Top Prop Firms
| Rank | Name | Funding Programs | Profit Split | Challenge Type | Maximum Capital | Key Features |
|---|---|---|---|---|---|---|
| 1 | FTMO | 2-Step Evaluation | Up to 90% | 2-Step Challenge | $400,000 | Industry leader with transparent rules and strong community support. |
| 2 | MyForexFunds | Rapid, Evaluation, Accelerated | Up to 85% | 1-Step or 2-Step | $300,000 | Flexible account options and quick scaling system. |
| 3 | AIFO Prop Trading | Lightning & Instant Funding | Up to 90% | 1-Step / Instant | $100,000 | AI-powered platform, instant funding, and smart risk management tools. |
| 4 | The Funded Trader | Standard, Rapid, Royal | Up to 90% | 2-Step | $600,000 | Large capital offers and multiple challenge modes. |
| 5 | FundedNext | Evaluation & Express | Up to 90% | 1-Step / 2-Step | $200,000 | Global reach with instant payout options. |
| 6 | TopStep | Futures & Forex Programs | Up to 80% | Evaluation | $150,000 | Strong educational resources and transparent trading rules. |
| 7 | E8 Funding | E8 Challenge | Up to 80% | 2-Step | $250,000 | Tech-driven dashboard and customizable trading options. |
| 8 | Lux Trading Firm | Evaluation & Advanced | Up to 75% | 2-Step | $1,000,000 | Long-term scaling plans and risk-based trading models. |
How Cryptocurrency CFD Trading Works
CFD(Contract for Difference) trading allows you to speculate on crypto price movements without owning the actual coins. Instead of buying Bitcoin or Ethereum directly, you enter an agreement with a broker to exchange the price difference between when you open and close a trade.
Key Mechanics of Crypto CFDs
No Asset Ownership
- You don’t hold the actual cryptocurrency (e.g., no Bitcoin wallet needed).
- Profit/loss depends solely on price changes.
Trade Both Directions
- Long (Buy): Profit if the price rises.
- Short (Sell): Profit if the price falls.
Leverage Amplifies Positions
- Example: With 10:1 leverage, a $100 trade controls $1,000 of exposure.
- Higher rewards but higher risk – Small price swings can magnify gains/losses.
Settlement in Cash
- When closing a trade, you receive/pay the difference between entry and exit prices.
- No physical delivery of crypto.
Step-by-Step Example: Bitcoin CFD Trade
| Step | Action | Details |
|---|---|---|
| 1 | Open Position | Buy (Long) 1 BTC CFD at $60,000 |
| 2 | Price Moves | BTC rises to $65,000 |
| 3 | Close Trade | Sell to lock in $5,000 profit (before fees) |
Profit Calculation:
($65,000 - $60,000) × 1 CFD = $5,000
With 10x Leverage:
Only $6,000 margin needed (vs. $60,000 for spot trading).
Same $5,000 profit → 83% ROI on margin.
Advantages vs. Risks
Pros
24/7 Trading: Crypto markets never close.
Access to Volatility: Profit from price swings without owning crypto.
Leverage Flexibility: Choose 2x, 5x, 10x+, etc.
Risks
Leverage Losses: Can exceed your initial deposit.
Overnight Fees: Holding positions incurs costs.
Broker Dependence: Requires a reliable CFD provider.
CFDs vs. Spot Crypto Trading
| Feature | Crypto CFDs | Spot Trading |
|---|---|---|
| Ownership | No | Yes |
| Short Selling | Easy | Limited |
| Leverage | Yes (e.g., 10:1) | Usually none |
| Regulation | Banned in U.S. | Legal globally |
Who Should Trade Crypto CFDs?
Day Traders: Capitalize on short-term volatility.
Hedgers: Offset risks in physical crypto portfolios.
Speculators: Bet on price swings with leverage.
Frequently Asked Questions
1. What is Prop Trading?
Prop trading, short for proprietary trading, is when a trader uses a firm’s capital to trade financial markets. Instead of risking their own money, traders can access larger funds provided by the firm and keep a share of the profits.
2. How does a Prop Firm Challenge work?
A Prop Firm Challenge is a test phase where traders prove their skills by meeting specific profit targets while managing risk. Once they pass, they receive access to a funded account to trade with real capital.
3. Do I need my own money to start trading with a prop firm?
No. Prop firms provide the trading capital after you pass their evaluation or challenge. You only pay a small entry or challenge fee — no personal investment or risk to your own funds is required.
4. How do traders get paid in prop trading?
Traders earn a profit split, meaning they keep a percentage of the profits they generate while trading the firm’s funds. Most prop firms offer between 70%–90% of profits to successful traders.