Top Prop Firms That Offer Trading Competitions: A Comprehensive Guide

Introduction

If you’ve ever wondered how to turn a month of sharp trading into cash, funded accounts, or both, prop firm contests are an underrated avenue. Proprietary trading firms (prop firms) fund traders to trade firm capital in exchange for a share of profits, and many now run trading competitions alongside their standard funded account evaluations. These contests typically last a week to a month, run on demo or simulated accounts, and award cash, funded account vouchers, or fee credits.

The appeal is simple: you can win real money or skip the usual evaluation fees and timelines. However, the devil is in the details. Rules vary widely, especially around drawdown, leverage, and disqualifications, so understanding each competition’s structure matters as much as your strategy.

What Are Prop Trading Competitions?

Prop trading competitions are time-bound contests hosted by prop firms where traders compete on a simulated or demo account using the firm’s platform, instruments, and rules. Rankings are commonly based on profit percentage, although some firms include risk-adjusted metrics.

Common Types of Competitions

There are several types of competitions that you may encounter:

1. Live vs. Demo Simulations: Most competitions use demo or simulated environments to ensure fairness and scale. While payouts are real, trading is simulated.

2. Evaluation Challenges vs. Competitions: Evaluation challenges are personal performance tests to earn a funded account. Competitions, on the other hand, are public contests with leaderboards and prize pools.

3. Formats: Competitions can be monthly recurring contests, seasonal events (e.g., summer/winter), or special sponsor-backed tournaments with larger prize pools.

In my experience, competitions mirror evaluation rules but often loosen minimum trading days to encourage activity. That said, many still enforce strict risk limits and rule bans around news trading or latency-based tactics.

Why Participate in Prop Firm Competitions?

• Cash Prizes and Funded Accounts: Top performers can walk away with prize money, funded accounts, or fee vouchers that offset evaluation costs.

• Real-Time Stress Tests: Competitions expose your strategy to time pressure and leaderboard psychology. They serve as one of the fastest ways to identify flaws in risk management and execution.

• Community and Exposure: Winning traders often gain recognition across social media channels of the firms, opening networking or partnership opportunities. I've personally met several long-term collaborators via competition chats.

If you’re on the fence about evaluations, competitions can serve as a low-cost or even free trial to sample a firm’s platform, instruments, and trading conditions.

How Do Prop Trading Competitions Work?

Most firms follow a familiar flow when organizing these competitions:

1. Sign-Up: Register on the firm’s site and accept the competition terms. Some require identity verification (KYC) even for demo contests where cash prizes are involved.

2. Account Allocation: Participants receive a demo/sim account with a set balance, leverage, and platform access (e.g., MT4/MT5/cTrader for forex/CFD; Rithmic/NinjaTrader for futures).

3. Trading Window: Competitions typically run for 1–4 weeks, with possible minimum trading days, daily maximum drawdown, and overall drawdown limits.

4. Leaderboard: Rankings update in near real-time, often based on profit percentage, risk-adjusted return (Sharpe-like), or consistency.

5. Winners and Payouts: Prizes are usually paid within 1–4 weeks post-verification, with some firms converting prizes into funded account vouchers.

Scoring Systems and Rules

Scoring systems vary significantly, but common structures include:

• Profit Percentage Only: A simple and common metric, but it can reward high-risk behaviors.

• Risk-Adjusted or Rule-Weighted: These include scoring for consistency or penalizing over-leverage and max drawdown breaches.

• Hybrid Models: The requirement to stay under daily/max drawdown while maximizing returns.

From reviewing dozens of competitions, here are some recurring rules and guidelines:

• Drawdown Limits: Daily loss limits of 3–5% and overall limits of 6–10% are standard for forex/CFD contests.

• Leverage: Competitions often allow leverage ranging from 1:50 to 1:200, with certain restrictions on specific instruments. Learn more about leverage in trading.

• Lot Size and Positions: Cap on lot sizes for individual trades or total open lots, as well as specific rules on concurrent positions.

• News Trading Restrictions: Many contests restrict trades around high-impact economic news or forbid holding positions through major events. Explore how news impacts trading.

• Algorithmic Trading (EAs): Although often allowed, there are restrictions against high-frequency trading (HFT) characteristics.

• Minimum Trading Days: Some competitions require several active trading days to reduce instances of “one-time luck.”

• Compliance: KYC rules may apply to prize payouts, even if the contest is open globally. Reference on KYC in financial services.

It’s essential to read the competition's rule page carefully. In one contest I followed, some traders were disqualified for stacking positions across correlated symbols, unaware that this counted towards total lot caps.

Calendar of Upcoming Prop Firm Trading Competitions

Competition schedules and prize pools change frequently. Below is an at-a-glance planner of some notable firms:

Pro Tip

Even when a firm doesn’t show an active competition, sign up for their email list. I’ve often seen competitions announced first to subscribers and community members before landing pages go live.

Comparing Top Prop Firms with Trading Competitions

When evaluating contests, consider:

• Prize Pool Size: Larger dollar amounts matter, but also the depth (how many positions get paid) and whether funded accounts are part of the prize.

• Entry Fee and Costs: Free entries are ideal. If contests require payment, assess the potential return on investment.

• Platforms and Instruments: Firms should ideally offer indices/metals and major FX pairs. For futures, core CME products are crucial. CME trading resources.

• Eligibility: Check for regional restrictions or verification processes that may apply to prize payouts.

• Risk Parameters: Understand the limitations on daily and overall drawdown and rules that might favor risky behavior.

Best Picks

These selections reflect common patterns from recent contests. Make sure to verify current availability and rules.

• Best Free Competition: FTMO and FundedNext regularly run free, demo-based contests with both cash and funded account vouchers as prizes.

• Best Prize Pool: The Funded Trader and FTMO have historically showcased sizable pools and multiple paid placements, especially in seasonal competitions.

• Best for Futures Trading: Topstep’s leaderboard events stand out for their robust infrastructure, coaching ecosystem, and US-friendly accessibility.

• Best for Beginners: The5ers’ contests emphasize consistency and controlled risk, making them more approachable for traders not chasing max leverage.

• Best for US Traders: Topstep, Earn2Trade, and OneUp Trader are well-suited for US-based participants, while forex/CFD firms should be verified for compliance.

• Best Low-Risk Rules: Firms like The Prop Trading and The5ers utilize both daily and overall drawdown rules without excessive quirks, favoring disciplined trading.

Differences Between Competitions and Evaluation Challenges

It's easy to confuse competitions with evaluation challenges, so here’s a clear distinction:

• Evaluation Challenges:

  • Purpose: Personal performance test to qualify for a funded account.

  • Duration: Often 30–60 days with minimum trading days.

  • Rules: Strict, with both daily/max drawdown limits and sometimes profit targets.

  • Payouts: Successful traders receive a share of profits, with potential refunds of evaluation fees.

  • Upside: Predictable pathway to funding.

  • Downside: Time-consuming, fee-based, and lacks public leaderboard recognition.

• Competitions:

  • Purpose: Public contest to win cash, funded accounts, or credits.

  • Duration: Shorter (1–4 weeks).

  • Rules: Similar to evaluations, but with a leaderboard format; may not mandate a profit target.

  • Payouts: Immediate cash or vouchers, sometimes leading to fast-tracked funded accounts.

  • Upside: Low-cost or free entry, public recognition, quick payouts.

  • Downside: Leaderboard pressure can encourage risky behavior; more stringent disqualification rules.

Competitions serve as pressure tests, assessing skill and discipline under scoreboard scrutiny.

Strategies to Succeed in Trading Competitions

Three consistent patterns often distinguish winners from participants who fall short.

1. Structured Risk Budget

• Divide the competition window into risk units. For a 20-day contest, consider allocating 0.25–0.5% risk per day and scaling up after a buffer day.

• Aim for asymmetric payoffs, targeting at least a 1.5–2R average winner to manage the impact of losing days.

• Strictly adhere to daily loss limits; a single day of significant loss can jeopardize your chances.

2. Build an Early Buffer, Then Focus on Consistency

• Initiate the contest by building a small equity buffer with your most reliable setups. Transition from aggressive strategies to protecting your lead as the competition progresses.

• Stay disciplined and avoid responding impulsively; if you're in a top position, resist the urge to chase further gains.

3. Use Appropriate Tools for Market Conditions

• In volatile environments, favor instruments with tighter spreads and clearer momentum. Scale back your risk during such times.

• In calmer market conditions, consider mean-reversion strategies for stable returns without substantial swings.

• Utilizing algorithms/EAs can be advantageous, but ensure strict manual risk management, especially around news events that may lead to volatility.

Moreover, it's wise to maintain an off-platform trade log for reflection during intense trading stretches.

Prize Structures and Payout Terms

Prize pools typically reward the top 3–20 traders, often with a steep payout curve. Here’s what to expect:

• Cash Awards: Usually paid via bank transfer, e-wallets, or stablecoins, typically within 7–30 days after KYC verification.

• Funded Accounts/Funding Vouchers: Depending on the firm, funded status may come immediately or with specific conditions attached to vouchers.

• Fee Credits/Discounts: Useful for upcoming evaluations, these can help offset costs.

Payment Mechanics

• KYC: Expect identity and address verification to claim cash payouts. Some firms may require this before trading begins. Regulatory overview on KYC.

• Payment Timing: Can range from a week to a month post-competition results finalization, depending on firm policies.

• Taxes: Prize winnings may be taxable income in your jurisdiction; consult a tax professional if you are uncertain.

Maintaining records, such as screenshots of the final leaderboard and competition rules, can also be beneficial.

Frequently Asked Questions (FAQ)

1. Which prop firms currently run trading competitions?

   • Many forex/CFD firms (e.g., FTMO, The Funded Trader, FundedNext) and some futures firms (Topstep, Earn2Trade) run contests. Check each site’s announcements for availability.
     
     

2. Are prop firm trading competitions free to enter, or do they charge a fee?

   • Many competitions are free to enter, while some require a nominal fee or link contests to evaluation products.
     
     

3. How do prop trading competitions work, and how are winners chosen?

   • Participants receive a demo account with predefined rules. Winners are ranked by profit percentage and possibly adjusted for risk consistency, with strict adherence to drawdown limits required.
     
     

4. What trading rules apply in these competitions?

   • Typical rules include maximum daily or overall drawdowns, minimum trading days, news trading restrictions, and lots/position caps.
     
     

5. Are competitions on demo or live accounts, and how does this affect payouts?

   • Most competitions operate on demo/sim accounts to ensure fairness, but payouts are real after the contest, with no live trading required.
     
     

6. Can US/UK/EU traders join these prop firm competitions?

   • Often yes, but it varies. Some firms restrict participation from specific regions, and KYC is usually needed for cash prizes.
     
     

7. What strategies help you score high on competition leaderboards?

   • Effective strategies involve risk budgeting, early buffer building, consistent execution, and managing news risk. Using EAs with clear parameters can contribute to success, but human discretion remains critical.
     
     

8. How large are the prize pools and how are they paid out?

   • Prize pools vary but often reward a few thousand dollars across top positions. Payments are typically made through bank transfers or e-wallets within 7–30 days, subject to KYC verification.
     
     

9. What actions can result in disqualification?

   • Common disqualifications arise from breaching drawdown limits, trading during restricted news periods, and exploiting price feed differences.
     
     

10. How do trading conditions differ across various prop firms?

    • Differences can exist in spreads, commissions, leverage, allowed instruments, and the mechanics of futures versus forex/CFD firms.

Conclusion

Prop Firms that Offer Trading Competitions provide an unparalleled blend of potential reward and actionable learning. You have the chance to win cash, secure funded accounts, and pressure-test your trading strategy, all without putting your own capital at immediate risk. The key lies in matching your trading style to the firm’s competition rules and maintaining strict discipline regarding risk and compliance.

If you’re ready to jump into the action, begin by checking the competition pages for FTMO, The Funded Trader, FundedNext, The5ers, and The Prop Trading in the forex/CFD realm, and Topstep, Earn2Trade, or OneUp Trader for futures contests. Verify dates, prize pools, and eligibility; review the competition rules at least twice, and develop a thoughtful risk plan.

Browse current contests and register:

• FTMO

• The Funded Trader

• FundedNext

• The5ers

• The Prop Trading

• Topstep (futures)

• Earn2Trade (futures)

• OneUp Trader (futures)

Pick one competition, commit to your process, and treat the leaderboard as a form of feedback, rather than pressure. With the right preparation, the next name on the winner’s list could be yours.