10 Best Prop Trading Firms in 2025 for New and Experienced Traders

When the idea of making a living through trading first crossed your mind, it sounded like a great way to earn money fast. Who wouldn’t want to turn a hobby into a job? Dreams of how to make 50k overnight might have even danced through your head. But after a few weeks of trial and error, you quickly learned that it’s not as easy as it sounds. The truth is that thousands of other traders are also trying to make money trading, and many are competing against you.

Furthermore, the more you learn about trading, the more you realize there are a myriad of different strategies to consider, and they all come with their learning curves. Without proper funding and resources, your chances of success are pretty slim. Prop trading firms help alleviate these issues by providing skilled traders with the capital and support they need to achieve their goals. If you’re looking for the best prop trading firms to get started with or to continue your trading journey, this article is for you. 

Here, we’ll outline the best prop trading firms for 2025 so you can find the one that best fits your trading style and objectives. Goat Funded Trader prop firm is a great place to start. In addition to offering generous funding and flexible rules, they also provide traders with plenty of educational resources to help them improve their skills. 

What Is a Prop Trading Firm?

A proprietary trading firm, commonly referred to as a prop trading firm, is a company that utilizes its capital, rather than client money, to trade financial markets. Instead of managing funds on behalf of outside investors (such as a hedge fund or asset manager), a prop firm seeks to generate profits directly from the markets by hiring or funding skilled traders. 

The firm backs individual traders with its capital and, in return, takes a portion of the profits those traders generate. The trader keeps the rest, which is often referred to as a profit split. In modern retail trading, the term has expanded to include firms that offer simulated or demo-based funding programs to aspiring traders worldwide, allowing them to earn real payouts based on their virtual performance under tightly monitored conditions. 

How Prop Firms Work: The Modern Retail Model 

The traditional model of prop trading involved elite traders working in offices with company-provided capital, strict risk controls, and institutional tools. However, over the past few years, this model has undergone significant evolution. Now, retail prop firms allow any qualified trader to access funded accounts, often in the range of $10,000 to $800,000, by completing an evaluation process that proves the trader’s ability to trade profitably and responsibly. 

Here’s how the modern flow works: 

• You sign up with a prop firm and select an account size. 
• You complete an evaluation challenge (e.g., hit a profit target without exceeding risk limits). Once you pass, you’re granted access to a funded or payout-enabled account. 
• You trade, and when you’re profitable, you earn a share of the profits (typically 70%–100%). 

The Prop Firm Business Model: What’s In It for Them? 

Prop firms aren’t doing this for charity. Their business model is built around leveraging trader talent to generate profits in two ways: 

Evaluation Fees 

Most prop firms charge a one-time fee for taking on the challenge. Even if you fail, they’ve earned revenue. 

Profit Sharing

When traders are profitable, the firm retains a small share (usually 10–30%) and distributes the rest. The more skilled the trader, the more profitable the firm becomes over time. Firms also reduce risk by enforcing strict drawdown limits, using simulated trading environments to avoid actual capital exposure (in some cases), and automatically deactivating accounts that breach rules. 

Why Prop Trading Firms Exist 

Prop firms fill a considerable gap in the trading world. Many talented traders possess skill and strategy, Discipline, and a strong performance history, but lack sufficient personal capital to scale their trading. 

Prop firms enable these traders to bypass years of capital accumulation and immediately access six-figure accounts, providing them with the opportunity to earn a meaningful income without putting their own money at risk. They also democratize access to trading as a career: you don’t need to be a Wall Street insider, you just need a consistent edge and the discipline to follow rules. 

The Different Types of Prop Trading Firms 

Prop firms in 2025 typically fall into three categories, including challenge-based Prop Firms. You must pass a trading evaluation or “challenge.” Evaluation typically involves achieving a profit target (e.g., 8%) within risk limits and, occasionally, within a specified timeframe. 

Example

FTMO, MyFundedFX, Instant Funding Prop Firms. Skip the challenge and start trading immediately by paying a higher upfront fee. Ideal for experienced traders who don’t want to prove themselves through tests. 

Example

FundedNext (Instant model), E8 Funding (One-phase accounts), Hybrid or Flex Model Firms combine structure with freedom, removing time limits, profit targets, or offering frequent payouts. These are trader-first firms focused on long-term sustainability. 

Example

Goat Funded Trader is known for no minimum targets, no time pressure, and a triple payday payout structure. 

The Benefits of Using a Prop Firm 

For traders: No personal capital risk only the one-time challenge fee access to significant capital often $50K, $100K, even $800K accounts Profit potential up to 100% of profits paid to the trader Discipline & accountability challenges enforce professional habits For the firm: Revenue from challenge fees Profit share from successful traders A scalable, data-driven business model 

Is a Prop Firm Right for You? 

You have a tested, consistent trading strategy You want to trade full-time or scale your income You lack personal funds but are confident in your skill You’re willing to follow rules and stay disciplined It’s not ideal for: Traders who rely on gambling or random high-risk tactics People who dislike structure or accountability Beginners with no real trading plan

Related Reading

• What Happens if You Lose Money on a Funded Account
• How to Become a Prop Trader
• What is a Funded Trading Account
• What's a Prop Firm
• How to Become a Good Trader
• Pass Prop Firm Challenge

What to Look for in a Good Prop Trading Firm

Assessing Risk Management Rules

Risk management rules are the most critical factors to assess when you’re selecting a prop firm. These are the boundaries within which you must trade go outside them and you're disqualified. They usually come in two forms: 

Daily drawdown

The maximum amount you can lose in one day. Often set around 4–5%. 

Overall drawdown

The maximum total loss allowed across your account's life (typically 8–10%). 

Why it matters

A firm’s risk parameters tell you how much breathing room you have. If you’re a swing trader holding longer-term positions, tighter drawdowns may not suit your style. Choose a firm whose rules match your realistic risk profile, not just your aspirations.

Evaluating the Evaluation Structure

Ask

How do they test or verify your skill before giving you capital? Two-phase challenges: 

• Phase 1 requires a higher profit target under strict rules.
• Phase 2 requires a lower target to prove consistency. 

One-phase challenges

Faster, fewer steps, but often with tighter risk restrictions. Instant funding: No challenge, just pay a fee and start trading live (though payouts are still based on your performance). 

Why it matters

If you’re confident in your system and want to skip formal testing, instant funding models might appeal. However, if you need to prove consistency and qualify for refunds or long-term scaling, a two-phase challenge may be more suitable.

Choosing a Trading Platform and Execution

Check what platform(s) the firm supports: 

MetaTrader 4/5 (MT4/MT5)

Common for Forex traders 

cTrader

Offers better depth-of-market and order types. 

Custom Dashboards 

Some firms have proprietary platforms with performance tracking, trade review tools, and rule alerts.

Why it matters

You need a platform you're comfortable with, especially when you're under pressure. Platform reliability and execution speed can directly affect your success. 

Payout Frequency and Profit Split

These define how often you get paid and what percentage of your profits you keep in monthly, biweekly, or weekly payouts. Profit splits typically range from 70% to 90%, and some firms offer 100% after scaling.

Why it matters

Some firms delay payouts or add hidden thresholds, such as a “minimum payout balance.” Others, like Goat Funded Trader, offer triple paydays and up to a 100% profit split, which is excellent for traders who rely on a steady cash flow.

Assessing Available Instruments

You’ll want to make sure the firm allows the instruments you’re familiar with: 

• Forex, 
• Indices, 
• Commodities Crypto, 
• Stocks, 
• Futures 

Also, to confirm whether you can trade during news, hold trades overnight or on weekends. 

Why it matters

A firm might look perfect until you find out your favorite pair or strategy isn’t allowed. Ensure your entire trading system fits within the firm’s allowed assets and timing rules.

Transparency and Trust

Clear rulebooks, Refund policies on passing the challenge, Active support teams, and Community presence (Discord, Telegram, Reddit, etc) 

Why it matters

Some firms have been caught changing rules mid-challenge, denying payouts, or going out of business without warning. If a firm isn’t transparent upfront, walk away, no matter how attractive the funding offer is.

Flexibility and Trader Experience

This is often what separates trader-first firms from rigid ones. 

Look for

No time limits (or extended windows), no minimum profit targets (as in Goat Funded Trader), Account pausing or retry options, User-friendly dashboards, and auto-tracking of rule compliance 

Why it matters

You’re more likely to perform well in an environment that gives you space to trade your edge, not rush against the clock. Flexibility is especially critical for part-time traders, swing traders, and those who work full-time jobs. 

Get 25-30% off Today - Sign up to Get Access to Up to $800K Today.

Goat Funded Trader gives you access to simulated accounts up to $800K with the most trader-friendly conditions in the industry - no minimum targets, no time limits, and triple paydays with up to 100% profit split. Join over 98,000 traders who've already collected more than $9.1 million in rewards, all backed by our 2-day payment guarantee with a $500 penalty for delays. Choose your path to funding through customizable challenges or start trading immediately with our instant funding options. Sign up to Get Access to up to $800K Today, and 25-30% off.

Related Reading

• Are Funded Accounts Legit‍
• Are Prop Firms Worth It‍
• How to Become a Professional Trader
• How Do Prop Firms Make Money
• No Evaluation Prop Firms
• Best Prop Firm for Swing Traders
• How to Get Into Prop Trading

Top 10 Prop Trading Firms in 2025 for New and Experienced Traders

1. Goat Funded Trader: Where Trading Freedom Reigns

Goat Funded Trader is redefining what it means to be a trader-friendly prop firm. Instead of forcing you into high-pressure challenge structures, they offer no minimum profit targets, no time limits, and a triple payday system. That means you get paid more frequently, can trade at your own pace, and focus on your edge without artificial deadlines. 

Their accounts range up to $800,000, and traders can retain up to 100% of their profits, depending on their plan. It’s a perfect fit for swing traders, part-timers, and anyone who values trading freedom over rigid rules. 

2. FTMO

Best For

Highly disciplined traders who thrive under structure. FTMO is arguably the most well-known and respected prop firm in the space. They use a two-phase challenge model, where you must hit profit targets (10% in Phase 1, 5% in Phase 2) while staying within strict drawdown limits. They offer strong trader support, including psychological coaching, analytics dashboards, and a clear scaling plan. FTMO is ideal for traders who are ready to treat trading as a profession from day one.

Pros

• Excellent reputation and community
• Robust analytics and coaching tools
• Up to 90% profit split
• Strong educational resources

Cons

• Strict rules, especially for daily drawdowns
• No overnight or news trading on certain accounts

3. MyFundedFX

Best For

Traders who want flexibility with fast funding options. MyFundedFX has quickly become a favorite among traders who seek both challenge-based and instant funding options. You can trade during news, hold trades over the weekend, and use EAs (expert advisors), which makes it attractive to both discretionary and algorithmic traders. Their drawdown rules are forgiving, and they offer bi-weekly payouts.

Pros

• Supports news trading and weekend holding
• Instant funding options are available
• EAs allowed
• Transparent challenge structure

Cons

• Rapid growth has led to occasional support delays
• Platform choices are limited compared to others

4. The Funded Trader

Best For

Traders who enjoy gamified experiences and community engagement. The Funded Trader blends prop trading with a fantasy-game theme. "Kings," "Knights," and "Dragons" are more than just branding; they're structured account types with varying levels of risk and reward. They offer weekly payouts, multiple challenge types, and even contests. This firm appeals to traders who want a more fun, community-driven approach without compromising on funding size or payout potential.

Pros

• Weekly payouts
• Multiple account types with scaling
• Competitive challenges and giveaways
• Engaging community

Cons

• Themed branding may feel gimmicky to some
• The payout process can take time if the requirements are unclear

5. E8 Funding

Best For

High-volume traders and those who want speed and simplicity. E8 offers a sleek dashboard, one-phase challenge options, and speedy account setup. With quick verifications and a smooth user experience, it's popular among traders who want minimal friction between signup and funding. Their drawdown structure is flexible, and they offer multiple account types tailored to your trading style.

Pros

• Fastest account activation
• One-phase challenge available
• Clean and modern interface
• Good payout structure

Cons

• Educational resources are minimal
• No weekend holding allowed in some models

6. FundedNext

Best For

Traders who want cashback and flexible scaling. What makes FundedNext unique is its Cashback program, where you get paid even while trading in the evaluation stage. They allow trading during news, support crypto and FX, and offer both instant funding and challenge-based models. Their scaling plan enables you to grow to over $4 million, making them a suitable option for traders seeking long-term growth with a prop firm partner.

Pros

• Cashback while trading
• No news restrictions
• Instant and challenge funding options
• High scaling potential

Cons

• The payout process can be lengthy
• The live dashboard could be more intuitive

7. The 5%ers

Best For

Low-risk traders and portfolio-style approaches. The 5%ers are one of the few firms that fund you with live capital from day one, no demo challenge. They favor slow, steady growth over flashy wins. Drawdowns are tight, and position sizes are capped, which suits traders who use low-leverage and longer-term strategies. Their “Bootcamp” evaluation is a long-term alternative for those who want structured progression.

Pros

• Live capital from the start
• Strong educational community
• Long-term focused
• Low-pressure trading environment

Cons

• Small initial capital compared to other firms
• Doesn’t suit aggressive or high-frequency traders

8. TopStep (Futures Trading)

Best For

Futures traders are looking for credibility and U.S. compliance. TopStep specializes in futures contracts (not forex) and has been around for a long time before the retail prop boom. Their evaluation is strict, but their credibility is unmatched. If you're serious about futures and want to trade with live capital on CME and other major exchanges, this is the go-to firm.

Pros

• CFTC-compliant futures prop firm
• Highly professional structure
• Great for U.S.-based traders
• Long-standing reputation

Cons

• No support for Forex, crypto, or stocks
• Evaluation is tougher than most

9. BluFx

Best For

Subscription-based traders who want fast live access. BluFx skips the challenge entirely. Instead, you pay a monthly subscription fee to access a live account right away. There are no profit targets, but payouts are capped, and risk limits are conservative. This firm is best for traders who want to avoid upfront fees or evaluations and are confident in low-risk strategies.

Pros

• Instant live trading
• No evaluation phase
• Monthly subscription (easy entry)

Cons

• Lower profit splits
• No scaling or payout flexibility compared to challenge firms

10. True Forex Funds

Best For

Traders who want fast processing, clean rules, and minimal restrictions. True Forex Funds is recognized for its lightweight rules, fast account activations, and support for a diverse range of instruments, including cryptocurrencies. They allow scalping, swing trading, EAs, and news trades. If you want a firm that’s easy to work with and doesn’t get in your way, this is one of the best.

Pros

• Fast evaluation and funding
• Minimal restrictions
• Flexible trading conditions
• Scalable plans and regular payouts

Cons

• Support can be slow at peak times
• The Platform UI could use improvement

Get 25-30% off Today - Sign up to Get Access to Up to $800K Today

Goat Funded Trader gives you access to simulated accounts up to $800K with the most trader-friendly conditions in the industry - no minimum targets, no time limits, and triple paydays with up to 100% profit split. Join over 98,000 traders who've already collected more than $9.1 million in rewards, all backed by our 2-day payment guarantee with a $500 penalty for delays. Choose your path to funding through customizable challenges or start trading immediately with our instant funding options. Sign up to Get Access to up to $800K Today, and 25-30% off.

Related Reading

• Best Prop Trading Firms for Beginners‍
• Prop Trading Strategies‍
• What Is Prop Trading
  
• How To Get A Funded Trading Account
• What Is A Prop Firm Challenge

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