How to choose a prop trading firm

1. Start with your strategy

Before comparing firms, clarify how you actually trade. Your timeframe, instruments, and typical risk per trade will determine which rule sets are realistic.

• Which sessions do you trade (London, New York, Asia)?
• Do you hold positions overnight or over the weekend?
• Do you rely on EAs, copy trading, or discretionary execution?

2. Choose an evaluation model

Firms typically offer multi-phase evaluations, one-step challenges, or direct funding. Each comes with trade-offs in terms of difficulty, rules, and cost.

• Two-phase challenges: usually lower fees and higher targets, more time to prove consistency.
• One-step challenges: simpler but may have tighter risk limits or smaller maximum funding.
• Direct funding: no challenge, but higher upfront fees or restrictive risk parameters.

3. Compare rules and constraints

Use the comparison page to scan the main rules for each firm and spot which ones conflict with your strategy.

• Maximum drawdown and whether it is static or trailing.
• Daily loss limits and how they are calculated.
• Minimum trading days and time limits for each phase.
• News, weekend, and EA restrictions.

4. Platforms, spreads, and execution

Execution quality can matter as much as the headline profit split. Make sure you are comfortable with the platforms and liquidity providers offered.

• Check which platforms are supported (for example MetaTrader, cTrader, TradingView).
• Test spreads, commissions, and slippage on a demo or trial where possible.
• Confirm server locations if latency is important to your approach.

5. Reputation and support

Reputation is not a guarantee, but it is an important signal. Look for consistent behaviour over time rather than one-off reviews.

• Read independent reviews and trader forums with a critical eye.
• Look for clear communication around rule changes and incidents.
• Test support responsiveness with simple pre-sales questions.

6. Building your shortlist

After applying the filters above, you should have a smaller set of firms that could work. From there, dig deeper into each firm's official documentation and FAQs.

• Use the comparison table to save or mark favourites that fit your criteria.
• Start with one or two firms rather than applying to many at once.
• Revisit your shortlist every few months as policies and the market evolve.

Frequently asked questions

What should I look for when choosing a prop trading firm? Focus on rule sets, platforms, and how well the evaluation model fits your actual trading style before worrying about the headline profit split.

Are one-step or two-step challenges better? Two-step models often give more room to prove consistency, while one-step challenges are simpler but can have tighter limits or higher stress. Pick the format that suits your temperament.

How important is the profit split? A slightly lower split with stable rules, prompt payouts, and fair execution is generally better than chasing the highest percentage at any cost.

Compare prop trading firms

When you are ready to build your shortlist, use the comparison tools on Prop Firm Compass to see rules, evaluation models, and platforms side by side.