When investors are looking at opportunities in day trading and forex trading, finding the right prop firm to provide you with the tools and capital to succeed is crucial.
With prop firm reviews, you’ll want a prop firm that provides multiple income opportunities, access to capital, and tools that help retain funded accounts and avoid funded account losses.
In this review, we look at Next Step Funded and FTMO to determine the best prop trading firms for investors of all experience and ability levels.
For the beginner and less knowledgeable, there are a couple of things to understand first.
The term prop firm is short-hand for proprietary trading firms, and these firms play a significant role in the investment industry and are responsible for helping investors make larger stakes in trades by using the firm’s capital to trade financial instruments, such as stocks, bonds, currencies, and derivatives.
By using more significant amounts of capital, these firms create greater access, funding, and infrastructure for traders to succeed.
Another critical feature these firms provide is tools and technology that increase trading opportunities while limiting the risk associated with investing and avoiding funded account losses.
There are many different prop firms to choose from, and in determining which is the best prop firm, the leaders in the industry are Next Step Funded and FTMO.
While both platforms claim to allow traders to hone their skills on simulated platforms and subsequently trade substantial sums on funded accounts, only one makes it easy to do so.
In this article about prop firm reviews, we’ll highlight the advantages of Next Step Funded compared to its competitor and look at some of the controversy surrounding FTMO.
What Are Prop Firms?
In any discussion about the best funded trader programs, the first thing to discuss is the prop firm challenge.
A prop firm challenge is a tool firms use to determine the potential for profitability of an investment strategy. While both offer a prop firm challenge, only one, Next Step Funded, provides an alternative source of income other than simply making a successful investment run.
Using demo accounts, Next Step Funded allows investors to try out their strategies without suffering significant losses, avoiding funded account losses. But, what’s unique to Next Step Funded is the proprietary live data monetization so that the platform can make a passive income as well as through their investment strategies.
In comparing the two prop firms, while there are similarities, like being able to trade with company funds and earn a share of the profit, there are also significant differences between the two that investors and traders should know to make an informed decision.
In addition to the live monetization opportunity that Next Step Funded offers, it provides traders with capital of various account options as a prop trading firm.
Another key feature is that traders of different experience levels can choose what they are willing to stake and risk level, with the option for higher profit potential coming from higher-risk accounts that also have higher drawdown limits.
On the other hand, FTMO is built on a two-step evaluation to assess traders’ skills and determine whether they qualify for funding.
The first step users must pass is the challenge phase, where a simulated account is used to determine whether specific profit targets are achievable within predefined risk limits.
Once the challenge is completed successfully, the next phase is the verification phase. Traders must replicate their previous simulated performance with a real account, and successful completion is based on their performance and risk management skills.
Next Step Funded Vs. FTMO: Head To Head
One of the more significant advantages of Next Step Funded is that it is powered by Eightcap, which shows the prop firm’s commitment to providing users with a fully customizable and intuitive trading experience.
The interface allows traders flexible access through the Web Trader, desktop, and mobile apps, making for a more seamless and efficient trading experience regardless of the devices used.
Eightcap’s Extensive Offering
If you’re curious about the importance of Eightcap, a vital strength of the tool is that it boasts over 1000 trading instruments, making it a world-class option for traders to diversify their portfolios and explore different markets, avoiding funded account losses while enhancing overall trading experience.
Fast Execution and Optimal Performance
Another critical feature of Next Step Funded is that it is hosted in Equinix data centers by Eightcap. This guarantees that its cloud tech has optimal performance at all times and can process lightning fast execution of trades, which is essential due to the volatility associated with trading.
FTMO: Learn, Trade, and Profit?
FTMO positions itself on the other side of the spectrum and tries to claim it is a leader in the Prop Trading Industry. Their proposition requires traders to learn through a simulated account on their platform before accessing the prop firm’s capital.
FTMO’s Alleged Ban On US Customers
However, one thing that is significantly different is the news of the controversial decision by FTMO to deny access to US customers. It’s a little unclear as to why this decision was made. Still, the restricted access has led to concerns for American traders who are at risk of not being able to retaining funded accounts and losing access to capital, making many seek alternative options.
Prop Firm Reviews: What Sets Next Step Funded Apart?
You’ll want to dive in and conduct more detailed research when considering prop firm reviews. Some things to look for are to check out customer testimonials and try a free trial or, if, like Next Step Funded, they offer demo accounts, try those out.
Once you have a lot of data to analyze, you’ll see the best prop firms to help make your trading experience as profitable as possible.
Avoiding Funded Account Losses
Between better access to trades and a strong emphasis on risk management strategies, Next Step Funded is designed to help traders avoid losses on their funded accounts.
The transparency and stability that Next Step Funded provides traders alleviates concerns about avoiding funded account losses, potential bans, and lost access to funded accounts.
Retaining Funded Accounts: A Priority for Next Step Funded
Security and peace of mind are other critical features of Next Step Funded, and retaining funded accounts is crucial for traders on any platform.
Because of the stability and security of the platform’s design, traders of all levels and abilities have an incredible learning environment with added support for them as they become successful and profitable.
As investors try to navigate the ins and outs of the complex prop trading world, being able to do a side-by-side comparison with prop firm reviews is crucial.
Due to the challenges and needs that a trader may have, the best prop trading firms will provide access to increased amounts of capital and other avenues of profit potential while prioritizing risk management for greater opportunities of retaining funded accounts, which are strengths of Next Step Funded.