Trading with a prop firm can give retail traders the necessary capital and associated income to make their trading efforts worthwhile. Still, it does not necessarily provide a competitive edge. Trading remains dominated by algorithms, placing manual traders at a distinct disadvantage regardless of how much capital they manage. Therefore, trading with prop firms allowing EAs may level the playing field.
Want to know what you need before getting started? Read my research into prop firms allowing EAs to begin on the right footing.
Prop Firms that Allow EAs, Bots, and Algos
- Rocket21, A community of 50M+ traders with payouts of $4M+.
- fundedprime, Portfolio scaling up to a maximum of $800,000 per trader.
- Lionheart Funding, A three-phase evaluation with a 6%-5%-4% profit target.
Rocket21
In Summary A community of 50M+ traders with payouts of $4M+Prop traders at Rocket21 can choose from seven funded account options and three challenge types. The smallest funded account is $5,000, which features a one-time evaluation fee of $59, and accounts can scale their portfolio after three consecutive profitable months with an upper limit of $2M. The challenge and funded accounts are with well-known Australian multi-asset broker Eightcap.
Simulated Forex commissions are $7.00 per 1.0 standard round lot, $3 for metals, and commission-free costs for indices, cryptocurrencies, and oil. The maximum profit share is up to 90%. Therefore, I rank Rocket 21 among the best prop firms allowing EAs.
Pros & Cons
- Innovative product offering including its Revive feature, Scaling plan and various add-on options
- There is no time limit during the evaluation process.
- A reasonable minimum evaluation fee of $59
- Maximum profit share up to 90%
- Limited operational history
fundedprime
In Summary Portfolio scaling up to a maximum of $800,000 per traderFundedprime offers five funded account options starting from $10,000 for a one-time evaluation fee of $65. It allows prop traders to manage accounts up to $800,000 with a profit share of 80%. Accounts are traded through Eightcap, ensuring competitive trading conditions with a well-balanced asset selection, deep liquidity, fast order execution, and competitive trading fees. It places Fundedprime highly on my listing, featuring the best prop firms allowing EAs.
Prop traders must trade for at least three days during the challenge per evaluation stage without an upper limit. A maximum daily drawdown of 5%, with a maximum drawdown of 10%, applies.
Pros & Cons
- Cryptocurrency withdrawals
- There is no time limit during the evaluation process.
- Maximum profit share up to 80%
- Trading via the platforms of trusted Australian brokerage Eightcap
- Limited operational history
Lionheart Funding
In Summary A three-phase evaluation with a 6%-5%-4% profit targetWith seven funded account options from $5,000 for a $49 evaluation fee, a 6% profit target, a 4% daily drawdown limit, and an 8% maximum drawdown, Lionheart belongs among the best prop firms allowing EAs. While Lionheart permits EAs during its two-phase Roar challenge, traders cannot use them once they become funded. All challenge and trading accounts are with Eightcap, ensuring traders benefit from competitive trading conditions, including deep liquidity and fast order execution.
Lionheart has no minimum or maximum trading day requirements. Traders can manage up to $400,000 and must follow profit consistency and lot size consistency rules.
Pros & Cons
- Trading via the platforms of trusted Australian brokerage Eightcap
- Low minimum evaluation fee
- Fast payouts, usually within 24 hours
- Profit share of 90%
- Limited operational history
What Are Expert Advisors (EAs)?
Expert Advisors (EAs) are algorithmic trading solutions executed in the MT4 and MT5 trading platforms. They can vary from simple EAs that are long-term unprofitable to sophisticated human-like trading solutions with machine learning and AI-assisted components, high-frequency bots, news trading bots, and scalping bots.
The most advanced EAs can also read fundamental reports, economic news releases, and social media posts. They can also search video or audio content to react and adjust trading strategies. However, they are rare and under tight guard by the companies who develop, maintain, and deploy them. Among the thousands of EAs that retail traders can download for free or via paid-for subscriptions or one-off fees, the challenge remains to obtain one with long-term profitability.
Understanding Prop Firm EA Trading
Genuine prop firms who seek profitable trading strategies will allow them, as 80%+ of trading is algorithmic. The only restriction prop firms allowing EAs place is compliance with their trading rules.
Why Do Some Prop Firms Not Allow EAs?
Many prop firms keep traders in demo accounts and earn from one-time evaluation fees or allow live trading in B-books for a monthly fee. Therefore, they prefer traders to generate minimal to no profits while they continue to earn from recurring costs. They may also lack the infrastructure to support EA trading.
Pros and Cons of Prop Firms That Allow EA Trading
Before paying for funded accounts, prop traders should consider the pros and cons of prop firms allowing EAs.
The Pros of Prop Firms that Allow EA Trading
- Emotionless trading
- Compliance with risk management rules
- 24/5 trading
- Ability to analyze and trade more assets
- Access to capital
The Cons of Prop Firms that Allow EA Trading
- Inadequate trading infrastructure
- Restrictive trading conditions
How to Select a Prop Firm Compatible with EAs
All competitive prop firms allowing EAs share similar core criteria to ensure competitive trading conditions.
Prop firms allowing EAs must offer the following:
1. Reputation - Prop firms are unregulated but duly registered businesses. Therefore, I urge traders to avoid newly established prop firms. Reading reviews can help, but traders should approach them with caution and avoid reviewers without a history.
2. Trading Platforms - Prop traders must ensure that MT4, MT5, or cTrader are available.
3. Trading Costs - Trading fees depend on the broker of prop firms. Additionally, US-based prop firms charge monthly subscription fees, which are recurring costs traders should consider. Non-US prop firms have one-time evaluation fees, making them a significantly more cost-effective option.
4. Profit Share - I recommend traders look for a profit split between 80% and 90%+.
5. Asset Selection - The asset selection depends on the prop firm and their partner broker but should include a balanced mix of liquid trading instruments.
6. Trading Strategies - Traders must verify that their prop firms allow the trading style they wish to execute, as some prop firms have no restrictions, while others restrict or prefer select strategies.
7. Support - Trading with legitimate prop firms involves a contract and receiving payouts. Therefore, I only recommend prop firms with fast, responsive customer support available 24/5.
8. Payouts - Bank wires remain the go-to payment processors, but the best prop firms allowing EAs also allow cryptocurrency transactions with fast internal processing times.
Bottom Line
The best prop firms allowing EAs provide competitive trading conditions for prop traders, including deep liquidity, fast order execution, algorithmic trading platforms, and competitive leverage settings. Prop traders are free to deploy EAs, but they must ensure compliance with strict trading rules and make necessary adjustments to their risk management profiles.
