Since the emergence of proprietary trading firms (prop) on the market, more and more people are being lured by this profession. These companies allow traders the chance to trade with the firm’s capital after passing an evaluation, typically at little expense. For many would-be traders, the attraction is being able to tap into substantial capital without having to risk their life savings. That said, for beginners — you need to find a prop firm that gives you access at an affordable price point (with $5000 funded in your trading account.) In 2024, there are a lot of prop firms that offer very competitive pricing and terms as well. Today, we will look at the 5 lowest-priced prop trading firms with $5000 funding accounts and break down what makes these options attractive to budget-conscious traders.
Prop firms or (Proprietary trading firms) offer this opportunity for traders to gain access to larger amounts of capital than they would be able by themselves and do not require these commercial individuals to take on the risk of investing vast sums. However, these companies generally offer evaluation programs for traders in which they have to pass tests based on trading skills and risk management. After successfully passing the evaluation, traders receive a funded account to trade firm capital and are entitled to realized profit splits.
For a lot of traders, and especially new ones in this amount, it is fundamental to look for not expensive evaluation fees prop firm with also good profit split. The lowest tier option is typically a $5K funding account, allowing the trade to expand their account strictly for fund growing purposes but not dealing with higher capital levels directly.
So, today we are going to break down the five lowest cost prop trading firms that still have $5K funding programs in 2024. So we are going to look at their parts, benefits as well evaluating tools in order to help you make the right decision.
1) Aqua Funded
The Pros and Cons of Aqua Funded
Aqua Funded: This is the cheapest prop firm in 2024 that we have on our list. Aqua Funded – A $5K funding account offers relatively cheap and accessible means for traders looking to fund their accounts. One of the main benefits behind Aqua Funded is that, their platform and evaluation are extremely simple to understand which makes it a best fit for any newcomer trader in prop trading.
It uses an 80/20 profit split, which is reasonable for such a low-cost-of-entry firm. Aqua Funded also includes a serial scaling scale option, which traders can leverage to grow their equity with documented trading consistency. It is because of this feature that traders whom are interested in accumulating their accounts slowly for the time being, at least till they accumulate larger accounts, take such a strong liking to the cent account.
Aqua Funded Evaluation Process
The evaluation process of Aqua Fund Trader is built around measuring the traders risk managment and consistency in profitability. Traders must pass a one-step evaluation with predefined profit targets and loss limits. The process is simple and clearly states in the rules –maximum drawdown, a profit target to be reached.
Aqua Funded has a unique characteristic that is real-time feedback. It sends traders a complete performance report at the end of each batch just so you can have all your stats to evaluate how well or poorly you did throughout the phase. For traders who want to get better and pass their evaluation at the first attempt, this kind of transparency is priceless.
Aqua Standard $5K Challenge
Aqua Funded offers the Aqua Standard $5K Challenge introduction. This is to give access, but still test traders through a challenge process. The challenge is to hit a 10% profit target in account value with no more than drawdown of 5%, and that just an on par basis for most prop firms.
Price of entry is important to us at IML with the Aqua Standard $5K Challenge being our most popular due to its affordability. Compared to some other options, Aqua Funded does offer a much cheaper way of getting access to secure funds through the evaluation fee. Finally, if traders fail their first time they can re-try the challenge at a discount giving it a relatively low cost of entry for someone who is looking to break into prop trading.
2) MyFundedFX
The Pros and Cons of MyFundedFX
MyFundedFX, is one i
of many top prop firms that has many attractive cost-effective funding solutions under their services. With a transparent fee structure and trader-friendly terms, MyFundedFX provides traders of all levels the opportunity to access an account for funding at just $5K.
A unique feature of MyFundedFX is their variable profit split, which may be as high as 85 with the trader. This is a competitive revenue share model, which works especially well for traders who consistently make profits. In addition, MyFundedFX offers a range of account sizes and fund options to allow you better make your choices as per your style of trading all the while operating within competent risk management.
MyFundedFX Evaluation Process
MyFundedFX only requires a two-stage evaluation process, but it is still more advanced than the verification methods employed by FTMO since they validate both how profitable you are as well as your risk management skill. During the first round, traders will need to hit certain profit milestones within a number of trading days. The testing here addresses the question whether a trader can generate profits over longer time span by repeatable skill.
The second stage of the assessment is focused on training a trader to be profitable and manage risk for an extended period thereby providing him with all necessary tools that are required during recruitment. This phase involves trading within certain drawdown limits, risk management rules. These prop firms use the two-step process which is more challenging but also have an advantage for guys who want to take it long-term with any particular prop firm because they offer a comprehensive evaluation of your skills.
The evaluation fees are affordable, and the profit split is on the higher end which makes MyFundedFX appealing to confident traders looking for less upfront cost.
3) Funding Pips
The Pros and Cons of Funding Pips
Funding Pips stands out even among the best prop firms as it is a trading capital provider that suits traders outside of just proprietary trading, but also aims to remain simple and tailored well for an affordable price. The trading fees are still competitive and the firm offers a $5K funding account which is low limit that will allow traders with small capital to have access.
Funding Pips is beneficial for the straightforward, no frills trading method as prop. The business concentrate in keeping the evaluation simple and transparent with no extra or subtilized terms inside. Traders like the transparency and that they stand behind fairness, shown by their 75/25 profit split (a nice middle ground given how cheap it is to get into this $5K a/c).
Funding Pips Evaluation Process
For those that prefer more of a traditional prop trading experience, the evaluation process at Funding Pips is kept simple. The evaluation is one phase, and traders must hit a profit target within an allocated time frame while operating under maximum drawdown constraints.
Funding Pips on the other hand provides more flexibility to traders whereby a trader can use any strategy applicable for them provided they trade within risk management parameters and adhere by their rules. Experienced traders with a proven strategy and who know how to effectively manage risk, find this flexibility very appealing.
Funding Pips $5K Challenge Pack
At standard $5K challenge which is the main evaluation path for traders who are seeking to get access to a damaging account of $ 5k at Funding Pip. It is competitively priced, meaning it offers the best value for your money. The challenge runs until traders hit a 10% profit goal, with a daily drawdown limit of 4%, and an overall drawdown cap at 5%.
The Standard $5K Challenge simplicity and affordability are what make it an ideal option for new or professional traders. Additionally, Funding Pips gives traders the ability to grow their accounts as they show regular profits without any doubt a clear way of rising trading capital in point fact.
4) FundedNext
The Pros and Cons of FundedNext
Known for its low fees and trader-friendly philosophy funded by, with a frugal evaluation fee and an enticing offer on its $5K funding account, the firm is well-suited for traders who are beginning their prop trading adventures.
Where FundedNext set itself apart is through these more flexible trading rules and an even bigger share of the profits that will be split 80/20 in favor of traders. The firm also provides an extensive variety of educational tools, including webinars and trading guides — which is especially beneficial for traders who are keen to get better at their craft as they progress in the evaluation.
FundedNext Evaluation Process
The evaluation process at FundedNext is made to be thorough but easy going. Traders are subjected to a two step evaluation that covers profit and risk management. To begin, traders are required to meet a profit goal during phase one over any number of days while containing drawdown within threshold parameters.
The second phase of the evaluation continues with a trading period, building on this basis for an opportunity to showcase longevity in risk and profitability management. This stage is critical because it helps to determine whether a trader can sustain his or her performance and comply with the firm’s risk management rules.
The FundedNext evaluation process also promises substantial feedback to traders — one of the big perks. This feedback allows traders to identify exactly where their strengths and failings lie, allowing them an informed decision as to what they may wish/need to adapt in their strategy.
5) Goat Funded Trader
The Pros and Cons of Goat Funded Trader
Another low-cost prop firm is Goat Funded Trader which provides a $5K funding account with well-structured terms. The firm is also user friendly, and has a simple evaluation process which attracts beginners traders up to the experienced.
Another great feature of Goat Funded Trader is their 80/20 profit split which, when compared to the price point for entry (an incredibly low amount), it’s very generous. The firm also provides a range of account scaling opportunities as traders achieve profitability. In addition, Goat Funded Trader offers a really wide selection of trading platforms which allows traders to select the platform that meets their own style of trading.
Goat Funded Trader Evaluation Process
The evaluation process at Goat Funded Trader is designed to be as accessible and fair as you can expect it. Traders must pass a single-step evaluation to then prove they can make money while managing risk efficiently. It has no ambiguity: The rules say exactly what the maximum drawdown can be and how high that profit target (etc.) must reached.
In contrast, Goat Funded Trader is centered around teaching the trader. The company features an array of educational tools including webinars, trading guides and one-on-one coaching sessions designed for traders that are inexperienced with prop trading. This dedication to training is important because how the traders train plays a big role in whether or not they are able to pass their evaluation on the first try.
Prop Firm Rating Criteria
Factors to Consider When Choosing the Cheapest Prop Firm
Here are the few things that you must consider before evaluating a prop firm to choose any good ones as per your trading goal. These include:
Evaluation Cost: Above all, many retail traders simply might not have the available capital to pay for an evaluation fee. Source for companies that provide affordable analysis fees and do not necessarily compromise the standard of their funding programs.
Profit Split: How much of the profits you get to keep is important. Although a higher profit split is ideal, this needs to be weighed against the companys reputation and cost of participation.
Evaluation Process: The evaluation process that you put to the prospect during your sales process might be simple or complex and last 20 minutes or three weeks with multiple meetings. Some traders may prefer a straightforward, single-phase evaluation, while others might benefit from a more comprehensive two-step process.
Trading Rules: Make sure company trading rules are suitable for your style of trading. For example, you could have firms with drawdown restrictions, time table for trading or which strategies can you use and this will make an impact in the probability of success if we consider those subjective.
Account Scaling: Check to see if the firm offers a way for you to increase your account size as you show consistent profitability. This is especially useful when you want to expand your account as time passes.
Benefits Of Having A $5K Account
A $5K funding account has many benefits, particularly for new prop traders:
Risk Averse: Starting With $5K gives traders an opportunity to begin with a more manageable pool of capital, but also reduces pressure and risk.
Accessibility: Lower entry costs allow new traders to take part in prop trading, which can build momentum and potentially gain technical experience without a huge financial commitment.
Scalability: Once you prove to consistently profitable, many firms will give you the opportunity to scale-up your account and build up your trading superpower.
Trading With A $5K Account: This is a great learning opportunity where you are able to sharpen your skills and gain confidence in trading before moving on with larger accounts.
Conclusion
If you prefer a low-cost entry and easy evaluation process, Aqua Funded or Goat Funded Trader are both great options. For evaluating more stringent and taking a higher profit split, traders who know themselves experienced might want to consider an evaluation through MyFundedFX or FundedNext. Lastly, Funding Pips has a moderate approach and very low flexible trading rules with terms that are considered as the middle ground of all best forex demo account for beginners.
Selecting a prop firm is one of the most important decisions in your trading career. If you keep all the above mentioned factors in mind and analyze different prop firms per these conditions, you can choose a good one that will match your needs as a trader, and help to set yourself up for success.
