Is TopStep Reliable And What Makes It A Quality Prop Firm? (2024)

TopStep has made a name for itself since 2012 as a leading provider of futures funded trader programs. It’s an appealing option for those just starting in the trading world, offering a safe environment to learn and grow.

Proprietary firms like TopStep are known for teaching valuable lessons in risk management and discipline, essential for newcomers aiming to navigate the unpredictable market waters while also giving them a chance to handle more capital.

Is TopStep Reliable?

Let’s start with the most important factor when choosing a prop firm to partner with, reliability. You will have to read on to determine whether TopStep is the right firm for you, but what I can say is TopStep seems reliable.

TopStep Benefits

Now that I have established that TopStep is reliable, it’s time to get into the next important factor when determining if they are right for you: the benefits. Here are the main benefits you will experience with TopStep trader:

Accessible Starting Capital: Low initial capital requirements make it easier for new traders to begin without significant financial pressure.
Support for Multiple Trading Platforms: Offers compatibility with various platforms including TSTrader, TradingView, and NinjaTrader, catering to different user preferences and trading styles.
Comprehensive Educational Tools: Provides an array of learning resources such as daily live trading classes, trading psychology lessons, and live professional trader sessions, suitable for all skill levels.
Group and Performance Coaching: Features bi-weekly group coaching webinars and a Performance Coaching Plan for personalized, one-on-one guidance from experienced coaches.
Digital Coaching and Community Engagement: Utilizes “Coach T,” a digital tool for creating personalized trading plans and tracking performance, alongside a vibrant community for interaction and feedback.
14-Day Trial: Allows new users to test the service with a two-week trial period, providing an opportunity to evaluate the platform’s features and benefits without immediate commitment.

TopStep Drawbacks

Although TopStep is reliable, there are some potential drawbacks. Here are a few limitations I think you should be aware of:

Stringent Funding Criteria: Achieving funded status requires adherence to strict rules, which may not align with all trading strategies or experience levels.
Membership Fees: Although reduced, fees remain a financial consideration for users evaluating the cost-to-benefit ratio of the service.
Complex Account Options: Navigating between Pro, Funded, and Premium Funded accounts can be confusing, requiring time to understand the specific rules and benefits of each.
Profitability Requirements for Withdrawal: Traders must secure five winning days with profits over $100 before they can withdraw earnings, demanding consistent performance.
Exchange Data Fees: Even after reaching funded status, traders must cover monthly exchange data fees, except for those on the free Pro Account, adding to the overall cost of trading.

TopStep Rules

Like all proprietary trading firms, TopStep has a number of rules in place to help preserve the firm’s capital. Here is the breakdown of the major rules traders must follow:

Maximum Loss Limit: A crucial rule in the Trading Combine®. Traders need to avoid breaching this limit over the course of two trading days to qualify for funding. This rule underscores the importance of risk management and is central to advancing towards a funded account.
Profit Targets: Set according to the account size within the Trading Combine®, with $3,000 for a $50k account, $6,000 for a $100k account, and $9,000 for a $150k account. Profits from single trades that exceed 50% of these targets are not counted, promoting consistent trading rather than reliance on ‘home run’ trades.
Daily Loss Limit: This varies by account size and acts as a cap on how much can be lost in a single day. Exceeding this limit ends the Combine attempt for the day, although it doesn’t count as a rule violation unless the Maximum Loss Limit is also surpassed.
Consistency Target: This ensures no single day’s profit is more than 50% of the overall profit target, encouraging a stable trading approach rather than sporadic high gains.
Resets & Commissions: If rules are violated, particularly the Maximum Loss Limit, a reset fee is applied. This aligns with TopStep’s commitment to disciplined trading. Commissions and transaction fees vary by platform and trade type, impacting overall profitability.
Prohibited Conduct: Traders are monitored for ethical trading within the simulated environment. Actions like connecting accounts, using delayed data feeds for advantages, or employing scalping algorithms lead to disqualification. This maintains the integrity and fairness of the Trading Combine®.

Final Thoughts

Since its inception in 2012, TopStep has established itself as a leader in the futures funded trader program sector, offering a robust platform for both novice and experienced traders. With its focus on risk management and discipline, TopStep provides a supportive environment to learn and grow in the trading world.

TopStep’s array of benefits, including low starting capital requirements, support for multiple trading platforms, comprehensive educational resources, and personalized coaching, makes it a top choice for anyone looking to start or advance their trading journey.

If you’re on the fence about whether TopStep is the right fit for you, their 14-day trial offers a risk-free opportunity to explore all the features and benefits firsthand. Ready to take your trading to the next level? Click Here to discover more about TopStep and begin your journey to becoming a funded trader.

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