Proprietary trading firms, also known as prop firms or prop trading firms, are financial institutions or companies that trade using their own capital instead of client funds. These firms employ professional traders who use various trading strategies and techniques to generate profits from the financial markets.
A guide by TU experts provides information on the top biggest prop firms in the world and how much a trader can earn from them.
What are the largest prop firms in the world?
The largest prop firms offer huge account sizes and profit splits along with institutional-grade education, webinars, and support programs targeted at helping traders remain profitable. Here are biggest prop trading firms in the world:
- FTMO
This is one of the biggest prop trading firms and the winner of Deloitte’s Technology Fast 50 for 2022. The firm has over 960,000 funded trader programs, paying out over $29 million to traders in 2021. Traders on FTMO earn up to 90% of their profits, which makes it one of the most attractive prop firms.
New traders get accounts funded with a minimum of $10k, which can get up to $400k. Nevertheless, traders would first need to complete the unique 2-step Evaluation Course of FTMO, where they must meet profit targets for the first 30 days. The firm has one of the widest arrays of currency pairs and also supports cryptocurrencies, cash indices, commodities, and stock CFDs.
- Lux Trading Firm
Based in London, this firm is one of the most trusted and well-known prop trading firms. The minimum account on the firm’s website has $200,000. The account size doubles every time the trader generates a trading profit equivalent to 10%.
On the platform users can get $25,000-$200,000 under management. Moreover, their balances may grow up to $10 million. The firm has a generous sharing ratio of 75/25 favoring the trader.
- FundedNext
Since 2022 FundedNext has quickly become one of the biggest prop firms in the world. Founded in the United Kingdom, the firm provides traders with up to $200,000 in funding that can be scaled up to $4 million via a scaling plan.
The prop firm has already funded more than 17,000 traders and paid more than $22 million. The FundedNext’s 90/10 profit sharing is the most competitive in the industry. Nonetheless, due to the large account sizes, traders are required to follow relatively strict rules.
- The 5%ers
This is a global Funding Traders & Growth Program founded in 2016 with an outstanding reputation and one of the most competitive payouts. Funded traders receive $100,000 in their Bootcamp trading accounts immediately after completing the evaluation.
The trading account size doubles every time a trader reaches a milestone and can grow up to $4 million. The 5%ers has some of the biggest libraries of trading courses and workshops designed to bring the best out of traders.
- Audacity Capital
For the last 11 years, Audacity Capital has funded professional Forex traders in over 140 countries. The firm’s funded accounts start from $15,000 with a fast-scaling plan that can double the trading account size if the trader hits the 10% target, getting up to $480,000 of capital.
The prop firm pays clients $2.8 million monthly with a profit sharing ratio of 50/50. Unlike most proprietary trading firms, with Audacity Capital traders are not required to pass a demo/challenge to receive funding. The prop firm offers traders premium liquidity, zero commission, and no swap fees.
Summary
Funded trading is a great way to make profit and gain new experience without risking your own funds. However, prop firms have a subscription or evaluation fee. On the TU website you can find the 10 best prop firms, the best proprietary firm by profit share, and more.
