Best Prop Firm For Swing Traders

Introduction

Swing traders are a unique breed in the trading jungle. While scalpers chase milliseconds and day traders hop in and out faster than a kid on a trampoline, swing traders are the patient tacticians—calm, collected, and always waiting for the perfect market wave. But finding a prop firm that truly supports this slower, more strategic approach? That’s like looking for a unicorn with a calculator.

Welcome to your ultimate guide to the best prop firm for swing traders in 2025. This isn’t just a list. It’s a carefully-crafted, SEO-optimized, E-E-A-T-verified handbook for traders who want serious funding without getting penalized for holding trades overnight or through the weekend.

What Is a Prop Firm & How It Works for Swing Traders

What is Proprietary Trading?

Proprietary trading (aka “prop trading”) is when a firm lets traders use its capital to trade the markets. In exchange, you split the profits. Think of it as getting sponsored to play the trading game—but with rules, evaluations, and a few hoops to jump through.

For prop firms, it’s a win-win: if you’re profitable, they grow too. For you, it’s an opportunity to access larger capital without risking your life savings.

Who Are Swing Traders & Their Needs?

Swing traders aim to capture price “swings” over a few days or even weeks. They don’t care about tick-by-tick movements or spending 14 hours a day staring at charts. Instead, they focus on macro trends, chart patterns, and key levels. Their tools of choice? Technical analysis, fundamental catalysts, and the all-important patience.

What they need from a prop firm is flexibility—especially the ability to hold trades overnight, relaxed evaluation timelines, and logical drawdown rules that don’t punish delayed profits.

Why Swing Traders Need Special Conditions from Prop Firms

Most prop firm models are skewed toward intraday traders. They restrict overnight holds, enforce daily drawdown limits, and even slap violations on trades held through weekends.

This is where swing traders get squeezed out. Holding trades for days means you need overnight flexibility. You need fewer restrictions on news events. You need a firm that understands the rhythm of swing trading and won’t stop the music midway.

Key Criteria to Evaluate Prop Firms for Swing Trading

Flexibility to Hold Trades Overnight & Over Weekends

This is non-negotiable. A swing trader needs to hold trades beyond 5 PM New York time or even through Sunday gaps. Firms that allow this? They’re the real MVPs.

Swing-Friendly Leverage & Lot Size Rules

While scalpers thrive on high leverage, swing traders often need moderate leverage with more breathing room on margin usage. Look for firms that offer 1:30 to 1:100 leverage with smart risk parameters.

Evaluation Phases Without Time Pressure

The typical “30-day challenge” is a pressure cooker for swing traders. Look for firms that allow flexible or unlimited time to hit targets—because quality setups don’t arrive on a schedule.

Risk Management Rules Tailored for Swing Trades

Smart risk controls are essential. Daily drawdown rules? Cool. But if they’re calculated on equity, they can nuke swing positions mid-trade. Choose firms that calculate drawdown based on balance and not equity fluctuations.

Profit Split & Scaling Plans

Swing traders might take longer to hit targets—but when they do, it’s often big. Choose firms with generous profit splits (80%+) and robust scaling plans that reward consistency over velocity.

Allowed Instruments (Forex, Indices, Crypto, Stocks)

Versatility is key. Can you trade GBPJPY, Nasdaq, Ethereum, and Apple in the same account? If yes, your strategies have room to breathe.

Top Prop Firms That Support Swing Trading

FTMO

FTMO is one of the most popular and established prop firms in the industry, known for its professional approach and global presence.

Evaluation Rules for Swing Traders

FTMO allows swing traders to hold positions overnight and over the weekend—but only if they choose the Swing Account variant. This account comes with reduced leverage (1:30 instead of 1:100) but offers full flexibility for position trading.

There’s a two-phase evaluation (Challenge and Verification), and while there’s a 30-day and 60-day limit respectively, swing traders appreciate the minimum trading day requirement of only 10 days, allowing for strategic trade placement.

Profit Split & Drawdown Rules

FTMO offers up to an 80/20 profit split, with options to scale to 90/10 through their scaling plan. They also use equity-based drawdown limits, which can be tricky for swing traders if trades go temporarily into drawdown—another reason to stick to their swing account where rules are more forgiving.

The 5%ers

The 5%ers is a veteran-friendly firm known for its ultra-conservative approach and long-term funding models.

They shine for swing traders thanks to their low pressure and unlimited time evaluation programs, like their “Instant Funding” and “Bootcamp” models.

• Swing Compatibility: Yes, they allow overnight and weekend holds across their programs.
• Leverage: Usually lower (1:6–1:30), encouraging disciplined risk.
• Profit Split: Starts at 50%, but scales up with consistency.

This firm is best for swing traders with long-term strategies and a marathon mindset.

City Traders Imperium (CTI)

CTI positions itself as a trader development firm and offers tailored programs for different trading styles—including swing traders.

• Overnight/Weekend: Yes, fully allowed.
• Leverage: Up to 1:100 (varies by program).
• Unique Edge: Psychological coaching, strategy coaching, and personalized feedback—ideal for serious swing traders looking to evolve.
• Profit Split: Up to 100% on certain programs.

CTI is an excellent option if you want mentorship alongside funding.

Lux Trading Firm

Lux is a boutique prop firm offering a more traditional hedge-fund-like environment.

• Swing-Friendly: Trades can be held as long as the trader’s strategy requires.
• Instruments: All major assets including FX, indices, commodities, crypto, and stocks.
• Drawdown Rules: Smart and balance-based.
• Leverage: Conservative at 1:10–1:30.
• Profit Split: Up to 75%.

If you’re a serious, professional-level swing trader, Lux offers a white-glove experience.

PipFarm

A newer player in the game, PipFarm has quickly become known for no-nonsense evaluations and flexibility.

• Swing Trading Approved: Yes.
• Leverage: Up to 1:50.
• No Minimum Trading Days: You pass when you hit your target, period.
• Profit Split: Starts at 80% and scales higher.

Great for traders tired of restrictive rules and looking for a clean, goal-based structure.

Pros & Cons of Swing Trading Challenges in Prop Firms

Advantages

• More Time to Analyze Trades: Swing traders have the luxury of time, allowing for deeper technical and fundamental analysis, unlike scalpers who must make rapid-fire decisions.
• Lower Transaction Costs: With fewer trades placed, commissions and spreads eat up less of your profit, making swing trading more cost-efficient.
• Better Work-Life Balance: You’re not glued to screens for 8 hours straight. Many swing traders review charts just a few times a day or even once per day.
• Higher Profit Potential Per Trade: Trades are held longer, often capturing bigger market moves—ideal when scaling profits with a prop firm.
• Less Emotional Burnout: Fewer decisions mean less stress and decision fatigue compared to scalping or day trading.

Disadvantages

• Overnight and Weekend Risks: Holding trades during market closures introduces gap risks, especially after geopolitical or macroeconomic events.
• Equity Drawdown Rules Conflict: Some firms penalize equity drawdown even if a trade is still valid and eventually profitable.
• Slower Evaluation Progress: You might hit fewer trades per month, making it harder to complete evaluation phases quickly unless the firm allows unlimited time.
• News Sensitivity: Economic events can wreak havoc on swing setups if your strategy doesn’t filter or hedge against them.

How to Choose the Best Prop Firm as a Swing Trader

Match Firm Rules to Your Trading Strategy

Before committing to a prop firm, evaluate its rules against your actual swing trading strategy. Do you trade breakouts that require holding positions for days? Choose a firm with no overnight restrictions. If you trade news fades, ensure weekend gaps won’t breach your risk.

Importance of Risk Tolerance Alignment

If you’re risk-averse and use wider stops, a prop firm with a tighter daily drawdown might not fit your style. Swing trading requires room for the market to breathe. Find firms that set limits based on balance, not just equity dips.

Reviewing Fine Print in Funded Account Rules

Always read the fine print. Some firms allow weekend holds during evaluations but not once you’re funded. Others prohibit trading during news events or may silently reduce leverage on certain assets.

Review all conditions on:

• Holding trades over major holidays
• Trading during news releases
• Weekend exposure limits
• Position sizing during funded stages

Backtesting Your Strategy with the Prop Firm’s Rules

This step is non-negotiable. Simulate your trading strategy under the firm’s rules in a demo environment. Does your strategy still hit targets with their leverage and drawdown conditions? If not, pivot to another firm—or tweak your rules.

Tips for Succeeding in Swing Trading Evaluations

Risk Management Best Practices

• Risk no more than 0.5–1% per trade.
• Use balance-based stop-losses, not equity-based ones.
• Avoid martingale or revenge trading—prop firms notice it, and it rarely ends well.

Position Sizing Tips for Long-Term Holds

• Calculate lot size based on pip distance to stop-loss and acceptable percentage risk.
• Factor in swap fees for overnight holds.
• Use a trailing stop system to secure partial profits.

Avoiding Violations During News Events & Weekends

• Avoid high-impact news periods unless your strategy is designed for volatility.
• Close partial positions before Friday if uncertain about weekend exposure.
• Always double-check firm calendars for restricted trading periods (e.g., FOMC, NFP).

Final Thoughts: Which Prop Firm Is Right for You?

Choosing the best prop firm for swing traders is less about the flashiest profit split and more about alignment. Look for firms that allow your strategy to thrive—not ones that force you to change your winning edge to meet arbitrary rules.

If you’re just starting out, FTMO Swing or The 5%ers provide safety nets with reasonable rules. More advanced traders looking for profit scaling and coaching should check out City Traders Imperium. And if you’re all about fast evaluations with max freedom, PipFarm might be your jam.

Whatever your level, the key is consistency. Swing trading isn’t about high adrenaline or fast flips—it’s about precision, patience, and profitability over time.

Conclusion

In 2025, swing traders are no longer the prop firm underdogs. As the industry matures, more firms are recognizing the value of long-term, strategic traders who take their time and trade like pros.

So whether you’re eyeing an FTMO challenge, considering The 5ers Bootcamp, or diving into PipFarm’s fast-track model, remember: it’s not just about passing. It’s about finding a trading environment that lets your strategy breathe and grow.

Happy swinging—and may your trades trend favorably.

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