Choosing the right type of proprietary trading firm is crucial for traders looking to succeed.
There are generally 2 types of prop firms in the market today; the traditional prop firm and a futures prop firm and it is important to first and foremost understand the difference between the two.
Traditional prop firms typically allow traders to access a wide range of instruments, including stocks, Forex (currency pairs), and sometimes even options. These markets offer more diversity and can be easier for novice traders to get started with, as they are more familiar and often easier to understand. These prop typically operate on a one time payment basis. We at Funded Elite are a traditional prop firm.
Futures based prop firms focus on futures contracts, which are agreements to buy or sell an asset at a predetermined price in the future. The futures market is generally used for trading commodities like oil, gold, or stock indices. They typically operate on a subscription basis where traders pay a fee each month. Top futures prop firms include names such as Topstep and Futures Elite.
This article shall aim at comparing traditional prop firms like Funded elite with futures prop firms like Topstep.
With Topstep, traders need to clear an evaluation known as the ‘Topstep Combine’ which tests the traders capabilities before they handle funded capital. Traders must reach a profit target of 6% before hitting a maximum drawdown of 4% or a daily drawdown of 2%. Once Traders clear the Topstep Combine they get access to the firm’s capital. Topstep only offers traders access to this Topstep Combine option but other futures prop firms offer different account types. For instance Futures Elite offers the usual evaluation accounts but also instant funding options.
Funded Elite, however, gives traders the freedom to choose from a variety of account options. Traders can select the 1-step evaluation for quick access to funded capital, or the traditional 2-step evaluation for those who prefer a more structured approach. For those who want immediate access to capital, Funded Elite’s Elite Now account offers instant funding without any evaluation phase. Additionally, Funded Elite also offers the Elite Challenge Account, which has more challenging drawdown rules but at a lower cost, providing a budget-friendly option for skilled traders.
Funded Elite offers highly competitive prices and higher profit splits compared to TopStep. While TopStep offers a maximum profit split of 90%, Funded Elite goes even further with up to 95% profit share, one of the highest in the industry. This allows traders to retain more of their profits and scale their trading strategies more effectively.
In terms of account sizes, TopStep limits traders to a maximum of $400,000, while Funded Elite offers consolidations up to $600,000, giving traders access to more capital. The main difference in pricing between the 2 firms is that topstep provides a subscription based pricing system and funded elite offers a one time payment system. For instance, with Topstep traders can purchase a $100,000 Topstep combine account for a $99 monthly fee while with Funded Elite a $100,000 account can be purchased for a one time fee of $349.
At Funded Elite, we understand the frustration of almost reaching funded capital only to breach a drawdown rule. To support traders, we offer the Second Chance feature. This allows traders who breach any rules to restart from Phase 1 free of charge, providing an opportunity to learn from mistakes without the added pressure of additional fees.
We also help traders stay upto to date with relevant developments in the market – Traders are encouraged to subscribe to our newsletters of Facebook , X and Instagram to up top of the market.
The decision between TopStep and Funded Elite depends on your trading preferences and goals. TopStep may appeal to traders specifically focused on futures trading, while Funded Elite offers a more versatile and affordable path to funding, with higher profit splits, greater flexibility, and the option for immediate access to capital.
Traders who want to start trading immediately, enjoy a Second Chance, and explore a variety of instruments will find Funded Elite to be an ideal choice. Traders can stay up to date with market developments by subscribing to our newsletters on either Facebook , X or Instagram.
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