Top 5 Prop Firms and Their Payouts | Pros and Cons
Prop trading has changed so much in the fast-paced world of 2024, with new firms coming up and some of the older ones getting better and more appealing. Sometimes as a trader, you get lost in this search for the best prop firm you should associate yourself with. Today, I am just going to share a few insights regarding some of the top prop trading firms of 2024 based on their payout models, pros, and cons. Let's take them through, alright–
1. Hola Prime
Pros: Hola Prime is one of the go-to options for most traders today because of the account models and smooth payout process that they allow Their evaluation process is a two-step process that provides ample space for testing a trader's skills. One thing that I would say they boast about is their approach to trading: scalping or swinging, they have in them. Hola Prime is compatible with popular platforms like Meta Trader 4 (MT4) and Meta Trader 5 (MT5), giving traders the flexibility to choose what works best for them. Their transparent rules and competitive profit-sharing model—up to 95%—make them a solid choice. Another plus is their excellent customer support, which provides timely assistance to traders in need.
Cons: One downside is the conservative rules on risk management, which impose stricter drawdown limits compared to some competitor firms. For an individual who trades with higher risks, this might be quite restrictive. Moreover, they charge relatively high fees for evaluation compared to other firms, which is unlikely to attract new traders.
Payouts: Hola Prime has a variety of payout models, such as weekly, bi-weekly, and monthly payouts. This allows traders to choose based on their personal needs. They also provide support for different payout options like rise and crypto transfers. This makes it easy for traders. Their reliable fastest payout system in the industry has trusted them a name in prop trading.
Summary
● Evaluation Process: They have a One-step and Two-step process for funding plans for testing trader skills.
● Trading Strategies: Supports both scalping and swing trading in their prime accounts.
● Platform Compatibility: Works with MetaTrader 4 (MT4) and Meta Trader 5 (MT5), Match Trader, Dx Trade, and c Trader.
● Profit Sharing: Competitive model with up to 95% profit share.
● Customer Support: Excellent and timely assistance.
● Payout Options: Weekly, bi-weekly, and monthly payouts, including crypto transfers.
● Risk Management: Conservative drawdown limits.
● Evaluation Fees: A little higher than some competitors in the industry.
2. FTMO
Pros: FTMO has quickly built up its name among the most recognized ones in the business, with a high profit sharing, by default at 80%. Its two-stage evaluation is strict but rewarding for traders who prove consistency. Its flexible risk-managing rules also appeal to the need for more space by which the trader can operate. The broad community is yet another plus, offering resourceful help for those traders. They also provide cTrader and MT5 so that traders can easily use whatever they like.
Cons: FTMO enforces a strict '2-minute News Trading' rule. Some people depend on news trading for very volatile, high-probability profits. Therefore, this may cause a bit of a problem for those people. Other than that, their evaluation fees are steeper compared to other systems, and this alone may keep them off from new traders.
Payouts: The payouts on FTMO are processed in monthly terms, though the platform claims the processing time can be shortened during the trading period depending on the performance of your trades. Generally, it takes up to seven business days for the payout to be processed. Since the duration is a little longer, their credibility makes the wait worthwhile.
Summary
● Profit Sharing: High profit-sharing model with scaling, default at 80%.
● Evaluation Process: Strict two-stage evaluation that rewards consistent traders.
● Risk Management: Flexible rules, offering more space for traders.
● Community Support: Broad community providing helpful resources.
● Platform Compatibility: Offers Dx Trade, cTrader Meta Trader 4 (MT4) and MetaTrader 5 (MT5) for trader flexibility.
● Strict Rule: Enforces a "2-minute News Trading" rule, limiting news-based trades.
● Evaluation Fees: Higher than some competitors, which may discourage new traders.
● Payouts: Monthly payouts, typically processed within seven business days, but can be expedited based on trading performance.
3. FundedNext
Pros: FundedNext is quickly gaining popularity through its flexible account models and highly competitive profit splits of up to 95%. They offer one-step and two-step evaluations that can work for different traders depending on the risk appetite. FundedNext allows scaling for traders, meaning a trader can scale up the account size if they are performing well. Their customer support is excellent and provides smooth navigation through trading transactions. FundedNext accepts cTrader, MT5, and MT4, giving room to accommodate a variety of traders.
Cons: The cons of FundedNext include relatively low leverage on some accounts in comparison to other firms and the evaluation process, which is probably going to take more time than that of some other firms.
Payouts: Instant payouts are fast, usually within 24-48 hours. The payout methods include cryptocurrency and bank transfers. A trade appreciates the fast payout system to lock in earnings quickly.
Summary
● Popularity: Gaining traction for flexible account models and competitive profit splits (up to 95%).
● Evaluation Options: Offers one-step and two-step evaluations to suit different risk appetites.
● Scaling: Allows account scaling for consistently performing traders.
● Customer Support: Excellent service for smooth trading experiences.
● Platform Compatibility: Supports cTrader, MT4, and MT5.
● The evaluation process may take longer than competitors.
● Payouts:
(i) Payouts within 24-48 hours.
(ii) Supports cryptocurrency and bank transfers.
Pros: FundingPips is a company that has acquired popularity because of its innovative feature of trailing drawdown, which reduces the drawdown as profit grows. It offers flexibility not found in other companies. Its profit share can reach up to 90% and this makes it attractive to profitable traders. FundingPips also supports Match Trader, C Trader, and Trade Locker which would enable traders to perform using whatever trading platform they prefer.
Cons: The '10 lots per day' rule means traders can only open up to 10 lots daily. If you exceed the limit, all the open trades will be closed, and you won't be able to trade until the next day Their customer support is mixed with bad reviews, so this may delay any kind of problems you may have.
Payouts: FundingPips offers weekly, bi-weekly, and monthly payouts. Among the prop firms, that is quite a rare offer On average, payout time takes around 1-3 working days.
Summary
● Popularity: Known for its innovative trailing drawdown feature, which adjusts as profit grows.
● Profit Sharing: Offers up to 90% profit share, appealing to profitable traders.
● Platform Compatibility: Supports Match Trader, cTrader, and Trade Locker for platform flexibility.
● Drawbacks: Strict "10 lots per day" rule, limiting daily trading volume.
● Mixed reviews on customer support, potentially leading to delays in resolving issues.
● Payouts:
(i) Flexible options: weekly, bi-weekly, and monthly
(ii) Processing time: typically 1-3 working days.
5. FunderPro
Pros: FunderPro is a relatively young company, which gained momentum quickly and mainly focuses on news trading, thus a great advantage for those who like to fund their events. Both offer one-step and two-step funding, with their drawdown rules not so unfriendly to traders. FunderPro also offers one of the best educational platforms, which makes it suitable for newer traders wanting to build their skills. Their fee structure is relatively competitive. Thus, their service enables accessibility to a more considerable number of traders. FunderPro accommodates TradeLocker, making it a great choice for traders wanting this platform.
Cons: Although FunderPro can accommodate TradeLocker, this may limit trade popularity enough to inhibit the flexibility of preferred platforms Additionally, some of their constraints during periods of volatility can be somewhat limiting for certain trading strategies.
Payout: FunderPro offers to pay daily, that is; your payment will be transferred to you when your total profit for the day accumulates to more than $50. This company offers withdrawal by both banks and cryptocurrencies while ensuring timely and reliable payout and, therefore, good for traders who require frequent payouts.
Summary
● Popularity: Rapidly gaining momentum, especially among news traders.
● Funding Options: Offers one-step and two-step funding with trader-friendly drawdown rules.
● Education: Features one of the best educational platforms, ideal for newer traders.
● Fee Structure: Competitive, making it accessible to a wider audience.
● Platform Compatibility: Supports TradeLocker for traders preferring this platform.
● Constraints during periods of volatility may limit certain trading strategies.
● Payouts:
(i) Daily payouts when profits exceed $50.
(ii) Withdrawal options include banks and cryptocurrencies with timely, reliable processing.
Final Thoughts
Choosing the right prop firm is crucial for your trading journey. Each firm mentioned—Hola Prime, FTMO, FundedNext, FundingPips, and FunderPro—offers unique advantages that cater to different types of traders. Whether you’re looking for flexibility, fast payouts, or a solid community, there’s a firm on this list that can meet your needs.
If you’re a beginner, consider firms with strong educational resources and lower evaluation fees like FunderPro or FundedNext. For those with more experience, FTMO and Hola Prime might be ideal due to their higher profit splits and transparent processes. Ultimately, the right choice depends on your trading style, goals, and risk tolerance.
Make sure to assess each firm’s offerings and choose the one that aligns best with your trading strategy. Don’t forget to consider the platforms you prefer, like MetaTrader 4, MetaTrader 5, or cTrader, as they can enhance your trading experience. Happy trading!