Cheapest Prop Firms: The Best Choices for Traders in 2024

Imagine turning a small trading account into a financial powerhouse with little capital investment. That dream is closer than ever, thanks to the rise of proprietary trading firms (prop firms). These companies provide traders with the opportunity to manage significant amounts of capital, far exceeding what they may have in their personal accounts. The best part? Some of these firms require very little up-front cost. The goal of this article is to explore the cheapest prop firms available in 2024, giving traders insight into how they can start trading with minimal costs and maximize their profit potential. We’ll break down the top firms, their fees, their payout structures, and what to expect when working with them.

1. Prop Firms: The Basics You Should Know

Before diving into specific firms, let’s first understand what prop trading is and why the cost structures are different from firm to firm. Prop firms allow traders to use the company’s capital to trade in exchange for a cut of the profits. The trader typically needs to prove their trading ability through evaluations, and only after successful completion can they access live trading accounts. While some firms have exorbitant upfront fees, there are many that are much more accessible financially. What are the key things traders should look for when choosing a prop firm?

• Evaluation Fees: This is the cost you pay to participate in the firm’s evaluation phase. Some firms refund this fee if you pass their assessment, while others do not.
• Profit Splits: How much of your earnings do you get to keep? Some firms offer an 80/20 split in the trader’s favor, while others provide up to 90%.
• Scaling Programs: Can you grow your account over time? The best firms offer scaling programs, allowing you to trade with increasing amounts of capital as your trading proves profitable.

2. The Cheapest Prop Firms of 2024

Here is a list of some of the most affordable prop firms available to traders in 2024. We’ll go into detail about each firm, covering fees, payout structures, and any noteworthy features that might set them apart.

a. MyForexFunds

MyForexFunds is one of the most well-known prop firms, offering a low-cost entry to traders who are confident in their skills. Their evaluation fee is around $49 for the smallest account, which offers traders access to $10,000 in capital. There are two stages to their evaluation, but if you pass, you’ll be able to keep up to 85% of your profits. This firm is highly praised for its quick payouts and accessible structure. It’s a great choice for new traders looking to enter the world of prop trading without heavy financial investment.

b. The5ers

The5ers is another affordable option for traders, with fees starting at $85 for their lowest-tier account. This firm offers up to a 90/10 profit split and has a unique scaling program that can increase a trader’s account to $1 million in trading capital if they perform consistently. It also has no time limit for traders to pass the evaluation, which is perfect for those who want to trade at their own pace.

c. FTMO

FTMO is perhaps the most respected name in the industry, with a reputation for excellent customer support and a clean interface. While not the cheapest in terms of evaluation fees (starting at $155), they do offer an 80/20 profit split and refund the evaluation fee once the trader passes. What sets FTMO apart is its focus on discipline and the tools it provides to help traders manage their emotions and risk effectively.

d. True Forex Funds

For those looking for a budget-friendly option, True Forex Funds has an evaluation fee starting at $79, offering traders access to $10,000 in capital. Their profit split is 80/20, and they also have a scaling plan that allows traders to grow their account size over time. True Forex Funds is popular due to its transparent conditions and fast processing of profits.

e. Lux Trading Firm

Lux Trading Firm targets more experienced traders with an initial evaluation fee starting at $170, but the rewards are great for those who pass the evaluation. The profit split is 75/25, and traders have the opportunity to grow their accounts significantly with the company’s scaling plan, eventually managing up to $2.5 million in capital. Lux Trading is ideal for those looking to build a long-term career in trading.

3. Evaluation vs. Subscription-Based Models

Many prop firms operate on one of two models: evaluation-based or subscription-based. In an evaluation-based model, traders must pass a performance test to prove they can trade profitably. Once passed, they gain access to the firm’s capital. Subscription-based models are typically less risky upfront, as traders simply pay a monthly fee to use the firm’s capital. However, they might not offer the same long-term growth potential.

For example, Leeloo Trading is a subscription-based firm with low monthly fees starting at $77. Traders don’t have to worry about evaluation phases but can trade using Leeloo’s capital after paying the subscription fee. It’s an excellent choice for traders who prefer not to deal with evaluations but are confident they can make consistent profits.

4. Why Cheap Doesn’t Always Mean Best

While focusing on the cheapest prop firms might seem like the best strategy, it’s important to consider more than just the cost. Some firms might charge low fees but have restrictive rules or difficult payout conditions that make it hard for traders to succeed. When choosing a prop firm, traders should also focus on:

• Customer support: How responsive is the firm when you need help?
• Trading platforms: Does the firm support popular platforms like MetaTrader or TradingView?
• Rules and restrictions: Some firms have stringent rules about how and when you can trade, which can affect profitability.

5. Which Firm is Right for You?

Choosing the right prop firm ultimately depends on your trading style, budget, and long-term goals. For beginners, it might make sense to go with a firm like MyForexFunds or True Forex Funds, where the evaluation fee is low and the profit split is generous. More experienced traders might prefer firms like FTMO or Lux Trading, which offer excellent scaling opportunities and robust customer support.

In summary, the cheapest prop firms offer a gateway to trading larger amounts of capital without significant personal investment. They can help traders scale up quickly if they are consistent and disciplined in their approach. The key is not just finding the cheapest firm but finding the one that aligns with your trading style and long-term goals. Whether you are a beginner or an experienced trader, there is a prop firm out there that fits your needs.

Conclusion: The Best Cheap Prop Firms for 2024

To conclude, prop firms offer an exciting opportunity for traders to grow their accounts with minimal financial commitment. The cheapest prop firms in 2024, such as MyForexFunds, The5ers, FTMO, True Forex Funds, and Lux Trading Firm, provide a range of options for both beginner and experienced traders. It’s important to consider not just the cost but also factors such as profit splits, scaling opportunities, and customer support. For those ready to take the plunge, these firms provide an accessible way to start trading with large capital allocations while keeping upfront costs low.