Why Prop Firms Have Changed the Game for Retail Traders
For most of trading history, the barrier to accessing meaningful capital was insurmountable for retail traders. You either had your own money or you didn't trade. Proprietary trading firms existed, but they hired employees — not independent contractors — and the onboarding process was reserved for finance graduates with institutional connections.
That changed dramatically between 2020 and 2024. A new generation of funded trader programs emerged, offering retail traders access to accounts ranging from $25,000 to $300,000 in exchange for passing a performance evaluation and paying a one-time challenge fee. The model democratized access to institutional-scale capital, and the industry exploded.
By 2025, dozens of prop firms compete for trader business. The differences between them — in rules, fees, payout structures, and trader-friendliness — are significant enough to materially affect your profitability. This guide breaks down the four most prominent options for day traders: FTMO, TopStep, Apex Trader Funding, and MyFundedFutures.
What Actually Matters When Choosing a Prop Firm
Before comparing specific firms, it is worth establishing the criteria that actually matter. Marketing language from prop firms can be misleading — phrases like "industry-leading payouts" and "trader-first rules" are used by virtually every firm regardless of their actual terms.
The variables that materially affect your outcome are:
Maximum drawdown type — the single most important rule in any prop firm challenge. There are two types: trailing drawdown (the drawdown limit follows your highest equity point upward) and static drawdown (the limit is fixed at a percentage below your starting balance). Trailing drawdown is significantly harder to manage because a profitable day can actually reduce your available drawdown buffer.
Profit target and time pressure — how much profit you need to make to pass the evaluation, and whether there is a minimum number of trading days required. Higher targets with minimum day requirements favor consistent traders over lucky ones.
Payout percentage and frequency — what percentage of profits you keep, and how quickly you can withdraw. Most firms offer 80% to 90% splits, but payout processing times vary from same-day to 30+ days.
Scaling plans — whether the firm will increase your account size as you demonstrate consistent profitability, and under what conditions.
Reset and refund policies — whether you can reset a failed challenge for a reduced fee, and whether the firm refunds your challenge fee after passing.
FTMO: The Gold Standard With Strict Rules
FTMO is the most recognized name in funded trading and, for many traders, the benchmark against which all other firms are measured. Founded in 2015 in Prague, FTMO has paid out over $200 million to traders and maintains a reputation for reliability and transparency that newer firms cannot match.
Challenge structure: FTMO uses a two-phase evaluation. Phase 1 requires a 10% profit target with a 10% maximum drawdown and 5% daily loss limit. Phase 2 requires a 5% profit target with the same drawdown rules. Both phases have a minimum of 4 trading days but no maximum time limit.
Drawdown type: FTMO uses a static maximum drawdown based on initial balance, which is more forgiving than trailing drawdown. Your 10% buffer does not shrink as you profit — it remains fixed at 10% below your starting balance.
Payout: 80% profit split by default, upgradeable to 90% after consistent performance. Payouts are processed within 1-2 business days via bank transfer, Skrill, or cryptocurrency.
Account sizes: $10,000 to $200,000. Challenge fees range from $155 to $1,080 depending on account size.
Best for: Equity and forex traders who want the most established firm with the longest track record. FTMO's strict rules mean it is not the easiest firm to pass, but the brand recognition and payout reliability make it worth the difficulty for serious traders.
TopStep: The Futures Specialist
TopStep is the dominant prop firm for futures traders, having pioneered the funded futures model before the current generation of firms existed. Their focus is exclusively on futures — primarily CME products like ES, NQ, CL, and GC — which makes them the natural choice for intraday futures traders.
Challenge structure: TopStep's Combine requires traders to reach a profit target (which varies by account size) while staying within a daily loss limit and a maximum trailing drawdown. The Combine has no time limit, which reduces pressure but also means some traders spend months in evaluation.
Drawdown type: TopStep uses a trailing drawdown based on the highest intraday equity reached. This is the most important thing to understand about TopStep: if you make $2,000 on a trade and then give back $1,500 before closing, your trailing drawdown has moved up by $2,000 but you only kept $500. This makes aggressive intraday trading more risky from a drawdown management perspective.
Payout: 90% profit split after the first $10,000 in profits (100% of the first $10,000 goes to the trader). Payouts are weekly.
Account sizes: $50,000 to $150,000. Monthly subscription fees range from $165 to $375.
Best for: Futures traders, particularly those trading ES or NQ on 1-minute to 5-minute charts. The subscription model (rather than one-time challenge fee) suits traders who expect to take multiple attempts.
Apex Trader Funding: The Most Trader-Friendly Rules
Apex Trader Funding launched in 2021 and quickly became one of the most popular futures prop firms by offering rules that are genuinely more forgiving than the competition. Apex's growth has been driven by aggressive promotions (frequent 80-90% discount sales on challenge fees) and a reputation for approachable rules.
Challenge structure: Apex requires a 6% profit target with a static trailing drawdown that stops trailing once you reach a certain profit level. The key differentiator is that Apex allows trading during news events and does not restrict trading around major economic releases — a significant advantage for intraday traders who trade CPI, FOMC, and NFP.
Drawdown type: Apex uses a static trailing drawdown that locks in place once your account reaches a certain equity level. For example, on a $50,000 account with a $2,500 trailing drawdown, once your account reaches $52,500, the drawdown locks at $50,000 and no longer trails. This is a meaningful advantage over firms where the drawdown trails indefinitely.
Payout: 100% of the first $25,000 in profits per account, then 90% thereafter. Payouts are processed twice monthly.
Account sizes: $25,000 to $300,000. Challenge fees are frequently discounted to $7 to $167 during promotional periods.
Best for: Futures traders who trade news events and want the most forgiving drawdown structure. Apex's promotional pricing makes it the lowest-cost entry point in the industry during sale periods.
MyFundedFutures: The Newcomer With Competitive Terms
MyFundedFutures (MFFU) is a newer entrant that has gained significant traction by offering competitive terms, fast payouts, and a straightforward rule structure. MFFU focuses exclusively on futures and has built a reputation for responsive customer support and reliable payouts.
Challenge structure: MFFU offers a one-step evaluation with a 6% profit target and a static trailing drawdown. Like Apex, MFFU allows news trading and does not impose time pressure with minimum trading day requirements.
Drawdown type: Static trailing drawdown that locks once the account reaches a profit level, similar to Apex's structure.
Payout: 90% profit split. Payouts are available weekly with same-day processing for amounts under $10,000.
Account sizes: $50,000 to $200,000. Challenge fees are competitively priced and frequently discounted.
Best for: Traders who want fast payouts and a simple, one-step evaluation process. MFFU's same-day payout processing is a genuine differentiator for traders who prioritize cash flow.
The Verdict: Which Firm Is Right for You?
The right prop firm depends on what you trade and what you value most.
If you trade equities or forex and want the most established firm with the longest track record: FTMO.
If you trade futures and want the most recognized brand with reliable payouts: TopStep, but be prepared for the trailing drawdown.
If you trade futures and want the most forgiving rules and lowest cost of entry: Apex Trader Funding, especially during their frequent promotional sales.
If you want fast payouts and a simple one-step evaluation: MyFundedFutures.
Regardless of which firm you choose, the fundamentals of passing a prop firm challenge are the same: consistent risk management, disciplined position sizing, and a well-defined edge. The traders who fail prop firm challenges are rarely undone by the rules — they are undone by the same behaviors that would destroy a personal account. A prop firm challenge is not a lottery ticket. It is a test of whether you can trade consistently under defined constraints.
The ATC education modules [blocked] and our proprietary indicators [blocked] are specifically designed to build the kind of consistent, rules-based trading approach that prop firm evaluations reward. If you are preparing for a prop firm challenge, the most valuable investment you can make is in understanding the mechanics of the market you are trading — not in finding the firm with the most lenient rules.