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The Best Prop Firms for 2024: Top Picks and Insights
Since the beginning of 2024, the prop trading industry has seen over ten firms go under without recovery. This has led to a general lack of trust in the industry, especially among traders who have lost accounts or missed payouts. With many asking, "What is the best prop firm for 2024?", the answer is not straightforward due to the ongoing changes in the sector. Based on the current situation, however, we can share a list of the top prop firms to consider.
Top Prop Firms for June 2024
1. FTMO
FTMO remains the giant of the prop trading industry and continues to expand. They recently hired a new CEO for their brokerage division, showing their commitment to growth. FTMO is still considered one of the most trusted and largest firms in the prop trading space.
2. Funding Pips
Funding Pips, based in Dubai, is a relatively new firm but has experienced rapid growth. They’ve made significant moves into the brokerage and futures trading space. Additionally, they offer some of the most affordable challenges in the industry, making them popular among traders.
3. Alpha Capital Group
Alpha Capital Group, a UK-based firm, is new to the prop trading space. However, their management team comes from a hedge fund and brokerage background, which gives them strong experience in risk management. While they do not offer refunds, their challenge pricing and conditions are quite appealing.
The Importance of Brokerage Associations
One thing you’ll notice is that all three firms listed above have associations with brokerage services. While this isn’t a requirement for success, it seems to be a valuable asset in the prop trading space. The common denominator for firms that have gone under is often poor risk management. Firms without strong backgrounds in trading or brokerage tend to struggle with mitigating trader risk. Effective risk management is crucial for running a successful prop trading firm, and firms that understand this are more likely to succeed.