Topstep is one of the leading proprietary trading firms globally, offering traders the unique opportunity to access significant capital without risking their own funds. As a Topstep funded trader, you gain access to professional trading tools, advanced platforms, and substantial profit-sharing models, all while working in a risk-managed environment designed for traders looking to scale their skills and profits.
This guide explores the Topstep Funded Trader Program, how it works, the evaluation process, and how you can succeed as a funded trader in the world of futures and forex trading.
What Is a Topstep Funded Trader?
A Topstep Funded Trader is an individual who has passed the firm’s evaluation process and has been given the opportunity to trade with Topstep’s capital. In essence, becoming a funded trader with Topstep means that you manage the firm’s funds while keeping a significant percentage of the profits you generate. This is a win-win situation as the firm benefits from your success while you benefit from trading capital and profit sharing.
Unlike traditional trading where you would need to invest your own capital, Topstep gives traders the chance to prove their skills through an evaluation process, and, if successful, receive funding to trade on a live account.
How Does the Topstep Funded Trader Program Work?
Topstep’s funded trader program operates through an evaluation system designed to assess your trading skills, consistency, and risk management abilities. The process is straightforward but requires traders to meet specific criteria before becoming eligible for funding.
Step 1: The Trading Combine
To become a Topstep Funded Trader, you must first complete the Trading Combine. This is a simulated trading environment where you will trade using a demo account provided by Topstep. The goal is to demonstrate that you can meet the firm’s performance criteria while adhering to the risk management rules.
The Trading Combine consists of two main phases:
- Evaluation Phase: You must show consistent profitability, managing risk effectively with a clear trading strategy. During this phase, you must achieve specific profit targets while maintaining risk limits.
- Verification Phase: After completing the evaluation phase, you enter the verification phase, where you must confirm your ability to trade with the same strategy and meet the firm’s requirements for consistency.
Throughout the evaluation, Topstep looks at factors such as:
- Profit targets
- Max drawdown limits
- Trade consistency
- Risk-to-reward ratios
These parameters help Topstep assess whether you can trade profitably in real market conditions, while maintaining responsible risk management practices.
Step 2: Funded Trader Status
Once you successfully complete the Trading Combine and prove that you can consistently follow the rules, you become a Topstep Funded Trader. This means that you will have access to Topstep’s capital and will trade on a live account, taking a share of the profits generated from your trades.
Funded traders can earn up to 80% of the profits, depending on the funding tier they choose. Topstep provides traders with a leverage range based on their trading history and risk management ability, ensuring that traders can scale their strategies as they grow in experience and success.
Key Features of the Topstep Funded Trader Program
1. Profit Sharing Model
One of the most attractive aspects of being a Topstep Funded Trader is the profit-sharing model. Traders can keep a significant portion of the profits, which is typically 80%. This offers traders a chance to earn substantial income while leveraging the firm’s capital for larger trades.
- 80% Profit Share: This competitive split ensures that your hard work and trading expertise are rewarded fairly.
- No Hidden Fees: Topstep maintains transparency with no hidden fees or unexpected charges. The firm also allows traders to withdraw funds at any time, providing them with liquidity and flexibility.
2. Risk Management and Support
Topstep offers a structured and disciplined risk management framework to ensure that funded traders are protected while maximizing their chances of success. The firm’s risk management rules are designed to encourage disciplined trading and prevent over-leveraging, which could result in significant losses.
- Max Daily Loss: Topstep has clear limits on daily losses, ensuring that no trader can risk excessive amounts in a single day.
- Max Drawdown: There is a maximum drawdown limit that traders cannot exceed. If you reach this limit, your account will be halted, but you will still retain your profits up until that point.
This system encourages traders to stick to their trading plan, making it easier to manage risks while keeping their performance consistent over time.
3. Flexibility in Trading
Another key benefit of being a Topstep Funded Trader is the flexibility in trading. Topstep offers access to various markets, including futures contracts, such as S&P 500, NASDAQ, commodities, and forex. Traders are free to use their own trading strategies or follow the firm’s suggested guidelines, ensuring a high level of freedom in their trading approach.
- Futures Trading: Funded traders can take positions in the futures market, including stock indices, agricultural commodities, and more.
- Forex Trading: For those with a forex background, Topstep also provides access to the forex market, allowing for currency pair trading with high liquidity.
4. Education and Resources
Topstep is committed to the growth and development of its traders. As a funded trader, you will have access to comprehensive educational resources designed to improve your trading strategies and risk management practices. These resources include:
- Online Courses: Educational materials that cover topics from basic trading strategies to advanced risk management.
- Live Webinars: Opportunities to interact with industry experts and learn new tactics in real-time.
- Mentorship and Community: Engage with other traders in the community and receive guidance from experienced mentors.
This focus on education ensures that even if you are new to the world of professional trading, you can learn the skills necessary to thrive.
What Makes Topstep Stand Out?
Global Reach and Accessibility
One of the unique features of Topstep is its global accessibility. Traders from around the world can apply to become a funded trader, making it a viable option for individuals no matter where they are located. With its user-friendly platform and customer support, Topstep provides an easy entry point for international traders.
Low Cost of Entry
Topstep offers a relatively low cost to join its evaluation process, making it an affordable option for aspiring traders who want to gain access to larger capital without having to invest their own funds. With multiple funding options available, traders can choose the tier that best fits their financial goals and risk tolerance.
Transparency and Fairness
Topstep operates with complete transparency. Traders know exactly what is expected of them throughout the evaluation process and what the profit-sharing structure entails. This openness makes Topstep one of the most trusted prop firms in the trading industry.
Conclusion: Become a Topstep Funded Trader
The Topstep Funded Trader program provides aspiring traders with the opportunity to prove their skills and gain access to substantial capital without risking their own funds. With a transparent evaluation process, attractive profit-sharing options, and comprehensive educational support, Topstep remains one of the best prop trading firms for traders looking to scale their careers.
By following the evaluation steps, adhering to risk management rules, and consistently demonstrating profitability, you can join the ranks of Topstep Funded Traders and unlock the potential for substantial trading success.
For a more detailed overview and comparison of the best funded trader programs, visit this article.