If you’re a swing trader hunting for capital, prop firms with challenge accounts can be a swift path to scale your trading without taking on outside investors. The right firm allows you to hold positions for days or weeks, trade around news (when allowed), and utilize your edge without the pressure to scalp. Conversely, the wrong firm may confine you to intraday rules that do not align with swing trading timeframes.
In this guide, I’ll break down what matters for swing traders looking for prop firm opportunities, highlight those that stand out, and offer tips on how to pass challenges with fewer headaches.
Introduction to Proprietary Trading Firms
Proprietary trading firms (prop firms) provide capital to traders in exchange for a share of the profits. For swing traders, this model is particularly appealing because it allows access to larger notional exposure without putting your entire personal account at risk.
Challenge accounts serve as the primary route to gain funding. You typically pay a one-time fee, trade either a simulated or evaluation account, and must achieve specific profit targets while adhering to risk limits. Upon successful completion, you’re offered a funded account with a profit split.
However, the challenge rules at different firms vary significantly. Certain firms dissuade swing trading with strict flat rules, while others offer "swing" accounts designed for multi-day holds. Choosing the right firm can save you from wasted time, fees, and frustration.
What is Swing Trading?
Definition of Swing Trading
Swing trading aims to capture multi-day to multi-week price movements. Traders are focused on seizing the “middle” of a price move, as opposed to trading the initial or final ticks.
In comparison to day trading, swing trading employs wider stops (often based on Average True Range - ATR), fewer trades, and leverages higher timeframes such as 4-hour, daily, and weekly. It emphasizes structure and trend quality over speed.
Benefits of Swing Trading
Flexibility: Traders need not remain glued to their screens all day. Many swing decisions are made during the New York close and during weekly reviews.
Asymmetric Returns: With profit targets in the range of 2R–4R, just a handful of good trades can lead to a profitable month.
Lower Friction: Fewer trades typically result in less slippage and cost, which is particularly beneficial for higher-timeframe setups.
Diversification: Swing strategies can operate across various asset classes like FX pairs, indices, commodities, and even futures.
Understanding Proprietary Trading Firms
What are Proprietary Trading Firms?
Prop firms fund traders who demonstrate skill and discipline. Their business model primarily relies on evaluation fees, a portion of trader profits, and the longevity of consistent traders. Learn more about what is a prop trading firm.
Most retail-accessible firms utilize a one-step or two-step evaluation process focused on measuring risk controls and profitability. If successful, traders are allowed to trade the firm’s capital and share profits typically ranging from 70% to 90%.
How Challenge Accounts Work
Challenge accounts generally assess three main criteria:
Profitability: Traders must hit a profit target, often set at around 8%–10% in Phase 1 and 4%–5% in Phase 2.
Risk Control: Traders must abide by maximum daily loss limits (e.g., 5%) and overall loss limits (e.g., 10%). See risk management rules you must follow.
Consistency and Rules: Compliance with time limits, news restrictions, and approved instruments is required.
Some programs allow for swing trading holds and news trading, while others necessitate that positions be closed before weekends or critical events. It's crucial to read the fine print; for a swing trader, encountering restrictions can make a challenge infeasible.
Criteria for Evaluating Prop Firms for Swing Traders
Trading Conditions
Leverage: While higher leverage might be appealing, it isn’t always advantageous for swing trading. For instance, FTMO’s swing accounts provide lower leverage (around 1:30) that allows traders to hold positions through news and weekends, which may benefit swing traders.
Spreads and Commissions: Opt for firms that utilize reputable liquidity providers and offer competitive costs. While one pip may matter less on daily charts, unfavorable pricing can still adversely affect multi-asset swing baskets.
Instruments: Ensure that you can trade your core markets, whether they are majors, crosses, indexed commodities, or futures. For instance, if you swing trade WTI or Nasdaq, confirm they are included in the offering.
Challenge Structure
Duration: Challenge accounts with no time limit or generous time frames can significantly benefit swing strategies. A 30-day timer feels too constraining if you take 6–10 quality trades each month. Consider swing trading prop firms with no minimum days.
Profit Targets: Standard profit targets of 8%–10% for Phase 1 and 4%–5% for Phase 2 can be demanding; look for firms with lower targets or one-step programs to reduce pressure.
Risk Limits: The daily loss and trailing drawdown limits need to suit your trading variance. A daily loss limit of 5% with a per-trade risk of 1%–1.5% can work for swing trading, but having a broader cushion is often beneficial.
Support and Resources
Educational Content: Look for firms offering webinars, case studies, and rule examples beneficial for tailoring your swing plan.
Tools: Access to data, economic calendars, and dashboards for drawdown tracking and trade analytics is valuable.
Mentorship or Community Support: Engagement in community platforms like Slack or Discord can greatly enhance learning through discussions and Q&A sessions.
Top Prop Firms with Challenge Accounts for Swing Traders
Note: Terms frequently change. Always verify current rules, fees, and restrictions on the firm’s official site before purchasing a challenge.
Firm 1: FTMO (Swing Account)
FTMO is one of the most prominent prop firms, providing a dedicated Swing account that stands out for allowing trades to be held through news events and over weekends. Read our full FTMO review.
Pros:
Allows holding positions through news and weekends.
Offers transparent rules, a robust tracking dashboard, and a strong reputation.
Two-step evaluation process with fair targets and clear risk limits.
Cons:
Lower leverage on the Swing account (typically 1:30).
Time constraints may apply in slow-moving markets.
Challenge specifics (typical):
Phase 1 target: 10% within approximately 30 trading days.
Phase 2 target: 5% within around 60 trading days.
Max daily loss: 5%; Max overall loss: 10%.
Payout split: Often between 80% and 90%.
Fee (approx.): Around $540–$650 for a $100k challenge and may be refunded on the first payout.
Practical note: During my testing of FTMO’s swing rules on a demo account, I sized positions based on daily ATR and maintained per-trade risk below 0.5%. This approach helped keep my daily drawdown well under the 5% threshold, even during turbulent weeks.
Firm 2: The5ers
The5ers attracts swing traders due to its flexible evaluation models and permission to hold trades across multiple sessions. See our in-depth guide to The 5%ers.
Pros:
Often includes no strict time limit (always verify current offerings).
Typically permits weekend and news holding.
Offers gradual scaling plans, favoring consistent swing returns.
Cons:
Profit splits and growth rates vary by program tier.
The intricate rule set may differ across account levels.
Challenge specifics (typical):
Evaluation targets are often lower than the industry average for certain tracks (e.g., mid-single-digit percentages).
Generally moderate risk limits, emphasizing consistent performance.
Payouts vary by chosen plan; confirm precise figures.
Practical note: Successful swing traders here often focus on one or two setups, allowing trades to materialize over several days while respecting the firm’s risk management model without forcing trades.
Firm 3: SurgeTrader
SurgeTrader’s one-step evaluation, with no time limit and allowances to hold through news and weekends (subject to verification), make it a sought-after choice among swing traders.
Pros:
Straightforward one-step evaluation aiming for a typical 10% profit target.
No time constraints suit slower swing strategies.
Generally permits news and weekend holding.
Cons:
More conservative leverage (often between 1:10 and 1:20).
Trailing drawdown and risk rules require careful consideration and position sizing.
Challenge specifics (typical):
Profit target: approximately 10%.
Risk limits: Trailing or max drawdown set around 5%–8%, depending on account type.
Payout split: commonly between 75% and 90%.
Fees: range from approximately $250 to $6,500 depending on account size ($25k to $1M).
Practical note: Back-testing a daily-chart breakout strategy on gold and US100 under SurgeTrader's risk limits, I ensured risk remained at 0.25% to 0.4% per trade, effectively managing the trailing drawdown, particularly during trend transitions.
Firm 4: E8 Funding
E8 Funding is recognized for its clean technology, modern user interface, and competitive costs. Swing traders appreciate the relatively flexible rules accompanied by diverse instrument offerings. Check our E8 Markets review.
Pros:
Seamless platform and swift account setup processes.
Historically allowed for weekend and news holding (verify details).
Competitive targets with clear risk parameters.
Cons:
Policies can change; always reconfirm current terms.
Availability might be influenced by regional or broker-specific relationships.
Challenge specifics (typical):
Two-step evaluation typically includes targets around 8% and 5%.
Max daily/overall loss in the realm of 5% and 10%.
Competitive fee structure for $100k accounts.
Payout splits generally start at 80% or higher.
Practical note: Employing a diversified swing basket of EURUSD, GBPUSD, and XAUUSD while staggering entries can mitigate correlated drawdowns. Limiting total exposure when the USD is a market driver is a sound strategy.
Firm 5: Fidelcrest
Fidelcrest provides various programs tailored to different risk appetites, allowing swing traders the flexibility to hold positions beyond intraday confines.
Pros:
A range of accounts to suit various trading styles.
Typically permits overnight/weekend holding (confirm current terms).
Potentially larger funded account sizes available.
Cons:
Rules and splits can differ; careful reading is advised.
Customer feedback is mixed; conduct due diligence.
Challenge specifics (typical):
Two-step challenges with targets around 10% and 5%.
Daily loss limit usually set at 5%; overall loss limit at 10%.
Higher leverage options are available, but swing traders may prefer a more conservative path.
Fees adjust according to account size.
Practical note: I recommend reducing leverage and widening stops on commodities to alleviate PnL swings, focusing on a steady growth curve rather than rushing to meet targets.
Firm 6: The Prop Trading (TPT)
The Prop Trading operates with straightforward rules and frequently permits the holding of trades over news and weekends.
Pros:
Offers simple rules with solid execution quality.
Supports diverse trading styles.
Competitive pricing on popular account sizes.
Cons:
Terms can change frequently; confirm policies.
Payout timelines should be verified.
Challenge specifics (typical):
Two-step evaluation with standard industry targets.
Risk parameters generally adhere to the 5% and 10% thresholds.
Payout splits generally exceed 80% on several accounts.
Practical note: When trading indices like GER40, it’s prudent to utilize time-based exits on Fridays to mitigate weekend gap risks, assuming swing holdings are expressly allowed and technical conditions support the strategy.
Firm 7: Topstep (Futures)
Topstep is a well-established evaluation provider focused on futures trading. Its ruleset accommodates multi-session holds, depending on the product and current policies. See where they rank in our top 7 futures prop firms.
Pros:
Renowned for education in futures trading.
Clear profit targets across various account sizes.
Transparent daily loss and trailing drawdown rules.
Cons:
Product-specific rules may require careful attention to detail.
Effectively swinging futures positions requires a solid understanding of exchange hours and margin requirements.
Challenge specifics (typical):
Profit targets vary by account, e.g., $3k on a $50k account, $6k on $100k.
Enforced trailing drawdown and daily loss limits.
Policies regarding holding through news/overnights depend on the product; always verify.
Practical note: For crude oil (CL) or E-mini S&P (ES) trades, I recommend setting alerts around exchange reopen and crucial reporting periods. Entering half-size positions ahead of major catalysts can help stay within daily loss limits.
Comparison of Challenge Accounts
Below is a snapshot comparison of the highlighted firms. Always check live terms before purchasing.
Firm | Asset Classes | Phases | Profit Targets (P1/P2) | Max Daily Loss | Max/Trailing Loss | Time Limit | News/Weekend Holding | Typical Leverage | Approx. $100k Fee | Payout Split |
|---|---|---|---|---|---|---|---|---|---|---|
FTMO (Swing) | FX, Indices, Metals, Crypto (CFD) | 2 | 10% / 5% | 5% | 10% | 30/60 days | Yes (swing) | ~1:30 | ~$540–$650 | Up to 80%–90% |
The5ers | FX, Indices, Metals (varies) | 1–2 (varies) | Often lower targets | Moderate | Moderate | Often flexible | Typically Yes | Varies | Varies | 50%–80%+ |
SurgeTrader | FX, Indices, Metals, Oil | 1 | ~10% | Daily/Trailing | ~5%–8% | No time limit | Typically Yes | ~1:10–1:20 | ~$250–$6,500 | 75%–90% |
E8 Funding | FX, Indices, Metals, Crypto | 2 | ~8% / 5% | ~5% | ~10% | 30/60 days | Often Yes | Varies | Competitive | 80%+ |
Fidelcrest | FX, Indices, Metals, Crypto | 2 | 10% / 5% | 5% | 10% | 30/60 days | Often Yes | Up to 1:100+ | Scaled by size | 80%+ |
The Prop Trading | FX, Indices, Metals, Crypto | 2 | Standard | ~5% | ~10% | 30/60 days | Often Yes | Varies | Competitive | 80%+ |
Topstep (Futures) | Futures (CME, etc.) | 1–2 (Combine) | Fixed $ targets | Fixed $ limits | Trailing | Ongoing | Product-dependent | Exchange margin | Subscription | Varies |
Notes:
“Often Yes” indicates historical or common policy; confirm current terms and conditions (T&Cs).
Leverage and instruments offered may vary based on broker relationships and regional factors.
Fees and payout splits can fluctuate; some firms provide promotions or refunds on initial payouts.
Tips for Successfully Passing Prop Firm Challenges
Developing a Solid Swing Trading Strategy
Anchor to Higher Timeframes: Utilizing daily charts for trend analysis and 4-hour charts for entries filters out noise and aligns with swing trading goals.
Define Your Edge: For example, a straightforward ruleset may entail trading pullbacks to the 20/50 EMA aligned with a weekly higher high, incorporating confluence from RSI(14) > 50.
Back-test and Forward-test: Aim for at least 200 historical trades and 20–40 forward trades to evaluate profitability and drawdown.
Know Your Stats: If your strategy achieves a 42% win rate with an average of 2.2R winners and -1R losers, model your worst 10-trade streak and adapt your risk parameters accordingly.
Example setup:
Market: XAUUSD in a daily uptrend.
Entry: A 4H bullish engulfing pattern at previous daily support with a rising 20 EMA.
Stop: Below swing low, 1.2 times ATR(14) buffer.
Target: 2.5R, with partial profits taken at 1.5R.
Risk: 0.35% of the account per trade.
Risk Management Techniques
Risk Small, Pass Big: Adopting a risk per trade of 0.25%–0.5% is more conducive to swing trading. This allows stacking 2–3 uncorrelated positions without hitting daily loss limits. See risk management in prop trading.
Daily Loss Guardrails: Cease trading if down 1%–1.5% for the day. Many traders fail challenges by attempting to recover losses before the daily cut-off.
Correlation Caps: Limit exposure to correlated instruments. For instance, I cap total USD-long exposure to 1% risk across positions to mitigate compounded drawdowns.
Trailing Drawdown Awareness: For firms with a trailing drawdown, reduce open risk after accruing significant floating profits. Utilizing partial profits or moving stops to protect equity peaks is advisable.
Psychological Preparation
Focus on Process over PnL: Concentrate on executing your plan effectively. Track adherence to your process as a performance metric for each trade.
Pre-determine Limits: Set a maximum number of trades per week and a "cool-off" rule for after two consecutive losses to manage emotional trading behavior.
Comprehensive Journaling: Record observations, emotional responses, and points for future refinement in your trading journal. Analyzing your logs can reveal essential patterns.
Expect Boredom: Understand that swing trading may require patience; developing the skill to remain inactive is vital. Learn more about trading psychology for funded accounts.
Common Pitfalls to Avoid
Overleveraging
High leverage often leads to oversized positions. Swing trades require room for price oscillations, and excessive size can transform normal pullbacks into challenge-ending drawdowns.
Ignoring Risk Management
Even a solid trading edge fails without strict risk management. Do not adjust stops out of desperation; acknowledge losses, document them, and await the next optimal opportunity. Check common mistakes in prop firm challenges.
Poor Time Management
Swing traders sometimes overlook critical closures. Set alerts around crucial decision candles (such as 4H and daily closes) and schedule analytical time during weekends to plan for the upcoming week.
Educational Resources for Swing Traders
Recommended Tools and Platforms
Charting: TradingView is ideal for multi-timeframe analysis and establishing trade alerts. See TradingView compatible prop firms.
Economic Calendars and Data: Use ForexFactory and Investing.com for tracking economic events; be aware of CME holiday schedules for futures trading.
Analytics Software: Platforms like Myfxbook (Visit) and Edgewonk (Visit) provide valuable metrics for journaling and performance evaluation.
Position Size Calculators: Utilize risk calculators (like this one from BabyPips: Visit) to determine position sizes based on ATR for swing stop placements.
Online Courses and Webinars
Explore price action and trend-following courses designed specifically for higher timeframes.
Attend webinars provided by reputable prop firms focusing on risks and rule settings interpretation.
Seek broker-neutral educational opportunities from established educators that emphasize swing frameworks rather than specific signals.
When evaluating educational resources, prioritize those with verified track records, clear methodologies, and realistic discussions about drawdowns.
Trading Communities and Forums
Engage in small, moderated Discord or Slack groups focused on trading processes and journaling.
Join futures-centered communities that tailor discussions around Topstep/Apex-style rules if you engage in trading instruments like ES, NQ, or CL.
Participate in swing-focused groups that share weekly watchlists and significant technical levels.
The best communities maintain strict risk language and avoid creating a FOMO environment.
FAQ
What are the best prop firms for swing traders?
Firms that explicitly support swing trading conditions, such as FTMO's Swing account, SurgeTrader's evaluation process, The5ers, E8 Funding, The Prop Trading, and Topstep for futures, are among the most recommended choices. Check out top prop firms for swing and scalping strategies.
How do prop trading firms structure their challenge accounts for swing traders?
Most utilize two-step evaluations featuring typical targets of 8%–10% for the first phase and 4%–5% for the second, enforce 5% daily loss limits, and allow for 10% overall losses, as well as conditions enabling overnight and weekend holds.
Are there prop firms that specifically cater to swing traders?
Yes, firms like FTMO with its dedicated Swing account focus on enabling swing trading strategies. Several others, including The5ers and SurgeTrader, also permit overnight and news holding but may need verification of their policies.
What is the difference between day trading and swing trading in the context of prop firm challenges?
Day trading typically benefits from higher leverage and narrower spreads but may encounter stricter scalping restrictions at some firms. Conversely, swing trading requires the ability to hold positions over days or weeks and through major events, in addition to optimized time windows that align with longer strategies.
How does a swing trading challenge account operate?
After purchasing a challenge, participants trade per the defined swing rules—allowing for overnight or weekend holds if permitted—while aiming to achieve the profit target without breaching predefined risk limits. Successful passing leads to a funded account adhering to similar rules, including a profit split structure.
Are there specific challenges that swing traders face in prop firms?
Certain firms offer accounts labeled as “Swing” (e.g., FTMO), whereas others may not explicitly designate accounts but may still allow for overnight and news holding. Always review rules to ensure compatibility with your swing strategy.
What are the minimum requirements for swing trading accounts within prop firms?
Minimum requirements generally involve meeting profit targets within specified timeframes (if applicable), maintaining daily loss limits of 5% and overall losses of 10%, and adhering to the trading instruments and holding rules set by the firm.
Which prop firm offers the easiest swing trading challenge?
The definition of "easiest" varies based on individual trading strategies. Programs that feature one-step, no time-limits such as SurgeTrader are attractive options. Additionally, firms like The5ers may provide lower profit targets or flexible timeframes conducive to successful swing trading; however, rules and fees should be reassessed for each firm. You might also explore no evaluation prop firm benefits.
How can a swing trader effectively pass prop firm challenges?
Limiting risk per trade to 0.25%–0.5%, containing correlated exposure, prioritizing A+ setups, and utilizing ATR-based stops are critical strategies. Additionally, model potential worst-case scenarios to inform risk thresholds, maintain a meticulous journal, and resist the urge to chase losses. See how to pass any prop firm challenge.
What benefits are associated with utilizing a challenge account for swing trading?
The potential for greater capital access, professional trading structure, and financial rewards for disciplined planning are significant advantages. Engaging in the evaluation process can also enhance risk management skills and reinforce adherence to rules that mirror institutional trading conditions.
Conclusion
Choosing the right partner among prop firms with challenge accounts for swing traders can dramatically influence your funding journey. Emphasize firms that allow overnight and weekend holding, provide realistic targets, and grant ample time for trades to mature according to higher-timeframe strategies.
If you’re serious about scaling your swing trading approach, consider firms like FTMO's dedicated Swing account, The5ers, SurgeTrader, E8 Funding, The Prop Trading, and Topstep for futures. Align your statistics with the requirements of each firm, begin with conservative risk, and view the challenge as a rehearsal for professional trading execution.
Ready to take the next step? Compare the rulebooks of different firms side-by-side, conduct a 4-week forward test with the chosen firm’s parameters, and then commit to the challenge that best aligns with your trading edge. Share your experiences in trading, ask questions, or subscribe for further updates. For more comprehensive resources, check out our step-by-step swing trading risk guide, challenge rule comparison checklist, and adaptable swing strategy template tailored for multiple firms.
Disclaimer: Prop firm terms, availability, and policies are subject to frequent changes. Always ensure verification of current rules on the official site before purchasing a challenge. This article is for educational purposes only and does not constitute financial advice.
About The Author
Nina Khatri
Nina is a community strategist focused on building vibrant trader ecosystems. She believes that engaged traders are the backbone of successful prop firms. Her content explores how to foster loyalty, spark conversations, and turn traders into brand advocates.
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