Topstep Prop Firm Review – TopStep sure does have among the rows when it comes to trading in futures. In this article, we will provide information on how TopStep allows up-and-coming as well as experienced traders to trade firm capital, thus eliminating even the slightest possibility of a loss with personal funds. With its structured evaluation process and focus on risk management, TopStep has gained a reputation as the go-to platform among traders looking to prove their skills and scale up. Like any prop firm, TopStep carries pros and cons. We will break down the main pros and cons to help you identify whether TopStep is what suits your needs in your trading journey.
Overview of TopStep
Topstep falls under the category of a proprietary trading firm. They give traders the chance to prove themselves as profitable and allocate capital to them if they succeed. TopStep was co-founded in 2012 with the vision of allowing traders to trade using the firm’s money by demonstrating their trading capabilities through an evaluation program. It is a US-based prop trading firm for futures traders that began in the Chicago Board of Trade trading pits. It is a funded trading account funded by the firm once they complete the evaluation and is then given a fully funded account to actively trade futures contracts up to $1 million in buying power. Potential prop traders can choose from three account options, and TopStep allows them to keep the first $10,000 they earn before an 80% payout kicks in.
Topstep acts as the counterparty and provides the capital, technology, risk management while traders keep 70-90% of the profits based on account size. This allows traders to get experience trading large sums of capital without putting their own money at risk.
Key Features of TopStep Prop Firm
TopStep follows best practices duplicated across the prop firm industry, which remains an expanding industry.
- One-rule evaluation with a profit target of 6%.
- A minimum of two trading days in the Trading Combine.
- 16 trading platform choices, but only five that are free.
- A maximum loss limit of 4%.
- Daily loss calculation at the end of the trading day rather than intra-day.
- 80% profit share with the first $10,000 for the trader.
- Only futures trading.
- Prop traders can request payouts after five days with $200 minimum profits.
- Daily payout processing.
- $125 minimum withdrawal amount.
- Monthly evaluation fee rather than a one-off account.
- Up to three Express Funded accounts in a simulated trading environment.
- A monthly fee of $9 for Level II data.
- Trading fees depend on the brokerage but are reasonable and below $5 per contract, per round trade, for most futures contracts.
Pros of TopStep
- Profit share of 100% for the first $10k in profits for the trader, and then 90%
- Get funded with no personal capital at risk
- Trade futures with professional buying power
- Keep most of your trading profits
- Gain experience without losing own capital
- Access education and community
- Good pricing structure and account diversity
- Profit withdrawals processed daily
- Maximum account loss is the only trading rule
- No time limit to complete the audition
- 1-step audition process
- No timetable/deadline to meet your profit targets.
- A current 20% off promotion makes Topstep a great bargain. Topstep fees go away once you become a funded trader.
- Respected prop firm with ten years in the business and millions of dollars of trader withdrawals.
- Quick evaluation process. Step 1 can be completed in just five trading days, and Step 2 no longer has a minimum days requirement. Although this isn’t typical, one trader completed both steps and became a funded trader in just nine days.
Cons of Topstep
- Tough to calculate the total expenses
- Funded traders are treated as professionals when paying the exchange fees, which results in higher monthly fixed costs for exchange data feeds
- It requires five winning days to start first payouts
- For active accounts, you must have five (not necessarily consecutive) “winning days” (in which you profited more than $100) before you can request a withdrawal of your profits.
- Have to pass the evaluation
- Ongoing fees for funded accounts
- Strict trading rules to follow
- Limited futures contracts available
- High minimums for forex trading
Trading Platforms For TopStep
Topstep currently supports 16 trading platforms, 8 of which are free to use in the Trading Combine. To keep costs low during the Trading Combine, it sounds reasonable to go with one of those eight platforms:
- NinjaTrader
- Quantower
- TopstepX
- TradingView
- Tradovate
- T4
- R|Trader Pro
- ATAS OrderFlow Trading
Frequently Asked Questions (FAQs)
What is the Combine evaluation in TopStep?
- TopStep’s Combine is an evaluation program created to test your trading skills before being given a live, funded account. The process of passing the Combine includes adhering to specific profit targets, a daily loss limit, and maximum drawdowns to test whether one can trade both profitably and responsibly.
How long does it take to pass the Combine?
- The Combine evaluation can be taken at your own pace. There isn’t any particular time constraint, although most traders take between 2 and 4 weeks to pass the combine, depending on their performance and the rules they need to follow.
What happens if I fail the Combine?
- If you violate the Combine’s rules (such as exceeding the daily loss limit or maximum drawdown), you will fail the evaluation and need to restart the process. This requires paying the Combine fee again to retake the test.
What are the daily loss limits and drawdown rules in TopStep?
TopStep has strict risk management rules, including:
- Daily Loss Limit: A set amount you cannot lose in a single day.
- Maximum Drawdown: The maximum amount your account can lose over time before you are disqualified. These rules vary based on the account size chosen.
Can I trade multiple markets with TopStep?
- TopStep is primarily focused on futures markets, so you can trade instruments like the S&P 500, oil, and gold futures. However, it does not offer access to stock or cryptocurrency trading.
- TopStep is transparent with its fees. You pay the Combine evaluation fee, and after passing, you pay a small platform fee to maintain your account. There are no hidden costs beyond these.
How do I get paid once I become a funded trader?
- Once you are a funded trader, you can request a payout at any time, as long as you have a minimum of $100 in profits. Payouts can be processed via ACH, PayPal, or wire transfer, depending on your preference.
