real trading.
Regulation and Recognition: Vertex Forex Funds adheres to European Financial Legislation guidelines and is supervised by local regulators, ensuring legal compliance. The firm has been featured on Forbes and has won the Deloitte Technology Fast 50 award for three consecutive years, highlighting its credibility and success.
Costs: To participate in the evaluation, there is a fee based on the risk level and account size. Here’s the cost breakdown:
- Normal Risk Level:
- $25,000 account: $250
- $50,000 account: $420
- $100,000 account: $620
- $200,000 account: $890
- $500,000 account: $1700
- $1m account: $3200
- $2m account: $6200
Pros:
- Affordable starting fees.
- Profit potential of up to 80% for traders.
- Wide range of demo accounts from $25,000 to $2,000,000.
- Flexible risk levels, including normal and aggressive.
- Leverage up to 1:100.
Cons:
- Stringent requirements and a challenging initial test.
- Best suited for experienced traders or those who can quickly adapt to leverage the platform effectively.
2. FTMO
FTMO is one of the best prop simulated trading firms for both new and experienced traders. Started in the Czech Republic in 2014, the platform’s challenge rules and verification process are transparent and user-friendly.
FTMO works by making traders go through a two-step testing challenge. Fair warning: the challenge is intense. But if you’re successful in the evaluation, you’re offered a chance to remotely manage your account with a balance of up to $400,000. Transactions are monitored by FTMO, and there’s a payment of 80% in the first successful round of real trading.
FTMO is legally compliant and adheres to European Financial Legislation guidelines under the supervision of the local regulator. Overall, FTMO is ideal for traders who have simulated trading experience—there are hard testing conditions for people who want to transition into real trading. Another unique aspect of FTMO is that it has been featured on Forbes and also won the Deloitte Technology Fast 50 award three years in a row.
You must pay a fee to take the the evaluation on this platform, and the simulated trading fee depends on the risk level. However, if you succeed in the evaluation and join FTMO as a trader, you can earn your fee back with the first virtual profit from your funded simulated trading account.
3. Funded Next
Funded Next (MFF) was created in 2020. Located in Toronto, Canada, it’s one of the fastest-growing prop simulated trading firms, reaching thousands of traders from more than 150 countries. Even though the company is relatively new, they have already funded more than 2,000 forex traders in 2022. Over time, it has developed a good reputation and credibility, and now the firm is competing with top names in the industry.
This prop simulated trading firm is quite versatile. It offers three different funding programs: rapid, evaluation, and accelerated. These are designed according to different simulated trading profiles, such as beginners, experienced professionals, and full-time traders.
Profit split is also one of the reasons Funded Next has so many traders working on it. The virtual profit split goes up to 85% when traders start bringing in consistent revenue. It also provides fast payout options. You can request to withdraw your virtual profits at any time.
With MFF’s VIP simulated trading account, you get a 90% split. In addition, you get payments with no time restrictions, semi-automated payout confirmations, and a lot more benefits.
You need to make a one-time payment to get access to the platform. You can also claim various membership discounts if you have a coupon code.
4. The simulated Trading Capital
The simulated Trading Capital is a new firm and still not well recognized. However, the first thing that stands out is the design of this simulated trading platform. While many prop simulated trading firms have a poor user experience, this one has a pleasing design and lays out all the information clearly on its website.
In addition, it has set realistic parameters with minimal restrictions. As such, the firm claims to provide traders with more freedom, flexibility, and chances of success.
During the evaluation process, the company gives only an 8% profit target. Traders can use any strategy to reach this target. This includes using expert advisors (EAs), trade copiers, trading through the news, and holding trades over the weekend. The simulated Trading Capital also allows a 12% maximum drawdown restriction and a 6% maximum daily loss. This gives traders breathing space to execute their strategies and recover from their mistakes.
The overall simulated trading objective is laid out in phases. In Phase 1, the virtual profit target is 8%. In Phase 2, it’s 5%. Once you’re promoted to a prop trader, there is no target. Traders also receive a 120% refund on their first successful virtual profit split.
The company started with a 50/50 split in 2019. But as time went on and the platform became more popular, it decided to reward the users with a higher virtual profit rate. So, its virtual profit split is now 85/15.
All its simulated trading rules are written on the website. The process appears transparent, and there are no unrealistic expectations.
5. E8 Funding
E8 is a unique prop firm that offers various solutions for forex and contract for difference (CFD) traders worldwide. The firm has many funding opportunities that make it easier for traders to become professionals, as they can manage their accounts virtually from anywhere in the world.
Its main goal is to give traders easy access to liquidity and funding opportunities through a user-friendly interface. Its account parameters help traders stay focused on a disciplined approach. It also provides an E8X dashboard application to guide you. Traders who can prove their skills get to manage a $1 million account.
The firm was created in 2021 and is located in Dallas, Texas. E8’s mission is to provide unique financing opportunities that allow anyone to become a professional trader. You can earn up to 80% profit by simulated trading in forex pairs, crypto, commodity indices, and equity.
E8 also offers many unique features among prop simulated trading firms, such as automated payout systems, top-tier technology, and fast account scaling. Overall, the firm is good for traders who want to leverage advanced simulated trading technologies to trade smartly and efficiently.
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Risk Disclosure: The content on this site is provided for educational purposes related to financial market trading and is not intended as specific investment advice, recommendations, or financial opportunity analysis. Vertex Forex Funds does not offer investment services. The information on this site is not intended for residents of any country or jurisdiction where its distribution would conflict with local laws. Vertex Forex Funds is not a broker and does not accept deposits. We partner with VertexMarkets as our broker. The trading platform and data feed for Vertex Forex Funds are powered by third-party liquidity providers.
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