The allure of trading with 1 million dollars of funded capital is nothing short of exciting. It can not only accelerate your trading career but also offer greater financial leverage. But where do you find such lucrative opportunities?
Proprietary (prop) trading firms are the answer. Many firms out there offer traders the chance to manage large accounts, typically in exchange for a profit split.
Here’s a comprehensive guide on some of the most promising prop trading firms offering 1 million dollar funded accounts. This list is divided into two categories: firms that offer initial funding and those with scaling plans.
What is a Prop Trading Firm?
Before diving into the list, it’s crucial to understand what a prop trading firm is. A prop trading firm provides traders with capital, allowing them to trade financial instruments. In return, the firm usually takes a percentage of the profits.
How Does It Work?
- Capital: The firm provides initial capital for traders to begin trading.
- Profit Split: Typically, profits are divided between the trader and the firm.
- Risk Management: Firms often have strict risk management guidelines to protect their investment.
Firms Offering Initial Funding
These firms provide initial funding to traders, often following a rigorous selection process that may include a demo trading phase.
Fidelcrest
- Initial Funding: Offers from $250,000 to $1 million in initial funding.
- Profit Split: Ranges from 70-90% in favor of the trader.
- Requirements: Must pass a two-step evaluation process.
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Ment Funding
- Initial Funding: From $25,000 to $2 million in initial capital.
- Profit Split: 75-90% for the trader.
- Requirements: Need to complete an evaluation period successfully.
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SurgeTrader
- Initial Funding: Offers accounts from $25,000 to $1 million.
- Profit Split: Varies, but it can be up to 90% for the trader.
- Requirements: Traders must pass a qualifying round.
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Traders with Edge
- Initial Funding: Up to $40,000 with scaling to $1,280,000.
- Profit Split: 80% for the trader.
- Requirements: A qualifying exam is required to gauge trading skills.
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Firms With Scaling Plans
These firms provide a tiered approach, allowing traders to scale up their trading capital as they meet specific performance targets.
Alpha Capital
- Initial Funding: From $10,000 – $200,000 depending on account type.
- Scaling Plan: Can go up to $2 million as performance metrics are met.
- Profit Split: Around 70-80%, depending on the account size.
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AudaCity Capital
- Initial Funding: Usually starts at $15,000.
- Scaling Plan: Opportunity to manage up to $480,000 based on performance.
- Profit Split: Typically a 50-50 split.
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Blue Guardian Capital
- Initial Funding: Initial accounts can start at $10,000 – $200,000 depending on account type, but 2 evaluation phases must be passed before trading with real money.
- Scaling Plan: Up to $2 million based on meeting scaling criteria.
- Profit Split: According to their FAQ section, the profit split is 85%.
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City Traders Imperium
- Initial Funding: Accounts start at $5,000 and go up to $100,000 depending on the account type you select.
- Scaling Plan: Opportunity to scale to a $4 million account.
- Profit Split: You can earn up to 100%, but that is difficult to obtain.
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E8 Funding
- Initial Funding: Starts with a minimum of $25,000 and goes up to $250,000 depending on account type.
- Scaling Plan: Can go up to $1 million based on performance.
- Profit Split: Up to 80%.
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FTMO
- Initial Funding: Accounts usually start at $400,000 after evaluation.
- Scaling Plan: Can scale up to $1 million or more.
- Profit Split: 90% for the trader.
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FTUK
- Initial Funding: From $14,000 – $90,000.
- Scaling Plan: Opportunities to scale over $5 million depending on account type.
- Profit Split: Varies, but generally around 70-80%.
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FundedNext
- Initial Funding: Offers accounts from $6,000 – $200,000.
- Scaling Plan: Scaling opportunities up to $4 million.
- Profit Split: Varies by account type.
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FunderPro
- Initial Funding: Accounts start at $25,000 – $200,000.
- Scaling Plan: Opportunity to scale up to $5 million based on trading performance.
- Profit Split: Keep up to 80% of profits.
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FundYourFX
- Initial Funding: Initial capital usually ranges from $6,000 to $30,000.
- Scaling Plan: Potential to scale to $2 million on the professional account type.
- Profit Split: Up to 90%, but generally a 60-70% share for the trader.
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Glow Node
- Initial Funding: Starts at $5,000 or up to $200,000 depending on account type.
- Scaling Plan: Can go up to $1 million based on performance metrics.
- Profit Split: Up to 90%.
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InstantFunding.io
- Initial Funding: Offers accounts is up to $80,000 for the most expensive account type.
- Scaling Plan: Scaling opportunities up to $1,250,000.
- Profit Split: Up to 90%.
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MyFundedFX
- Initial Funding: Accounts range from $5,000 to $30,000.
- Scaling Plan: Up to $1.5 million based on performance metrics.
- Profit Split: Typically 80%.
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Smart Prop Trader
- Initial Funding: Typically starts at $10,000, but can be up to $200,000
- Scaling Plan: Opportunities to scale up to $2.5 million.
- Profit Split: 85% for traders.
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The 5ers
- Initial Funding: up to $20,000.
- Scaling Plan: Can go up to $4 million on the Hyper Growth account type.
- Profit Split: Usually around 50-100%.
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The Funded Trader
- Initial Funding: Accounts begin at $15,000.
- Scaling Plan: Scaling opportunities up to $1.5 million.
- Profit Split: Generally around 80-90%.
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The Trading Pit
- Initial Funding: Ranges from $50,000 to $100,000.
- Scaling Plan: Funding can go all the way up to $5 million.
- Profit Split: Up to 80%.
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Trade The Pool
- Initial Funding: Initial accounts start at $20,000 and go up to $260,000.
- Scaling Plan: Account scaling has no limit. If you meet the performance standards, you can continue scaling your account into the millions.
- Profit Split: Up to 80% for the trader.
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Advantages and Disadvantages of Each Type of Firm
In the realm of prop trading, firms generally fall into two categories: those offering initial funding and those with scaling plans. Understanding the advantages and disadvantages of each is critical for traders who are choosing a pathway to larger capital.
Advantages
Initial Funding Firms:
For beginners or those wary of the inherent risks in trading, initial funding firms offer an easier entry point. These firms generally require less rigorous performance metrics, thereby reducing the initial performance pressure.
This less stringent environment allows traders to focus more on strategy optimization and less on the immediate financial stakes, making these firms excellent starting points for those who are new or returning to trading after a hiatus.
Scaling Plan Firms:
For the more ambitious or experienced trader, firms with scaling plans are often more attractive. These platforms offer a stepping stone to significant financial heights, often allowing traders to manage accounts exceeding 1 million dollars.
The key benefit here is the long-term potential; traders aren’t just stuck with the initial sum but have a clear, incremental path to scaling their trading capital. The higher capital ceiling also translates to larger profit possibilities, particularly appealing for those with a solid trading track record.
Disadvantages
Initial Funding Firms:
While the lower performance pressure in initial funding firms is an advantage, it often comes at the cost of less favorable profit splits and potentially higher fees. Typically, traders might expect splits as low as 50-60% in their favor.
Moreover, these firms may impose more fees for account maintenance, platform usage, or data feeds, chipping away at the trader’s net profit.
Scaling Plan Firms:
On the flip side, scaling plan firms come with their own set of challenges. For one, they often impose rigorous performance metrics that traders must consistently meet to scale their account sizes. The stress of achieving these targets can be overwhelming, especially for traders who have less experience managing large sums.
Furthermore, it usually takes a more extended period to climb the capital ladder. Traders might start with $25,000 or $50,000 and will need to demonstrate prolonged success to reach the enticing $1 million mark, which can be a time-consuming endeavor.
By weighing these pros and cons, traders can make a more informed decision that aligns with their skills, risk tolerance, and financial aspirations.
Wrap Up
Navigating the world of prop trading firms can be complex, but armed with the right information, you can make a decision that best suits your trading style and financial goals. Whether you’re a novice looking for initial funding or an experienced trader aiming to scale, there’s a firm out there for you.