|💰 Fees:||The TopStep Challenge with an initial balance $50K costs $165; $100K balance for $325; $150K balance for $375 (per month)|
|🚀 Profit split:||TopStep will pay out 100% of the first $5,000 you generate and 90% from that amount.|
|✔️ Evaluation:||“TopStep Challenge,” a two-step evaluation process that you must pass to get your trading account funded.|
|🎯 Profit Target:||6%|
|⚓ Maximum drawdown (MDD):||2% Daily loss limit. 4% to 3% Max trailing drawdown (the percentage varies depending on the account you choose).|
|⌛ Trading Period:||The TopStep Challenge has No time limits.|
|⚖️ Leverage:||The leverage offered is up to 1:100 (Forex) and can be lowered upon request.|
|🔧 Instruments:||Futures Markets: CME Exchange (17 instruments) NYMEX Exchange (4) COMEX Exchange (3) CBOT Exchange (13)|
|📰 Allow Trade News:||Not recommended|
|🔄 Weekend Position:||No|
Founded in 2012, Topstep has become one of the biggest proprietary trading sites online. Initially established as TopstepTrader and TopstepFX in the futures and forex trading domains, the company eventually merged to form a single entity named Topstep in 2020. Topstep is based in the USA, but it is available for everyone to use worldwide. Traders are invited to join their "forex funded trader program," which gives them the chance to use Topstep's money (and gain a healthy cut of the profits), without risking their capital.
In 2021, Topstep funded 8389 accounts which is a massive number by industry standards, and traders could withdraw over $3.3 million. The question is 'what is drawing so many people to proprietary, or "prop", trading firms?' and 'why is Topstep such a popular choice?'.
The idea behind Topstep and other prop firms is simple: trade using their money and take a percentage of the profits. In the case of Topstep, there are three account sizes you can choose between with different amounts of purchasing power ($200K, $300K, or $500K). Traders must first pass virtual trading tests before their accounts go live with real money. Choosing a large position size, such as $500K, may be more likely to yield the most significant profits, but traders will also need to hit higher targets (and avoid exceeding the loss limits). Traders must also pay a monthly fee during the trading evaluation. This fee is beneficial to traders who believe they can pass the test quickly versus firms that ask for a more expensive one-off payment.
In short, you need to demonstrate two things to Topstep before they will provide you with a funded account. First, you must prove you can make a profit and, second, you must show you can manage risk. Topstep is not looking for mavericks. They want their traders to earn steady profits week after week no matter the market conditions. Don't think you're up to it? Topstep has made the unusual move to provide free personal, group, and digital coaching for anyone looking to up their trading skills.
What are funded accounts?
Your account will be fully funded when you have passed the tests, or "challenges," using a virtual money trading account, known as "Trading Combine Accounts," Topstep will fully fund your account. Everyone is eligible, and there is no small print waiting to catch you out. On both the demo account and funded account, traders will use 22 currency pairs on the forex ("foreign exchange") market. Make sure you have researched how to trade on the forex market before signing up. Topstep also provides useful trading and forex analysis tools you can use throughout your time with them. Suppose the forex market isn't for you. In that case, Topstep gives you the option of trading futures on the most popular CME products (including everything from stocks and indexes to commodities and cryptocurrencies).
In a broad sense, this trading system is not unique to Topstep. Many prop firms offer similar deals, so how does Topstep compare with them? Below, I have compiled a list of the pros and cons of Topstep, followed by some competitor research to help you decide which proprietary firm is right for you.
Topstep Challenge review
There will always be some traders who are unhappy with certain aspects of a prop firm's challenge review. Although Topstep is no exception to this, most traders find it a fair, easy-to-use, and efficient system of finding traders worthy of entrusting hundreds of thousands of dollars to. It can be easy to start taking for granted, but Topstep offer up to $500,000 of their own money. Wouldn't it be crazy if they didn't have a test before handing over this amount of money?
The profit targets on Topstep are entirely reasonable and in line with many other well-regarded prop firms. Topstep also has a limit on the number of losses that can be accrued, and targets for profits gained. Topstep does this to discourage certain trading habits like short trades and other actions they believe will be detrimental to your trading figures in the long term.
Although the name "Topstep Forex" may lead you to believe you can only trade on the forex market, you can also opt to trade futures on several marketplaces, including the stock market, commodities, and Forex. Topstep comes with a great degree of flexibility regarding trading restrictions, and its challenge is available to everyone in the world (*provided their country is not a banned list for trading). For those who successfully complete the challenge, the potential payouts are enormous!
Let’s talk about the good stuff…
Michael Patak is a Founder and CEO at Topstep. He is a financial markets professional based in Chicago and a former floor trader and member of the Chicago Mercantile Exchange. He is best known as the founder and chief visionary officer of Topstep Trader, an educational and funding platform designed for new traders.
Previously he was the founder of Gorilla Gamer.
In 2016, Patak was a finalist for the Ernst & Young EY Entrepreneur Of The Year® 2016 Award in the Midwest, which encompasses Illinois and Wisconsin.
|TrustPilot||Topstep TrustPilot Customer Reviews, Feedback and Complaints|
|Trustpilot||On Trustpilot, Topstep has currently 1.6k number of reviews with a TrustScore (the overall measurement of reviewer satisfaction) of 4.60/5.00. Reviewers embracing Topstep most frequently mention Great customer service, and
Guaranteed protection of your asset, and
Develop a great trading habit. Topstep also has a fast and reliable support team that will provide you with all the necessary information you require from them or if you are unsure of anything.|
Topstep firm's reply behavior to negative reviews is up to the standard having replied to 93% negative reviews with a response time to their negative reviews in less than 7 days.
TrustPilot Reviews' Key takeaway
Regulatory framework for investment firms The regulation of a financial institution is the oxygen to its investors. Traders should consider regulatory ...
Prop firms are the buzzword in trading circles these days and for good reason – some prop firms are offering to fund traders with up to $5 million in company ...
The internet is currently rapidly filling up with Prop firms seeking out traders, thus making it difficult and challenging for new traders to select the right Prop ...