- Scaling up to $5,000,000 with up to 80% profit division.
- Stellar Trustpilot rating of 4.8/5.
- Wide range of trading instruments.
- Minimal trading requirement of 3 days.
- Flexible trading: overnight, weekends, and news events.
True Forex Funds
- Trustpilot rating of 4.6/5 with three two-step evaluation programs
- Unlimited evaluation retries; 80% profit share
- Leverage of 1:100; flexible trading style
- Overnight, weekend, and news trading permitted.
Cons ❌
The Trading Pit
- Low initial profit share of 50% or 60%
- Trailing drawdown post-funding
True Forex Funds
- High evaluation account prices
- 5% Maximum daily equity-based drawdown
- High commission costs
Rules 📋
The Trading Pit
Maximum Daily Loss, Maximum Loss, Maximum Trading Days, Maximum Trailing Drawdown, Minimum Trading Days, No Copy Trading Allowed, Profit Target
True Forex Funds
Maximum Daily Loss, Maximum Loss, Profit Target, Third Party Copy Trading Risk, Third Party EA Risk
When examining the prop trading space, retail traders have a significant choice to make in selecting the right proprietary firm that aligns with their trading strategies, goals, and preferences. Today, we're diving into a comparative review of two leading prop firms in the industry: The Trading Pit and True Forex Funds. We'll scrutinize their programs, rules, fees, and trading conditions to inform traders on which firm might better suit their trading needs.
Profit Sharing and Scalability
The Trading Pit stands out with a compelling offer to scale up to $5 million with an 80% profit share. However, this generous profit division comes after starting with a lower initial profit share of 50 to 60%, which might not be as attractive for traders who wish to maximize their early earnings. On the other hand, True Forex Funds offers a consistent 80% profit share but comes with higher evaluation account costs. Retail traders must weigh initial cost against long-term earning potential when considering these two options.
Trust and Reliability
The reputation of a prop firm is paramount. The Trading Pit boasts a stellar Trustpilot rating of 4.8 out of 5, indicating high levels of trader satisfaction and trust. True Forex Funds also holds a strong Trustpilot presence with a 4.6 rating, reinforcing its reliability in the eyes of its users. These high scores reflect both firms' dedication to trader support and their platform's overall trustworthiness.
Trading Conditions
Flexible trading conditions are a boon for any trader, and both The Trading Pit and True Forex Funds offer the freedom to trade overnight, on weekends, and during news events. This flexibility suggests that both firms understand and cater to serious traders who demand around-the-clock market access and the ability to respond to immediate market fluctuations.
Capital and Leverage
In regards to leverage, True Forex Funds provides a high leverage of 1:100, catering to traders who seek aggressive risk-reward strategies. However, traders should be cautious of the 5% maximum daily equity-based drawdown, which can be quickly reached with such high leverage. The Trading Pit's account sizes vary from $10,000 to $100,000, which are tailored for traders of different calibers and risk appetites.
Trading Instruments and Currencies
The choice of tradeable instruments is another critical factor. The Trading Pit provides a wider range to include bonds and stocks, potentially appealing to those seeking diverse portfolio opportunities. True Forex Funds does not offer bonds or stocks but includes metals, which could attract commodity-focused traders. Account currency options are more versatile at True Forex Funds, supporting EUR, GBP, and USD, whereas The Trading Pit is limited to USD.
Rules and Restrictions
Both firms enforce rules like maximum daily loss and profit targets, which are standard in risk management. However, The Trading Pit implements a trailing drawdown post-funding, possibly hindering aggressive trading strategies. Alternatively, True Forex Funds permits third-party copy trading and EA risk, which might be favorable for traders who rely on automated systems or copy trading to enhance their strategy.
Deposits and Withdrawals
Deposit methods are consistent across both firms, accommodating credit/debit cards and crypto — convenient choices for the modern trader. Withdrawal options at True Forex Funds are more diversified, including the use of crypto, bank wire transfer, and Deel, giving traders multiple avenues for accessing their earnings.
Company Longevity and Market Presence
The comparative newness of both firms, with The Trading Pit incorporated in February 2022 and True Forex Funds in October 2021, could raise concerns about longevity and stability. Nevertheless, both firms have quickly established a significant market presence, which could be indicative of robust management and a strategic approach to growth in the competitive prop trading industry.
Final Thoughts
In conclusion, both The Trading Pit and True Forex Funds appear to be robust contenders for traders looking for prop firm partnerships. It sums up to individual needs, whether those are related to the profit-sharing model, leverage preferences, drawdown rules, or the diversity of trading instruments.
Retail traders should weigh the benefits of potential high earnings through aggressive scaling at The Trading Pit against the flexible yet costlier evaluation process at True Forex Funds. The critical opinions laid out in this review aim to serve as a resourceful guide in making that choice. As always, prudent risk management and a deep understanding of personal trading styles are cardinal when committing to any proprietary trading firm.
