Summary: Navigating the True Costs Behind Top Proprietary Trading Firms
If you’re eyeing a career—or even a side hustle—in prop trading, the upfront pitch from most prop firms sounds almost too good to be true: “Trade our capital, keep the profits, and pay nothing unless you win.” But as someone who spent months evaluating the real cost structures of leading prop trading firms, I can tell you that the fine print is where things get interesting. In this article, I’ll walk through what fees traders actually face—from evaluation fees to stealthy monthly charges—using real screenshots, actual case studies, and even a few regulatory curveballs. Plus, I’ll highlight how these costs differ across borders and offer a brutally honest assessment of what it’s like to pay up before you ever make a trade.
What Kind of Fees Do Prop Firms REALLY Charge?
Prop firms (short for proprietary trading firms) make their money in two main ways: from successful traders generating profits, and from fees charged to aspiring traders who want access to their capital. Unlike the traditional model where firms train and fund their own employees, today’s online prop firms crowdsource talent worldwide, often via “challenges” or “auditions” that come with a cost.
1. Evaluation or Challenge Fees: The Inevitable Entry Ticket
First off, most reputable firms (think FTMO, Topstep, MyFundedFX) require you to pass a simulated trading challenge before they let you trade their real capital. This is where the first fee appears—often called an “evaluation fee” or “challenge fee.” For example, when I applied for FTMO’s $100,000 challenge, I paid €540 upfront (about $580 at the time). This isn’t refundable if you fail, but some firms refund it after you pass and hit payout milestones.
Here’s a screenshot from my FTMO dashboard showing their fee structure:
Topstep’s fees are monthly, not one-time. Their $150,000 “Combine” costs $375/month until you pass. I once got stuck in a cycle, paying three months’ fees after two failed attempts—costing me more than the potential first payout.
2. Platform and Data Fees: The “Hidden” Ongoing Cost
Even after passing a challenge, you’re not always off the hook. Some firms charge platform fees for access to their proprietary trading platforms or for using third-party services (like Rithmic or NinjaTrader). For example, Topstep passes on real-time data costs to traders—about $100/month for U.S. equities. I once ignored a billing email and lost platform access for a week, which killed my momentum.
Smaller firms sometimes bake in monthly “maintenance” fees, which sound trivial but can quietly add up—especially if you’re still building consistency.
3. Profit Splits and Withdrawal Fees: The Price of Success
Now, about profit splits—the main way firms ensure their cut. FTMO, for instance, offers 80/20 splits (you keep 80%), while others like The5ers might offer 50/50 but with different scaling plans. Most firms don’t charge for withdrawals, but a few, particularly in the futures space, will deduct a fixed processing fee (often $25-50 per withdrawal).
Here’s a table summarizing typical costs at major players (prices as of 2024):
| Firm | Evaluation Fee | Monthly Platform/Data | Profit Split | Withdrawal Fee |
|---|---|---|---|---|
| FTMO | $580 (one-time, $100k) | None | 80/20 | None |
| Topstep | $375/month | $100/month | 80/20 | $30 |
| The5ers | $400 (one-time, $100k) | None | 50/50 to 70/30 | None |
For more details on these fee types, FTMO’s official FAQ and Topstep’s fee disclosure are worth checking out.
4. Regulatory and Geographic Fee Variations
This is where it gets dicey. Depending on your country, the legal requirements around prop trading and profit sharing can introduce extra costs. For example, U.S.-based firms must comply with CFTC and NFA rules, sometimes requiring traders to purchase “exchange memberships” or pay higher data fees. In Europe, GDPR and MiFID II can impose reporting fees or stricter onboarding. Here’s a (simplified) table comparing standards for “verified traders” in different countries:
| Country | Verified Trader Standard | Legal Basis | Enforcing Body |
|---|---|---|---|
| USA | NFA Registration, KYC/AML | CFTC Reg. 1.17 | CFTC, NFA |
| EU | MiFID II, KYC/AML, GDPR | Directive 2014/65/EU | ESMA, National Regulators |
| UK | FCA Certification, Anti-Fraud | FCA Handbook | FCA |
For more on the U.S. side, see NFA Rulebook; for Europe, ESMA’s MiFID II portal.
5. Real-World Example: My (Slightly Embarrassing) Prop Trading Fee Journey
Let me get personal. A few years ago I signed up with Topstep, thinking the $375 monthly fee for the $150k Combine was steep but manageable. I failed twice because I misread the daily loss limit rules (seriously, always read the rulebook), so I paid $1,125 in fees before ever trading real funds. When I finally got funded, I paid another $100 for data, and then $30 for my first withdrawal. My first payout? Just $700. Ouch. That’s a negative ROI for the first quarter.
I shared this story on the futures.io forum and dozens of folks chimed in with similar experiences. Some got fee refunds after passing; others, like me, felt the costs were a learning tax. One expert, “TraderSam” (a prop desk manager in Chicago), commented: “The best prop firms are upfront about their fees and don’t nickel-and-dime you with hidden costs. But if you’re not reading the fine print, you’ll pay for it one way or another.”
Final Thoughts and Next Steps
To wrap up: prop firm fees can be a minefield for the unprepared. You’ll definitely face upfront evaluation or challenge costs, and depending on the firm, you might also pay recurring data or platform fees. Profit splits can be generous, but don’t forget to factor in withdrawal costs and, in some countries, extra compliance fees. My advice? Pick a firm with clear, transparent pricing (FTMO is good on this), and always read the fine print before you hit “pay.” If you’re just starting out, consider demo accounts or lower-stakes challenges to avoid burning through your bankroll.
If you want to dig deeper, check out the official fee pages for FTMO (here), Topstep (here), and The5ers (here). Or—just ask around on trader forums; you’ll get the raw, unfiltered stories.
If you’re serious about prop trading, budget for more than just the obvious fees. And don’t be afraid to walk away if the value proposition doesn’t add up. Sometimes, the best trade is the one you don’t take.