This content is for informational purposes only and is not intended to provide financial advice.
TopstepTrader is a funded trader program that really gives those with lower equity a shot at futures. Is it too good to be true, or does it really provide an accessible avenue for people without much capital? We’ll dissect what TopstepTrader is all about, the benefits and drawbacks of using the service and whether or not it’s right for you in this TopstepTrader review.
What is TopstepTrader?
TopstepTrader is a funded trader program that gives funding to eligible futures traders that need it. The platform was founded in 2012, by Michael Patak, and has become a very well-known service for everyday traders.
The idea behind TopstepTrader is very straightforward. If traders qualify, they will be able to use TopstepTrader’s funds in their futures trading account, which doesn’t require any upfront cash of their own except for the monthly fee.
The first $5,000 in profit will belong to the trader, but after that, the platform will take a 20% cut. You don’t have to be a US citizen to qualify as one of their traders as the platform has plenty of people trading from around the world.
TopstepTrader Review – What It Offers
The Platform – How It Works
TopstepTrader supports over 13 platforms, including NinjaTrader and TSTrader. You can use TopstepTrader for as long as it takes to reach the trading goal and prove that you can meet their targets. Keep in mind that you do have to pay a monthly fee, which means the longer it takes, the more money it will cost you.
You will have the chance to pick from three simulated capital amounts at $50,000, $100,000, or $150,000. If you manage to prove your understanding of trading to TopstepTrader, you then enter step number 2, which is a more stringent vetting step but similar to step 1.
You can take your pick out of TopstepTrader’s trading combines, but we suggest using TSTrader, because it won’t cost you a monthly fee.
We were impressed with the educational resources available after our TopstepTrader review. The platform provides traders with a coaching service that pairs traders with a professional performance coach. The coach will monitor and assess your trades and give you advice and guidance.
Unfortunately, this service is not free. You will have to tack on an additional $395 on top of your monthly subscription fee for access to the Professional Coaching Plan, but it is worth it for complete beginners or those without much experience.
Aside from this service, TopstepTrader also offers daily live trading classes, access to an interactive chatroom where you can swap ideas and give and receive advice from fellow traders, trading psychology lessons, and watching professional live trading.
With all the resources, it really seems like TopstepTrader wants traders to win and provides them with the tools they need to succeed. The fees to use TopstepTrader include the monthly subscription, which comes in three tiers depending on your initial simulated fund, and the fee for the professional coaching if you choose it.
The costs are:
- $165 per month for $50,000
- $325 per month for $100,000
- $375 per month for $150,000
But that’s not all, you also have to consider account reset fees (which you can do if you fail to meet the using the Trader combine and need to start again), which will cost you $99 every time you reset.
Then there are the exchange fees for funded traders, the platform fee (if there is one) for the platform you pick, and the withdrawal fee, which is $50 for amounts less than $500.
Pros and Cons of TopstepTrader
Here is an easy breakdown of the pros and cons we have found in our review of Topstep Trader.
- You get a 14-day free trial with a balance of $150,000
- No platform fee if you choose to use TSTrader
- Funded accounts if you pass the test
- Educational resources and charts
- Great user support
- High threshold to pass to qualify for a funded account
- Potential high monthly costs
- Only futures trades
Is TopstepTrader Right for You?
There is no question that TopstepTrader is an excellent option for traders without much funds. It’s essentially trading with house money and taking a cut – a great deal, right? You are not assuming much personal risk unless you count months of not reaching the target and paying the monthly fees a risk.
The platform also allows you to take quite a lot of profit, the first $5,000 is completely yours and you get 80% of all profits thereafter. The only thing we would want to bring to a potential trader’s attention is the very high bar to meet in order to become a funded trader.
There is no telling how long it will take, for the really good ones, it may take less than a month. However, if you’re a beginner looking at this avenue, you may be paying for a coach, and the monthly fee on top of it for a while before you qualify.
TopstepTrader doesn’t want to fund just any trader, which is why they make the targets difficult – but not unreachable. The prices can be a bit steep, but the resources, educational plans, and access to coaches will greatly increase a person’s success. If you’re not sure, just try out the 14-day free trial by clicking on this link here.
This content is brought to you by Jeremy Biberdorf.