Best Prop Firms for Beginners in 2026: Complete Comparison Guide

February 25, 2026•By TradeHaven Funding

If you are a beginner trader looking to access funded capital without risking your own savings, proprietary trading firms offer one of the most compelling opportunities in modern retail trading. But with dozens of prop firms now competing for your evaluation fee, choosing the right one can feel overwhelming.

This guide compares the best prop firms for beginners in 2026, breaking down the evaluation rules, costs, profit splits, and unique features that matter most when you are just starting your funded trading journey.

What Is a Prop Firm and How Does It Work?

A proprietary trading firm (prop firm) provides traders with simulated funded accounts after they pass an evaluation process. The basic flow works like this:

You pay an evaluation fee (typically $50 to $500 depending on account size)
You trade a demo/simulated account following specific rules (profit targets, drawdown limits)
If you pass the evaluation, you receive a simulated funded account
You keep 70% to 90% of the profits you generate on the funded account

The prop firm model is revolutionary because it allows traders to access $10,000 to $200,000 in trading capital for a fraction of the actual cost. If you fail the evaluation, you only lose the evaluation fee, not the full account balance.

What Beginners Should Look for in a Prop Firm

Before diving into specific firm comparisons, here are the critical factors beginners should evaluate:

1. Evaluation Difficulty

Some firms have aggressive profit targets (10% in 30 days) while others are more lenient (8% with unlimited time). As a beginner, you want realistic targets that do not force you to overtrade.

2. Drawdown Rules

The maximum daily drawdown and maximum overall drawdown rules vary significantly between firms. Some use balance-based drawdown calculations while others use equity-based calculations. Balance-based is generally more forgiving for beginners.

3. Cost

Evaluation fees range from $50 to over $500. Some firms offer refundable fees (you get the fee back after your first profit withdrawal). As a beginner, starting with a smaller, cheaper account reduces your financial risk.

4. Profit Split

Most firms offer 70% to 80% profit splits, with some offering up to 90% or even 100% as you scale. The difference between 70% and 80% becomes significant as your account grows.

5. Support and Education

The best prop firms for beginners provide educational resources, responsive support teams, and clear rule documentation. You do not want to fail an evaluation because of an ambiguous rule interpretation.

The Best Prop Firms for Beginners in 2026

1. FTMO

Best for: Traders who want the most established and reputable prop firm

FTMO is the gold standard of the prop firm industry. Founded in 2015, it has paid out hundreds of millions in profits to funded traders and maintains a flawless reputation for timely payouts.

Key details:

Evaluation: 2-phase (Challenge + Verification)
Profit target: 8% Phase 1, 5% Phase 2
Max daily drawdown: 5%
Max overall drawdown: 10%
Profit split: 80% (up to 90% with scaling)
Account sizes: $10,000 to $200,000
Fee (100K account): Approximately $540

Pros: Excellent reputation, reliable payouts, scaling plan, free trial available, extensive performance analytics.

Cons: Higher evaluation fees compared to competitors, strict drawdown rules, no unlimited time option on standard evaluation.

Why it is good for beginners: FTMO provides the most comprehensive trader dashboard in the industry, complete with detailed performance analytics and a structured evaluation path. Their free trial lets you experience the challenge rules before spending any money.

2. Funded Pips

Best for: Budget-conscious beginners who want affordable evaluations

Funded Pips has rapidly grown in popularity due to their competitive pricing and beginner-friendly rules. They offer some of the cheapest evaluation fees in the industry without sacrificing the core features.

Key details:

Evaluation: 2-phase standard evaluation
Profit target: 8% Phase 1, 5% Phase 2
Max daily drawdown: 5%
Max overall drawdown: 10%
Profit split: 80% to 90%
Account sizes: $5,000 to $100,000
Fee (100K account): Approximately $450

Pros: Low fees, multiple account types, good customer support, fast payouts.

Cons: Newer firm with less track record than FTMO, fewer educational resources.

Why it is good for beginners: The lower evaluation fees mean less financial pressure. If you fail your first attempt, the cost of retrying is significantly reduced compared to premium firms.

For a detailed review of Funded Pips, read our Funded Pips Review.

3. MyFundedFX

Best for: Traders who want the simplest evaluation rules

MyFundedFX stands out for its straightforward rule structure. There are no complex drawdown calculations or confusing edge cases. The rules are exactly what they appear to be on the surface.

Key details:

Evaluation: 1-phase or 2-phase options
Profit target: 8% (1-phase), 8% + 5% (2-phase)
Max daily drawdown: 5%
Max overall drawdown: 8% (1-phase) or 10% (2-phase)
Profit split: 80%
Account sizes: $5,000 to $300,000

Pros: Clear rules, 1-phase option for faster funding, good Discord community.

Cons: Lower profit split ceiling compared to some competitors, limited scaling plan.

Why it is good for beginners: The 1-phase evaluation removes the complexity and time commitment of a second verification phase. You pass one challenge and get funded immediately.

4. The Funded Trader (TFT)

Best for: Traders who want flexible evaluation options

The Funded Trader offers multiple evaluation types, including their popular Royal Challenge which provides generous drawdown limits and a longer evaluation period.

Key details:

Evaluation: Multiple types (Standard, Royal, Knight)
Profit target: Varies by program type
Max daily drawdown: 3% to 6% depending on program
Max overall drawdown: 6% to 12% depending on program
Profit split: 75% to 90%
Account sizes: $5,000 to $600,000

Pros: Multiple evaluation styles to suit different trading approaches, generous drawdown rules on some programs, high maximum account sizes.

Cons: Complex program structure can be confusing for beginners, payout processing can be slower than competitors.

Why it is good for beginners: The variety of evaluation programs means you can choose rules that match your specific trading style and risk tolerance rather than being forced into a one-size-fits-all evaluation.

5. E8 Funding

Best for: Aggressive traders who want the fastest path to funding

E8 Funding is designed for traders who can consistently generate returns quickly. Their evaluation process is streamlined to get profitable traders funded as fast as possible.

Key details:

Evaluation: 1-phase or 2-phase
Profit target: 8% (standard)
Max daily drawdown: 5%
Max overall drawdown: 8%
Profit split: 80%
Account sizes: $25,000 to $250,000

Pros: Fast evaluation process, competitive fees, instant funding on 1-phase program.

Cons: Tighter overall drawdown (8% vs 10% on standard), limited to forex and indices.

How to Choose the Right Prop Firm as a Beginner

Start with a Small Account

Do not start with a $100,000 or $200,000 evaluation. Begin with a $10,000 or $25,000 account. The evaluation fee is lower, the psychological pressure is reduced, and the risk management principles are identical. Once you have successfully passed and traded a smaller account, you can scale up confidently.

Consider Your Trading Style

If you are a scalper who takes many trades per day, you need a firm with no maximum trade count or position time restrictions. If you are a swing trader who holds positions for days, you need a firm that allows overnight and weekend holding.

Test Before You Pay

Many prop firms offer free trials or demo evaluations. FTMO offers a free trial that simulates the exact challenge conditions. Use these trials to practice your strategy under evaluation rules before committing real money.

Calculate Your Risk Before Every Trade

Regardless of which prop firm you choose, you need to calculate your position size precisely for every single trade. The TradeHaven Risk Calculator is built specifically for this purpose. Enter your account size, risk percentage, stop loss distance, and currency pair to get your exact lot size.

Prop Firm Comparison Table

Feature	FTMO	Funded Pips	MyFundedFX	TFT	E8 Funding
Min Account	$10K	$5K	$5K	$5K	$25K
Max Account	$200K	$100K	$300K	$600K	$250K
Profit Split	80-90%	80-90%	80%	75-90%	80%
Daily DD	5%	5%	5%	3-6%	5%
Overall DD	10%	10%	8-10%	6-12%	8%
1-Phase Option	No	Yes	Yes	Yes	Yes
Reliability	Excellent	Good	Good	Good	Good

Common Beginner Mistakes When Choosing a Prop Firm

Choosing the cheapest firm without checking reputation. Some ultra-cheap prop firms have poor payout records or questionable business practices. Always research payout proof and trader reviews before paying.
Starting with the largest possible account. A $200,000 account sounds impressive but the evaluation fee is significant and the psychological pressure of managing that size can overwhelm beginners.
Ignoring drawdown calculation methods. The difference between balance-based and equity-based drawdown calculations can determine whether you pass or fail on the same set of trades.
Not reading the full rules document. Every prop firm publishes their complete rules. Read every single page. Understand the profit target, drawdown rules, trading hour restrictions, news trading rules, and scaling plan before you begin.
Trading without a journal. You cannot improve your evaluation performance without systematic review. Track every trade in the TradeHaven Journal to identify your strengths and weaknesses.

Final Recommendations

If you want the safest choice: Go with FTMO. Their reputation is unmatched and their evaluation structure is fair and well-documented.

If you want the most affordable option: Start with Funded Pips. Their lower fees reduce the financial barrier to entry significantly.

If you want the fastest funding: Consider a 1-phase evaluation from MyFundedFX or E8 Funding. You pass one challenge and start trading funded immediately.

If you want maximum flexibility: The Funded Trader offers the widest variety of evaluation programs to match your specific trading approach.

Regardless of which firm you choose, the key to success is consistent risk management, disciplined execution, and systematic trade logging. Start building your trading discipline with TradeHaven today.

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