Retail prop trading firms offer skilled traders the one thing that prevents them from taking their strategy and lifestyle to the next level: capital. Are you a stock trader with a proven strategy that generates consistent profits, under strict risk management?
Read my stock prop firms review to learn how to identify the best prop firms for stock trading, why you should consider it instead of a broker, and what the pros and cons of prop firms are before you pay for your evaluation.
Prop Trading Firms for Stock Trading Comparison
- FTMO, the best prop trading firm with a genuine path for salaried prop traders.
- CFT, 30K+ traders educated and $10M+ payouts to its prop traders.
- FXIFY, 100% STP execution via 20+ bank and non-bank liquidity providers.
FTMO
In Summary the best prop trading firm with a genuine path for salaried prop tradersI rank FTMO among the best prop firms for stock trading as it offers a clear path to transition from retail to professional prop trading, with a contract and a fixed salary. FTMO has a two-step verification challenge with a 10%-5% profit target, a maximum daily loss limit of 5%, and a maximum drawdown of 10%. Prop traders must trade for at least four days and can use algorithmic trading solutions.
FTMO provides responsive 24/7 customer support in 18 languages. It has prop traders from 180+ countries, a maximum profit share of 90%, and a maximum leverage of 1:100.
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
CFT
In Summary 30K+ traders educated and $10M+ payouts to its prop tradersCFT allows traders to manage a maximum of $300,000, with maximum leverage for equity traders of 1:100 in its Advanced accounts versus 1:5 for equities and 1:20 for indices in its student accounts. Commissions for equity traders are 0.002% per side, while index trading remains commission-free. Therefore, I rank CFT among the best prop firms for stock trading.
Prop traders get a profit share of 80%, while the two-step verification challenge has an 8%-5% profit target, a 5% daily loss limit, and a 10% maximum drawdown. No minimum or maximum trading days exist, and personal mentoring is also available.
Pros & Cons
- Cryptocurrency withdrawals
- Proof of reserves of CFT emergency funds on the blockchain
- A reasonable minimum evaluation fee of $58
- Maximum profit share up to 80%
- Limited operational history
FXIFY
In Summary 100% STP execution via 20+ bank and non-bank liquidity providersTraders at FXIFI get maximum leverage of 1:2 for equities and 1:10 for indices, placing it among the more conservative retail prop trading firms. FXIFY is part of the brokerage FXPIG, and the maximum profit share is 90%. Prop traders receive bi-weekly payouts, and FXIFY repays the evaluation fee to funded traders with the first payout. It places FXIFY among the best prop firms for stock trading.
FXIFY offers a one-step, two-step, and three-step verification challenge with a 10% profit target but an increase in the daily loss limit. Traders can use algorithmic trading solutions, and FXIFY permits weekend positions.
Pros & Cons
- Traders can use EAs, grid trading, and martingale strategies
- Scalability of portfolios to $4M
- Maximum profit share up to 90%
- Low evaluation fees starting from $39
- Limited operational history
What Are Stock Trading Prop Firms?
Stock trading prop firms provide trading capital to prop traders who pass a verification challenge. They charge a one-time evaluation or recurring monthly subscription fee and pay prop traders a profit share of up to 90%.
How Does a Stock Prop Trading Firm Actually Work?
Most retail stock prop trading firms provide demo accounts to retail traders and charge a one-time evaluation fee. Many never place an actual trade and rely on traders failing evaluation challenges to provide them with capital instead of providing capital to traders.
Are Stocks Good for Prop Trading?
Liquid stocks can offer an excellent asset class for prop traders who understand how to trade them, as they have low trading fees and plenty of price action throughout the trading session.
Why Use a Stock Prop Trading Firm Instead of a Broker?
Using a stock prop trading firm provides a necessary capital boost to traders at reasonable fees but with strict management. For most traders, it trumps the offer any broker can make.
Stock Trading Prop Firms – Pros and Cons
Prop traders should evaluate the pros and cons of stock trading prop firms before paying for an evaluation or subscribing to a monthly fee with the best prop firms for stock trading.
The Pros of Stock Trading Prop Firms
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with trusted brokers
The Cons of Stock Trading Prop Firms
- Unregulated businesses
- Insufficient asset selection for stock traders
- 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 to Select a Stock Trading Prop Firm
While trading conditions differ, the best prop firms for stock trading share similar core trading conditions.
Prop traders should evaluate the following aspects:
1. Reputation - Prop firms are unregulated but duly registered businesses, and I recommend avoiding newly established prop firms. Reviews might help but approach them cautiously and avoid reviewers without much history.
2. Trading Costs - Traders should consider the recurring monthly subscription fees at many US-based prop firms versus the one-time evaluation fees at non-US prop firms. The trading costs are reasonable but differ between prop firms, while trading fees depend on the broker of prop firms, as provided by transparent prop firms.
3. Trading Platform - The best prop firms for stock trading provide prop traders with a choice of MT4, MT5, and DXtrade. TradeLocker, proprietary trading platforms, or alternative third-party providers exist at some prop firms.
4. Profit Share - Traders should ignore all prop firms with a profit split below 80% and favor 90%+.
5. Asset Selection - The asset selection should feature a well-balanced choice of liquid stocks covering numerous countries and sectors, equity indices, and, ideally, ETFs.
6. Trading Strategies - Some prop firms have no restrictions, while others restrict or prefer select strategies. Traders should verify that they can execute their trading strategy.
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 - While bank wires remain the go-to payment processor, the best prop firms offer cryptocurrency payments with fast internal processing times and low minimum payout amounts.
Bottom Line
Trading with the best prop firms for stock trading can provide successful traders with the proper trading conditions and the necessary capital injection to transition from retail to professional trading.
