Best regulated prop firms

Decoding the Best Regulated Prop Firms: An In-Depth Analysis

Proprietary trading, or prop trading, is a practice where financial institutions and brokerage firms trade stocks, bonds, commodities, derivatives, and other financial instruments with their own money, aka proprietary money, instead of their customers’ money, to make a profit for themselves. As the world of trading continues to evolve and expand, the need for regulated prop firms becomes increasingly apparent.

These regulated prop firms offer professional traders the opportunity to trade with significant amounts of capital, providing the potential for substantial profits. In this article, we will delve into the world of regulated prop firms, examining their features, benefits, and how they operate.

Table of Contents:

  • Understanding Regulated Prop Firms
    • The Definition of a Regulated Prop Firm
  • The Nitty-Gritty of Regulated Prop Firms
  • Unveiling Top Regulated Prop Firms
  • Dissecting the Best Firms for Prop Trading
    • Topstep
    • The 5%ers
    • The Trading Pit
    • Funded Trading Plus
    • SurgeTrader
    • Trade The Pool
    • FundedNext
    • FX2 Funding
    • FTMO
    • Lux Trading Firm
    • Fidelcrest
    • 3Red Partners
    • Chicago Trading Company
    • The Funded Trader Program
    • My Forex Funds
    • City Traders Imperium
    • Traders with Edge
    • Audacity Capital
  • Frequently Asked Questions about Prop Trading
  • Wrapping up

Understanding Regulated Prop Firms

Before we delve into the specifics of the top regulated prop firms, it is essential to understand what a prop firm is.

The Definition of a Regulated Prop Firm

A regulated prop firm is a company that employs seasoned traders and funds them with the firm’s own capital for trading in various financial markets. These traders are expected to generate profits, which are then shared with the company. The firm may also offer additional support such as training, mentoring, and access to professional trading tools.

Most prop firms operate under strict trading rules designed to maximize profit-making and minimize losses. Many of these firms require prospective traders to undergo an evaluation process to demonstrate their trading skills and risk management abilities.

The Nitty-Gritty of Regulated Prop Firms

Regulated prop firms offer a unique blend of benefits for traders. They provide substantial capital for trading, allowing traders to make significant profits without risking their own money. They also offer professional training and support, helping traders to enhance their skills and knowledge.

Moreover, regulated prop firms provide a structured environment for trading, with strict rules and guidelines to minimize risk. They also offer the opportunity for traders to work from anywhere, making them an attractive option for remote and freelance traders.

However, it’s crucial to note that trading with a prop firm also comes with its challenges. Traders must adhere to the firm’s trading rules and meet specific profit targets to maintain their funded account. They also have to split their profits with the firm, which can be a downside for some traders.

Unveiling Top Regulated Prop Firms

The world of trading is replete with numerous prop firms. However, not all prop firms are created equal. Some stand head and shoulders above the rest in terms of their offerings, reputation, and performance. Let’s unveil some of these top-tier regulated prop firms.

Dissecting the Best Firms for Prop Trading

In this section, we’ll delve into the details of the top regulated prop firms. We’ll explore their features, benefits, and what sets them apart from the competition.


Topstep, a Chicago-based prop firm, is renowned for its professional approach to prop trading. They employ experienced traders in stocks, futures, and indices, providing them with capital, support, risk management strategies, and coaching to facilitate successful trading. Traders must first prove their trading skills and risk management abilities before gaining access to a funded account.

Profit Split: 100% up to $5,000, then 80% afterwards.


  • Free 14-day trial.
  • Group performance coaching sessions.
  • Access to professional coaches and AI coaching.
  • Scalable plans based on trading success.
  • Support team.
  • Support for multiple trading platforms including NinjaTrader, TradingView, and TSTrader.


  • Funded thousands of accounts in numerous countries.
  • High leverage of up to 1:100.
  • Referral program.


  • No bonuses from broker Equiti Capital.
  • Limited support service on weekends.

Founded: 2010
Headquarters: Chicago, Illinois
Revenue: $14 million
Fees: Monthly fees vary based on account size and buying power.

Visit Topstep Site >>

The 5%ers

One of the stalwarts in the industry, The 5%ers provides traders the opportunity to trade forex, metals, and indices with a live account from day one. They offer immediate funding for those who desire it and have three distinct packages tailored to different types of traders.

Profit Split: Up to 100%


  • Fastest growth plan in the industry.
  • No time limit on trading.
  • Traders use MetaTrader 5.
  • Trading community.
  • High-quality resources.
  • 24/7 support.
  • Bonuses.


  • Funding up to $4 million. Funding doubles after each milestone.
  • Compatible with all trading styles.
  • 24/7 dedicated support.


  • Only 1:10 leverage on the Bootcamp program.

Founded: 2016
Headquarters: United Kingdom, Israel.
Fees: Accounts start at $260, with varying costs based on account type.

Visit 5%ers Site >>

The Trading Pit

The Trading Pit is a globally recognized prop firm that operates under a partnership model. They offer a cutting-edge platform that enables traders to trade in Forex, Cryptos, Stocks, ETFs, Shares, commodities, indices, etc.

Profit Split: Up to 80%


  • Fixed 10%
  • Global reach.
  • Multi-Lingual Support.
  • Real-Time Statistics.


  • Comprehensive Profit-split structure.
  • Choose from a wide range of trading strategies.


  • A new firm with only a year’s worth of experience.

Founded: 2022
Headquarters: Liechtenstein
Revenue: $1-5 Million (Approx)
Employees: 11-50
Fees: Starts at 99 euros

Visit The Trading Pit Site >>

And the list goes on with equally competent prop firms such as Funded Trading Plus, Trade The Pool, FundedNext, FTMO, Lux Trading Firm, 3Red Partners, Belvedere Trading, City Traders Imperium, Traders with Edge, and Audacity Capital.

Each of these regulated prop firms has its unique offerings, benefits, and challenges. Therefore, it’s essential for aspiring traders to conduct thorough research and due diligence before choosing a prop firm to work with.

Frequently Asked Questions about Prop Trading

  1. What is a prop firm? A prop firm or proprietary trading firm is a company that provides its traders with significant capital to trade in the financial markets. The firm funds the traders’ trading accounts and shares in their profits.
  2. Are prop firms regulated? Yes, most prop firms are regulated by financial authorities in their respective jurisdictions. These regulations are designed to protect traders and ensure fair trading practices.
  3. How do prop firms make money? Prop firms make money by sharing in the profits generated by their traders. They also charge fees for their services, including training, mentorship, and access to trading platforms.
  4. What are the benefits of trading with a prop firm? Trading with a prop firm offers numerous benefits, including access to significant trading capital, professional training and mentorship, and the opportunity to trade in various financial markets.

Wrapping Up

Regulated prop firms provide a platform for traders to leverage their skills and trade with substantial capital. They offer professional training, support, and a structured trading environment that can be beneficial for both novice and experienced traders.

Whether you’re an experienced trader looking for more capital or a novice trader seeking a supportive and structured trading environment, working with a regulated prop firm can be a rewarding experience. The key is to find a firm that aligns with your trading style, goals, and risk tolerance.

Remember, while prop trading can be rewarding, it also comes with its risks. Therefore, it’s crucial to understand the rules and guidelines of the prop firm you choose to work with and to trade responsibly. Happy trading!

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