What Are the 5 Cheapest Prop Firms In 2023?

Online prop firms are a great way for traders to scale their capital
and increase their profits in the markets without needing to find investors or
compound their accounts for many years.

However, prop firms can be expensive, and not everyone can afford them;
furthermore, some traders want to take more than one trading challenge to
obtain funding, which can get very pricey! This begs the question, what is the
cheapest prop firm?

The cheapest prop firm is
The5ers, 2 step $5000 account, which costs traders just $39, making it the
cheapest funding option on the market.

In this article, we’ll explore the 5 cheapest forex prop firms, the
cheapest stock prop firm, and the fees you’ll be paying your prop firm. So,
let’s get into it!

Even consistently profitable traders may need one or two extra prop
firm challenges to get funded as the market conditions may not be great for
their trading strategies at the time of their challenge.

Therefore, ensuring you’re working with a cost-effective prop firm will
save you a lot of money and headaches and hopefully allow you to take multiple
challenges if needed, in order to obtain the funding you’re looking for!

The Top 5 Cheapest Forex Prop
Firm

We will keep this constantly updated to reflect pricing within the
market, but currently, these are the top 5 cheapest prop firms for forex
traders:

1. The5ers – $39

The5ers
offers the cheapest prop firm challenge in the industry, with $5000
of trading capital for just $39. This is the 2-step. The5ers know for their
high reputation and their great trading condition.

2. MyForexFunds – $49

MyForexFunds offers the next cheapest prop firm challenge, coming in at
just $49 for $5,000 in trading capital. This is a 2 step challenge account.

3. TheFundedTrader – $65

TheFundedTrader offers a very similar $5,000 funding trading account
for just $65. This, again, is a 2 step challenge model account.

4. MyForexFunds – $84

MyForexFunds are back on the list with a $10,000 account for just $84.
This is the same account model as their $5,000 account at second place but with
twice the trading capital!

5. Finotive – $75

Finotive offers a very similar $5,000 funding trading account for just
$75. This, again, is a 2-step challenge model account.

The Cheapest Stock Prop Firm

If you prefer trading the stock market, there are few stock prop firms
that offer funds, especially for stock traders.

1. Trade The Pool – $97

Trade
The Pool is currently the cheapest and best stock prop firm on the
market, coming in at just $97 for $20,000 of buying power and great trading
conditions. You can trade more than 12,000 stocks and ETFs and even short any
penny stock.

The Types of Fees You Pay to
Prop Firms

There are more ways online prop firms charge traders for their service
and capital. These include:

2. Trading Challenge Fees

All online prop firms charge traders a fee to take a trading challenge
to prove they can consistently and profitably trade the markets. If they’re
successful, the trader will be allocated an amount of capital to trade with!

3. Performance Fees/Profit
Splits

The large majority of online prop firms will offer traders a profit
split. The amount of profit split greatly depends on the prop firm you’re
working with, but it typically ranges from 50%-90%. For example, if you were
working with a prop firm on a 90% split and made a $10,000 profit that month,
you’d keep $9000, and the prop firm will take $1000.

4. Trading Conditions (Spreads,
Commissions, and Slippage)

Prop firms will charge you a spread and/or commissions for your trades
within the market, exactly as a forex broker would. This is a completely
standard within the industry, and it’s usually a negligible amount in
comparison to your trading profits unless you’re a high-frequency
trader/scalper.

5. Monthly Account Fees

Some prop firms charge a monthly fee to keep your funded trading
account. We’ve seen this model slowly dying out over the last 6-12 months but
looking back 2-3 years; this was the most popular model!

Comparing Costs & Benefits

Now we have identified the 5 cheapest forex prop firms, let’s take a
deeper look at their offerings to guide your decision as to which firm may be
right for you!

Tips for Choosing the Right Prop
Firm

Just because a funded trading account might seem great or a prop firm
is really affordable – this doesn’t mean they’re the right prop firm for you!

There are several factors you should consider when choosing the right
prop firm to be working with. These factors include:

1. The Reputation

With prop firms popping up every day, it’s crucial to work with a prop
firm with a long-term, established reputation in the industry. The better the
reputation, the less likely the prop firm will go bust overnight, leaving you
high and dry with no funding!

For reference, The5%ers has over 1300 reviews on Trustpilot, rated
4.8/5!

2. Affordability

Affordability and pricing play a big factor. If you’re coming into the
markets with just $500, you don’t want to work with a prop firm that charges
$500 for a challenge account. Working with a much more affordable option would
be more suitable because if you fail the challenge, you’ll want to have the
opportunity for a second chance.

3. Support For Traders

It’s important to consider what kind of support traders are offered by
a prop firm. Are they offering mentorship, training material, useful insights,
and fast customer support, or are they just leaving traders to fend for
themselves using a cheap outsourced live chat feature?

Believe us, once you’re funded, this will be a big factor for you!

4. Alignment With Your Trading
Strategies

The prop firm must align with your trading strategies. For example,
some prop firms do not allow traders to hold trades over the weekend. If you’re
a swing or position trader, you will not be able to trade your strategies with
that firm effectively.

There are prop firms catered to every trading style, so you need to
find the one that best suits your trading style!

5. Capital Scaling Opportunities

It’s important to think long-term. Does the prop firm you’re
considering allow traders multiple trading accounts? Are there opportunities to
compound your trading account? Is there a way you can grow your capital (scaling
plan) under management without the need to work with an additional prop firm?

These are incredibly important factors to consider!

In Conclusion – What Is the
Cheapest Prop Firm?

In summary, the cheapest prop firm offering is The5ers $5000 account at
just $39. Putting pricing aside, it’s important for traders to look at other
aspects of the prop firm they’re looking to work with, to establish whether
they’re the right fit for them!