Day trading continues to captivate individuals worldwide, offering an exciting and potentially lucrative opportunity to capitalize on short-term market movements. However, many traders face significant barriers when attempting to trade with their own capital, such as high initial investment requirements and risk management concerns. Fortunately, prop firms (proprietary trading firms) present an ideal solution for these traders by providing capital to trade with, in exchange for a share of the profits.
In this comprehensive guide, we’ll explore the best prop firms for day trading in 2025, breaking down what makes them stand out, their key features, and how to choose the right one for your trading style. Additionally, we’ll cover one notable service: FundingPips, a prop firm that is gaining recognition for its excellent offerings.
What is a Prop Firm?
A prop firm is a company that provides traders with capital to trade financial markets in exchange for a portion of the profits earned. These firms typically recruit traders based on their skill, strategies, and overall potential, offering various funding models to help traders grow. Prop firms are advantageous because they reduce the financial risk for the trader, allowing them to focus on developing and honing their trading skills.
While the specifics of each firm can differ, most offer two main benefits: access to leverage and capital. These advantages allow traders to execute strategies they may not be able to implement with their own funds. Prop firms are a fantastic solution for traders who want to trade larger volumes without risking their personal funds.
Key Factors to Consider When Choosing a Prop Firm
Before diving into the list of the best prop firms for day trading, it's important to know the essential criteria to evaluate when choosing a firm. The factors to consider include:
Profit Split
The profit split is a critical aspect of any prop firm. Typically, firms offer a share of the profits generated by your trades. The more favorable the split, the better the firm is for you as a trader. Some firms offer 50%, 60%, or even higher splits, while others offer lower percentages, so it’s essential to choose a firm with a structure that works best for your needs.
Leverage Offered
Leverage allows you to trade larger positions than your account balance would typically allow. Prop firms usually offer higher leverage than retail brokers. If you're an aggressive day trader, higher leverage can increase the potential for larger profits, but it also comes with higher risk. Ensure the firm offers enough leverage to suit your trading style.
Fees and Costs
Fees and costs vary between firms, so it’s important to look at all potential expenses. Some firms may require a joining fee, a monthly subscription, or a cost per trading account. Be sure to assess how these fees impact your profit potential and ensure they align with your budget and goals.
Risk Management Rules
Every prop firm has a set of risk management rules designed to protect both the firm and the trader. These rules can include daily loss limits, maximum drawdowns, and position size limitations. The best prop firms will have reasonable rules that allow you to trade freely while still protecting against large losses.
Support and Education
The level of support and education provided by a firm can significantly impact your success as a trader. Some firms offer training resources, coaching, and mentorship programs to help you improve your trading skills. Additionally, a responsive support team is vital for resolving any issues you may encounter while trading.
Withdrawal Process
Make sure to understand the withdrawal process of each prop firm. The ability to withdraw your profits easily and promptly is essential for any trader. You should also review any fees or conditions attached to withdrawing funds from the trading account.
Top Prop Firms for Day Trading in 2025
With the criteria in mind, let's now explore the top prop firms for day trading in 2025. These firms offer an array of benefits that make them highly suitable for day traders who want to scale their trading and reduce personal risk.
Topstep
Topstep is widely recognized as one of the best prop firms for day trading. They specialize in futures trading but also offer opportunities for forex and equities traders. Topstep's funding model is unique because it involves a two-step evaluation process, where traders prove their skills before gaining access to capital.
Profit Split: 80% to 90% in profit sharing.
Leverage: Offers up to 20:1 leverage.
Fees: Monthly subscription fee for the evaluation process.
Risk Management: Strict rules to ensure consistent profitability, with a focus on preventing excessive drawdowns.
Topstep also offers a free educational platform and trading community to help traders improve their strategies and techniques.
FTMO
FTMO is one of the most popular prop firms in the industry, offering substantial funding for forex traders. They have a reputation for being a firm that rewards strong, disciplined traders. FTMO’s evaluation process is thorough and includes both a demo trading phase and a live trading phase, ensuring only skilled traders are funded.
Profit Split: 70% to 90%, depending on the plan.
Leverage: Up to 100:1, depending on the account type.
Fees: One-time evaluation fee.
Risk Management: Very strict risk management rules, including daily loss limits and overall drawdown limits.
FTMO is known for offering excellent support, with traders gaining access to an array of resources to help them succeed.
The 5%ers
The 5%ers is a relatively new but growing prop firm that specializes in forex and crypto trading. They focus on long-term funded traders, with a unique feature where traders can progress from the "training phase" to a funded account without paying ongoing monthly fees.
Profit Split: 50% to 75%, depending on the funding stage.
Leverage: Up to 10:1, with higher leverage for experienced traders.
Fees: No monthly fees once funded.
Risk Management: A slightly more relaxed approach compared to other firms, but still with sensible risk management rules.
The 5%ers also stand out for their personal mentorship program and opportunities to scale your account significantly over time.
FundingPips Service
FundingPips has quickly become a recognized name in the world of prop firms, particularly because of its flexible approach to day trading. What sets FundingPips apart is their user-friendly platform and the supportive trading environment they provide. They offer a comprehensive funding process, ensuring that traders who meet the criteria are well-equipped to succeed.
Profit Split: Up to 90%.
Leverage: Offers generous leverage options, tailored to individual trading styles.
Fees: Transparent and affordable subscription fees.
Risk Management: Reasonable risk management policies with clear guidelines on drawdowns and position limits.
The FundingPips Service is perfect for traders who are looking for solid capital with minimal barriers to entry. The firm offers tools and education that make it easier for new traders to thrive while providing seasoned professionals with the support they need to continue scaling their trading operations.
OneUp Trader
OneUp Trader is another great prop firm that provides capital to successful day traders. Their evaluation process involves a single phase where traders are assessed on their ability to meet specific profit targets without breaching the risk management limits.
Profit Split: 80% to 90%.
Leverage: Up to 50:1 leverage for futures traders.
Fees: Reasonable monthly fees for the evaluation process.
Risk Management: Firm risk management guidelines to protect against excessive losses.
OneUp Trader also offers a performance coach to guide traders through the evaluation process, making it ideal for those looking for extra guidance.
Conclusion
Choosing the best prop firm for day trading in 2025 can be a daunting task, but with the right research and understanding of what each firm offers, you can find the perfect match for your trading goals. Whether you’re looking for high leverage, a favorable profit split, or excellent support and education, the firms listed in this guide offer some of the best options in the industry.
If you're looking to enter the prop trading world with a strong foundation, consider services like FundingPips, which offer flexible and trader-friendly terms to help you maximize your potential. As you assess each option, keep in mind your trading style, goals, and the specific features that matter most to you. With the right prop firm, 2025 could be the year you take your day trading to the next level!