TopStep Review

TopStepTrader has established itself as a prominent player in the proprietary trading industry. Known for its unique approach to funding traders, TopStepTrader has garnered a reputation for providing a platform where traders can showcase their skills and potentially secure funding.

Key Facts

• An average of 90 traders funded every month
• 2,000+ traders funded with $16 million in payouts since 2020
• 97% funded-trader satisfaction
• Supports 14+ trading platforms
• Allows an unlimited number of accounts, starting at $49 a month
• Available in 143+ countries

TopStepTrader Background

Founded in 2012 by Michael Patak, TopStepTrader has evolved into a leading proprietary trading firm. Its founders aimed to democratize trading by offering aspiring traders an opportunity to prove their abilities and access capital. They offer a great trading experience without the financial risk that comes with trading with real money.

TopStepTrader boasts a huge trading community from all around the world, which underscores its commitment to accessibility and inclusivity. Trading accounts are available in 10 different currencies, and there’s support for 14 different trading platforms, more on this below.

Trading Accounts

TopStepTrader operates on a unique model where traders can participate in a Trading Combine to showcase their skills. Successful completion can lead to a funded trading account with varying capital levels, depending on the chosen subscription plan.

You can open an account on TopStepTrader for trading futures only. There are three account subtypes, which are accessible based on the purchasing power of the trader. Just as with many other prop firms, before you get a real account, you have to go through mandatory training via a simulation account to prove your trading skills.

The firm charges a monthly fee to access the simulation account. However, since trading is funded by the broker, you don’t need to top up your account to trade on the live account. All the trading transactions on the platform are designed for the futures market. There’s no margin call level, and the maximum leverage you can use is 1:100. All trades are automatically closed on Fridays at 15:45.

How to Get Funded in TopStepTrader

TopStepTrader uses a “1 Step 1 Rule Trading Combine” method, which simply means that there’s one evaluation phase before you receive a funded account. The Trading Combine program focuses on futures trading in a simulated environment. Your performance is assessed based on your paper money profits, which will determine if you become a funded trader.

The evaluation process will happen over two business days, where you need to prove profitability and manage your risk appropriately. Once you pass the Trading Combine stage, you can transition to the Pro account which has no monthly fees but still has some trading restrictions. With the Pro Account, you can withdraw real money into your bank account.

The other option is a Premium Funded Account, which gives you a starting balance depending on your performance in the Combine account. This is unlike the Funded Account, which starts with a zero balance. All this provides more incentive to excel in the Combine account and work with the most suitable option in your trading journey.

Here’s is the general outline of progressing towards the Combine account:

Free trial

The first step is the 100% free trial, where you’re awarded a $150,000 simulated trial account for 14 days. You can use this account to test and hone your skills. There’s no credit card required to set up the account. This step is optional, and if you’re confident enough, you can skip it altogether.

Trading Combine Challenge: 1 Step, 1 Rule

Joining the TopStep Trading Combine is a key part of the challenge to get funding. The process consists of two steps that you need to successfully pass to complete the program. You only need to pass the program in two trading days without violating the Maximum Loss Limit.

You need to pay a monthly fee to access a simulated trial account, with three account sizes: $50,000, $100,000, and $150,000, each with its corresponding profit targets and trading limits. You will be assessed based on your paper profits for the two days, with a focus on profitability and effective risk management.

Getting a funded account requires that you meet certain objectives without breaching the Maximum Loss Limit. These objectives are:

• Profit target: This can be achieved when the account balance exceeds the set profit target at the end of the trading day.
• Consistency target: A trading day’s profit should not exceed the 50% profit target, which encourages consistent performance.
• Daily loss limit: Based on the type of account, breaching the intraday daily loss limit will deactivate the account for the rest of the day, but won’t count as a rule violation.

Again, exceeding the maximum loss limit is a breach of the rule that disqualifies your account from funding. The loss limit is a trailing loss limit for the account that’s updated at the end of the trading day, though it triggers intraday.

TopStep’s trading rules are quite straightforward and are meant to foster discipline among the traders. Using unethical strategies to trade, such as account connection, slow data feeds, or scalping algorithms may lead to disqualification. This helps to level the playing field and promotes fairness.

TopStep’s Funded Account

Once you pass the Trading Combine challenge, you will be funded and can now start trading with real money.

Based on their guidelines, you can keep the first $5,000 you make as profits, and then 80% of any additional profits. Perhaps more importantly, there will be no risk for you while you trade on a TopStep account.

Additionally, with a funded account, you will enjoy different trading conditions compared to the rest of the accounts. Some of the key benefits include:

Mode trading instruments: Trading from a funded account means that you’re defined as a professional trader, and you gain access to a lot more trading products. Aside from products listed by the CME, you can trade products listed on CBOT, EUREX, NYMEX, and COMEX.

Flexible withdrawals: You can request withdrawals at any time of the day, and it will take no more than 7 business days until the payment is made. For withdrawals of $500 or more, there are no transfer fees. A $50 fee applies for withdrawals of less than $500.

How to Be Successful

The key to being successful in trading with a prop firm is managing your successes and setbacks. In the event that you violate the rules, you might need to reset your account to give it another try.

With TopStep, resetting your account will cost you money. This is meant to help traders become more disciplined. The reset fees stand at $49 for the $50,000 account, $99 for the $100,000 account, and $149 for the $150,000 account.

The rule to pay great attention to is to never hit the maximum loss limit. In case you do, it will automatically trigger a rule violation, and you’ll fail the Trading Combine. The maximum loss limit is calculated based on the previous day’s account balance.

Understanding the implications of resets and other fees you may encounter is important. These will play a huge role in the overall trading success of the program. You should account for these aspects when planning your trades and ensure you follow the rules to achieve your goals more effectively.

Trading Fees

The Trading Combine fees are clear and straightforward. The following is how much you will be paying per month:

• $150 for a $30,000 balance
• $165 for a $50,000 balance
• $325 for a $100,000 balance
• $375 for a $150,000 balance

The fees are charged every month until you reach the funded account status or cancel your subscription. Once you have achieved the funded account status, there are other fees to consider:

• CME costs $105
• CBOT costs $105
• COMEX Costs $105
• NYMEX costs $105
• EUREX costs $105

These costs may add up, so you should take care to account for them in your trading strategy. To get a better understanding of their implications, here is an example of a 12-month membership for Trading Combine. With a starting balance of $50,000, the trader uses 20 resets, becomes a funded trader for 8 months, and withdrawals $10,000 in profits. The trader uses a NinjaTrader License to trade futures on CBOT and CME.

Trading platform: $890 for a lifetime license
Membership: $165 x 12 = $1,980
Commissions: $210 x 8 = $1,680 (2 trades in 8 months)
Resets: $99 x 20 = $1,980
Gross profit: $10,000
Total costs: $6,530
Net profit: $3,470

Do note that this is a simplistic example, and every trader will be different and have different strategies and approaches. Still, understanding the trading fees, which might not be evident at a glance, will help you plan accordingly to stay within the trading guidelines.

Trading Platforms and Technology

TopStepTrader supports 14 different trading platforms, which offer a wide range of features and tools that cater to different trading styles and preferences, which makes the broker a versatile choice for traders at all trading levels.

NinjaTrader: TopStepTrader primarily utilizes the popular trading platform, NinjaTrader. The platform is known for its user-friendly interface and extensive charting capabilities. Traders on TopStep also benefit from real-time market data and efficient order execution.

TSTrader: This is one of the most popular platforms for beginners due to its user-friendly design and no-fee structures for Combine trades.

TradingView: This is known for its comprehensive web platform, third-party addons, cross-device compatibility, and social features, which make it an excellent choice for active traders.

Other supported trading platforms include Deriv Trader, Bookmap X-ray, Day Trader, Cunningham Trading Systems, InvestorRT, MultiCharts, MotiveWave, Rithmic R|TRADER Pro, Volfix.net, and Trade Navigator, among others.

Each of these platforms offers unique features, benefits, and fee structures. Besides the platforms, TopStepTrader provides lessons on trading psychology, daily live trading classes, and a chance to observe professional traders in real-time.

Security and Regulation

Trading on the real account is handled through Equiti Capital Brokerage. Equiti has its headquarters in the UK and is licensed to provide financial services. The activities of the firm are managed by the Financial Conduct Authority (FCA).

Trader Support and Education

TopStep Trader provides educational resources such as webinars, articles, and trading psychology materials. Traders also have access to a supportive community, fostering collaboration and knowledge sharing. There are also live trading classes as well as the ability to observe professional traders in real time.

Bi-weekly group coaching webinars provide traders with an interactive environment to stay updated with market trends and improve their skills. For a monthly fee, traders can also access a Performance Coaching Plan, which gives out personalized one-on-one sessions with expert coaches.

There’s also a vibrant community of traders where you can interact with other traders, receive and share insights, and give or receive feedback, both on their social media pages and on their in-house interactive chat rooms.

Who is TopStep For?

TopStep is ideal for traders looking to get funded or trade with other people’s money for a share in the profits. The fact that funded accounts on TopStep come with no personal risk is quite an interesting proposition.

However, becoming a funded trader on TopStep is still challenging. It’s hard to tell how long it will take for you to meet their requirements for getting funded, or if you will ever meet these requirements.

As a rule of thumb, you should quit the program if you realize trading is not for you. Failing consistently on TopStep (or any other prop firm) is a sign that this type of trading is just not for you. The rules can be tough to follow, and breaking them will come at a considerable financial cost.

Even when you do get a funded account, note that maintaining success in a funded account is vital, and failure to do so might have you returned to the Trading Combine stage.

TopStep Review Verdict

TopStep Trader offers a unique opportunity for traders to access capital based on their performance in the Trading Combine. With a focus on risk management and a supportive community, it stands out as a viable option for traders looking to advance their careers and access more capital.

TopStep is a great prop firm for people who trade the futures market. The company is far ahead of its competition in terms of its offerings, payouts, rules, and trading costs. However, it’s worth noting that TopStep currently doesn’t support Forex trading, and only caters to the futures markets, which includes a limited selection of forex futures.

Moreover, just as with many other prop trading firms, TopStep is not regulated. Nonetheless, we can confidently say that TopStep is not a scam; it’s a legitimate and compelling platform for all traders. They are one of the best proprietary trading firms available today.

Disclosure
It’s crucial for potential traders to thoroughly review TopStep Trader’s current terms and conditions, as they may evolve. Additionally, independent research and due diligence are recommended before participating in any proprietary trading program.