Retail prop trading continues to experience tremendous growth, with new prop firms competing for skilled traders. Australia has emerged as a leader among prop firms and brokers that cater to the prop trading industry, but not all prop firms are equally competitive. So, how can you ensure that you trade with a reputable Australian prop firm?
I have conducted a comprehensive review covering the best prop trading platforms, prop firm pros and cons, and how to choose a prop trading account in Australia.
Top Prop Firms in Australia
- 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.
- Profitex, A generous 7% daily loss limit with a 10% maximum drawdown.
Rocket21
In Summary A community of 50M+ traders with payouts of $4M+Rocket21 offers a maximum profit share of 90%, available via an add-on for the Apollo 11 challenge, which traders can further boost by adding weekly payouts and an increased drawdown from 4% to 7%. It increases the minimum cost for the Apollo 11 challenge from $59 to $95 but decreases the maximum leverage of 1:30. With an impressive community of 50M+ prop traders, I rank Rocket21 among the best prop firms in Australia.
All accounts are via Eightcap with Forex commissions of $7.00 per 1.0 standard round lot, $3 for metals, and commission-free costs for indices, cryptocurrencies, and oil.
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 traderProp traders can use algorithmic trading solutions if they receive prior approval, and the maximum profit share is 80%. All accounts are via Eightcap, ensuring a well-balanced asset selection exceeding 800 assets, competitive fees, deep liquidity, and fast order execution. Fundedprime offers the DXtrade and TradeLocker platforms and has a dedicated challenge for equity traders, placing Fundedprime among the best prop firms in Australia.
The maximum leverage is 1:50, and prop traders must trade for at least three days with a maximum daily drawdown of 5%, maximum drawdown of 10%, and a 10%-5% profit target during the two-step verification.
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 targetLionheart features four distinct challenge types for various trading strategies and algorithmic trading in its Roar challenge but not for funded accounts. All accounts are with Eightcap, which ensures prop traders can manage funds with competitive trading conditions, including low fees and a maximum leverage of 1:100, up to $600,000.
Traders benefit from one of the most competitive evaluation conditions and the lowest fees. There are no minimum or maximum trading day requirements. The lowest profit target is 6%, with a 4% daily drawdown limit and an 8% maximum drawdown, placing Lionheart among the best prop firms in Australia.
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
Profitex
In Summary A generous 7% daily loss limit with a 10% maximum drawdownWith 100K+ funded traders and accounts traded through Eightcap, which delivers competitive trading conditions, Profitex ranks among the best prop firms in Australia for conservative strategies. Traders can manage up to $200,000 with a maximum leverage of 1:30, competitive spreads, low commissions, deep liquidity, and fast order execution. The maximum profit share is 80%.
Profitex has a one-step evaluation challenge with a profit target of 10%, a 5% daily drawdown limit, and a 10% maximum drawdown. Prop traders must trade for at least three days during the evaluation challenge and ten days to qualify for a profit split payout.
Pros & Cons
- Offers trusted Australian broker, Eightcap's trading platform
- Cryptocurrency withdrawals
- There is no time limit during the evaluation process
- Maximum profit share up to 80%
- Limited operational history
Is Forex Prop Trading a Good Idea in Australia?
Prop trading firms offer access to capital, but all prop firms have strict risk management rules. Some add consistency rules, and many prop firms restrict select strategies or have uncompetitive trading rules. Therefore, every prop trader must decide if this type of trading, even if it is with the best prop firms in Australia, is a good idea based on their skill set and strategy.
Pros and Cons of Prop Trading in Australia
Before paying for an evaluation or subscribing to a monthly fee with top prop firms in Australia, I recommend prop traders consider the pros and cons of prop trading.
The Pros of Prop Trading
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with trusted brokers
The Cons of Prop Trading
- Unregulated business
- Tight risk management rules
- Some consistency rules make select trading strategies uncompetitive
- Not all prop firms allow algorithmic trading
- Performance pressure
- Inexperienced traders rush to prop firms offering educational content
How Do You Get Paid Prop Trading?
Prop traders must generate profits and trade within strict trading rules while complying with other conditions where applicable. While bank wires are the go-to payment processor, the best prop firms in Australia support cryptocurrency withdrawals. Prop traders must check the minimum withdrawal amounts, and consider third-party follow-on costs, as well as withdrawal windows at their chosen prop firms.
Should traders use payment processors other than cryptocurrencies, the name on the prop trading account and the payment processors must match, to comply with AML rules and regulations.
How to Choose a Prop Trading Account in Australia
The best prop firms in Australia offer similar core trading conditions to ensure prop traders have a competitive edge and support profitable trading.
Prop traders should ensure their prop firms excel in the following aspects:
1. Reputation - Since prop firms are unregulated but duly registered businesses, I recommend traders avoid newly established prop firms. Reviews may help, but traders should approach them cautiously and avoid reviewers without a history.
2. Trading Costs - US-based prop firms charge monthly subscription fees, and traders should consider these recurring costs. Non-US prop firms provide a significant cost advantage, as they have one-time evaluation fees. The trading costs are reasonable but differ between prop firms, while trading fees depend on the broker of prop firms, which transparent firms provide.
3. Trading Platform - The best prop firms in Australia offer MT4, MT5, TradeLocker, and DXtrade. Proprietary trading platforms or alternative third-party providers exist at some prop firms.
4. Profit Share - I recommend traders ignore all prop firms with a profit split below 80% and favor 90%+.
5. Asset Selection - The asset selection depends on the prop firm and their partner broker but usually includes Forex, cryptocurrencies, commodities, and equities.
6. Trading Strategies - Traders must verify that their prop firms allow the trading style they wish to execute. 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 - The best prop firms in Australia allow cryptocurrency transactions with fast internal processing times and low minimum payout amounts, but bank wires remain the go-to payment processor.
What Can You Trade with a Prop Firm in Australia?
The best prop firms in Australia offer a combination of Forex, cryptocurrencies, commodities, metals, equities, ETFs, and futures. The asset selection always depends on the prop firms and their partner broker.
What Trading Platforms are Available in Australia for Prop Trading? H2
The best prop firms in Australia offer MT4, MT5, and TradeLocker, as they support algorithmic trading and DXtrade for manual traders. A few prop firms feature alternative third-party providers or deploy proprietary solutions.
Bottom Line
Trading with the best prop firms in Australia can provide profitable traders the necessary capital to succeed as full-time traders, but only if the trading conditions support the trader. While most prop firms present themselves as an excellent choice, prop traders must evaluate and understand the trading rules and restrictions, which can restrict the successful execution of trading strategies.
Another fact to consider is that despite the best marketing offers, most prop firms rely on evaluation fees or monthly subscriptions for their income and not on trading. Therefore, Australian prop traders must carefully evaluate prop firms before paying the evaluation fee.
