The Definitive Guide to the Cheapest Prop Firms to Start With
Choosing the right prop firm is one of the most important decisions you’ll make as a trader. Here’s everything you need to know about finding the most affordable options and getting funded.
What Are Proprietary Trading Firms?
Proprietary trading firms, commonly known as “prop firms,” are financial companies that provide traders with capital to trade financial markets. Unlike traditional brokerage firms that execute trades on behalf of clients, prop firms give traders access to their own capital, allowing them to trade forex, stocks, futures, and other instruments.
The business model is straightforward: the firm evaluates traders through a challenge or evaluation phase. If the trader demonstrates consistent profitability while adhering to risk management rules, they receive a funded account. Profits generated on the funded account are then split between the trader and the firm, typically ranging from 70% to 90% for the trader.
What makes this model particularly attractive is the risk-reward ratio for traders. You’re not risking your own capital beyond the initial evaluation fee, yet you have the potential to earn substantial profits. This is why prop firm services like those offered by PFM Capitals have become so popular among traders of all experience levels.
How to Identify the Cheapest Prop Firms
When evaluating prop firms for affordability, several factors come into play beyond just the initial evaluation fee. Here’s what you need to consider:
- Evaluation Fee: The upfront cost to take the challenge. Cheapest prop firms start as low as $49 for a $10,000 account.
- Reset/Retry Fees: Some firms charge additional fees if you fail and want to retry. Look for firms with free or discounted resets.
- Profit Split Percentage: A lower evaluation fee with a 50% profit split may be more expensive long-term than a higher fee with 90% split.
- Account Size Options: The cost per dollar of trading capital varies. Calculate the cost-to-capital ratio for each firm.
- Withdrawal Policies: Some firms have minimum withdrawal thresholds or charge fees that can eat into your profits.
- Scaling Plans: Firms that offer account scaling can significantly increase your earning potential over time.
At PFM Capitals, our prop firms passing services team has analyzed dozens of prop firms to identify the most cost-effective options. We consider all these factors to recommend firms that offer the best value for your investment.
💡 Pro Tip: The cheapest prop firm isn’t always the best value. Consider the total cost of trading, including reset fees, profit splits, and withdrawal policies. PFM Capitals’ funded account management service helps you maximize returns across all these factors.
Top Cheapest Prop Firms in 2026
Based on our extensive research and client experience, here are the most affordable prop firms available in 2026. Our prop firms passing service has helped clients successfully pass evaluations with each of these firms:
| Prop Firm | Starting Price | Account Size | Profit Target | Profit Split |
|---|---|---|---|---|
| MyFundedFX | $49 | $10,000 | 8% | Up to 90% |
| FundedNext | $59 | $10,000 | 10% | Up to 80% |
| FTMO | $155 | $10,000 | 10% | Up to 90% |
| The5%ers | $55 | $10,000 | 10% | Up to 80% |
| Earn2Trade | $150 | $25,000 | 6% | Up to 70% |
| City Traders Imperium | $59 | $10,000 | 8% | Up to 80% |
Each of these firms offers unique advantages. MyFundedFX stands out for its low entry price and generous profit split. FundedNext is known for its transparent rules and reliable payouts. FTMO, while slightly more expensive, is one of the most established and trusted names in the industry. The5%ers offers unique instant funding options that some traders prefer.
Our forex fund management team at PFM Capitals has extensive experience with all of these firms. We can help you select the one that best matches your trading style, risk tolerance, and financial goals.
🔥 Insider Insight: Many traders don’t realize that the evaluation fee is tax-deductible as a business expense in many jurisdictions. Consult with a tax professional to potentially reduce your effective cost even further. PFM Capitals’ prop firms passing service can also help you track your trading expenses for tax purposes.
Understanding Prop Firm Evaluation Models
Before diving into specific firms, it’s crucial to understand the different evaluation models used by prop firms. Each model has its own advantages and challenges, and your choice should align with your trading style and experience level.
One-Step Evaluation: This is the simplest model. You need to reach a single profit target (usually 8-10%) while respecting drawdown limits. Once achieved, you receive a funded account. This model is popular among traders who prefer a straightforward approach and can generate consistent profits relatively quickly.
Two-Step Evaluation: This model requires passing two phases. Phase 1 typically has a higher profit target (8-10%), and Phase 2 has a lower target (5%). This model is designed to test consistency across different market conditions. Many of the cheapest prop firms use this model because it provides a more thorough evaluation of trading skills.
Instant Funding: Some firms offer immediate access to funded accounts without an evaluation phase. While these are the most expensive options, they eliminate the risk of failing an evaluation. The5%ers and some other firms offer instant funding programs that can be attractive for experienced traders.
At PFM Capitals, our prop firm services cover all evaluation models. Whether you need help with a one-step challenge, a two-step evaluation, or instant funding setup, our professional traders have the expertise to handle it efficiently.
