Are you a skilled crypto trader but struggling with capital? If so, this article is for you. We have listed some of the leading crypto prop trading firms that will offer you funds for trading after demonstrating proficiency in risk management and achieving desired profit targets. Read on to learn more.
Prop Trading Explained
Simply put, proprietary or prop trading involves placing trades in the financial markets using capital provided by prop firms. This enables traders to avoid risking their own money and possibly earn more than what their own trading capital would allow.
How Prop Trading Works
Here are the steps to follow to secure capital from a prop firm:
1. Find a prop firm and purchase an account of your preferred size. It could be a $5,000 or even a $500,000 trading account.
2. After making an account purchase, you proceed to an evaluation stage, where you are given a demo account to demonstrate specific skills, like risk management, and whether you can trade while adhering to the set prop firm rules.
3. Once you pass the evaluation stage, you will get access to the purchased funded account to start trading with real money. Upon reaching the profit targets, the prop firm will take its share and let you withdraw the remaining profit.
Top Prop Trading Firms
Fondeo
This crypto prop firm is known for letting traders retain up to 90% of the generated profits. Fondeo allows both experienced and beginner traders to access funding after passing evaluation challenges. Regarding account sizes, the smallest account you can purchase has a capital of $5,000, while the biggest has $200,000.
FTMO
Unlike Fondeo, which launched in 2023, FTMO has been in the prop trading industry for over a decade. While it initially focused on funding Forex traders, it began offering capital to crypto traders a few years ago, instantly becoming a go-to prop firm for many.
One of the key factors that makes FTMO stand out from rivals is that it imposes fewer restrictions on traders. For instance, funded traders do not need to place stop-loss orders as part of risk management.
To pass the evaluation stage, you must achieve a profit target of 10%. Upon successful evaluation, you will earn up to 80% of the profits.
FundedNext
FundedNext is one of the few prop firms that offer traders a profit share during the evaluation stage. Data on its website shows that those who pass the test receive 15% of the profits. This profit share shoots to 80% when you start trading with your funded account.
It is important to mention that newbies on FTMO can only withdraw profits after 21 days. However, their subsequent withdrawal requests are processed within 24 hours.
BrightFunded
At BrightFunded, traders can access over 35 crypto trading pairs, allowing them to spread their risk. To secure a funded account, you are required to achieve a profit of 8% in the first evaluation phase and 5% in the second phase. The account sizes range from $5,000 to $200,000. Note that BrightFunded increases your account size by 30% every 120 days. Additionally, the profit split can be adjusted from 80% to 90% upon paying an extra fee.
Apex Trader Funding
While most prop firms prohibit copy trading, Apex Trader Funding allows traders to replicate their trades on multiple accounts. Moreover, traders retain 100% of profits on all accounts in the first payout. Afterward, Apex Trader Funding takes 10% of the gains on each account when a trader submits a withdrawal request. It processes payouts within three days.
So, what account sizes are available at Apex Trader Funding? Traders can obtain capital ranging between $25,000 and $300,000.
Final Thoughts
Selecting the best prop firm from our list to scale up your crypto trading totally depends on your capital goals and trading styles. So, before buying a funded account, ensure you understand what you want to achieve and whether the prop firm’s rules align with your trading strategy.
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