How to Approach Online Prop Firms in 2025

Introduction

A new year is upon us and opportunity awaits in the financial markets. Here’s our definitive guide on how to approach online prop firms in 2025.

Step 1 – Know your trading strategy

You do have a tested trading strategy, don’t you?

Before even considering joining an online prop firm you should know:

• What your trading strategy is
• How you will manage risk
• What market(s) you trade

 

Your strategy should be back and forward tested to prove its efficacy, and you should have a written trading plan that covers every aspect of how you will operate as a trader.

Here are some things to think about

• How will you react to being in drawdown? Do you reduce risk, take a break, carry on as normal?
• How will you manage your emotions trading a large amount of capital? Think about this, because large wins and losses can both have a detrimental effect on a trader’s mindset.
• How will you journal your trades and review your performance?

 

This is essential. Trading is difficult and it’s practically impossible to succeed in the long term without having a detailed and tested trading plan.

Once you have this stuff covered, move on to step 2…

Step 2 – Choose the right account type

There are three main types of online prop firms:

• CFD Trading
  • CFD funding programs typically offer the best potential return on investment.

 

• Futures Trading
  • Futures trading firms often require a trader to close their positions by the end of the trading day, so are not generally suited to swing traders.
  • There are regulations to be aware of when trading futures, be sure to familiarise yourself with the exchange you trading with should you choose to trade with a futures prop firm.

 

• Stock Trading
  • Trade the Pool is the only dedicated stock trading prop firm out there, fortunately it’s a great firm. If you trade stocks or ETFs this is the best option for you.

 

Many firms have different funding models available

• Instant funding
  • Traders like the idea of being immediately funded without having to pass an evaluation, but often the instant funding accounts offer much less earning potential to the trader when compared to the evaluation models. If you’re interested in an instant funding account, be sure to really consider your reasons and whether it is really the best option for you.

 

• 1-Step evaluation
  • 1-Step evaluation accounts often have lower leverage, lower maximum loss limits, and lower daily loss limits than the 2-step evaluations. The best 1-Step evaluation in the industry is The5ers Hyper Growth program, due to its very aggressive scaling plan.

 

• 2-Step evaluation
  • 2-Step evaluation accounts normally offer the highest potential reward for traders, with the highest leverage, maximum loss and daily loss limits. The 2-Step models offered by most firms are very similar, the difference is in the scaling plans. Again, The5ers scaling plan is the best in the industry. FundedNext also has a very good scaling plan.

 

• 3-Step evaluation
  • 3-Step evaluation accounts are often marketed to newer traders. They often have the lowest leverage, maximum loss, and daily loss limits. In most cases a 3-Step evaluation offers the lowest potential reward of the evaluation models.

 

Here are some things to consider when choosing an account type

• Location:
  • A key consideration is if you’re located in the US. The US regulations make trading with a CFD firm a risky proposition, so it’s advisable to trade with a futures or stock trading firm if you’re based in the US.

 

• Are you a swing trader or a day trader?
  • Be sure to check the rules of the account you’re interested in purchasing, as with some programs there are restrictions around holding trades over a weekend or overnight.
  • Some firms, such as Trade the Pool and FTMO, have funding programs specifically designed for swing traders.

 

• Do you trade around news events?
  • Many firms have very strict news trading policies. Be sure you are aware of the news trading rules at your chosen firm.

 

Step 3 – Choose your firm

Whichever type of firm you want to join, we recommend picking one of the best:

• The best CFD firms, in our opinion, are:
  • The5ers
    • Best scaling plans in the industry
    • Best trading conditions of all CFD firms
    • Trusted, with a great reputation
    • Best educational resources in the industry
    • All programs suited to swing and day traders
  • FTMO
    • Trusted, with a great reputation
    • The best trader dashboard in the industry
    • Have separate swing and day trader account types
  • FundedNext
    • Trusted, with a great reputation
    • Allows news trading on some account types
  • If you’d like to see how these three firms compare with each other check out our comparison article here.

 

• The best Futures firms, in our opinion, are:
  • Top Step
    • The longest running futures prop firm
    • Great reputation
  • My Funded Futures
    • Good reputation
  • Alpha Futures
    • A fairly new firm, backed by Alpha Capital Group
    • Building a good reputation

 

• The best firm for trading stocks is:
  • Trade the Pool
    • Trade the Pool is owned and run by the same team as The5ers, so you can be confident that they’re a trustworthy and reliable firm.
    • Excellent scaling plan
    • Access to around 12,000 stocks & ETFs
    • Trading real stocks
    • Has day and swing trader account types

 

Step 4 – Be patient and disciplined

• Think of the long game:
  • Trading is not a get rich quick scheme, no matter what the influencers and scammers may lead you to believe. This is a serious business, so treat it as such, and don’t risk money that you cannot afford to lose.

 

• Consider your budget and start small:
  • If you’re new to trading with online prop firms then consider going for the smallest account your chosen firm has to offer, and use profits made from that account to purchase bigger accounts in the future.

 

• Focus on consistency:
  • If you have a profitable trading plan, you trade consistently, and you manage your risk well, there is no reason for you to fail an evaluation or lose a funded account.

 

• Scale up your funding over time:
  • Once you are earning money from trading, consider opening accounts with multiple firms. There are trade copier services that allow you to trade just one account and copy your positions in real time to all of your other accounts. Just be sure to check the terms & conditions with all of the firms you trade with, as some firms don’t allow you to copy to their account from another prop firm.

 

Conclusion

Online prop firms present an traders with an almost unbelievable opportunity to leverage their trading skills to potentially earn far more money than they could using personal capital. However, success in this space requires more than just ambition—it demands preparation, discipline, and a long-term mindset.

By developing a well-tested trading strategy, choosing the right account type, selecting a reputable firm, being disciplined, and trading consistently, you can maximise your chances of succeeding in this growing industry.

Remember to start small, focus on growth, and treat trading as a professional endeavour.

With the right approach, 2025 could be your breakthrough year as a trader!