Toptier Trader Prop Firm Review

Toptier Trader Review and Analysis

Overview

TopTier is one of the latest companies to offer funding to experienced traders. With the prop firm industry growing more crowded by the day – is there space for a newbie and what will TopTier be bringing to the table? Before we get under the hood of the prop firm that dished out $150 million in funding last year alone – let us do a quick recap: what are prop firm challenges?

Prop Firm Challenges

Prop firm challenges are a dynamic way for aspiring traders to showcase their skills and potentially secure funding for their trading careers. A firm such as TopTier would recruit skilled traders to trade with company capital in return for a share of the profits. Traders looking for funding or preferring to trade company capital instead of personal funds might consider a prop firm challenge.

These challenges are designed to identify talented individuals who can effectively navigate the financial markets. Prop firms will evaluate traders using trading simulations or competitions where participants are assessed on various criteria: profitability, risk management, consistency, and trading strategy. The fortunate few will be recruited into the company and given funded accounts, the profits from which will be distributed between the firm and trader. Prop firm challenges offer a unique platform for traders to demonstrate their abilities, gain practical experience, and potentially launch their trading careers with the backing and support of a reputable firm.

TopTier Overview

Now, who is TopTier Trader and what do they offer traders? Founded by trading legends Cue Banks and Anthony (of Anthony’s World) TopTier Trader is a proprietary firm that offers up to $600,000 in funding to traders who pass their 2-stage evaluation. In 2022, TopTier Traders were allocated over $150 million in company capital and the firm is now present in over 108 countries worldwide. Once funded, traders will keep up to 90% of any profits earned and are welcome to use any trading style or strategy. The company is known for its low commissions and tight spreads and the funded accounts have no strict time limits or profit targets.

Funded Accounts

Onto the golden question: what levels of funding are on the TopTier table? The maximum level of funding offered by TopTier Trader is $600,000, of which traders can keep up to 90% of any profits generated. To scale up to this level, traders will first need to prove their mettle by means of the TopTier evaluation: a 2-tier program with a variety of starting account sizes and associated trading metrics. The process is simple and traders who hit their targets in time can be funded in less than 10 days. As with most prop firm challenges, there will be a one-time entry fee, but this is refunded to funded traders.

Here is a quick overview of how you get started:

• Tier 1: Make 8/10% profit within 40 days
• Tier 2: Make 5 % profit within 60/70 days
• Get Funded

Traders who are successful in this internal evaluation are then brought into the firm as funded traders, able to remotely manage live accounts with real money provided by the company. TopTier Trader assumes responsibility for any losses and retains a minor percentage of the profits. Of course, before traders get to this level of prestige, they will first need to pass the Challenge.

Challenge Overview

Toptier Trader Firm Challenge review

When it comes to the Top Tier evaluation, traders have a lot of options. There is the standard Top Tier Challenge (branched into Regular Accounts and Swing Accounts), or the Top Tier Challenge Plus.

Regardless of whether you plump for the Top Tier Challenge or Top Tier Challenge Plus, you will need to choose their account size. Accounts range from $10K to $300K, and evaluation criteria such as profit targets and maximum losses will differ accordingly.

Top Tier Challenge

Traders entering the Top Tier Challenge will have 40 days to complete Tier 1, and 60 days for Tier 2, and must trade a minimum of 4 days in both stages. Traders cannot exceed a maximum daily loss of 5% or an overall loss of 10% in either Tier and must hit a minimum profit target of 10% and 5% respectively. Traders are not permitted to use Expert Advisers or hold trades over the weekend. TopTier Trader offers 1:100 leverage to participants across all account sizes. This brings us to Swing Accounts – the main difference being that traders can hold weekend trades and the leverage is 1:30. The entry fees for the challenge depend, of course, on the account size in question, ranging from $130 for the $10K account to $1,399 for the $300K account.

Top Tier Challenge Plus

Traders opting for the Top Tier Challenge Plus will be able to choose from the same account sizes but with different evaluation criteria. There will be a limit of 70 days in Tier 2 and the maximum overall loss is 8%. Traders will need to meet profit targets of 8% in Tier 1 and 5% in Tier 2. In the Top Tier Challenge Plus, both Expert Advisors and Weekend Holding are permitted. The fees reflect the increase in flexibility, but the difference is small: ranging from $140 for the $10K Account to $1489 for the $300K Account.

Pros and Cons

Pros:

With 5 million monthly trades and a presence in over 100 countries, TopTier Trader is launching careers across the board and growing by the day. Here are some of the reasons traders might want to be recruited by this proprietary firm:

• Variety: The TopTier Challenges are wide-ranging in size and evaluation criteria. Traders can choose between smaller accounts where the initial costs are minimal, and targets are lower. Alternatively, they can go in full pelt, trading $300K from the start. The array of options will benefit a range of traders: novice or first-timers may prefer the small investment required from the smallest account size, while those with more experience under their belt can launch into large account sizes and profit accordingly.
• Flexibility: TopTier Trader appears to recognize the limitations that strict time limits and finite techniques will present to traders. Once funded, TopTier traders are welcome to use any trading style, strategy, or approach that they wish and there are no strict time limits or deadlines to meet profit targets.
• Dashboard: The trader’s dashboard is a powerful and time-saving tool integrated into the platform. Traders can track their Challenge account, monitor their drawdown limits, profit targets and request payouts. Once they have signed up for a challenge, traders can simply log in with their username and password and track their progress. The trading data displayed on the Dashboard will help traders improve their performance and keep within the parameters of risk.
• Competition: TopTier stands out from its competitors with its internal competition. The TopTier Competitions – run monthly – are an innovative way for traders to earn some side revenue. Over 4,400 traders have entered the May Competition which is ongoing. Participants in the competitions follow the same rules as for the Top Tier Challenge (5% Max Daily Drawdown; 10% Max Total Drawdown; 7 Minimum Trading Days) and the winner will receive a $100K Top Tier Plus Challenge. Prizes go all the way down to 8th place increasing the likelihood of securing a victory.
• Affiliate Program: The TopTier Affiliate Program has an attractive commission scheme: up to 20% for every referral that purchases a Challenge.

Cons:

What is not to like about TopTier? While TopTier Trader certainly has an impressive array of features and generous funding packages, the prop firm could do with improving. Traders have expressed impatience with the customer support team in the past and while the time limits are a common feature among prop firms, they are nonetheless a limitation on some trading styles used by traders, who are therefore held back from completing the evaluation.

Evaluation Metrics

Toptier Trader Evaluation Metrics

On the note of evaluation metrics, what rules do TopTier traders need to follow to get funded? To meet the criteria for TopTier funding, traders will need to demonstrate their ability to meet profit targets within a normal range of risk. Here is a summary of the criteria used by TopTier when evaluating traders:

• TopTier traders must avoid breaching the drawdown limits associated with your specific funded account type, along with any other applicable rules.
• Traders managing TopTier Funded Regular accounts must limit losses to no more than 5% of the day's starting balance. This serves as the daily drawdown limit. Moreover, traders must ensure their account does not dip below 90% of its initial value, keeping the maximum drawdown limit in mind.
• Similarly, for TopTier Funded Swing accounts, the daily drawdown limit is set at 5% of the day's starting balance. The maximum drawdown limit is maintaining the account above 90% of its initial value.
• TopTier Funded Plus accounts have slightly different criteria. Here, the daily drawdown limit is 5% of the starting day's balance or starting day's equity, whichever is higher. Traders would be advised to make sure their account does not drop below 92% of its initial value in order to stay within the maximum drawdown limit.

Traders who meet the above evaluation criteria will meet the funding requirements. They can request their first payout 14 or 30 days from their first trade on the funded account, depending on the specific funded account type. Subsequently, TopTier payouts occur on a biweekly basis.

Frequently Asked Questions (FAQs):