| Topstep | Apex Trader Funding | |
|---|---|---|
| Evaluation Process | One-step Trading Combine | One-step evaluation challenge |
| Trailing Drawdown | End of day (except live account) | Unrealized |
| Daily Loss Limit | $1,000 | None |
| Consistency Rule | Best trading day should be less than 50% of total profits |
Best trading day should be less than 30% of total profits |
| Funded Activation Fee | $149 | Varies ($130 - $340) lifetime or $85 per month |
| Profit Share | 90% after initial $10,000 | 90% after initial $25,000 |
| Minimum Days Required For Payout |
5 winning days of $200 or more | 10 |
| Educational Resources | Extensive educational materials and coaching |
Limited educational resources |
| Community | Strong community support and networking |
Less emphasis on community engagement |
| Trading Platforms | Supports various platforms | Primarily uses NinjaTrader and Tradovate |
| Current Promotion | CLICK HERE | CLICK HERE (Use code: POUITLMY) |
Topstep and Apex Trader Funding are two major players in the competitive prop trading space and are essential resources for anybody starting off in day trading. Selecting between TopStep and Apex Trader Funding is more than just picking a prop business; it's an important strategic choice that might have a big influence on your trading goals.
I want to provide an insight into both companies, based on my vast expertise in the trading industry. I will begin with an introduction and then go into more detail to analyze their differences and similarities, pros & cons, and overall impressions.
With a focus on the futures market, Topstep and Apex Trader Funding are both experts in providing funded trading programs. Traders can get a funded account and the money they need to make trades in the financial markets by seizing the opportunity provided by these popular prop firms.
Apex offers a more flexible strategy with greater earning potential, while Topstep offers a structured program known as the Trading Combine. This review looks at how each platform helps traders achieve their objectives and strikes a balance between discipline and the urge for fast profits.
What is A Funded Trading Program?
A funded trading program is an arrangement between a proprietary trading business and a trader. The proprietary trading organization will initially test the trader. The exam assesses if the trader has the necessary skills and ability to trade consistently and profitably. The exam is conducted on a virtual account, so the trader will not be trading with actual money. Once a trader passes the exam, they are given a real account that is funded by the proprietary trading business. The earnings earned by the trader on the funded account will be split between the trader and the proprietary trading organization.
If, on the other hand, the trader breaks the firm’s restrictions or incurs enormous losses, the agreement will be nullified. This will result in the trader losing the financed account. The trader must go through the testing procedure once more if they desire a funded account. One important aspect of funded programs is that they typically focus on the FOREX or futures market. But with Topstep and Apex, they are exclusively a futures firm.
The Match-Up:
Apex Trader Funding vs. Topstep
Proprietary trading platforms provide traders with particular outlets for efficiently harnessing institutional capital. Topstep and Apex Trader Funding are at the forefront of this market, with each providing specialized approaches for analyzing and supporting trader growth.
Apex Trader Funding
Apex Trader Funding is a proprietary business that runs a financed trading program. Established by Darrell Martin in 2008, the firm has expanded over the years, giving traders access to capital exceeding $100 million. A trader receives a funded account upon passing the assessment stage, sometimes referred to as the Apex challenge.
The best chance for traders to receive a funded account is through The Apex firm. For this reason, the assessment is simplified so that traders may hit their profit objective without having to worry about a plethora of pointless regulations. This gives traders a greater probability of successfully funding their accounts and trading financially. The program is ideal for individuals who lack funds or do not want to risk their investments on trading.
The first $25,000 in earnings goes entirely to traders when they are granted a Apex-funded account. The traders and the company split the remaining earnings in a 90:10 ratio after that. 90% of the profit goes to the trader and the remaining 10% is retained by the business. This is one of the most lucrative profit-sharing arrangements in the business.
Like a lot of prop firms, Apex Trader Funding uses an unrealized trailing threshold (or drawdown). A drawdown is the amount a trader can not go below or they will lose their funded account or fail the evaluation.
Apex’s unrealized drawdown continues to trail a trader’s profits, regardless if they sell it or not. This can be tricky because if the trader is making a lot of profits but the futures contract that they’re trading has not yet hit their price target, they can lose all that money if the trade falls just short of that price target and reverses. So the trailing drawdown increased by trailing all that profit that was never actually sold, leaving the trader with very little drawdown left.
That’s probably the biggest different between Apex and Topstep… because Topstep uses an end-of-day drawdown that only trails your profits that you have actually sold which is undoubtedly more favorable.
Topstep
Topstep is another private business that offers a paid trading program. It is recognized as one of the fastest-developing businesses in the US and was started by Michael Patak in 2012. This is due to the fact that many traders appear to be seeking Topstep's services when it comes to prop firm trading.
However, in an effort to shorten the evaluation process, TopStep has changed the Trading Combine to a one-stage assessment. This simplicity is consistent with the Apex challenge, which requires only one stage to qualify for a funded account.
Traders keep the first $10,000 in profits after being granted a funded account. The traders and the company split the ensuing gains in a 90:10 ratio. Ten percent goes to the firm and ninety percent goes to the trader.
WHICH FUNDING OPTION IS BETTER FOR YOUR TRADING OBJECTIVES: TOPSTEP OR APEX TRADER?
Topstep is Better for:
Traders looking for more stability: The Trading Combine's end of day drawdown eases the pressure for traders to take profits quickly in fear of it eating into their drawdown.
Traders seeking a community: Topstep boasts a thriving trading community that provides a sense of friendship and mutual learning opportunities.
Traders seeking a safety net: The company's emphasis on risk management includes daily loss caps to assist traders in averting large losses.
Traders looking for a test: Clear objectives set by the Trading Combine's performance criteria might motivate traders to achieve success.
Traders who want a more gradual approach: The streamlined procedure for obtaining a funded account is intended to efficiently build a trader’s confidence.
Traders seeking recurring assessment: Topstep's latest assessment guarantees that traders adhere to their trading plan and maintain their strategic path.
Traders looking for a clear set of rules: The firm's clear guidelines can assist traders in being more disciplined and methodical in their approach to the markets.
Traders in need of performance evaluation: Frequent evaluations offer insightful information about a trader's areas of strength and growth.
Traders who appreciate a helping environment: Topstep offers coaching and educational materials to help traders get through tough challenges.
Traders who strive for incremental growth: The business strategy of the company promotes long-term, reliable trading success.
Apex Trader Funding is Better for:
Autonomous traders: The fewest possible trading regulations provide traders more freedom to do as they like.
Traders looking for quick opportunities: Skillful traders can quickly become funded account holders with the help of the one-step evaluation process.
Traders seeking to hold onto their first gains: The trader receives all of the first $25,000 in earnings, which serves as an early incentive for profitable trading.
Traders seeking a more level playing field: The capacity to take on greater positions is made possible by the higher starting balance and the number of contracts a trader can buy.
Traders who detest daily loss caps: Since there is no daily loss cap, traders are free to concentrate on just their overall drawdown instead of worrying about if they’re close to hitting their daily loss limit.
Trading enthusiasts who favor a clear-cut strategy: Profit-sharing is a straightforward and easily comprehensible approach.
Traders who know what they're doing: The platform's adaptability is perfect for traders who have a tried-and-true method that might not work in a strict framework.
Traders who want to trade various accounts: The ability to trade up to 20 funded accounts (unmatched by any prop firm), using a trade copier, will allow traders to build on overall profits significantly.
Profit retentionists: After the initial $25,000, traders may keep the majority of their gains because of the advantageous profit split.
Traders pursuing large profits: Ambitious traders may be drawn to the bigger starting balance via a higher account size option because of the possibility of greater gains.
A CLASH BETWEEN TRADING CHANNELS: TOPSTEP VS. APEX
Explore the essential features that TopStep and Apex Trader Funding provide while outlining their strengths and challenges. You'll have the knowledge to select the platform that best fits your trading path after reading this comprehensive comparison.
Pros of Apex Trader Funding:
Unmatched Discount on Evaluations: 80 to 90% discounts on all evaluation plans are offered consistently throughout the year for traders to take advantage of.
Variety of Account Sizes: Provides a selection of account sizes, ranging from $25k to $300k, to accommodate traders at varying skill levels.
One-Step evaluation: A one-step challenge to gain access to a funded account simplifies the evaluation process.
Profit Retention: A major incentive for traders is that they keep the first $25,000 in earnings.
Trade up to 20 Funded Accounts: This attractive flexibility gives traders 20x their profit potential when using a trade copier.
No Daily Drawdown: There are no limitations on daily losses, allowing traders to handle their trades with greater autonomy.
Included Real-Time Data: Offers real-time data feeds, which are necessary for making knowledgeable trading selections.
Absence of Scaling Plans: Traders can function without the burden of scaling plans, which may restrict their ability to trade.
Greater Risk Flexibility With Numerous Accounts : In order to distribute risk and maybe boost returns, traders are allowed to open numerous accounts and trade them on different days from each other.
Free NinjaTrader License: This package comes with a NinjaTrader license, saving traders money.
Cons of Apex Trader Funding:
Trailing Drawdown is Unrealized: A trader’s profit will be trailed, regardless if the gains are realized or unrealized.
Only Two Payout Periods Per Month: For the first 3 months, traders are capped out to a limited amount they can withdraw (depending on account size) per payout period and only two are allowed per month.
Lack of Customer Support: A customer support number or live chat is not provided and only a ticket can be submitted via message board for any questions or concerns.
High Activation Fees: Although the evaluation discounts are among the industry best, the activation fees (lifetime or monthly) rank pretty high compared to other prop firms.
No Free Trials: Before committing to the platform, prospective traders are unable to test it out.
Unfavorable Profit Goal to Trailing Threshold Ratio For Some Accounts: Some accounts have a very high profit goal compared to its trailing threshold like the $250k account at a $15k profit goal but only a $6500 trailing threshold.
No News Trading: They do not accept strategies that make use of trading during news events.
Limitations on Cost-Average: Only allows to buy just once if PnL is in the negative, perhaps limiting a trader’s strategy on averaging down.
Less Community Engagement: There could be less sense of a community here than at some other companies.
Absence of instructional materials: There are no instructional materials available to aid in the skill-building of novice traders.
Pros of Topstep:
End of Day Drawdown: Not having to worry about how much their unsold gains are eating into their drawdown, a trader is granted higher flexibility in attaining their profit goals.
Favorable Payout Structure After 30 Winning Days: Traders can withdraw 100% of their profits at any time after accruing 30 winning days of $200 or more.
Cheap Combine Costs: Some accounts (like the popular $50k combine) offer a cheap plan compared to other prop firms.
Performance coaching: Offers guidance and criticism, both of which are very helpful in enhancing trading abilities.
Community Support: Availability of a trading community for networking and strategy exchange.
Favorable Profit Ratio: After the withdrawal of the first $10,000 in earnings which the trader gets to keep 100% of, a industry-high 90% to 10% profit sharing follows.
Multiple Trading Platforms: Allows traders to select their favorite interface by supporting a range of trading platforms.
Educational Resources: Provides learning resources to aid in the development of traders.
Customer Service: Offers prompt, helpful customer support via automated chat that is accessible to answer questions from traders.
Free Trial: Before committing, new users can begin with a free trial to experience the site.
Cons of Topstep:
Profit Withdrawal Cap: Before accruing 30 winning trading days of $200 or more, traders are capped at 50% of the amount of profits they can withdraw from their account.
Profit Withdrawal Length: Before accruing 30 winning trading days of $200 or more, traders have to accrue 5 winning trading days of $200 or more to be eligible for a withdrawal.
Daily Loss Limit: Although some would argue this prevents traders from overtrading and mounting more losses, others would argue it’s an inconvenience and burdens them with more restrictions to their overall trading strategy.
Limited Account Size Options: Only 3 account sizes are provided ($50k to $150k) which is low compared to some other prop firms that offer various.
Scaling Plan Restrictions: Once funded, trader has to abide by the scaling rules which designates a certain amount of contracts they can trade depending on their account balance.
Restricted Trading Hours: Compared to other platforms, trades have to be closed at 4:10 PM ET which is almost an hour less.
Unfavorable Criteria For Live Funded Account: Once trader is transitioned to a live funded account from the combine and express account, they are responsible for $135/month CME data fees and the trailing drawdown will no longer be end of day.
Max Contract Size Limited: Compared to other platforms, the number of contracts a trader can take on is smaller.
Consistency Rule: Traders cannot have their best trading day be greater than 50% of their total profits.
Limitations on Number of Accounts: Traders can only have up to 3 express funded accounts compared to Apex which offers 20.
Choosing between apex trader funding and topstep: handling the consistency criteria
Success in the world of proprietary trading is mostly dependent on consistency. Two prominent companies on the market, Apex Trader Funding and Topstep, take various tacks on this idea, each with a unique set of rules aimed at fostering a disciplined trading style.
Apex Trader Funding: Promoting Organic Consistency
Apex Trader Funding chooses to maintain consistency through organic means. The company encourages traders to use trading plans and techniques that suit their unique styles rather than enforcing a strict consistency requirement.
This way of thinking stems from the idea that traders need to be allowed to establish a reliable trading schedule of their own. It's crucial to remember that even while Apex may be more flexible in their consistency guidelines, traders are still required to show a consistent, methodical approach to making money. Disqualification from the challenge may occur for any violation of the main rules.
Topstep: The Systematic Way to Consistency
TopStep, on the other hand, has implemented a particular measure called the Consistency Target in their Trading Combine software. This policy demonstrates the company's dedication to risk control and the development of a consistent profit-making capability. A trader's best day must not surpass 50% (compared to Apex’s 30%) of their overall profit objective in order to fulfill the Consistency objective. If a trader's greatest day ever happens to be more than this, they have to keep trading until the profit distribution satisfies the firm's requirements.
With the help of this systematic strategy, traders may be confident that their success is based on steady, risk-aware trading rather than on unexpected profits. It is a system that incentivizes perseverance and calculated planning, guaranteeing that traders develop the abilities necessary for sustained market stability.
Both TopStep and Apex trading Funding provide distinctive settings tailored to certain trading types. These businesses offer the foundations to support your trading objectives, whether you desire the flexibility to create your own consistency or the direction of a planned aim.
FINAL THOUGHTS ON
TOPSTEP VS. APEX TRADING FUNDING
As we come to the end of our review for Topstep and Apex Trader Funding, we have seen that both platforms have distinctive advantages and difficulties for day traders wishing to enter the realm of proprietary trading.
Choosing between TopStep and Apex Trader Funding is more than just picking a proprietary trading firm; it's about collaborating with a company that shares your goals and trading philosophy. Topstep offers a wide range of educational resources, including the Trading Combine challenge, which has been redesigned to better serve traders who are dedicated to improving their trading skills and want a structured approach to risk management.
Conversely, experienced traders seeking greater operational autonomy and a larger cut of the profits may find Apex Trader funding to be a more straightforward funding option due to its condensed set of regulations.
I think the biggest trade-offs between the two are the trailing drawdowns and evaluation costs. While Topstep offers the much more favorable end-of-day drawdown compared to Apex’s unrealized trailing drawdown, Apex offers significantly cheaper evaluation costs primarily because of the discounts they provide. For example, a 90% discount, which Apex is offering constantly, would only cost a $50k account plan $16.70 (or $18.70 for Tradovate plans) compared to Topstep at $49 for the same account size.
But Topstep may be particularly appealing to traders looking for a simple strategy that provides a clear path to making big gains as a funded trader because of its easy approach. Another thing that sets Topstep apart is its amazing community structure, which allows traders to grow and learn from one another.
TopstepX, a cutting-edge trading platform designed specifically for futures traders, was also just introduced by Topstep. Enormous features have been added that are exclusive to this product.
In the end, it comes down to personal taste: are you more inclined to choose Apex's uncomplicated strategy and substantial profit-sharing conditions, or TopStep's emphasis on education and a cooperative trading environment? Whichever platform you choose, it all provides a solid foundation for your trading operations, supported by sufficient funds to increase your visibility in the market.
Whatever prop firm you ultimately do end of choosing, just remember that this review ought to be the start of your decision-making process. It's crucial to thoroughly research both prop businesses and consider all pertinent variables before selecting the one that best suits your specific objectives and risk tolerance.
