Prop firms, also known as proprietary trading firms, provide aspiring traders an opportunity to trade the financial markets with the firm's capital, instead of their own. This allows traders to gain experience and prove themselves without putting their own capital at risk.
In this article, we will compare some of the most popular prop firms that offer funded accounts starting from $5,000. We will look at their key features, fees structure, profit split terms and the challenge requirements to pass in order to receive funding.
Prop Firm Rating Criteria
When it comes to rating proprietary trading firms (prop firms), several criteria can be considered. Here are some common factors that can be used to evaluate and rate prop firms:
What is the cheapest prop firm for a 5K account?
FTMO
Information
FTMO (Funded Trader Millionaire Operator) is one of the largest and best known prop firms globally. They have funded over 60,000 trader accounts and have over $70 million in trading capital.
FTMO offers funded accounts from $5,000 up to $100,000. Traders need to pass an evaluation challenge by meeting certain metrics over 30 days to prove they can trade profitably with good risk management.
Features and Advantages
Fees and Sponsorship
FTMO charges an upfront fee to start a challenge which covers administration and accessing their proprietary trading tools and data feeds.
They also offer sponsorship programs for talented traders who cannot afford challenge fees.
Challenge Assessment
To pass the FTMO $5,000 account challenge, within 30 days you need to achieve:
You can select higher custom limits if desired. If challenge is successful, 80% of profits made are paid to you.
Funded Trading Plus
Information
Funded Trading Plus (FTP) is a UK based prop firm founded in 2020 that focuses on small account traders. They have funded over 750 trading accounts so far.
They offer a streamlined and low cost challenge program for getting funded for accounts from $1,000 up to $10,000. Funding over $10,000 is also available with special evaluation.
Features and Advantages
Fees and Sponsorship
As a smaller prop firm focused on affordability for new traders, their fees are very competitively priced.
Challenge Assessment
To pass the FTP $5,000 account evaluation you need to make a minimum profit of $250 within 14 days while not exceeding a 20% max loss limit if trading forex pairs or 10% loss limit if trading other markets.
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If successful, traders keep 85% of all subsequent profits made.
The 5%ers
Information
The 5%ers prop firm launched in 2015 and were the first company to offer the current challenge model of trader funding. They have a strong reputation particularly in the UK & Europe.
They provide account funding from $500 up to $1 million+ for traders who pass their evaluation program. Custom accounts above $1 million are also offered.
Features and Advantages
Fees and Sponsorship
As one of the first challenge-based prop firms, 5%ers fees are very competitive.
They do not currently offer sponsorship programs.
Challenge Assessment
To get a live funded account with 5%ers you'll need to pass their fxed standards combining profit target and risk limit rules.
Within 14 days for a $5,000 account you must make:
If successful, traders receive 80% of subsequent profits.
MyFundedFX
Information
MyFundedFX is a fast-growing US based prop rm established in 2020 that is focusing on providing funding programs for FX and crypto traders. They currently have over 300 funded traders.
They offer funding accounts from $500 up to $150,000 for traders able to pass their evaluation phases. Passing multiple phases unlocks higher funding limits.
Features and Advantages
MyFundedFX has a transparent fee structure and some discounts for multiple account holders.
The MyFundedFX $5,000 challenge phase requires passing two evaluation stages. Stage 1 needs:
If stage 1 passed, must immediately pass stage 2 by making minimum 5% profit without exceeding 20% max loss.
If fully passed, traders earn 80% of profits subsequently.
True Trading Group
Information
True Trading Group (TTG) started in 2019 and takes an education focused approach to funding traders. They claim over 3,500 members have passed their funded program.
They offer account funding from $500 up to $275,000 for members who qualify and pass their training phases. Access to specialized courses and daily live streams is also provided.
Features and Advantages
Fees and Sponsorship
As primarily an education company, TTG has a monthly membership fee model in addition to evaluation fees.
TTG currently does not offer sponsorship programs for their training & funding challenges.
Challenge Assessment
To be awarded a funded TTG trading account, you need to pass their training evaluation by meeting set metrics.
Within 30 days with a $5,000 account you must:
Blue Sky Prop
Information
Blue Sky Prop is a newer entrant to the prop firm industry having launched in 2021, but are growing rapidly having funded over 150 trader accounts so far.
They focus on offering simple transparent fee structures for Forex and stock index traders looking to access funding from $1,000 up to $50,000 trading capital.
Features and Advantages
Blue Sky Prop offers among the lowest evaluation fees in the industry and takes no profit share until traders are consistently profitable.
Their evaluation terms are simple and customizable for each trader.
With a $5,000 account you need within 14 days:
How to open 5K account prop firm
To open a trading account with a proprietary trading firm (prop firm) with a deposit of $5,000, you typically need to follow these general steps:
Step 1: Research and Select a Proprietary Trading Firm
Conduct thorough research to identify prop firms that align with your trading goals, preferences, and the markets you wish to trade. Consider factors such as the firm's reputation, capital allocation, risk management policies, payout structure, and training/support programs. Compare multiple firms to find the one that suits your needs the best.
Step 2: Review the Requirements
Visit the prop firm's website or contact their representative to review their account opening requirements. The firm will provide information on the minimum deposit amount, any applicable fees, required documentation, and eligibility criteria.
Step 3: Complete the Application
Fill out the account opening application provided by the prop firm. You will typically need to provide personal information, financial details, and trading experience. Ensure that you provide accurate and complete information.
Step 4: Submit Documentation
The prop firm will require certain documents to verify your identity and comply with regulatory requirements. Common documents include a valid passport or government-issued ID, proof of address (e.g., utility bill or bank statement), and sometimes a resume or trading track record. Follow the firm's instructions to submit these documents securely.
Step 5: Fund Your Account
Once your application is approved and your account is set up, you will need to deposit the required amount, which in this case is $5,000. The prop firm will provide instructions on how to transfer funds to your trading account. Usually, you can deposit funds via bank wire transfer or electronic payment methods.
Step 6: Sign Necessary Agreements
Review and sign any agreements or contracts provided by the prop firm. These may include a client agreement, risk disclosure statement, and any other legal documentation. Read them carefully and seek clarification if needed before signing.
Step 7: Set Up Trading Platform
The prop firm will provide access to their trading platform or software. Download and install the platform on your computer or use the web-based version if available. Familiarize yourself with the platform's features and functionalities.
Step 8: Begin Trading
Once your account is funded and the trading platform is set up, you can start trading according to the prop firm's guidelines and rules. Make sure you understand the firm's risk management policies, trading limits, and any specific requirements or restrictions they may have.
Conclusion
In evaluating some of the top prop firms suitable for a $5,000 trader account, FTMO stands as the overall leader in terms of features, credibility and extensive trader support systems. However, their fees are higher than other contenders.
Funded Trading Plus, The 5%ers and the newer Blue Sky Prop offer much more affordable evaluation fees while still providing high profit splits to traders who pass challenges. They also allow setting personal account loss limits.
MyFundedFX is competitive for Forex and crypto traders in particular. While True Trading Group has highest monthly fees but stands out for its educational curriculum.
So in summary, FTMO likely remains the 1 choice for funded trading but traders on tight budgets should also strongly consider Funded Trading Plus, The 5%ers or Blue Sky Prop when reviewing the cheapest prop firms to get started with.
