Cryptocurrency trading continues to expand, with global market cap exceeding $2.25 trillion in 2024. It is also often a highly volatile market. Consider trading with crypto prop firms to minimize the risk to capital. Should you pay for a challenge to get a funded account with the best crypto prop firms?
.jpeg){kind=logo}
- FTMO, The best prop trading firm with a genuine path for salaried prop traders.
- Fidelcrest, The highest maximum drawdown among retail prop firms of up to 20%.
- E8 Funding, The retail prop firm with the most customization options for funded accounts.
- Funded Traders, A great asset selection for retail prop traders with 300+ assets.
FTMO
In Summary The best prop trading firm with a genuine path for salaried prop tradersCryptocurrency traders can trade BTC/USD, ETH/USD, LTC/USD, XRP/USD, DASH/USD, XMR/USD, ADA/USD, DOGE/USD, DOT/USD, and NEO/USD on MT4/MT5 and cTrader. FTMO, headquartered in the Czech Republic, has a two-step verification process. I rank FTMO as the best among crypto prop firms, as it has added a feature allowing qualifying users to become professional traders with a fixed salary via Quantlane.
FTMO has a daily loss limit of 5% and a maximum drawdown limit of 10%. Traders must reach 10% in profits during the first step of the evaluation process, followed by a 5% profit, and trade for at least four days.
Pros & Cons
- Reasonable profit targets and generous maximum loss levels
- 80% to 90% profit share with a fast withdrawal process
- Customizable two-step evaluation period with free retrials where applicable
- MT4, MT5, and cTrader accounts with generous leverage
- No information about which broker or brokers FTMO uses
Fidelcrest
In Summary The highest maximum drawdown among retail prop firms of up to 20%TopTier Trader offers unleveraged cryptocurrency CFD trading with an option to pay for 1:2 leverage. Traders will manage their portfolios at Trade Locker, a leading trading platform for retail prop firms. Unlike many prop firms, TopTier Trader has small accounts of $5,000, and while the minimum evaluation fee starts at $65, the competitive upgrades total $105.95, which is necessary to trade competitively. The customizability places TopTier Trader among the best crypto prop firms.
The daily loss limit is 5%, with a maximum drawdown limit of 10%. The $105.95 evaluation fee decreases the profit target from 10% to 8%.
Pros & Cons
- Generous maximum loss levels of up to 20%
- Competitive leverage and 175+ assets covering five sectors
- Up to 90% profit share and up to $2,000,000 in funded accounts per trader
- MT4 and MT5 trading accounts with algorithmic trading permitted
- No information about the management team
E8 Funding
In Summary The retail prop firm with the most customization options for funded accountsI rank E8 among the best crypto prop firms due to its low evaluation fee and availability of BTC/USD, ETH/USD, LTC/USD, XRP/USD, BNB/USD, BCH/USD, SOL/USD, and ADA/USD as cryptocurrency CFDs on the MT5 platform. Traders get six account options and can choose their maximum drawdown between 6% and 14% in 1% increments and set their desired profit split between 40% and an unprecedented 100% in 10% increments, which increases the evaluation fee.
E8 has a 10% profit target for the one-step challenge, 10%-5% for the two-step challenge, and 8%-4%-4% for the three-step alternative, and traders get 1:25 cryptocurrency leverage.
Pros & Cons
- Competitive leverage and commission-based spreads from 0.3 pips
- Four funded accounts in three base currencies
- 80% profit share payable after eight days, followed by bi-weekly payouts
- No details about the management team
- No information about which broker or brokers E8 Funding uses
Funded Traders
In Summary A great asset selection for retail prop traders with 300+ assetsThe Funded Trader offers BTC/USD, ETH/USD, LTC/USD, SOL/USD, and BCH/USD as cryptocurrency CFD traders on MT5 and cTrader, but the latter adds $15 to the evaluation fee. The 95% profit share add-on is essential and increases the final evaluation fee by $10. The Funded Trader has partnered with Voyage Markets and Thaurus LTD as their brokerage providers. It has five challenge types and five funded account options, making it one of the best crypto prop firms.
The two-step verification process features an 8%-5% profit target, a 5% daily loss limit, and a maximum drawdown limit of 10%.
Pros & Cons
- Six funded account options with discounts on the evaluation fee
- 75% profit-share
- One-step evaluation period
- No published information about profit withdrawals
- Strict drawdown rules of only 5%
Top Crypto Proprietary Trading Firms
Few pure crypto prop firms exist, but many prop trading firms offer cryptocurrency trading via their partner brokers. Most retail prop trading firms that feature paid-for evaluation challenges only grant access to demo accounts after prop traders successfully pass a challenge.
The best crypto prop firms allow cryptocurrency trading via CFDs and usually restrict trading to a handful of highly liquid cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, and Dogecoin. NFTs and meme coins are generally unavailable, except for Dogecoin after it matured into a Top 10 cryptocurrencies by market capitalization, as crypto prop firms tend to partner with well-established top-end crypto brokers who stay away from high-risk assets.
How Were These Crypto Prop Trading Firms Chosen and Rated?
Traders can use numerous metrics to rate crypto prop firms based on their requirements and preferences, but I have used the below attributes as they apply to all traders and strategies.
Here is how I chose and rated the crypto prop firms:
- Challenge difficulty - Passing the challenge is the first step, and quality prop firms must have reasonable conditions from daily drawdown limits, maximum drawdown limits, profit targets, and minimum trading days
- Evaluation fees - High evaluation fees are a red flag that the prop firm relies exclusively on them for revenues and not trading
- Trading fees - They determine how competitive the trading environment is and can determine which strategies have the highest profit potential
- Trading platforms - The available trading platforms directly impact trading strategies a prop trader can use
- Profit split - This is the percentage of profits prop traders get to keep, and traders should stay away from prop firms that offer less than 80%
- Asset selection - A balanced asset selection ensures greater diversification, trading opportunities, and profit potential
- User Rating - Prop traders should take each review with a degree of skepticism, but many negative reviews are a significant red flag
- Customer support - The ease of contacting customer support and their response time is a core element between prop traders and crypto prop firms
What Is a Crypto Proprietary Trading Firm?
Crypto prop firms provide capital to traders, who receive a contract, a regular salary, and a performance-based bonus. Retail prop firms function differently, rely on funded challenges, and keep prop traders running demo accounts while providing a generous profit split. The industry relies on income from challenge fees rather than trading, but a few exceptions exist. Therefore, prop traders must conduct due diligence before paying the challenge fee.
How Should I Choose a Crypto Prop Firm?
Every trader has requirements and preferences, but the criteria below apply to all traders and crypto prop firms.
The best crypto prop firms must excel at the following:
- Reputation and track record - Avoid crypto prop firms with less than five years of operational history and many negative reviews
- Evaluation fees - Expensive costs are a red flag, as they suggest the prop firm relies on them for income instead of trading
- Profit split - Never accept a deal with less than 80 profit split in your favor
- Trading platforms - Ensure the trading platform supports automated trading to ensure up-to-date technology powers operations
- Internal risk management - The best crypto prop firms deploy strict risk management, and its absence is a red flag
What Can You Trade with a Crypto Prop Firm?
Most crypto prop firms are retail prop firms that offer cryptocurrency CFDs. The asset availability depends on the partner broker of crypto prop firms and any restrictions the crypto prop firm implements. Most crypto prop firms only offer a few of the most liquid and well-capitalized cryptocurrency CFDs.
How Big Are the Funded Accounts?
Crypto prop firms provide traders with various funded accounts. During my research, the smallest accounts option was $5,000, and the largest scaled to $2,000,000. The evaluation fee depends on the desired account size, and prop traders cannot change it after passing verification.
How Much Is the Profit Split?
The profit split at most crypto prop firms ranges between 80% and 90%. Prop traders should ignore anything less than 80% but consider paid-for add-ons that increase the profit split between 95% and 100%.
Are Crypto Prop Firms Legit?
Crypto prop firms are legitimate businesses duly registered in their jurisdiction but remain unregulated. Regrettably, the retail crypto prop firms scene is cluttered with fraud and scams.
Crypto Prop Firms – Pros and Cons
Prop traders should evaluate the pros and cons of crypto prop firms before considering paying for the challenge fee.
Crypto Prop Firm Pros
- Risk-free capital
- Earnings potential
- Risk management
- Career path
- Performance coaches
Crypto Prop Firm Cons
- Limited asset selection
- Most crypto prop firms rely on evaluation fees as income rather than trading
- No live trading, as prop traders get demo accounts
- Fraud and scams
- Educational material to entice unqualified beginners to pay evaluation fees
- High stress levels
Bottom Line
Most crypto prop firms provide traders with capital in demo accounts, paid-for evaluations, and generous profit splits. Only the best crypto prop firms include a path to becoming prop traders who manage live portfolios with a fixed salary.
