What is the cheapest prop firm for a 5K account? (2024)

Prop firms, also known as proprietary trading firms, provide aspiring traders an opportunity to trade the financial markets with the firm's capital, instead of their own. This allows traders to gain experience and prove themselves without putting their own capital at risk.

In this article, we will compare some of the most popular prop firms that offer funded accounts starting from $5,000. We will look at their key features, fees structure, profit split terms and the challenge requirements to pass in order to receive funding.

List best Forex Prop Firms in 2024

✅The5%ers Open An Account

✅The Forex Funder Open An Account

✅ E8 Funding (E8 Markets) Open An Account

✅FTMO Open An Account

✅ Fidelcrest Open An Account

✅LuxTradingFirm Open An Account

✅ Sabiotrade Open An Account

✅True forex Funds Open An Account

Prop Firm Rating Criteria

When it comes to rating proprietary trading firms (prop firms), several criteria can be considered. Here are some common factors that can be used to evaluate and rate prop firms:

  1. Capital and Funding: The amount of capital available to traders is a crucial factor. Higher capital allows traders to take larger positions and potentially earn higher profits. Additionally, the stability of the firm's funding sources and its ability to provide sufficient capital to traders are important considerations.
  2. Risk Management: A robust risk management framework is essential for a prop firm. This includes measures such as position sizing, stop-loss orders, risk limits, and risk monitoring systems. A well-designed risk management system helps protect both traders and the firm from excessive losses.
  3. Trading Tools and Technology: The quality and effectiveness of the trading platform and tools provided by the firm play a significant role. A prop firm should offer reliable and advanced trading software, real-time market data, charting tools, and order execution capabilities.
  4. Trading Costs: The costs associated with trading, such as commissions, fees, and access to markets, can impact a trader's profitability. Lower trading costs can be more favorable for traders, as it allows them to retain a higher portion of their profits.
  5. Training and Support: A prop firm's training and support programs are crucial for developing traders' skills and knowledge. This includes access to educational resources, mentorship programs, regular performance evaluations, and feedback from experienced traders.
  6. Payout Structure: The firm's payout structure determines how traders are compensated for their trading performance. This includes factors such as profit splits, performance-based bonuses, and any fees or costs deducted from profits. A fair and transparent payout structure is important for traders.
  7. Market Access: The range of markets and trading instruments available to traders is an important consideration. A diversified selection of markets allows traders to take advantage of different opportunities and strategies.
  8. Track Record and Reputation: The firm's track record and reputation in the industry can provide insights into its reliability, integrity, and success. It's beneficial to consider factors such as the firm's history, regulatory compliance, client reviews, and industry recognition or awards.
  9. Scalability and Growth Opportunities: The potential for growth within the firm and the availability of advanced trading strategies or higher capital allocation as traders progress can be important considerations for ambitious traders.
  10. Legal and Regulatory Compliance: Compliance with relevant financial regulations and licensing requirements is crucial. A reputable prop firm should operate within the legal framework and comply with industry regulations to ensure the protection of traders' interests.

What is the cheapest prop firm for a 5K account?

FTMO

Information

FTMO (Funded Trader Millionaire Operator) is one of the largest and best known prop firms globally. They have funded over 60,000 trader accounts and have over $70 million in trading capital.

FTMO offers funded accounts from $5,000 up to $100,000. Traders need to pass an evaluation challenge by meeting certain metrics over 30 days to prove they can trade profitably with good risk management.

Features and Advantages

  • Funding available from $5,000 up to $100,000
  • No profit splits. Keep 80-90% of your trading profits
  • Receive payouts every month
  • Set own volume and max drawdown limits for evaluation
  • Get a funded account manager to support you
  • Accepts all trading styles and strategies

Fees and Sponsorship

FTMO charges an upfront fee to start a challenge which covers administration and accessing their proprietary trading tools and data feeds.

  • Challenge fee $460 for a $5,000 account
  • No monthly or quarterly fees if challenge passed
  • Withdrawal fees depend on selected account type

They also offer sponsorship programs for talented traders who cannot afford challenge fees.

Challenge Assessment

To pass the FTMO $5,000 account challenge, within 30 days you need to achieve:

  • $750 profit target
  • Max 10% account drawdown

You can select higher custom limits if desired. If challenge is successful, 80% of profits made are paid to you.

Funded Trading Plus

Information

Funded Trading Plus (FTP) is a UK based prop firm founded in 2020 that focuses on small account traders. They have funded over 750 trading accounts so far.

They offer a streamlined and low cost challenge program for getting funded for accounts from $1,000 up to $10,000. Funding over $10,000 is also available with special evaluation.

Features and Advantages

  • Low cost evaluation fees
  • Funding starting from only $1,000
  • High 85% profit split for passing traders
  • Fast withdrawals available
  • Set custom max loss limits

Fees and Sponsorship

As a smaller prop firm focused on affordability for new traders, their fees are very competitively priced.

  • $5,000 account challenge fee only $199
  • No monthly account fees
  • 15% withdrawal fees apply

Challenge Assessment

To pass the FTP $5,000 account evaluation you need to make a minimum profit of $250 within 14 days while not exceeding a 20% max loss limit if trading forex pairs or 10% loss limit if trading other markets.

If successful, traders keep 85% of all subsequent profits made.

The 5%ers

Information

The 5%ers prop firm launched in 2015 and were the first company to offer the current challenge model of trader funding. They have a strong reputation particularly in the UK & Europe.

They provide account funding from $500 up to $1 million+ for traders who pass their evaluation program. Custom accounts above $1 million are also offered.

Features and Advantages

  • Established UK based prop firm
  • Funding from $500 for new traders
  • Keep 80% of profits after passing
  • Low account monthly fees
  • Accepts all trading styles

Fees and Sponsorship

As one of the first challenge-based prop firms, 5%ers fees are very competitive.

  • $5,000 account challenge fee is $159
  • $50 monthly data & account fee
  • 15% withdrawal fees apply

They do not currently offer sponsorship programs.

Challenge Assessment

To get a live funded account with 5%ers you'll need to pass their fxed standards combining profit target and risk limit rules.

Within 14 days for a $5,000 account you must make:

  • Minimum $250 profit
  • Maximum 20% account loss

If successful, traders receive 80% of subsequent profits.

MyFundedFX

Information

MyFundedFX is a fast-growing US based prop rm established in 2020 that is focusing on providing funding programs for FX and crypto traders. They currently have over 300 funded traders.

They offer funding accounts from $500 up to $150,000 for traders able to pass their evaluation phases. Passing multiple phases unlocks higher funding limits.

Features and Advantages

  • US regulated trading firm
  • Crypto trading funding available
  • Funding from only $500 start
  • 80% profit split for successful traders
  • iOS & Android mobile app provided Fees and Sponsorship

MyFundedFX has a transparent fee structure and some discounts for multiple account holders.

  • $5,000 account challenge fee is $167
  • $35 monthly account fee
  • 15% withdrawal & payout fees They do offer a limited number of sponsorship opportunities each year for talented traders. Challenge Assessment

The MyFundedFX $5,000 challenge phase requires passing two evaluation stages. Stage 1 needs:

  • 10% profit target
  • Maximum 15% account drawdown

If stage 1 passed, must immediately pass stage 2 by making minimum 5% profit without exceeding 20% max loss.

If fully passed, traders earn 80% of profits subsequently.

True Trading Group

Information

True Trading Group (TTG) started in 2019 and takes an education focused approach to funding traders. They claim over 3,500 members have passed their funded program.

They offer account funding from $500 up to $275,000 for members who qualify and pass their training phases. Access to specialized courses and daily live streams is also provided.

Features and Advantages

  • Strong educational program & community
  • Funding from $500 available
  • Up to $275,000 account funding
  • 80% profit split after passing
  • Fast withdrawals in 24 hours

Fees and Sponsorship

As primarily an education company, TTG has a monthly membership fee model in addition to evaluation fees.

  • $5,000 challenge fee is $297
  • $179 monthly membership fee
  • $34.99 platform fee (can provide own)
  • 5% withdrawal fee

TTG currently does not offer sponsorship programs for their training & funding challenges.

Challenge Assessment

To be awarded a funded TTG trading account, you need to pass their training evaluation by meeting set metrics.

Within 30 days with a $5,000 account you must:

  • Make minimum $500 profit
  • Not exceed 10% total account drawdown Once fully passed, traders keep 80% of net profits.

Blue Sky Prop

Information

Blue Sky Prop is a newer entrant to the prop firm industry having launched in 2021, but are growing rapidly having funded over 150 trader accounts so far.

They focus on offering simple transparent fee structures for Forex and stock index traders looking to access funding from $1,000 up to $50,000 trading capital.

Features and Advantages

  • Low cost challenge fees
  • Forex & indices accounts from $1,000
  • 85% profit split after passing
  • Guaranteed fill trades & fast withdrawals
  • Set custom loss limits per preference Fees and Sponsorship

Blue Sky Prop offers among the lowest evaluation fees in the industry and takes no profit share until traders are consistently profitable.

  • $5,000 challenge fee only $99
  • No monthly or quarterly fees
  • 15% withdrawal fee Currently they do not offer sponsorship or special exceptions on fees. Challenge Assessment

Their evaluation terms are simple and customizable for each trader.

With a $5,000 account you need within 14 days:

  • Minimum $250 profit target
  • Set your preferred max loss % limit After passing, traders receive 85% of profits generated.

How to open 5K account prop firm

To open a trading account with a proprietary trading firm (prop firm) with a deposit of $5,000, you typically need to follow these general steps:

Step 1: Research and Select a Proprietary Trading Firm

Conduct thorough research to identify prop firms that align with your trading goals, preferences, and the markets you wish to trade. Consider factors such as the firm's reputation, capital allocation, risk management policies, payout structure, and training/support programs. Compare multiple firms to find the one that suits your needs the best.

Step 2: Review the Requirements

Visit the prop firm's website or contact their representative to review their account opening requirements. The firm will provide information on the minimum deposit amount, any applicable fees, required documentation, and eligibility criteria.

Step 3: Complete the Application

Fill out the account opening application provided by the prop firm. You will typically need to provide personal information, financial details, and trading experience. Ensure that you provide accurate and complete information.

Step 4: Submit Documentation

The prop firm will require certain documents to verify your identity and comply with regulatory requirements. Common documents include a valid passport or government-issued ID, proof of address (e.g., utility bill or bank statement), and sometimes a resume or trading track record. Follow the firm's instructions to submit these documents securely.

Step 5: Fund Your Account

Once your application is approved and your account is set up, you will need to deposit the required amount, which in this case is $5,000. The prop firm will provide instructions on how to transfer funds to your trading account. Usually, you can deposit funds via bank wire transfer or electronic payment methods.

Step 6: Sign Necessary Agreements

Review and sign any agreements or contracts provided by the prop firm. These may include a client agreement, risk disclosure statement, and any other legal documentation. Read them carefully and seek clarification if needed before signing.

Step 7: Set Up Trading Platform

The prop firm will provide access to their trading platform or software. Download and install the platform on your computer or use the web-based version if available. Familiarize yourself with the platform's features and functionalities.

Step 8: Begin Trading

Once your account is funded and the trading platform is set up, you can start trading according to the prop firm's guidelines and rules. Make sure you understand the firm's risk management policies, trading limits, and any specific requirements or restrictions they may have.

Conclusion

In evaluating some of the top prop firms suitable for a $5,000 trader account, FTMO stands as the overall leader in terms of features, credibility and extensive trader support systems. However, their fees are higher than other contenders.

Funded Trading Plus, The 5%ers and the newer Blue Sky Prop offer much more affordable evaluation fees while still providing high profit splits to traders who pass challenges. They also allow setting personal account loss limits.

MyFundedFX is competitive for Forex and crypto traders in particular. While True Trading Group has highest monthly fees but stands out for its educational curriculum.

So in summary, FTMO likely remains the 1 choice for funded trading but traders on tight budgets should also strongly consider Funded Trading Plus, The 5%ers or Blue Sky Prop when reviewing the cheapest prop firms to get started with.

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