The Trading Pit Prop Firm Review

The Trading Pit Review and Analysis

Overview

With the rising popularity of prop firms, traders have ever more choices of where to seek funding. Traders looking for a simple but feature-rich option may want to consider the Trading Pit. In this review, we will assess the pros and cons of the prop firm and discuss what traders would suit the platform and the best alternatives.

First, what is the Trading Pit? The Trading Pit is a prop firm, or “proprietary trading firm.” based in Liechtenstein. Like most prop firms, the concept behind the Trading Pit is simple: they offer company capital to traders through funded accounts. The Trading Pit takes the hit of any losses, but the trader gets to keep up to 80% of the profits. Before they can access the company capital, however, traders will need to demonstrate their ability to gain consistent profits without excessive risk. Like most firms, the Trading Pit evaluates interested traders through an internal evaluation or “Challenge.” Traders who prove their worth can then move on to live trading with a scaling plan of up to $5 million in a funded account.

In a few short years, the Trading Pit has made quite a name for itself. The prop firm has scooped up numerous awards, winning “Fastest Growing Proprietary

Firm in Europe 2022” and “Most Trusted Proprietary Firm in Europe 2022.” Moreover, a growing list of corporate partners including Symax Fintech, Sierra Chart, ATAS, and more. The brand reputation and corporate transparency will help to build trust with their funded traders.

The Trading Pit is undeniably a feature-packed prop firm. The additional tools and software plug-ins for market analysis and seamless trading make it stand out from competitors.

Overall, Trading Pit appears to be a reputable and well-regarded prop trading firm. However, as with any trading challenge, it is important to carefully review the terms and conditions of the challenge and evaluate the firm's track record and reputation before deciding to participate.

Funded Accounts

The Trading Pit funded accounts are both generous and trader friendly. Not only can traders access up to $5 million but there is no deadline to hit profit targets. There is even an option to pursue a career at the Trading Pit, with some funded traders going on to work for the firm as professional fund managers.

Currently, the Trading Pit funded accounts offer assets in the forex and futures markets. Cryptocurrency and the trading of stocks and shares are forecast for the platform, which has been featured in Wall Street Online, Market Watch, and Yahoo Finance.

Challenge Overview

The Trading Pit Firm Challenge review

Traders looking for a prop firm with options would be suited to this platform. The Trading Pit offers several avenues to funding; clients can choose from Lite, Standard, Executive, and VIP accounts. Each has its own set of rules and profit targets, but all evaluations offer:

• Overnight, weekend and news trading
• 100% refundable entry fee (after level 1)
• 90 days to complete the Challenge

Unsurprisingly, the most impressive package is the VIP evaluation. With this model, traders can scale up to $5 million, earn cumulative profits up to $703,000 and withdraw profits at any level. Traders will have to pay a one-time entry fee to join any of the challenges, with the prices increasing depending on the account size. The smallest account, with a starting balance of $10,000 has an entry fee of $99, while at the other end, the VIP account gives traders $100,000 and costs $999. The minimum number of trading days ranges from 15 to 7, and all challenges take place over 90 days.

Pros and Cons

The Trading Pit calls itself “the only prop trading firm promise to help you dive into the certificate, hedge fund, and asset management industry and grow as a professional trader.” It also claims to be “the only Prop trading firm that offers forex traders, Multiple brokers, to choose from - freedom of choice to choose the broker of their preference.” These count among the advantages of the platform, but we will delve into more detail in our list of pros and cons below:

Pros:

• Educational support: It certainly goes out of its way to provide support and educational tools for its traders. Traders who join the Trading Pit get a free in-house expert advisor to monitor their progress and help with professional development. Moreover, there is an impressive library of e-books, webinars, educational videos, and other tools to hone traders’ professional development.
• Payment: Traders can withdraw their profits fast and frequently from a user-friendly pay-out platform.
• Premium trading tools: The Trading Pit revolutionizes the trading experience by providing not one but two industry heavyweight tools: StereoTrader and Squawkbox. Stereotrader offers an “epic breakout from market noise” by adding advanced features to the MT4 and MT5 platforms. A scalable software with multiple solutions for manual and automated trading, including 35 one-click actions, intelligent orders, and real-time back testing. Squawkbox is a real-time audio news service and market analysis tool that provides traders with up-to-the-minute news, analysis, and commentary on global financial markets.
• Reputation: The Trading Pit is already present in over 160 countries, with 25+ institutional partners and increasing brand recognition.
• Flexibility: While there is a maximum daily drawdown, this is higher than the industry average. In combination with the fact that The Trading Pit welcomes any trading style and imposes no trading day limit, this adds flexibility to the Challenge.
• Platforms: The range of available platforms with the Trading Pit is large – and continues to grow. Already, traders can choose between ATAS for intuitive data visualization, Rithmic for extremely low latency, and Quantower for multi-asset trading from a single platform.

Cons:

• Limited withdrawal methods: Currently, the Trading Pit only lets traders withdraw profits via bank wire transfers. The prop firm states more pay-out methods will soon be added to the platform but for now, traders are limited to how they can access their profits.
• Cryptocurrency is not widely available: While traders can pay for the Challenge using cryptocurrency there is an extensive list of countries that do not support this method of payment including Canada, the USA, and Puerto Rico. That said, traders do have the option of paying with VISA or Mastercard which is not always the case with prop firms.
• Proof-of-address: Part of the KYC (know your client) process requires that traders submit proof of address. This could be a utility bill or other document. This is an extra step that is not the case across all prop firms and might be an unnecessary hassle for some traders.

Evaluation Metrics

The Trading Pit Evaluation Metrics

The Trading Pit platform has an intuitive and user-friendly interface. Traders are invited to use any style or strategy and overnight and weekend traders on forex are permitted. There are Challenge rules, however, and should these be broken the trader’s account will automatically close. Traders must ensure they trade within these Challenge parameters:

The Challenge rules will vary depending on whether a trader chooses the Forex or Futures models, and the profit targets and maximum daily and overall drawdowns will vary according to account size. The rules for each Challenge are outlined in detail on the Trading Pit account, but as a starting point here are some of the evaluation metrics for the Forex Challenge:

• Traders cannot use automated trading systems;
• Risk must be managed appropriately: traders cannot risk more than 5% of their account on any one trade.
• Traders must trade a minimum number of days during the Challenge:
  • Lite Challenge: 15 days (1 Phase)
  • Standard Challenge: 10 days (1 Phase)
  • Executive Challenge: 7 days per Phase (2 Phases)
  • VIP Challenge: 7 days (1 Phase)
• Traders must meet the profit targets associated with their chosen account:
  • Lite Challenge: Phase 1 €1,000 (10%)
  • Standard Challenge: Phase 1 €2,000 (10%)
  • Executive Challenge: Phase 1 €3,000 (6%)
  • VIP Challenge: Phase 1 €8,000 (8%)
• There are caps on daily drawdown:
  • Lite Challenge: Phase 1 €300 (3%)
  • Standard Challenge: Phase 1 €600 (3%)
  • Executive Challenge: Phase 1 €1,500 (3%)
  • VIP Challenge: Phase 1 €3,000 (3%)
• There is also a maximum trailing drawdown:
  • Lite Challenge: Phase 1 €700 (7%) (Open Trades)
  • Standard Challenge: Phase 1 €2,000 (10%) (Open Trades)
  • Executive Challenge: Phase 2 €3,000 (6%) (Open Trades)
  • VIP Challenge: Phase 1 €10,000 (10%) (Closed Trades)
• All Forex Challenge traders’ accounts will be automatically closed by the partner broker FxFlat after 30 days of consecutive inactivity.

Meet the CEO

Thomas Heyden is the CEO of The Trading Pit. Thomas has demonstrated his expertise in the financial industry by successfully launching and managing multiple investment funds through his regulated company. His clientele comprised institutional investors and high-net-worth individuals (HNWIs). In recognition of his exceptional performance, Thomas was honored with the German Fund Award in 2009 for one of his outstanding investment funds.

Thomas plays a significant role in The Trading Pit, where he is actively involved in the development of TTP (The Trading Pit) in Liechtenstein. Drawing upon his extensive experience in financial engineering, asset management, and business development, Thomas contributes to shaping the growth and expansion of TTP within the region. His expertise in these areas enables him to make valuable contributions to the company's strategic initiatives and overall development.

Frequently Asked Questions (FAQs):