In the world of trading, capital matters—a trade with a humble risk/reward ratio or just a few percentage points of profitability can make you a lot of money, provided that you’re trading with a big account.

However, that’s easier said than done—cobbling together 100k for trading simply isn’t viable for a vast majority of people. That’s where prop trading firms come in. What is a prop firm, you ask? It’s a company that provides traders with capital to trade with—in return, the profits are shared between the firm and the trader. Sounds great, right?

The trick is that prop firms have evaluation challenges—basically, to get access to their capital, you have to pass rigorous tests that, on average, have just a 5% pass rate. Thankfully, there is such a thing as an instant funding prop firm, which allows you to access capital to trade with in return for a fee, and the fact that the profit splits are usually more favorable to the firm.

If you’re feeling a bit cautious reading this, you should be—with such an enticing proposition, instant funding prop firms are often used as vehicles for scams. However, there are quite a few legitimate services of this type—but like with anything in life, it takes a bit of knowledge to separate the wheat from the chaff.

We’ve reviewed five of the best instant funding prop firms, evaluating them on the basis of price, profit splits, educational materials, and more—let’s take a closer look at the top of the line when it comes to this unique opportunity and paradigm in trading.

Best Instant Funding Prop Firms

1. Trade the Pool – Best Overall

Trade The Pool (TTP), established in 2022 by Five Percent Online Ltd—also known for The5%ers, another entry in our list, serves stock traders seeking leverage without personal financial risk. TTP distinguishes itself with over 12,000 tradable stocks and ETFs and boasts a variety of plans suited toward various risk and skill levels.

Pros:

  • Free trial
  • Variety of programs
  • Free access to real-time data and additional tools

Cons:

  • On the lower end of profit splits (50/50 to 70/30)
  • Relatively strict daily loss and max loss allowance
  • Inflexible in terms of tradable instruments

TTP offers a single-phase evaluation model that simplifies access to funding. Here is how it works—you have 45 days to reach a profit target on a simulated, paper trading account, which is equal to 2x your max loss allowance—and if you succeed, you get a funded account. If time runs out, you can simply purchase another try whilst retaining your progress.

There are three plans that Trade The Pool offers—Mini Buying Power, Super Buying Power, and Extra Buying Power. All of them come at the expense of a one-time fee.

Mini Buying Power costs $97 and gives you $20,000 to trade with. Your max loss is $900, which means the profit target that you have to reach to get funded is $1,800, and you have to do it with at least 30 trades. Traders who opt for this plan will get a 50/50 profit split, a maximum daily loss allowance of $300, and access to real-time market data in the form of NASDAQ, NYSE, and CBOE level 1 and level 2 feeds. This plan also comes with access to Tradersync, Stock Traders Daily, and Tradervue.

Super Buying Power costs $300 and gives you $80,000 to work with. Your profit target is $4,200, your max loss is $2100, and your daily loss allowance is $700. The payout split is a more generous 60/40.

Finally, the Extra Buying Power plan will set you back $475—but in return, you get $160,000, a profit target of $7,800, a max loss of $3,900, and a daily loss allowance of $1,300. If you qualify for funding, you will get a 70/30 profit split.

So, what can you trade? Almost any US stock and ETF, including penny stocks, which you can also short sell—unfortunately, options trading isn’t available. Traders can also trade the pre-market and after-market sessions and are allowed to hold overnight positions, making the firm a good choice for traders who rely on swing trading strategies focused on stocks.

The evaluation phase is done on Trader Evolution, Trade The Pool’s proprietary platform. Lastly, we have to talk about scaling, which works on a pump-and-dump model. Don’t worry—it has nothing to do with pump-and-dump schemes.

Every time you have 5 consecutive days where you win at least 3 times your daily loss allowance, your daily loss allowance and growth are increased. For the Mini Buying Power and Super Buying Power plans, this increase is 5%— Extra Buying Power gets 8%. 

That’s the pump—the dump is the inverse, where if you have 5 consecutive days with 2 times your daily loss allowance, you will get a decrease in loss allowance and account size—but it can never go below the baseline that you began with.

2. Instant Funding – Best for Instant Funding

This UK-based firm stands out for its simplified approach to funding, offering a unique blend of flexibility, transparency, and growth potential for traders at all levels. It offers two primary funding models: The Two-Phase Challenge and the Instant Funding Model.

Pros:

  • Up to 1:100 leverage for forex
  • Instant funding 
  • Challenge accounts with roughly 10x more funding

Cons:

  • -5% max drawdown
  • Basic trading platform offering

Instant Funding lives up to its name — the broker has instant-funded accounts that don’t require any aptitude test. 

But on the flip side, the max drawdown is a bit tight. The so-called Smart max drawdown is initially -10%—but after your balance grows to +5%, the max drawdown limit moves to -5% and stays there. 

This means that only small individual trades are viable as you can easily go below a -5% drawdown if you are betting more than 1% of your account on each trade.

The profits are shared 60/40 in the trader’s favor, but this ratio can go up to 90/10 for traders on max funding.

Instant Account Size Price
$1,250 $79
$2,500 $120
$5,000 $225
$10,000 $440
$20,000 $870
$40,000 $1,735
$80,000 $3,460

But Instant Funding also has accounts for advanced traders—One-Phase and Two-Phase, both of which have a challenge.

For One-Phase, this challenge is a 10% profit target with a max -10% Smart drawdown and a -3% max daily drawdown. The profit split can vary from 80/20 to 90/10.

Two-Phase is a bit more defensive an 8% profit target with the same max drawdown put a -5% max daily drawdown. The profit split can vary from 80/20 to 90/10.

However, you get roughly 10x more funding on One-Phase and Two-Phase:

Challenge Account Size Price
$12,500 $99
$25,000 $149
$50,000 $269
$100,000 $479
$200,000 $925

The broker is relatively basic but decent in most other respects:

Traders only have access to MT4 and MT5, which are the ‘cult classics’ of trading software (which means they have been outdated for years but can still get the job done).

Tradable markets include 49 forex pairs (1:100 leverage), commodities (1:20 leverage), as well as 4 cryptos on MT4 and 25 cryptos on MT5 (1:2 leverage). In the case of forex, the firm does not charge any additional markups on top of the raw bid/ask spread set by the interbank market.

In a nutshell, Instant Funding truly gives you an instant funded account. But this account is much less interesting than a pro account you need to pass a challenge for—after all, it’s almost 10x more funding with a much more preferable profit split.

3. The 5%ers –  Best for Beginner Traders

The 5%ers, established in 2016 by Israeli traders Gil Ben Hur and Snir Achiel offers instant funding, and extensive educational resources, catering to a wide range of traders from beginners to professionals.

Pros:

  • Generous Profit Splits.
  • Educational Resources
  • No Strategy Restrictions.

Cons:

  • Limited Asset Classes.
  • Platform Limitation.

First, let’s get one additional con out of the way—people from the United States cannot join The5%ers. With that being said, if you can open an account with The5%ers, here’s what you can expect.

The company offers three unique programs—Bootcamp, Hyper Growth, and High Stakes. The Bootcamp program allows you to choose between a $20,000, $100,000, and $200,000 account—costing $1, $95, and $225 respectively. 

This gives you access to $5,000, $25,000, and $100,000, respectively, to use in three trial phases. Trades can be held overnight and over the weekend, making the firm a great choice for swing trading setups—but with indices, you will experience very high swaps.

Speaking of indices, The5%ers support trading with Forex, metals, cryptocurrencies, and commodities on top of indices. Commissions, margin rates, and minimum trade sizes vary between the asset classes.

One area where this prop firm stands apart is education—the company maintains a Forex trading blog, hosts live trading events and holds online classes while also giving clients access to a prop trading course.

For each trial phase, you have to hit a profit target of 6%, with a max loss of 5%. You have an unlimited time to accomplish this, but you have to follow a certain set of rules. Stop loss orders have to be used in all positions—the stop loss must not risk more than 2% of the total account balance, and the maximum leverage you can use is 1:10.

The Hyper Growth program allows you to choose between a $10,000, $20,000, and $40,000 account, in exchange for a one-time fee of $260, $450, and $850, respectively. This program supports leverage of up to 1:30 for forex, however max leverage is only 1:10 for metals and commodities, 1:7.5 for indices, and 1:0.60 for crypto. There are no minimum trade requirements, and you have an unlimited amount of time to progress, making the firm a good choice for those looking to trade while working a full-time job.

So, how do you progress and scale your account? By meeting a profit target equal to 10% of your account, which brings you to the next level, giving you a larger balance and better profit splits. Profit splits start at 50/50 for the first level, going up to 75% for the next four levels, and ultimately scaling up to 100%. The maximum initial balance, equivalent to a level 8 account, is $4,000,000.

The High Stakes program functions as a 2-step evaluation process, after which you get a personalized contract and a salary on top of the profit split. For $39, $165, $300, or $495 you can get access to a $5,000, $20,000, $60,000, or $100,000 account.

With a 5% daily loss allowance, and 10% in terms of maximum loss, your goal is to first meet an 8% profit target, then a 5% profit target, after which you get funded. You have unlimited time to accomplish this, get access to leverage of up to 1:100, and can even use EAs or expert advisors (with some limits). With the High Stakes program, profit splits start at 80/20, and gradually ramp up to 100/0.

4. FundedNext – Best for Day Traders

FundedNext provides retail traders with capital of up to $4 million and offers competitive profit-share agreements of up to 95% for the most skilled traders. The firm offers several account models including the Evaluation Model, Express Model, and Stellar Model, each designed to cater to varying levels of trader experience and strategy preferences.

Pros:

  • Variety of models catering to different preferences
  • Reasonable daily loss and max drawdown
  • Good leverage

Cons:

  • Relatively high fees
  • Profit targets can be hard to reach

The Evaluation Model is a two-step process where traders need to meet profit targets of 10% in the first phase and 5% in the second phase. The time limit is 4 weeks for phase 1 and 8 weeks for phase 2.  Traders can hold trades over weekends, use expert advisors and copy trading, and utilize trading leverage of up to 1:100. You also get to keep 15% of the profits you make for each evaluation phase.

You can choose between the following account sizes and prices—$6,000 for $49, $15,000 for $99, $25,000 for $199, $50,000 for $299, $100,000 for $549, and $200,000 for $999. There is a minimum requirement of at least 5 trading days, your maximum daily loss is 5% and your maximum overall loss is 10%. There are also swap-free versions of each account size, although they are slightly more expensive. Profit splits start at 80/20 once you pass evaluation, and can rise to 90/10.

The Express Model requires you to hit a profit target of 25%—on top of this, the most significant difference is that there are no time limits and that maximum profit can climb up to 95/5. Unlike the Evaluation Model, news trading and holding trades over the weekend is not allowed—if you opt for a non-consistency Express account, you can hold trades over the weekend though.

Finally, the Stellar Model features one-step and two-step challenge variants. In the first, your profit target is 10%, the max daily loss is 3%, and the max overall loss is 6%. Maximum leverage is 1:30, there are no time limits, and the maximum profit split is 90/10.

The two-step challenge has profit targets of 8% and 5%, a slightly higher daily loss allowance of 5%, and a total loss of 10%.

Since the firm allows the use of EAs and copy trading, on top of minimum trading day requirements, we’d consider it a good fit for day traders in particular.

5. OFP Funding Best for Multi-Asset Traders

OFP Funding, established in 2021, has quickly made a name for itself in the proprietary trading industry by offering traders up to £5 million in funding. 

Pros:

  • Variety of account types and pricing solutions
  • Does not require the use of stop loss orders

Cons:

  • Lack of EA support
  • Copy trading is banned

OFP allows traders to trade a wide variety of asset classes—61 forex pairs, commodities, 23 indices, metals, bonds, and 18 cryptocurrency CFDs are supported. Supported account sizes are as follows: $5,000, $10,000, $25,000, $50,000, $100,000, and $200,000. There are two types—the first has a monthly payout, while the second supports on-demand payouts. There are also four profit-sharing models—26%, 40%, 60%, and 80%. 

Now, let’s move on to pricing—the monthly payout accounts are more affordable.

Account Size 26% profit share 40% profit share 60% profit share 80% profit share
$5,000 $52 / 77 $73 / $109 $98 / $147 $130 / $195
$10,000 $73 / $109 $108 / $162 $147 / $220 $194 / $292
$25,000 $120 / $180 $173 /  $259 $234 / $350 $311 / $466
$50,000 $244 / $366 $231 / $512 $461 / $691 $614 / $920
$100,000 $481 / $721 $652 / $978 $881 / $1,321 $1,173 / $1,760
$200,000 $947/ $1,420  $1,290/ $1,935 $1,729 / $2,621 $2,331 / $3,497

In terms of trading rules, your maximum daily drawdown of 5% is calculated based on your initial deposit balance. The maximum total drawdown is 10%, and no single trading day can account for more than 25% of the cumulative Profit and Loss (PnL) since the last payout or account purchase. OFP Funding does not require the use of stop-loss orders—so if you feel like it, you can use limit orders and market orders for all of your positions.

Hedging, martingale trading, and tick speculation are prohibited. EAs or Expert Advisors are likewise banned. Traders have to trade for at least 3 days a week to keep their accounts. In terms of assets, you can trade forex, commodities, indices, metals, bonds, and cryptocurrencies. 

The maximum available leverage is 1:100. If at the end of the 3 months, you made a 20% gain on your account, you will receive a 25% on your initial deposit. You must request by sending an email to support@ofpfunding.com when you have reached this achievement.

What Exactly is Proprietary Trading?

Proprietary trading or prop trading is a form of financial activity where a company invests or trades in the stock market directly, using its own money. This differs from the traditional model, where companies in the finance space use the funds of clients to trade.

So, why would a company opt for prop trading? Because it allows them to keep all of the profits (well, most of the profits). Instead of earning a percentage or a commission, the company retains a much bigger proportion of the gains—but it also exposes itself to risk.

To do this, companies employ prop traders, who analyze the markets, invest or trade, and receive a cut of the profits. However, seeing as the company takes on all the risk, there are usually strict and demanding tests required to become a prop trader. Instant funding prop firms, on the other hand, allow you to gain access to a large trading account in exchange for a fixed sum.

What is a Prop Trading Firm?

Prop trading firms are companies that use their own capital to trade in the financial market. By hiring experienced traders, providing them with funds and advanced tools, and operating on a profit-sharing model, they create a win-win situation where both parties have the same interest.

Unlike hedge funds or investment banks, these firms focus solely on trading profits. They are key players in the markets, enhancing liquidity and efficiency through their activities.

Becoming a prop trader involves rigorous evaluation, typically through trading simulations or challenges designed to assess a candidate’s skill in generating profits while managing risk. The difficulty lies in demonstrating consistent trading success under strict rules, such as loss limits and minimum profit targets. Prop trading firms enforce these rules to mitigate risk. 

Only about 5% of candidates successfully secure a funded account, highlighting the competitive and challenging nature of prop trading. This low pass rate underscores the importance of skill, discipline, and market acumen in succeeding as a prop trader—and once you’ve passed, there’s no guarantee that you will retain funded status for long.

To circumvent this process, instant funding prop firms offer you a trading account in exchange for a payment. To remain profitable with this business model, instant funding prop firms still have to attract good traders, and cut their losses early with unprofitable ones—although there are quite a bit of scams in this space, legitimate instant funding prop firms are out there, and represent a good possibility to hasten the development of your trading career.

What to Look for in a Prop Trading Firm?

There are a couple of key criteria that should be kept in mind when evaluating a prop trading firm. First and foremost comes legitimacy, which you can gauge through the company’s track record and regulatory status.

In this regard, look at the company’s history of profitability, the success rates of the traders it employs, and how long it has been in business for. While prop firms are less heavily regulated than say, traditional brokerages, they still fall under some regulatory oversight—so make sure to check whether the company is registered with the relevant bodies, such as FINRA in the United States and the PRA in the United Kingdom.

Next come the practical considerations, of which the profit splits are the most important. Profit splits vary from company to company, but the usual range you can expect to find is from a 50/50 split to an 80/20 split, on average—although some companies practice 90/10 profit splits.

Keep in mind that while higher profit splits are more appealing, there’s no such thing as a free lunch—they often come with higher performance expectations or stricter risk management rules. 

Speaking of rules, another practical consideration to keep in mind is the trading rules that the prop firms operate with. 

This usually entails the mandatory use of stop-losses, a minimum amount of trades that have to be executed weekly or monthly, and possibly prohibitions of particular trading styles—for instance, some firms might restrict scalping or hedging practices. Violating these rules can lead to warnings, or in severe cases, termination of the trading agreement. 

Things Traders Should Keep an Eye Out For

We’ve already discussed what signs of a good prop trading firm you should look for—but even if you find one such firm, there are still several factors to keep in mind.

One— the low pass rates with regard to prop trading challenges are there for a reason. The ultimate goal of a prop trader (both from their own and the firm’s point of view) is to become consistently profitable—and this is something that is rarely achieved.

If you fail to meet these criteria, your account will be terminated—and there’s usually just one “warning shot”. Instant funding prop firms, since they have a much lower barrier to entry, have to be even more cautious—in their case, you might not even get that “warning shot”—one strike and you’re out.

Now, provided that you manage to become profitable consistently, there’s still the matter of holding down the fort. Don’t get greedy—following the core tenets of trading psychology, keeping a cool head, and practicing proper risk management are indispensable for long-term success.

One point we neglected to mention is that you should try to find a prop firm that has a vibrant, lively trading community. Having a group of peers to discuss trading with, share experiences, and learn from can be a major boon for traders.

Lastly, make sure to enter the world of prop trading with expectations that are grounded and realistic, as well as a sober assessment of the challenges, skills, and dedication required. This is a demanding profession, and it requires a strategic mindset, various skills relating to trading, patience, discipline, adaptability, and dedication.

Benefits of Prop Trading

The benefits of partnering with a prop trading firm are numerous. Most significantly, access to capital can be a real game-changer—to use a simple hypothetical example, getting 4% in returns monthly with a $10,000 account nets you $400 in profits—performing at the exact same level with a $100,000 account nets you $4,000.

Next, the profit-sharing model ensures that the interests of the prop trading firm and the prop trader are always aligned. To this end, prop firms usually equip their traders with state-of-the-art technology, analytic tools, and trading platforms—as well as provide them with top-notch educational resources or mentoring from other, more established prop traders. 

Both the quality of the tools at your disposal, as well as the education you’re given as a prop trader are things that would otherwise set you back a decent price.

As you’re trading with the firm’s capital, you’re not risking your own money—what’s more, the average profit splits in the industry are actually quite generous, as you’ll rarely see a split of less than 50/50.

Lastly, for some, the fact that you’re not using your own money to trade brings about a psychological benefit, as it reduces stress—although we would be very careful with this line of reasoning.

Disadvantages of Prop Trading

Prop trading’s allure lies in the leverage it offers—using the firm’s capital to potentially amplify gains is an attractive proposition. However, this same leverage can exponentially increase the risk of significant losses, impacting both the firm’s balance sheet and the trader’s career trajectory. 

This environment of heightened stakes necessitates a strict adherence to trading strategies and risk management rules set by the firm. While these measures aim to keep risks in check, they may also limit your trading flexibility, forcing you to stick to approaches that might not align with your personal trading style, potentially curbing your creative strategies.

The model of sharing profits with your prop firm means that the fruits of your trading labor aren’t entirely yours. Although this arrangement provides the essential capital and resources needed for trading, it can feel limiting to those who dream of pocketing all their earnings. The reality is a balancing act between accessing significant trading capital and sharing the resulting profits.

Prop trading is inherently competitive, often subjecting traders to intense pressure to perform. Maintaining profitability to secure your position and share of the profits can be a daunting task, one that’s not cut out for everyone. This relentless demand for performance can be stressful and may clash with your personal working style or mental well-being.

Let’s not sugarcoat it—the prop trading industry is notorious for its low success rate. The rigorous journey to secure a funded account is a testament to the competitive and challenging nature of this field. Achieving and sustaining success requires not just trading acumen but also resilience, adaptability, and a deep understanding of market dynamics. This reality check serves as a reminder that prop trading might not be the ideal path for every aspiring trader.

Conclusion 

Embarking on a journey in prop trading offers the allure of trading with significant capital, utilizing cutting-edge tools, and thriving within a nurturing educational environment. These opportunities are undeniably attractive, highlighting the unique advantages prop trading firms offer to ambitious traders.

Yet, these opportunities are twofold, accompanied by challenges that demand careful consideration. The inherent risks of leveraging a firm’s capital, the strict compliance required with trading strategies and risk management protocols, and the shared profit model underscore the complexities of a career in proprietary trading.

For those drawn to the potential of prop trading, a thorough and informed approach is indispensable. It involves delving deep into the operational ethos and culture of prospective firms and understanding the commitments and constraints that come with the territory. The ability to remain poised whilst trading under the pressures of this high-stakes environment is paramount, necessitating resilience, mental fortitude, and a proactive approach to stress management.

However, prop trading is not merely a test of technical prowess and strategic discipline. It is a journey marked by continuous growth, adaptability, and an in-depth understanding of the markets’ intricacies. Success in this domain is built on a foundation of analytical skills, emotional intelligence, and a relentless pursuit of learning.

Those considering this path should enter with open eyes, prepared for both its demands and its opportunities. With the right mindset, resources, and dedication, prop trading can be a fruitful endeavor, but it is essential to weigh its benefits against its demands carefully.

Instant Funding Prop Firms: FAQs 

How Can I Get Funded from a Prop Firm?

To get funded by a prop firm, you typically need to pass a trading evaluation or challenge that demonstrates your ability to generate profits while managing risks. This process assesses your trading strategy, discipline, and adherence to the firm’s rules.

How Much Money Can Prop Traders Make?

Prop traders’ earnings vary widely, depending on their skill level, trading strategy, and the profit-sharing agreement with the prop firm. Successful traders can make substantial amounts, but there are no guaranteed earnings.

Is It Hard to Pass a Prop Firm Challenge?

Yes, it’s challenging to get funded by a prop firm. The evaluation process is rigorous, with only about 5% of applicants successfully obtaining funding, and only 2% of traders manage to keep their funded status for a significant time, reflecting the high standards and competitive nature of prop trading.

Is Trading with Prop Firms Worth It?

Prop firms can be worth it for skilled traders who can navigate the high-risk environment and adhere to the firm’s trading strategies and risk management rules. They offer access to capital and resources not typically available to individual traders.

Is Prop Trading Stressful?

Prop trading can be highly stressful due to the significant risks involved, the need for constant vigilance in the markets, and the pressure to meet performance targets set by the prop trading firm.