Foreign exchange market (forex) trading paved the way for many people to earn money on the side or even launch simulated trading careers. If you’re interested in forex trading, you’ll need to open an account with a broker or trade with prop simulated trading firms.
Prop simulated trading firms allocate a portion of their capital to traders, who then employ their own market strategies. The trader receives a portion of any virtual profits made with the firm’s capital.
With growing interest in trading, hundreds of prop simulated trading firms have come up in the last few years. Which one should you choose, and what should you keep in mind before starting your simulated trading career? To make things easier for you, we’ve researched the pros and cons of the most-used prop simulated trading firms in the industry today. These are the five leading forex players that are well-suited for beginners.
1. FTMO
FTMO is one of the best prop simulated trading firms for both new and experienced traders. Started in the Czech Republic in 2014, the platform’s challenge rules and verification process are transparent and user-friendly.
FTMO works by making traders go through a two-step testing challenge. Fair warning: the challenge is intense. But if you’re successful in the evaluation, you’re offered a chance to remotely manage your account with a balance of up to $400,000. Transactions are monitored by FTMO, and there’s a payment of 80% in the first successful round of real trading.
FTMO is legally compliant and adheres to European Financial Legislation guidelines under the supervision of the local regulator. Overall, FTMO is ideal for traders who have simulated trading experience—there are hard testing conditions for people who want to transition into real trading. Another unique aspect of FTMO is that it has been featured on Forbes and also won the Deloitte Technology Fast 50 award three years in a row.
You must pay a fee to take the the evaluation on this platform, and the simulated trading fee depends on the risk level. However, if you succeed in the evaluation and join FTMO as a trader, you can earn your fee back with the first virtual profit from your funded simulated trading account. Here’s a breakdown of the costs:
Normal Risk Level
- $10,000 account: $139.50
- $25,000 account: $225
- $50,000 account: $310.50
- $100,000 account: $486
- $200,000 account: $972
Aggressive Risk Level
- $10,000 account: $225
- $25,000 account: $310.50
- $50,000 account: $486
- $100,000 account: $972
Pros:
- The starting fee is affordable.
- Profit of up to 90% after scaling, if you join them as a trader.
- You can choose a demo account from $10,000 to $200,000, and there are diverse ranges to choose from.
- You can choose the risk level based on your preferences, such as normal or aggressive.
- Leverage is up to 1:100.
Cons:
- The requirements are stringent, and the initial test is challenging.
- You need to be an experienced trader or learn quickly to fully leverage this prop simulated trading platform.
2. Funded Next
Funded Next (MFF) was created in 2020. Located in Toronto, Canada, it’s one of the fastest-growing prop simulated trading firms, reaching thousands of traders from more than 150 countries. Even though the company is relatively new, they have already funded more than 2,000 forex traders in 2022. Over time, it has developed a good reputation and credibility, and now the firm is competing with top names in the industry.
This prop simulated trading firm is quite versatile. It offers three different funding programs: rapid, evaluation, and accelerated. These are designed according to different simulated trading profiles, such as beginners, experienced professionals, and full-time traders.
Profit split is also one of the reasons Funded Next has so many traders working on it. The virtual profit split goes up to 85% when traders start bringing in consistent revenue. It also provides fast payout options. You can request to withdraw your virtual profits at any time.
With MFF’s VIP simulated trading account, you get a 90% split. In addition, you get payments with no time restrictions, semi-automated payout confirmations, and a lot more benefits.
You need to make a one-time payment to get access to the platform. You can also claim various membership discounts if you have a coupon code.
Types of Accounts:
Funded Next Rapid
The rapid account allows traders to get virtual profits starting on day one. This means they don’t have to go through the evaluation process, since that happens over the course of three months. The rapid account is a demo account, so you can practice risk-free trading. Over time, the simulated trading platform will evaluate whether you have the necessary skills to trade a live-funded simulated trading account.
Funded Next Evaluation
The evaluation account is made for semi-professionals who can handle a lot of capital to trade. This account has a two-stage evaluation process.
Funded Next Accelerated
The third program is live simulated trading with live-funded accounts. It’s the most professional account and has no evaluation or challenge process.
Pros:
- Up to 85% profit
- 100% refund of registration fees available upon clearing evaluation
- Affordable prices
- Earn virtual profits even without the evaluation process
- 1:500 high leverage available
Cons:
- Customer support is available only via email and online chat from Monday to Friday (24/5).
- The company is still relatively new and has a short track record.
3. The simulated Trading Capital
The simulated Trading Capital is a new firm and still not well recognized. However, the first thing that stands out is the design of this simulated trading platform. While many prop simulated trading firms have a poor user experience, this one has a pleasing design and lays out all the information clearly on its website.
In addition, it has set realistic parameters with minimal restrictions. As such, the firm claims to provide traders with more freedom, flexibility, and chances of success.
During the evaluation process, the company gives only an 8% profit target. Traders can use any strategy to reach this target. This includes using expert advisors (EAs), trade copiers, trading through the news, and holding trades over the weekend. The simulated Trading Capital also allows a 12% maximum drawdown restriction and a 6% maximum daily loss. This gives traders breathing space to execute their strategies and recover from their mistakes.
The overall simulated trading objective is laid out in phases. In Phase 1, the virtual profit target is 8%. In Phase 2, it’s 5%. Once you’re promoted to a prop trader, there is no target. Traders also receive a 120% refund on their first successful virtual profit split.
The company started with a 50/50 split in 2019. But as time went on and the platform became more popular, it decided to reward the users with a higher virtual profit rate. So, its virtual profit split is now 85/15.
All its simulated trading rules are written on the website. The process appears transparent, and there are no unrealistic expectations.
About The simulated Trading Capital
The simulated Trading Capital was established in 2019 and is based in Ontario, Canada. The firm began with private-only access but later turned public in 2021 and launched a website. In terms of cost for this platform, there are four account size options:
- $50,000 evaluation: $449
- $100,000 evaluation: $649
- $200,000 evaluation: $849
- $500,000 evaluation: $1,999
Pros:
- 85% profit split
- 120% refund available
- There are several simulated trading options to choose from.
- Many simulated trading parameters are available.
Cons:
- The customer service isn’t as solid as a lot of other platforms.
- Trustpilot gives it a low rating.
4. E8 Funding
E8 is a unique prop firm that offers various solutions for forex and contract for difference (CFD) traders worldwide. The firm has many funding opportunities that make it easier for traders to become professionals, as they can manage their accounts virtually from anywhere in the world.
Its main goal is to give traders easy access to liquidity and funding opportunities through a user-friendly interface. Its account parameters help traders stay focused on a disciplined approach. It also provides an E8X dashboard application to guide you. Traders who can prove their skills get to manage a $1 million account.
The firm was created in 2021 and is located in Dallas, Texas. E8’s mission is to provide unique financing opportunities that allow anyone to become a professional trader. You can earn up to 80% profit by simulated trading in forex pairs, crypto, commodity indices, and equity.
E8 also offers many unique features among prop simulated trading firms, such as automated payout systems, top-tier technology, and fast account scaling. Overall, the firm is good for traders who want to leverage advanced simulated trading technologies to trade smartly and efficiently.
Plans:
- $25,000 account: $228
- $50,000 account: $338
- $100,000 account: $588
- $250,000 account: $988
Pros:
- No minimum simulated trading days
- 1:100 leverage available
- Automated payout system
- Fast account processing
- EA supported
Cons:
- Fees are higher compared to other platforms.
- Customer support is a bit lacking.
5. The Funded Trader
The Funded Trader provides several simulated trading benefits. Traders can earn up to 90% of the virtual profit splits, whereas other platforms only go up to 80–85%. This gives The Funded Trader a significant advantage over other platforms. It also has a 4.7 rating on Trustpilot, one of the highest among prop simulated trading firms. Moreover, 91% of Trustpilot users have given it a five-star rating.
The design of The Funded Trader platform is so engaging and animated that it makes the entire simulated trading experience fun and enjoyable. Whereas trading, in general, is considered “boring” or “serious,” The Funded Trader takes a new approach with its “medieval” theme and encourages traders to build their “empire.”
You can choose your path from three challenges: standard, rapid, and royal. The platform first lets you pick your goal. Then, it gives you a custom simulated trading account offer that you can set according to your requirements.
The Funded Trader offers the most competitive pricing compared to other prop simulated trading firms. For example, the price of its standard $100,000 challenge is $549, while the same challenge on FTMO is priced at $656. It also offers a maximum drawdown of 6%, compared to FTMO’s 5% drawdown.
You can leverage The Funded Trader’s extensive knowledge base to better understand the platform. Finally, The Funded Trader has an amazing Discord community where one can engage and find chess, poker, call of duty, blackjack tournaments, Bitcoin price prediction contests, not to mention almost daily giveaways. It's worth mentioning that they organize monthly free competitions with various prizes including free challenge accounts and sometimes cash.
Evaluation Process:
Standard Challenge Phase 1
In the first stage of the evaluation process, you must follow a balanced simulated trading plan and control risks to be successful. The minimum standard challenge starts at $25,000. Upon completing simulated trading objectives and proving your skills, you will be able to proceed to Phase 2.
Standard Challenge Phase 2
Phase 2 is the verification stage. Here, you continue with your simulated trading plan but in a more relaxed manner, with half the virtual profit target of Phase 1. Once you complete Phase 2 simulated trading objectives, your results will be verified, and you’ll be able to progress to the next step.
The Funded Trader
After completing the standard challenge and document verification, you can join the platform as a funded trader. After scaling, you’ll receive up to a 90% profit split along with monthly payouts for the Standard Challenge, and biweekly payouts for the Royal and Rapid Challenges.
The three challenges each come with their own benefits. For example, the Standard Challenge has a higher maximum drawdown level compared to the Rapid and Royal Challenges. On the other hand, Rapid Challenges have quicker processing times for traders to acquire an account, and also employ biweekly payouts. Finally, the Royal Challenge allows the use of expert advisors (EAs) and trade copiers along with biweekly payouts. With consistent results, you can even be considered for the scaling plan.
Pros:
- 90% profit option
- Customized plans according to the trader’s requirements
- Simple and engaging website design
- Scaling plan with a balance of up to $1.5 million
- News simulated trading allowed
Cons:
- A free trial is not available for the time being.
Which of These Prop simulated Trading Firms Is the Best?
While the market is full of unique prop simulated trading firms, we have covered some of the best options available. Each offers unique payout options, a variety of virtual profit margins, and features that make them superior in the industry.
However, if you want the biggest virtual profit split, higher drawdown levels, an awesome community, and constant promotions and giveaways, a platform like The Funded Trader is the superior option. Coupled with its other benefits, such as customized simulated trading plans, it’s one of the best prop simulated trading platforms you can leverage.
The Funded Trader believes every retail trader deserves an opportunity to raise capital and build their own business. Ready to create your wealth through trading? Start your journey with The Funded Trader today.
