Beginner-Friendly Prop Trading Firms: The Best Options to Kickstart Your Career

Trading is accessible to almost anyone, but to tap into the foreign exchange market and start making money quickly, you’ll need capital, knowledge, and a strong strategy.

Due to the Investment.com, in response to this need, prop trading firms have emerged in recent years. These firms provide traders with startup capital and essential tools to get started. In return, traders receive a share of the profits they generate using the firm’s platform.

It might seem like a fast track to financial success, and for some, it can be. However, navigating through the various prop trading firms isn’t simple. With so many options available, each offering its own pros and cons, it can be hard to decide which firm is right for you. This article focuses on prop firms tailored for beginners just starting their trading journey. Choosing the right firm is crucial, as it sets the foundation for your trading career. There is also a wealth of information available on these firms, which can make it difficult to know which one to trust.

Trust is important when selecting a prop firm, but other factors also come into play—such as the range of assets available for trading, the platforms and tools provided, trading costs, customer support quality, and educational resources aimed at enhancing performance.

Below, we highlight five prop trading firms that cater to beginner traders. Ultimately, it’s up to you, the trader, to choose the one that fits your needs best.

1. FTMO

FTMO is one of the more established names in the prop trading industry. Founded in 2014 in Prague, Czech Republic, it has rapidly expanded its reach globally. However, becoming an FTMO trader isn’t as simple as paying a fee and gaining access to capital. Traders must first pass a two-step Challenge and Verification Process. Upon completion, they can access a demo account with $200,000 in virtual funds for practice. Traders can earn up to 90% of the profits from successful trades. Over time, high-performing FTMO traders can advance into the firm’s premium program, gaining employment as professional traders with a salary.

FTMO supports its traders by providing educational tools, services, and a community where traders can exchange strategies. However, the challenging entry requirements might make FTMO more suitable for those with some experience or those who can quickly adapt to the platform. FTMO allows trading in forex, commodities, indices, and cryptocurrencies, but not stocks or derivatives.

2. The 5ers

The 5ers, also known as The5%ers, is an Israeli private equity fund established in 2016 by professional traders. It focuses on helping forex traders around the world refine their skills while earning money. The firm offers live trading sessions, real-time trade notifications, and risk management education. The 5ers provides four funding programs: Bootcamp, Hyper Growth, High Stakes, and Stock Trading, with funding ranging from $6,000 to $4 million. The platform is based on MetaTrader 5 (MT5), allowing users to trade forex, indices, and metals. They also offer various educational courses and maintain an informative blog.

The 5ers has a global presence, with an office in the UK and traders worldwide. However, the firm retains 50% of the profits, which may not appeal to everyone. Additionally, the focus on forex, indices, and metals may limit its attractiveness for entry-level traders looking for more variety.

3. WeMasterTrade (WeCopyTrade)

WeCopyTrade, based in Vancouver, Canada, was launched in 2021, with its prop trading platform WeMasterTrade following in 2022. WeCopyTrade provides a social trading platform where beginners can copy the trades of professional traders to reduce risk. WeMasterTrade offers capital to new traders and doubles as an educational hub, earning awards for its contributions to online forex education and funded trading platforms.

WeMasterTrade allows traders to trade virtually while earning real profits, with access to a wide range of assets, including forex, cryptocurrencies, metals, indices, and stocks. The firm doesn’t require a formal evaluation, and traders can start by paying a small fee—$50 for access to $10,000 in capital. The firm has been expanding globally, including its entry into the Australian market in 2023.

WeMasterTrade positions itself as an educational platform where new traders can learn while they trade, providing fast access to trading capital without the need for prolonged savings.

4. E8 Markets

E8 Markets is a Texas-based prop trading firm known for its high-stakes approach. Getting started is easy—register, choose a trading program, and showcase your skills. E8 promises payouts within eight days of starting. Traders can choose their skill level (Beginner, Advanced, Professional) through the E8X dashboard and customize their balance, drawdown limits, and profit shares (ranging from 40% to 100%).

E8 allows simulated trading in forex, cryptocurrencies, commodities, and equities, with successful traders managing accounts of up to $1 million. The platform is transparent and user-friendly, though the fees—$706 for an advanced account and $1,474 for a professional account—may be a barrier for some.

5. FundedNext

FundedNext is a Canadian prop firm that has grown rapidly since its launch four years ago. It now has thousands of traders in over 150 countries. The firm offers three funding models: Stellar, Evaluation, and Express, each catering to different trader levels. Stellar is a demo account for risk-free trading, Evaluation involves a two-stage process, and Express offers live trading without any evaluation.

FundedNext allows traders to keep up to 85% of their profits, which can rise to 90% for VIP accounts. Traders can manage up to $4 million in capital, starting with up to $200,000 and scaling as they meet performance targets. FundedNext also fosters a strong community on Discord and provides educational resources like news and podcasts. However, customer service is available only through email and chat, which may be a drawback for some.

Conclusion

The prop trading market is thriving, with numerous firms offering beginner traders the opportunity to enter the world of trading. FTMO, The 5ers, WeMasterTrade, E8 Markets, and FundedNext each provide unique benefits, from different funding models and profit-sharing options to varying entry fees and levels of customer support. Take your time, research, and select the firm that best aligns with your trading goals.