Crypto trading is evolving fast, and choosing the right crypto prop firm can be a key factor in your success. Traders are not just looking for funding — they need partners who offer practical risk-management support and modern tools. If you’re ready to take your trading skills to the next level and aim for meaningful profits, it’s worth considering progressive funding models. But is it all that straightforward? Let’s break it down.
Risk Disclaimer
Important: trading involves significant financial risk. Using a firm’s capital can result in both profits and losses, and failing to meet program objectives may lead to account closure. More than 85% of prop traders do not achieve long-term profitability. Understand the risks and seek professional advice if needed.
How Does Prop Trading Work?
In prop trading, traders use various strategies and speculative methods to generate profits. Prop firms provide access to their resources — capital, infrastructure, algorithms, trading platforms, and internal tools. Profits are then split between the trader and the firm according to predefined terms, which may vary depending on the company’s rules and policies.
How to Become a Prop Trader
To become a funded prop trader, you typically need to go through several steps. First, learn the fundamentals of financial markets and develop practical trading skills. This can be done through online or offline education. Next, choose a prop trading firm and apply to its evaluation program.
Most evaluations are structured as multi-stage challenges. The market offers two-phase programs, as well as one-phase and three-phase formats. The idea is the same: the trader must prove they can generate returns while strictly following risk limits, demonstrating both skill and understanding of market mechanics.
In many firms, a typical two-step challenge looks like this:
You start with Phase 1, where the profit target is often around 8% of the account balance. After passing Phase 1, you receive an account for Phase 2, where the target is commonly about 5%. Once you pass both phases, you receive a funded account. Profits on the funded account are shared between you and the firm; the most common split is 80/20, where the trader receives 80% and the firm receives 20%.
What Is a Crypto Prop Trading Firm?
Crypto prop firms provide traders with access to the firm’s capital to trade digital assets. Unlike traditional brokers, they often earn not primarily from commissions, but from a share of profits generated by successful trading. In many cases, the majority of earnings remains with the trader. This allows clients to trade larger amounts without investing their own funds, reducing personal financial exposure.
Different firms offer different terms, including the amount of capital provided, profit split, and access to professional trading tools. Below are the key features of crypto prop firms.
Trading Funding
Instead of using personal funds, a trader receives a simulated or allocated trading account from the firm — for example, $25,000 or $100,000 — after completing an evaluation (the challenge).
Challenge / Evaluation
To gain access to the firm’s capital, a trader must prove their strategy works and that they can follow risk rules. This may inсlude:
- reaching a specific profit target;
- staying within drawdown limits;
- meeting minimum trading-day and trade-count requirements.
Profit Split
When a trader successfully trades on the firm’s capital, the firm keeps a portion of the profits (often 5% to 50%), and the remaining amount goes to the trader. For example, with an 80/20 split, the trader receives 80% of the profit and the firm receives 20%.
Restrictions and Risk Control
Prop firms typically enforce strict risk management. Common restrictions inсlude:
- maximum daily drawdown and overall drawdown limits;
- no trading on weekends;
- requirements to close positions before high-volatility events.
How to Choose a Crypto Prop Firm
When selecting a prop firm for crypto trading, carefully evaluate the factors that can affect your performance and outcomes.
Key selection criteria:
- Reputation and track record. Review feedback and the company’s history. Look for a firm with proven credibility and consistent operations.
- Profit share. Compare how profits are split and what model the firm uses.
- Risk management. Study the rules and tools the firm provides for capital protection and drawdown control.
- Support and resources. Evaluate what the firm offers: educational materials, trading tools, and customer support. Firms focused on trader development typically provide resources that help traders improve skills and strategies.
- Payout structure. Profit splits may range from 50/50 to 90/10, so choose what matches your goals.
- Performance targets. Each firm sets its own profit targets and expectations for trader results.
- Evaluation process. Review the challenge rules, account types, and assessment criteria.
- Funding limits. Check the maximum funding available — higher limits can significantly expand your trading capacity.
How to Start Your Journey in Crypto Prop Trading
To join a crypto prop firm, follow these five steps:
- Choose a firm. Research reputation, terms, and educational resources to find the best fit.
- Understand the requirements. Make sure you clearly know how the challenge works and what rules must be followed.
- Build your skills. Improve strategies, analyze markets, and maintain consistent results.
- Apply. Submit your application along with trading history and any required documents.
- Prepare for the challenge. Study the firm’s risk approach and evaluation conditions in detail.
Important: before starting a challenge, carefully read the risk-management rules and the full program terms.
List of Crypto Prop Firms for 2026
There are many online prop firms. Below are examples mentioned for informational purposes:
- FTMO: a well-known and widely used online prop firm. Offers quick access to evaluation and clear program rules.
- Nextproptrader: an online prop firm offering evaluations up to $250k and up to 95% profit share across multiple instruments, including CME futures. Transparent conditions, but includes trailing drawdown, which may be better suited to more experienced traders (loss limits can move with profits).
- OneUp Trader: a platform that provides evaluations and access to funded accounts for futures trading. Notable features inсlude no daily drawdown limit and up to 90% profit share for the trader.
- E8 Funding: a fast-start online prop firm focused on flexible terms, simple rules, and support across various markets, including FX, stocks, and commodities.
- Funded Next: often suitable for beginners thanks to a free trial and the ability to use trade copier software — a convenient entry point into prop trading.
- The5ers: offers a wide range of plans. Key advantages inсlude no strict time limits for reaching targets and a free demo account.
- FTUK: a strong choice for high-risk traders, offering leverage up to 1:100 and a fixed drawdown structure.
- Crypto Fund Trader and Funding Pips: two highly popular platforms that offer access to trading FX and CFDs. Accounts can go up to $300k, but you should compare parameters carefully before choosing.
Our Methodology for Ranking Prop Firms
Our team uses a strict methodology to evaluate trader-funding companies, applying more than 100 quantitative and qualitative criteria. Many parameters receive individual scores that are then incorporated into an overall rating.
Key aspects of the evaluation inсlude:
- Trader reviews and feedback. Collecting and analyzing experiences from current and former traders.
- Trading instruments. Assessing the range of available assets, as well as the breadth and depth of markets.
- Challenges and evaluation process. Reviewing challenge systems, account types, assessment criteria, and funding procedures.
- Profit split. Analyzing payout structures, terms, and scaling plans.
- Trading conditions. Reviewing leverage, execution speed, fees, and other trading costs.
- Platform and technology. Evaluating the firm’s proprietary platform or supported third-party terminals, including usability, features, and stability.
- Education and support. Measuring the quality and accessibility of learning materials, webinars, and personal guidance.
Conclusion
The key advantage of prop trading is that it can help you grow professionally through real trading in a relatively short time, often guided by experienced mentors and structured risk rules. For beginners, it can be an excellent solution. For experienced market participants, the format may not always be the most exciting due to restrictions, but it’s still not something to dismiss. Both the trader and the firm are equally interested in profitability, so conflicts of interest are usually minimal — unlike in forex, CFDs, or binary options.
Here are a few points that may help you see prop trading from a new angle:
- For a relatively small fee, you can access “big capital” — this is a clear advantage.
- Think of prop accounts as a social ladder: they can lead to larger opportunities, as long as you put in the effort and stay disciplined.
- Managing a firm’s capital can make it easier to handle larger losing trades and get used to bigger account sizes. For example, a $2,000–$3,000 drawdown on a funded account may translate to a real personal loss that’s closer to the challenge fee and opportunity cost (e.g., ~$40 as part of a $200 challenge cost), rather than the full drawdown amount.
- A prop account can accelerate your development as a trader and speed up the evolution of your trading systеm compared to trading only with personal funds.