In the competitive world of prop trading, choosing the right funding program can significantly impact your trading career. Two of the most well-known companies in this space are Apex Trader Funding and Topstep. Both offer traders the chance to access substantial capital and trade with a higher level of leverage, but each has its unique features, costs, and rules that cater to different types of traders. In this article, we will break down the key differences between Apex Trader Funding and Topstep, so you can make an informed decision about which platform best aligns with your trading style, risk tolerance, and goals.
Overview of Apex Trader Funding vs Topstep
Before diving into the details, let’s take a look at a basic overview of both platforms:
Apex Trader Funding
Apex Trader Funding is a relatively new entrant to the prop trading space, but it has quickly made a name for itself due to its affordable pricing, flexible trading conditions, and high payout potential. Apex offers traders the opportunity to trade with funded accounts while maintaining a relatively low barrier to entry. Apex’s key selling points include:
- Low Starting Fees: Apex Trader Funding offers one of the most affordable entry points in the industry.
- Flexible Risk Rules: Traders have more flexibility in terms of risk management, which includes the ability to use wider stop-loss levels.
- Payout Structure: Apex offers competitive profit-sharing and payout structures, which are enticing for traders seeking substantial earnings.
Topstep
Topstep, on the other hand, is one of the oldest and most established names in the prop trading world. It has been in business for over a decade and has a proven track record of helping traders access funding. Topstep is known for its rigorous evaluation process, which includes simulated trading tests designed to evaluate traders’ skills, risk management, and consistency. Some of the key features of Topstep include:
- Reputation and Experience: Topstep is one of the most trusted prop trading firms, with years of experience and a large community of funded traders.
- Strict Evaluation Process: Topstep offers a well-structured evaluation process that ensures only serious and skilled traders are funded.
- Educational Resources: In addition to providing funding, Topstep also offers valuable resources like coaching and webinars to help traders improve their skills.
While both platforms provide traders with access to capital, their approaches and requirements differ significantly. Below, we will explore the pros and cons of each firm in detail to help you decide which is the better choice for your trading journey.
Key Differences Between Apex Trader Funding and Topstep
1. Cost of Entry
One of the first aspects traders consider when evaluating a prop trading firm is the cost of entry. Both Apex and Topstep offer different pricing structures, and understanding these costs can be critical for traders on a budget.
Apex Trader Funding
Apex offers some of the lowest fees in the industry for new traders seeking access to capital. Their funding programs start at $25/month for a $25,000 account, which is significantly more affordable than Topstep. Apex also provides unlimited combine attempts, which means that traders have multiple opportunities to pass their evaluation without additional fees.
Topstep
Topstep is a little more expensive to get started. Their funding programs begin at $165/month for a $50,000 account. While the entry fee is higher than Apex, Topstep includes additional services, such as one-on-one coaching and a more structured path to funding, which may appeal to traders who want more guidance during their journey.
Conclusion: If cost of entry is your primary concern, Apex Trader Funding offers a significantly more affordable option, making it an ideal choice for traders just starting out.
2. Evaluation Process and Account Rules
The evaluation process is another key difference between the two platforms. Apex and Topstep both require traders to go through an assessment phase before receiving access to funded accounts, but their evaluation criteria and rules differ.
Apex Trader Funding
Apex offers a straightforward evaluation process, which requires traders to demonstrate consistent profitability and risk management in a simulated environment. One of Apex’s advantages is its more lenient risk rules, allowing traders to use wider stop-losses and fewer restrictions on position sizing. This makes Apex a better choice for traders who prefer flexibility and don’t want to feel overly restricted by tight risk parameters.
The evaluation process involves two phases:
- Phase 1: Traders must reach a profit target without violating daily drawdown limits.
- Phase 2: Traders are given a second opportunity with more relaxed rules to prove their consistency.
Topstep
Topstep, while similar in structure, offers a more rigorous evaluation process. The firm requires traders to pass a two-step evaluation that is much more strict in terms of risk management and profit targets. For example, Topstep imposes tighter daily loss limits and maximum drawdown limits, which can be challenging for traders who prefer a more relaxed approach to risk.
Topstep’s evaluation process also has a set timeframe to complete each phase, which can create additional pressure. However, for traders who excel under pressure and can maintain strict risk management, this structure can offer a path to funding with a high level of credibility.
Conclusion: Apex Trader Funding offers more flexibility in terms of evaluation, making it an attractive option for traders who value less restrictive rules. However, Topstep has a more rigorous evaluation process, which could appeal to experienced traders who thrive under pressure.
3. Profit Sharing and Payout Structure
Once traders pass the evaluation phase, the next step is to consider the profit-sharing and payout structure offered by the firm. After all, the goal of any prop trading firm is to help traders generate profits and share in the success.
Apex Trader Funding
Apex offers a competitive profit-sharing plan, where traders can keep up to 90% of the profits. This payout structure is one of the most attractive aspects of Apex, as it allows traders to earn a larger portion of the profits than many other firms. Apex also has monthly payouts, which means traders don’t have to wait long periods to access their earnings.
Topstep
Topstep, on the other hand, offers a 70-80% profit split, depending on the account size and other factors. While the payout is lower than Apex, Topstep offers additional benefits such as coaching and access to a trading community, which can be valuable for traders seeking support and mentorship.
Conclusion: Apex Trader Funding offers a higher profit split, which is ideal for traders who prioritize earning potential. Topstep, though offering a lower share, compensates with valuable educational resources and a proven track record.
4. Risk Management and Rules
Both Apex and Topstep implement risk management rules to protect the firm’s capital. These rules ensure that traders follow strict guidelines to minimize the risk of significant losses.
Apex Trader Funding
Apex allows for more leniency when it comes to risk management. The firm allows traders to use wider stop losses and generally has less restrictive drawdown limits. This flexibility can be a huge advantage for traders who want more freedom to execute their trades.
Topstep
Topstep has a tighter risk framework with stricter rules. For example, Topstep imposes daily loss limits, weekly loss limits, and a maximum drawdown limit. These rules are designed to ensure traders maintain consistent profitability and avoid large losses, but they may feel restrictive to traders who prefer more flexibility.
Conclusion: If risk management flexibility is a priority, Apex Trader Funding offers more room for maneuver. However, Topstep is more suited for traders who prefer to work within a more structured and disciplined environment.
Conclusion: Which Prop Trading Firm Is Better for You?
When comparing Apex Trader Funding vs Topstep, it ultimately depends on your personal preferences, trading style, and goals.
- If you value flexibility, lower entry fees, and a higher payout structure, Apex Trader Funding is the better choice.
- If you’re seeking a well-established platform with a more rigorous evaluation process, valuable educational resources, and a structured approach to risk management, Topstep may be a better fit for your needs.
Both platforms offer great opportunities for traders to access funded accounts and start their prop trading careers. Consider your priorities carefully, and choose the platform that best aligns with your goals and trading approach.
For more detailed comparisons and updates, you can read the original article here.