Top Prop Firms 2025: What You Should Know Before Joining
Imagine this: trading with $100,000 or more — without depositing a single dollar of your own. Sounds exciting, doesn’t it? Well, that’s exactly what proprietary (prop) trading firms offer. In essence, they evaluate your trading consistency, discipline, and risk control. If you meet their criteria, they provide you with large funded accounts and, as a result, allow you to keep up to 90% of the profits.
At the same time, it’s important to note that not all prop firms are created equal. While some focus heavily on structure, patience, and strict rules, others, on the contrary, prioritize speed, flexibility, and creativity in execution. Therefore, understanding which firm aligns best with your personal trading style can significantly influence your long-term success.
Moreover, each prop firm has its own unique funding model, rules, and evaluation process. That’s why, doing proper research before joining one is crucial.
In this guide, we’ll explore the top 4 prop firms of 2025, break down how their funding programs work, and ultimately, help you decide which one fits your trading personality and goals best.
What Is a Forex Prop Firms
A Forex prop firm (short for proprietary trading firm) is a company that provides traders with access to its capital for trading the financial markets. In exchange, traders share a portion of their profits—usually between 70% and 90%—while, at the same time, following strict risk management and drawdown rules set by the firm.
In simple terms, prop firms give skilled traders a faster path to growth, since they don’t need to risk their own savings. Instead, the firm supplies the funds, and the trader’s main task is to trade responsibly within predefined limits.
Furthermore, once you successfully pass their evaluation challenge, you receive a funded account and start earning real profits based on your performance. As a result, traders can scale their accounts far beyond what would be possible with personal capital alone.
Moreover, because your own funds aren’t at risk, you can trade more confidently and professionally. This, in turn, helps develop stronger discipline, consistency, and risk control—skills that are essential for long-term trading success.
How Prop Firms Work (Step-by-Step Example)
Most prop firms follow a simple evaluation process to ensure traders can manage risk responsibly.
Example: FTMO’s 2-Step Model
- FTMO Challenge:
Hit a 10% profit target while keeping losses below 5% daily and 10% overall. - Verification Phase:
Reach a smaller 5% profit target under the same rules. - Funded Account:
After passing, you trade with virtual funds but earn real payouts up to 90%.
For instance, if you pass a $100,000 challenge, you can earn $9,000 on your first payout—all without risking a dollar of your own.
Consequently, this model has made prop trading one of the most exciting opportunities for independent traders in 2025.
Types of Prop Firms
Not every firm operates the same way. Generally, there are two main types based on their funding approach.
🟩 1. Evaluation-Based Prop Firms
These firms require traders to pass a challenge or verification process before accessing capital.
Examples: FTMO, True Forex Funds, and The 5%ers.
Best For: Traders who want a structured, rule-based environment and value accountability.
🟨 2. Instant Funding Prop Firms
These firms provide capital right away in exchange for a higher one-time fee or smaller account size.
Examples: FundedNext (Express Model), The 5%ers (Instant Program).
Best For: Confident traders who want immediate access to trading capital.
Additionally, instant funding firms are great for those who prefer flexibility over strict evaluations.
Top 4 Forex Prop Firms in 2025 (Compared)
Here’s a closer look at the most popular and trusted prop firms for traders this year.
🔥 1. FTMO – Industry Leader & Most Trusted Prop Firm
- Founded: 2015 | HQ: Prague, Czech Republic
- Website: FTMO.com
Key Features:
- Max Funding: $400,000+
- Profit Split: 80–90%
- Model: 2-Step Evaluation (Challenge + Verification)
- Refundable Fee: Yes
- Tools: Mentor App, Account Metrix
Rules:
- Challenge: 10% profit target, 5% daily loss, 10% total drawdown
- Verification: 5% profit target, same limits
- Minimum: 4 trading days per phase
Best For:
Disciplined swing or day traders who want a transparent, structured path to funding.
🌟 2. FundedNext – Flexible & Fast-Growing Prop Firm
- Founded: 2022 | HQ: United Arab Emirates
Key Features:
- Max Funding: $200,000+
- Profit Split: 80–90%
- Models: Evaluation, Express (Instant), Scaling Plans
- Bonus: Extra payout for consistent traders
Rules:
- Challenge: 10% profit target
- Verification: 5% profit target
- Drawdown: 5% daily, 10% total
Best For:
All-level traders who prefer flexibility and want to start earning quickly.
Moreover, FundedNext’s variety of models makes it one of the best options for both beginners and professionals.
📈 3. The 5%ers – Conservative & Long-Term Growth Model
- Founded: 2016 | HQ: Israel
Key Features
- Max Funding: $100,000 (scales up to $2M)
- Profit Split: 50–75%
- No time limit on some plans
- Focus on low-risk, consistent trading
Best For:
Conservative traders who prioritize sustainability and prefer slow, steady growth.
Additionally, The 5%ers’ scaling model rewards long-term consistency, making it perfect for patient traders.
⚡ 4. True Forex Funds – Simple & Fast Evaluation
- Founded: 2021 | HQ: Hungary
Key Features:
- Max Funding: $200,000+
- Profit Split: Up to 90%
- Evaluation: 2-step model (8% + 5% profit targets)
- Low entry fees and fast setup
Best For:
Scalpers and day traders who value quick results and high payouts.
Therefore, if you like trading short-term price movements, True Forex Funds offers the perfect mix of speed and reward.
Comparison Table: Top Prop Firms in 2025
| Prop Firm | Max Funding | Payout | Instant Funding | Refund | Evaluation | Best For |
|---|---|---|---|---|---|---|
| FTMO | $400,000+ | 80–90% | ❌ | ✅ | ✅ 2-Step | Experienced swing traders |
| FundedNext | $200,000+ | 80–90% | ✅ | ✅ | ✅ Optional | All levels, flexible traders |
| The 5%ers | $100,000+ | 50–75% | ✅ | ✅ | ✅ Optional | Conservative long-term traders |
| True Forex Funds | $200,000+ | Up to 90% | ❌ | ✅ | ✅ 2-Step | Scalpers & day traders |
Benefits of Joining a Prop Firm
Joining a prop firm can accelerate your trading journey. Here’s why:
✅ 1. Trade with Large Capital:
Access up to six-figure accounts without risking personal funds.
✅ 2. Profit Sharing:
To begin with, prop firms offer generous profit-sharing models where you can keep up to 90% of what you earn — which is far higher than most traditional broker partnerships. As a result, your effort directly translates into meaningful income and faster growth.
✅ 3. Risk-Free Opportunity:
Furthermore, trading with a prop firm gives you a risk-free environment, since you don’t lose your own capital if trades go wrong. In other words, even if you face a drawdown, the firm absorbs the loss — allowing you to focus purely on strategy and performance.
✅ 4. Global Recognition:
Moreover, firms like FTMO and FundedNext have earned international recognition for their transparency, professionalism, and reliability. Because of this, becoming a funded trader through these firms instantly boosts your credibility in the global trading community.
✅ 5. Personal Growth:
In addition, the structured rules and strict evaluation processes help build valuable skills such as discipline, patience, and emotional control. Consequently, traders become more consistent and professional in their approach.
Finally, many prop firms also provide educational tools, analytics, and performance feedback, which, over time, help you become a more skilled and confident trader.
Drawbacks / Limitations
However, prop trading does come with several challenges that traders should be aware of before joining any firm. To begin with, these firms have strict trading rules that must be followed at all times.
❌ 1. Strict Rules: For instance, breaking daily or overall drawdown limits can immediately lead to disqualification, even if you were previously profitable.
❌ 2. Emotional Pressure: In addition, meeting performance targets within a limited timeframe can create emotional stress, which in turn often pushes traders into overtrading or taking unnecessary risks.
❌ 3. Evaluation Fees: Furthermore, most prop firms require traders to pay upfront evaluation fees. Although these fees are usually refundable once the trader passes, they still add a financial burden at the beginning.
❌ 4. Simulated Environment: Lastly, the initial stages of prop trading are conducted on demo or simulated accounts, meaning you trade virtual funds until you prove consistency. As a result, emotional engagement may feel different compared to live trading with real capital.
When to Join a Prop Firm
You’re ready for a prop firm if you:
- Have a consistent strategy with proven results.
- Understand risk management and position sizing.
- Can remain disciplined even after losses.
- Want to scale your capital professionally.
Moreover, traders who combine emotional stability with technical skill tend to thrive the most in prop firm environments.
Common Mistakes Traders Make
Avoid these pitfalls when taking a prop firm challenge:
- Overleveraging: Using high lot sizes to hit profit goals faster.
- Ignoring Rules: Breaching drawdown limits disqualifies you immediately.
- Overtrading: Taking too many trades increases emotional risk.
- Skipping Backtesting: Entering without testing your strategy reduces success rates.
- Trading News Recklessly: Unplanned volatility can blow your challenge.
Therefore, a slow and steady approach always wins over an impulsive one.
FAQs – Best Forex Prop Firms 2025
Q1: Which prop firm pays the most?
FTMO and FundedNext both offer profit splits up to 90%, depending on performance.
Q2: Which prop firm is best for beginners?
FundedNext is ideal for beginners due to its flexible funding models and easy rules.
Q3: Can I use Expert Advisors (EAs)?
Yes, most firms allow EAs, but they must comply with trading policies—no arbitrage or latency exploits.
Q4: Are prop firms legal?
Yes, they’re fully legal and regulated as business entities, not investment firms.
Q5: What happens if I fail the evaluation?
You can retry the challenge anytime, often at a discounted rate.
Conclusion: Final Thoughts
In conclusion, prop firms trading in 2025 has become more accessible, diverse, and rewarding than ever before. Indeed, traders from all backgrounds now have the opportunity to scale up their capital without risking personal funds. Whether you’re a cautious, steady trader or, on the other hand, a bold risk-taker, there’s always a prop firm that matches your trading personality perfectly.
For example, FTMO remains the gold standard in the industry, mainly because it emphasizes discipline, consistency, and trust. Meanwhile, FundedNext stands out for its flexibility and fast payout system, making it ideal for traders who value quick results.
In contrast, The 5%ers focus strongly on long-term growth and capital preservation, appealing to those who prefer a steady, low-risk approach. Additionally, True Forex Funds cater to active and fast-paced traders who thrive in volatile markets and value agility over patience.
Ultimately, each firm offers a unique path to success, depending on your risk appetite, strategy, and trading discipline. Therefore, the best approach is to evaluate your own style first, and then choose the prop firm that aligns with your strengths and goals.