How To Choose The Best Funded Trader Program

If you are new to funded trader programs then it can be a minefield choosing the one to suit your trading style and your budget. I'll take you through step by step on the best way to choose a funded trader program in 2024.

Steps To Choosing The Best Funded Trader Program

Step 1: Define your trading strategy

Let's not kid ourselves, prop firms make money from challenge fees. The more inexperienced traders spend on challenges, the more money the prop firm makes and can afford to pay winning traders.

Not all funded trader programs will be suitable for all traders. If you are a swing trader then consider a prop firm that will allow you to hold overnight and on the weekend. If you are a scalper, then go with a funded program that will allow you to take multiple short-term trades and has no restrictions on algo trading for example.

I covered my top picks for best forex prop firms in 2024 if you haven't seen that post it's worth a read.

Step 2: Define your trading style

Define your trading style. Some traders are very comfortable risk and like to take big positions, others prefer a steady grind to the top. If you prefer a steady grind then consider a no time limit challenge or choose an instant funding program that will compensate you for your work. Instant funding challenges often won't allow you to trade big rather you will need to hit certain milestones and then the prop firm will double your capital.

Step 3: Decide your budget

Typically a prop firm will look to charge you 8% to 10% of the drawdown in the case of most 2 phase challenges. Instant funding challenges are the most expensive in terms of ROI as the prop firms are charging most of the time 95% to 100% of the maximum drawdown.

As an example, a prop firms 2 phased funded trader program is offering a $100,000 account with a 10k drawdown, this should cost about $800. It could be a little less or a little more. An instant funding of $5,000 should cost around $260. Essentially for every $800 you pay you get 12x in challenge capital. If you do go on to pass the challenge you will get the challenge fee refunded. This could seduce you into thinking the challenge fee does not matter but if you lose 3 challenges in a row, then you will need to return 36% on 10k just to breakeven. It can quickly add up.

Step 4: Ask for a trial

Trading environment is very important when when choosing the best funded trader program. If you can get a trial and see what kind of spreads they have. Is the platform stable? These are all good questions. I have see so many trader stories of spreads taking them out or total platform freezes. Prop firms are the wild west, so make sure you do your due diligence.

Step 5: Ask other traders

Ask other traders who joined the funded program. I am not saying hang off every word but getting the opinion of someone who has used the trading platform of the prop firm is probably a smart move.

I am sure there are other steps you could to take to determine the best funded trader program, so if I have missed anything pop over to my Discord server and let me know.

I personally recommend checking out E8 Prop firm or The 5ers Prop firm. You may also want to read Best Instant Funding Prop Firms 2025 if you are looking to get instant funding.