Summary: What Fees Really Look Like at Top Proprietary Trading Firms
If you’re eyeing a stint with a proprietary trading firm, you’re probably wondering about the real costs involved. I’ve personally navigated the maze of fee structures at several leading prop firms—think Topstep, FTMO, and the like. It’s not just about the upfront challenge fee you see on their website. There are hidden corners, ongoing costs, and sometimes, surprise charges that only crop up once you’re deep in the process. This article digs into those practical details, with real screenshots, regulatory context, and a few hard-learned lessons, so you can make informed choices before putting your capital or time on the line.
How Prop Firm Fees Are Structured: My First-Hand Walkthrough
The typical journey with a prop firm starts with a challenge or evaluation, which is basically your ticket in. But let’s not kid ourselves—this is where the fee story begins, not ends. Back when I first tried Topstep, I was lured in by a $165 fee for the lowest tier. Seemed straightforward. But the moment I failed my first try, I realized: resets cost extra ($99 a pop), and if you want to upgrade to a bigger account, the price jumps fast.
Step 1: The Challenge/Evaluation Fee
Most firms operate on a pay-to-play model. You pay an upfront fee to enter their “challenge” or “evaluation.” For example, FTMO charges €155 for a $10,000 account challenge, while Topstep’s entry-level costs are around $165. These fees are non-refundable, and just cover the right to try making their profit targets.
What I didn’t realize at first: these fees are purely for access. You’re not paying for a service, coaching, or even guaranteed funding. If you fail, you pay again for a reset or a new challenge.
Step 2: Monthly Platform/Data Fees
Once you pass the challenge and get funded, most firms charge monthly platform fees. These can range from $85 (Topstep) to over $120 (Earn2Trade), depending on the data feed and trading platform. These are rarely optional, and are on top of any brokerage commissions.
Here’s a real screenshot from Topstep’s member portal, showing their “Combine Reset” and “Platform Fee” charges:
If you trade futures, expect extra charges for market data, which are set by exchanges (see CME’s official data fee schedule).
Step 3: Reset or Retry Fees
Failed the challenge? Most firms let you “reset” for a fee—usually $80-$100. The catch: some firms limit the number of resets per month, so if you’re not careful, the fees add up fast. I once spent $500 in resets before finally passing an evaluation at Leeloo Trading.
Step 4: Profit Split & Withdrawal Fees
After all the upfront and ongoing costs, you finally get funded… but there’s another layer: the profit split. Most firms take 10–20% of your profits (sometimes higher). Some—like FTMO—don’t charge withdrawal fees, but others may deduct a flat fee per transfer, especially with international wires.
For a real-world perspective, check out this Reddit discussion on prop firm fees where traders share their actual payout experiences and hidden costs.
Regulatory Context: What’s Allowed and Where
Proprietary trading firms aren’t regulated like retail brokers. In the US, the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) don’t directly oversee these fee structures—firms are required to be transparent, but there’s no cap on what they can charge (see NFA’s official guidelines).
The UK’s FCA has a slightly different stance: while not directly regulating “funded trader programs,” they do monitor for misleading marketing and unfair contract terms (FCA statement).
For a side-by-side comparison, here’s a table outlining differences in “verified trade” standards (which can affect payout eligibility) across countries:
| Country | Standard Name | Legal Basis | Enforcement Authority |
|---|---|---|---|
| US | NFA Rule 2-29 (Communications) | NFA Compliance Rules | National Futures Association |
| UK | FCA COBS 4 (Communications) | Financial Services and Markets Act 2000 | Financial Conduct Authority |
| EU | MiFID II Article 24 | Markets in Financial Instruments Directive | ESMA / Local Regulators |
A Real-World Example: The FTMO “Hidden Fee” Story
Let’s get concrete. In 2023, I attempted FTMO’s $100K challenge. I paid €540 for the evaluation, failed the first time, and spent another €300 on resets. Once funded, I was charged $100/month for the platform, and my first payout had a $35 wire fee deducted (I’m based outside the EU). All told, my “first withdrawal” profit was nearly halved by fees I hadn’t expected.
In a detailed blog review by TradingRiot, the author found similar issues—especially with currency conversion fees and profit split delays.
“I thought passing the challenge was the hard part. Turns out, the real challenge is keeping your profit after all the fees.” — John, veteran prop trader, as quoted in EliteTrader forum
Expert Insight: What to Watch For
I once chatted with Sarah Liu, a compliance officer at a London-based firm, who pointed out: “Many traders underestimate ongoing platform and data charges. Always read the fine print, and factor in currency conversion costs if you’re outside the home country.”
Based on my own experience and talking with industry insiders, here’s my checklist:
- Always add up all possible fees (challenge, reset, platform, withdrawal) before committing
- Check for hidden costs like exchange data, currency conversion, or inactivity penalties
- Ask support for a sample payout calculation before you start
- Read recent reviews—fees change often, especially with market volatility
Conclusion: Is It Worth Paying Prop Firm Fees?
At the end of the day, the right prop firm can be a stepping stone to a trading career—but only if you understand every dollar (or euro) you’ll spend along the way. My advice: treat the upfront and ongoing fees as “tuition” for the prop trading world, and don’t be afraid to ask hard questions before you pay. For those who can consistently pass challenges and manage risk, the costs may be justified. But for most, the path is more expensive—and less transparent—than it appears at first glance.
Before you dive in, compare at least three firms, read the latest trader reviews, and if possible, reach out to current funded traders. The best way to avoid nasty surprises is to learn from those who’ve paid the price—sometimes literally.
For further reading, see the CFTC Dodd-Frank resources and the ESMA MiFID II policy overview.