In the competitive landscape of prop trading, TopStep and Apex Trader Funding stand as two prominent figures, playing pivotal roles for anyone venturing into day trading. The decision between TopStep vs Apex Trader Funding isn’t merely about choosing a prop firm; it represents a crucial strategic move that could significantly impact your trading endeavors.
Drawing from my extensive experience in the trading world, I intend to offer an insight into both entities, starting with an overview before moving into a more detailed analysis of their evaluation processes and funding stages.
Both TopStep and Apex Trader Funding specialize in offering funded trading programs, specifically targeting the futures market. This unique opportunity allows traders to earn a funded account, providing them with the capital needed to trade in the financial markets.
Now, the question arises: between TopStep vs Apex Trader Funding, which one holds the upper hand? Continuing, I’ll look into the advantages and disadvantages of each, aiming to provide a clearer picture for traders making this critical choice.
TopStep Background
Launched in 2012 by Michael Patak, Topstep swiftly became recognized as one of the United States’ rapidly expanding proprietary firms, a growth attributed to its appealing trading programs and services that seem to perfectly align with traders’ desires. This firm introduces a distinctive evaluation known as the Trading Combine Challenge, setting it apart from similar platforms like Apex Trader Funding. Unlike Apex’s single-step qualification, Topstep requires traders to navigate through a two-step challenge to earn a funded account. Impressively, once a trader secures this account, they are entitled to keep the initial $5,000 in profits, with any additional gains being shared at a 90:10 ratio, favoring the trader.
Topstep offers an extensive range of educational materials aimed at enhancing traders’ abilities and knowledge. This dual approach of rigorous evaluation followed by generous profit-sharing and educational support underscores Topstep’s commitment to nurturing successful trading careers.
Apex Trader Funding
Founded in 2008 by Darrell Martin, Apex Trader Funding has become a notable name in the proprietary trading space, offering a funded trading program that has since allocated over $100 million to traders. This program is designed to lower the barriers to entry for trading by providing a clear and simple path to securing a funded account through what is known as the Apex challenge.
The challenge’s simplicity is intentional, aiming to eliminate the clutter of too many rules and allowing traders to focus on reaching their profit targets. This approach has made Apex Trader Funding particularly appealing to those who might not have the capital to trade or are cautious about risking their own savings.
The rewards for completing the Apex challenge are substantial, with traders keeping the first $25,000 in profit to themselves before entering into a 90:10 profit share with the firm for any additional profits. This model supports traders in their pursuit of profitability while minimizing risk.
Apex Trader Funding’s ethos is all about simplicity and empowering the trader.
TopStep vs Apex Trader Funding: The Pros And Cons
TopStep Pros & Cons
Topstep offers a compelling suite of features for traders, alongside certain considerations. Here’s a breakdown of the pros and cons:
TopStep Pros:
- Traders retain the first $5,000 in profits entirely for themselves, fostering an encouraging start.
- A generous profit-sharing arrangement awards traders 90% of the profits, with the firm taking the remaining 10%.
- The requirement of a minimum of 5 trading days for each evaluation step is relatively brief, accelerating the path to funding.
- Flexibility in withdrawals allows traders to cash out multiple times within a month, given they have accrued sufficient profits.
- It offers comprehensive support across popular trading platforms, ensuring a wide accessibility.
- An extensive range of educational tools, including live classes, supports trader development and skill enhancement.
- A 14-day trial period provides potential traders with an opportunity to test the platform before committing.
TopStep Cons:
- The platform implements daily drawdowns in addition to trailing max drawdowns, adding complexity to the Trading Combine.
- The selection of account sizes available is limited, restricting traders’ options.
- Initial sign-up costs are relatively high compared to other firms, potentially deterring new traders.
- Calculating the total expenses can be challenging due to the appearance of additional, unexpected fees.
- The criteria for achieving funding are described as stringent, which may discourage some traders.
Apex Trader Funding Pros And Cons
Apex Trader Pros:
- The Apex challenge involves only one step, streamlining the path to obtaining a funded account.
- Does not have daily drawdowns, reducing the stress and pressure on traders.
- Permits multiple accounts under one login detail, enhancing convenience for users.
- Features one of the most generous profit-sharing structures in the industry, with a 90:10 split in favor of the trader.
- The first $25,000 in profits are entirely for the trader, providing a significant initial earning potential.
- Quick funding process after passing the Apex challenge, allowing traders to start real trading sooner.
Apex Trader Cons:
- Withdrawals are limited to once a month, which could inconvenience traders needing frequent access to their funds.
- The trailing drawdown during the challenge can lead to increased pressure, potentially causing mistakes or rule violations.
TopStep vs Apex Trader Funding: Closing Thoughts
In concluding our exploration of TopStep and Apex Trader Funding, we’ve uncovered that both platforms offer unique opportunities and challenges to day traders looking to join the world of proprietary trading.
TopStep stands out with its Trading Combine, a two-step evaluation process that rigorously assesses traders’ skills before granting them access to funded accounts. This method not only prepares traders for the real-world challenges of the market but also aligns with the desires of experienced traders seeking to refine their trading style.
On the other hand, Apex Trader Funding offers a more streamlined path to becoming a funded trader, with its one-step challenge designed to help traders reach their profit goals without the burden of daily drawdowns. This simpler approach, combined with a lucrative profit share agreement, makes Apex an attractive option for traders lacking sufficient capital or those new to the trading scene.
If you’re seeking a structured and educational path to becoming a funded trader, with the benefit of keeping the first $5,000 in profits and a high profit share thereafter, TopStep might be your ideal choice. Click Here to explore TopStep Traders.
Conversely, if you prefer a straightforward, one-step challenge with no daily drawdowns and the allure of keeping the first $25,000 in profits, Apex Trader Funding could be the better option for you. Click Here to discover more about Apex Trader Funding.
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