What is a prop firm?

A prop firm is a company that lets traders trade with the firm's capital, buying power, or a simulated account that can qualify for payout if the trader follows specific rules.

For futures traders, prop firms have become one of the most exciting developments in recent years.

Instead of depositing a large amount with a futures broker, a trader can buy an evaluation, pass a challenge, get a sim-funded account, and try to qualify for payout. Some companies also offer a path to live-funded trading, where the trader can eventually trade with real capital.

But the prop firm world is easy to misunderstand.

A 150K account doesn't mean you have $150,000 you can freely lose. A sim-funded account isn't the same as a regular futures account. Copy trading normally doesn't mean you can copy other traders. And "funded" doesn't always mean you trade live capital from day one.

This guide explains what a prop firm is, how they make money, how you can make money, why copy trading between your own accounts matters so much, and which prop firms we think are most relevant for European futures traders in 2026.

Our main recommendations are:

1. Top One Futures – best for flexibility, multiple account types, Instant Sim Funded and a clear path to live.
2. Legends Trading – best for simple rules, EOD drawdown, no daily loss limit and Straight to Master.
3. Topstep – best for an established, structured and more conservative model, but without straight to funded in today's public core model.

What does "prop firm" mean?

Prop firm is short for proprietary trading firm.

Traditionally, it means a firm that trades with its own money, not clients' money.

A classic prop trading company employs or affiliates with traders who trade the firm's capital. Traders can get access to technology, risk management, market access, training and capital. In return, the trader shares the profit with the firm.

In the modern retail futures world, the term is used a bit more broadly.

When traders today say "prop firm," they often mean companies like Top One Futures, Legends Trading, Topstep, Apex, Tradeify or similar.

These companies typically offer:

• an evaluation or challenge
• a sim-funded account
• a payout opportunity
• drawdown rules
• a consistency rule
• max loss
• profit split
• possibly a path to live

This isn't always the same as a traditional prop trading desk in New York or Chicago.

But the idea is the same:

The trader gets access to greater buying power, a sim-funded account, or in some cases live capital, in exchange for the firm controlling the risk and taking a share of the profit.

The history: from the Chicago floor to online funded accounts

Prop trading isn't new.

Before online challenges and funded accounts, the futures market was dominated by professional traders on the exchange floor, particularly in Chicago.

At the Chicago Board of Trade and the Chicago Mercantile Exchange, traders stood physically in trading pits and traded futures on bonds, commodities, indices and currencies. Many traded with their own money. Others traded for firms or trading groups. Some had capital, others had skill and gained access to capital through a trading community.

This was a form of prop trading long before modern prop firm platforms became popular.

Topstep is a good example of the bridge between the old and new world. The FIA describes Topstep as "born in 2012 on the trading floor at the Chicago Board of Trade," and writes that the name Topstep comes from the best and most sought-after position on the trading floor, one that founder Michael Patak himself achieved.

Topstep itself writes that the company's history started with Patak Trading Partners in 2010, with an office on the trading floor at the Chicago Board of Trade, before Topstep Trader launched in 2012.

This is important for readers to understand.

Modern online prop firms aren't just "internet products." They build on an old idea from the futures community:

Skilled traders can gain access to capital if they can prove discipline, risk management and profitability.

The difference is that the process is now digital, standardised, and available to retail traders around the world.

Traditional prop firms still exist

More traditional prop trading companies still exist.

Examples are T3 Trading Group and SMB Capital.

T3 Trading Group describes itself as an SEC-registered broker-dealer and FINRA/SIPC member, and states that it trades equities, options and futures. It offers remote trading, but also writes that a trader may either need to provide a first-loss capital contribution or, with a documented profitable track record, be considered for full funding by the firm.

SMB Capital describes itself as a proprietary trading firm in New York where traders in equities, options and futures can be discretionary, automated or hybrid traders.

These are more institutional environments.

They often suit traders who want to join a professional trading desk, receive training, be part of a group, possibly meet licensing requirements, and work more full-time.

For most European traders who want to trade on their own from home, online futures prop firms are simpler.

You don't need to move to New York or Chicago.

You don't necessarily need to be employed.

You can buy a challenge or a straight-to-funded account, trade Micro Futures, and build experience within a structured model.

How does a modern futures prop firm work?

A modern futures prop firm typically works like this:

1. You choose an account size.
2. You pay a challenge fee, subscription or one-time fee.
3. You trade in an evaluation or a direct sim-funded account.
4. You must hit the profit target without breaking drawdown or max loss.
5. If you pass, you get a sim-funded account or Master account.
6. You can request payout once the requirements are met.
7. The firm keeps a share of the profit.
8. Some traders may later be considered for live-funded trading.

This is the core of it.

But the details vary a lot.

Topstep describes its model as three steps: Trading Combine, Express Funded Account and Live Funded Account. Trading Combine evaluates skill, discipline and habits; Express Funded Account is the phase where the trader can take payouts and build a track record; Live Funded Account is the goal.

Legends Trading describes its process as choosing an account, completing a trading challenge in a simulation account, and then moving to Master Simulation.

Top One Futures offers several paths. These include Elite Challenge, Instant Sim Funded, Elite Daily, Elite Access, Ignite and S2F Sim Pro. Top One also states that all sim-funded accounts have a 90/10 profit split, where the trader keeps 90% of the payout amount and the firm keeps 10%.

How do prop firms make money?

Prop firms make money in several ways.

This varies between traditional prop firms and modern online funded account companies.

1. Challenge fees and subscriptions

Many prop firms charge for participating in an evaluation.

Topstep states that Trading Combine requires a monthly subscription.

Legends Trading shows monthly and one-time prices for various plans, including Apprentice, Elite and Straight to Master.

Top One Futures uses various pricing and activation models. For example, Top One states that Elite Challenge requires a one-time activation fee of $149 after passing the challenge, to activate Elite Sim Funded.

Fees, subscriptions and new attempts are part of the revenue model for many modern prop firms. How large a share of revenue this makes up varies and isn't always published.

Many traders buy challenges, resets or multiple accounts. That makes it especially important to treat an evaluation as a structured test of a strategy, not as a lottery ticket.

2. Activation fees

After passing the evaluation, some companies require an activation fee before the sim-funded account opens.

Top One Futures states $149 as a one-time activation fee for Elite Sim Funded after passing the challenge.

Topstep has both models with and without an activation fee, depending on which path the trader chooses. Topstep describes a "No Activation Fee path" as a Trading Combine variant where the trader can become funded without paying the Express Funded Account activation fee.

3. Profit split

When the trader gets a payout, the prop firm keeps a share.

Top One Futures states that all sim-funded accounts have a 90/10 profit split, where the trader keeps 90% and the firm keeps 10%.

Legends Trading also markets a 90/10 profit split and states that traders can request payouts up to twice a month once the consistency rule is met.

Profit split is attractive for the trader because the trader gets the majority of the payout. For the firm, it's attractive because they share in the profit from traders who actually perform.

4. Resets, reactivations and new attempts

Many traders fail the account.

Then they buy a reset, a new evaluation, or a new account.

This is a large part of the business model in modern online prop firms.

That doesn't mean the model is disreputable in itself. But the trader must understand that the company also makes money when traders fail.

That's why you shouldn't buy challenges like a lottery ticket.

You must buy them as a structured test of a strategy you've already trained on.

5. Risk management and the sim-to-live filter

Many modern prop firms pay out based on sim-funded results, but only move some traders forward to live capital.

This lets the firm use sim-funded as a filter.

Topstep says Express Funded Account is where the trader takes payouts and builds a track record toward Live Funded Account.

Top One Futures says sim trading is a gateway to live trading, and that live status can remove the consistency rule and other payout restrictions.

For the firm, this means:

• they can earn money from the evaluation model
• they can pay out sim-funded traders within the rules
• they can identify the best traders
• they can move fewer, more stable traders to live capital

This is the filter logic itself.

How can you make money at a prop firm?

You can make money by qualifying for payout.

In practice, that means:

1. You follow the rules.
2. You reach the profit target or payout target.
3. You stay within drawdown.
4. You meet the consistency rule.
5. You request payout.
6. You receive the trader's share of the payout.

A common mistake is believing it's about "maximising the account."

It isn't.

It's about surviving long enough for a repeatable strategy to produce a payout.

Example: simple payout logic

Say you have a sim-funded account with a 90/10 profit split.

If you qualify for $3,000 in payout, and the profit split is 90/10, that means:

This is easy to understand.

The hard part is getting there without breaking the rules.

The biggest misunderstanding: account size is not capital

This has to be repeated in every good prop firm article:

A 150K prop firm account doesn't mean you have $150,000 in free risk capital.

It normally means you have an account with 150K in marketed account size or buying power, but the actual risk buffer is the drawdown and max loss.

If a 150K account has a $4,500 max loss, that $4,500 is the number that matters.

Not 150,000.

This becomes even more important with copy trading.

If you have five 150K accounts, it might look like $750K in buying power.

But you need to look at:

• max loss per account
• combined drawdown
• payout cap
• consistency
• account limits
• live transition rules
• whether copy trading is actually allowed on the account type
• whether all accounts must be the same size
• whether a live-funded account stops sim-funded accounts

This is where many go wrong.

Prop firms for European traders: tax, regulation and rights

European traders shouldn't treat a modern futures prop firm like a regular regulated broker account. A sim-funded balance normally isn't a bank deposit, and it shouldn't be understood as client funds held at an ordinary futures broker either.

Your rights follow primarily from the agreement with the prop firm: account type, payout rules, drawdown, consistency, copy trading policy, and any restrictions at the live transition.

This isn't an area where European traders should rely on confident claims from foreign websites. Use documentation from the prop firm, save receipts, and consider clarifying the tax treatment with your local tax authority or an accountant.

What is copy trading in a prop firm?

Copy trading means you copy a trade from one account to one or more other accounts.

In a prop firm context, this usually isn't the same as eToro-style copy trading, where you copy another trader.

Here it normally means:

You copy your own trades between your own accounts.

This can be very useful.

If you have multiple accounts of the same size and same account type, you can place the trade once and copy it to the other accounts. Then you don't have to click in five places manually.

But this is only allowed when the prop firm's rules permit it.

Top One Futures and copy trading

Top One Futures has clear rules: copy trading is allowed for efficiently managing multiple accounts, but only between accounts of exactly the same type and exactly the same size.

Top One prohibits copy trading between different programs or sizes. They mention, among other things, that an Instant Sim Funded 50K cannot be copied with an Instant Sim Funded 100K, and that Elite Access cannot be mixed with Elite Daily.

Top One also says manual mirroring between different account types or sizes still counts as copy trading, even if it happens with a delay. They also prohibit correlated asset trading across mismatched accounts, for example ES and NQ in the same direction on different account types.

This is important.

You can't get around the rules by saying:

"I didn't use a trade copier. I just clicked the same trade manually."

If the account types or sizes don't match, it can still be a violation.

Can you copy 5 accounts?

Yes, but it depends on the prop firm and account type.

At Top One Futures, the rules are detailed.

As of August 2026, Top One states that:

• Elite Daily Funded can have a maximum of 5 active accounts, all of exactly the same size.
• Elite Access Funded can have a maximum of 10 active accounts, all of exactly the same size.
• Instant Sim Funded can have a maximum of 3 accounts for 100K or 150K, or a maximum of 5 accounts for 25K or 50K.
• Elite Sim Funded can have a maximum of 3 accounts for 100K or 150K, or a maximum of 5 accounts for 25K or 50K.
• Ignite Funded can have a maximum of 10 active accounts, all of exactly the same size.

That means "5 x 150K" isn't always correct.

At Top One, 5 x 150K may be possible on some account types, like Elite Daily, if all five are the same size, but not on Elite Sim Funded or Instant Sim Funded if the current rules limit 100K/150K to three accounts.

Top One also states that if you have an active Live Funded account, you can't have multiple Sim Funded accounts.

The multi-account strategy must therefore always be built around the current rules.

Example: 5 accounts isn't 5 times risk-free gain

Say a trader has five identical 50K accounts, and the rules allow copy trading between them.

If the trader takes one trade that earns $200 per account, the result becomes:

This is why copy trading is attractive.

But the risk scales too.

If the same trade loses $200 per account, you lose $1,000 in total.

Copy trading doesn't make the strategy better.

It just makes the distribution bigger.

The right way to think about it

A professional trader doesn't think:

"I can earn five times as much."

He thinks:

"I need to reduce risk per account so total risk stays acceptable."

If you normally risk $300 on one account, you shouldn't necessarily risk $300 on five accounts.

That's $1,500 combined.

A more sensible model could be:

This is how copy trading should be used.

Not as gambling.

As controlled scaling.

How to use copy trading correctly

"Using" copy trading well doesn't mean getting around the rules.

It means using the rules legally and smartly.

1. Use the same account type and the same size

This is the basic rule.

If the prop firm requires identical type and size, all the accounts must match.

Example at Top One:

• Elite Daily 50K → Elite Daily 50K
• Elite Access 100K → Elite Access 100K
• Ignite 150K → Ignite 150K

Not:

• Elite Access 50K → Elite Daily 50K
• Instant 50K → Instant 100K
• ES on one account and NQ in the same direction on a mismatched account

Top One clearly states that copying across different programs or sizes is prohibited.

2. Reduce the contract size

If you're copying five accounts, you should often trade smaller per account.

Example:

Instead of 2 MNQ per account on five accounts, you can start with 1 MNQ per account.

3. Don't copy trade news events until you're experienced

CPI, NFP, FOMC and EIA can create slippage, wider spreads and fast moves.

A mistake on one account can become a mistake on all accounts.

4. Track payout and consistency separately

Even though the accounts are copied, each account must meet its own requirements.

One account can be payout-ready while another isn't, depending on fills, fees and balance.

5. Don't ignore the live transition

At Top One, an important restriction applies: an active Live Funded account means you can't have multiple Sim Funded accounts.

At Topstep, the model is also structured around the transition from Express Funded Account to Live Funded Account. Topstep describes Express Funded Account as the place where the trader takes payouts and builds a track record toward live.

The multi-account strategy can therefore change when you move to live.

How we assess current futures prop firms

So far, this guide has explained how the prop firm model works. When we assess specific futures prop firms, we look particularly at drawdown, payout rules, account types, platform support, transparency, account limits, copy trading policy, and the path from sim-funded to a possible live assessment.

A provider can look attractive on price or account size, but still be a poor fit if the rules can't handle the trader's strategy. That's why we assess Top One Futures, Legends Trading and Topstep separately from ordinary futures brokers.

How Top One Futures fits in

In our assessment, Top One Futures is the most flexible recommendation for traders who want to work actively with different prop firm structures.

The strengths are:

• multiple account types
• Elite Challenge
• Instant Sim Funded
• Elite Daily
• Elite Access
• S2F Sim Pro
• Ignite
• clear copy trading rules
• the option of multiple accounts across several categories
• 90/10 profit split
• path to live

Top One states that all sim-funded accounts have a 90/10 profit split.

Top One also has detailed account limits and allows copy trading between your own accounts, as long as they're exactly the same type and size.

This makes Top One especially interesting for traders who want to scale in a structured way.

But the flexibility requires you to read the rules carefully.

Top One is best suited for:

• traders who understand drawdown
• traders who use Micro Futures
• traders who want to choose between challenge and instant funding
• traders who want to legally scale multiple accounts
• traders disciplined enough to follow the account-type rules

Top One is a poorer fit for:

• traders who don't read the rules
• traders who want to mix account types
• traders who believe 150K means $150K in risk capital
• traders who want to hold positions overnight without checking the rules
• traders who copy trade too aggressively

* Prop trading and futures involve risk. We may receive a commission. Payout depends on current rules. The offer applies when the code is entered at sign-up, and terms may be changed by Top One Futures.

How Legends Trading fits in

Legends Trading is interesting because it comes across as simpler and more trader-friendly than many competitors.

They highlight:

• no daily loss limit
• end-of-day max trailing drawdown
• fair consistency rule
• flexible payouts
• 90/10 profit split
• Straight to Master
• the option of live funded after the second payout

Legends writes that as long as you stay within the overall max loss, you can keep trading, and that max drawdown is calculated at the end of each trading day. They also write that if you exceed 30% consistency, the excess is adjusted without account deactivation or penalties.

This is why Legends has become so interesting.

The rules are easy to explain.

That's often what traders want.

Legends is best suited for

• traders who want simplicity
• traders who dislike a daily loss limit
• traders who want EOD drawdown
• traders who want Straight to Master
• traders who want clear, easy-to-read rules
• traders who want a flexible payout model

Legends is a poorer fit for

• traders without their own daily loss limit
• traders who overtrade when nothing stops them
• traders who don't understand EOD trailing drawdown
• traders who think simple rules mean low risk

No daily loss limit can be an advantage.

But only if you have your own.

How Topstep fits in

Topstep is the most established reference point in this group.

They aren't necessarily the most flexible provider. They also don't have straight to funded in today's public core model.

But they have a clear structure.

Topstep describes the model like this:

• Trading Combine evaluates skill, discipline and habits.
• Express Funded Account is where you take payouts and build a track record.
• Live Funded Account is the goal.

Topstep is therefore best for traders who want a more conservative framework.

They suit traders who like:

• a clear process
• an established brand
• trading discipline
• a futures-only focus
• a path toward live
• a structured model rather than straight-to-funded

Topstep is a lesser fit for traders who:

• want to jump straight to funded
• want the simplest possible rules
• want Straight to Master
• want to pass without a Combine
• prioritise flexibility over structure

Topstep states that a trader can trade up to five active Express Funded Accounts at the same time, but their model still builds on Combine → XFA → LFA, not a pure straight-to-funded process.

How to choose a prop firm as a European futures trader

For European traders, five questions in particular matter.

1. Are you trading futures, not CFDs?

Prop firms like Top One, Legends and Topstep operate in the futures universe.

That means you should understand:

• CME contracts
• Micro Futures
• tick value
• margin
• drawdown
• stop-loss
• session times
• rollover
• platform

This isn't the same as CFD trading.

2. Do you want simplicity or flexibility?

If you want simplicity, Legends is very interesting.

If you want flexibility and multiple account types, Top One is strong.

If you want established structure, Topstep is a natural choice.

3. Do you want straight to funded?

Then Top One and Legends are more relevant than Topstep.

Top One has Instant Sim Funded and several models where you can skip the traditional evaluation. Top One still needs to be described as straight-to-sim-funded, not automatically straight-to-live.

Legends has Straight to Master as a separate model in its plan structure.

Topstep doesn't have this as its public core model; they use Trading Combine, Express Funded Account and Live Funded Account.

4. Do you want to scale multiple accounts?

Then you need to read the copy trading rules.

Top One is especially interesting because the rules are detailed and allow multiple accounts, but only under specific limits.

5. Does your strategy hold up to the rules?

This is the most important part.

A strategy that works on your own futures account doesn't necessarily work in a prop firm.

You need to be able to handle:

• max loss
• daily loss limit
• trailing drawdown
• consistency
• payout target
• account limits
• no overnight
• news rules
• copy trading restrictions

If your strategy doesn't fit the rules, that prop firm is the wrong choice — no matter how attractive the account looks.

Our recommendation

1. Top One Futures – best overall choice for flexible futures traders

Top One is our most flexible choice.

It's especially well suited to traders who want to be able to choose between:

• Elite Challenge
• Instant Sim Funded
• Elite Daily
• Elite Access
• S2F Sim Pro
• Ignite
• a multi-account structure
• copy trading between matching accounts
• path to live

Top One is best suited to traders willing to read the rules carefully.

2. Legends Trading – best for simple rules

Legends is our choice for traders who want a simpler model.

No daily loss limit, EOD max trailing drawdown and Straight to Master make Legends attractive for traders who want fewer technical hurdles.

Legends suits traders who have their own discipline.

3. Topstep – best established and most structured

Topstep is still a very important player.

They have a Chicago heritage, an established brand, and a clear model from Combine to XFA and Live Funded Account.

Topstep is best suited for traders who want structure over maximum flexibility.

Practical example: how a trader can build up

Phase 1: learning

Start with one 50K account.

Use Micro Futures.

The goal isn't payout.

The goal is to prove you can follow the rules.

Phase 2: first payout

Once you have a working strategy, keep the risk low.

Don't increase size just because you're approaching payout.

Phase 3: two accounts

Once you've documented stability, you can consider two identical accounts if the rules allow copy trading.

Phase 4: multiple accounts

Only once you have control over fills, drawdown, consistency and payout should you consider more accounts.

Phase 5: live

If you're considered for live, the strategy may need adjusting. Live trading has real execution, real slippage and different risk control.

Conclusion: prop firms give structured buying power, not a shortcut

A prop firm can be a fantastic opportunity for futures traders.

But it isn't free money.

It's a structured test of whether you can handle risk.

Historically, prop trading has roots in professional trading communities in Chicago and New York. Modern companies like Topstep took the idea from the trading floor and made it available digitally to retail traders. Newer players like Top One Futures and Legends Trading have made the model even more flexible, with straight-to-sim-funded, Master accounts, multiple account types and simpler rules.

For European futures traders, this is exciting, but the capital access is often indirect at first: buying power in a simulated environment, a contractual payout opportunity, and a possible live assessment later.

You can start with Micro Futures, learn order flow, use prop firm rules as structure, and gradually scale via your own accounts and legal copy trading.

But the key is discipline.

Don't buy the biggest account because the number looks good.

Don't copy trade five accounts before one account works.

Don't believe that 5 x 150K means $750K in actual risk capital.

Don't confuse sim-funded with live-funded.

Choose the right prop firm based on who you are:

• Choose Top One Futures if you want flexibility and multiple paths.
• Choose Legends Trading if you want simple rules and Straight to Master.
• Choose Topstep if you want an established, structured and more conservative path toward live.

The best prop firm account isn't the biggest one.

It's the one you can actually trade correctly.

Capital risk: Futures trading and prop firm accounts involve a high level of risk. Simulated trading is not the same as live trading. Payout, funded status and the live transition depend on current rules, account type and the firm's risk assessment. This article is general information, not investment advice.

Sources and further reading

• Top One Futures Help Center: Account limits and copy trading
• Top One Futures Help Center: Copy Trading Policy
• Top One Futures Help Center: Profit split on sim-funded accounts
• Topstep Help Center: Program overview
• Topstep Help Center: Live Funded Account parameters
• FIA: New member profile, Topstep
• Legends Trading: Plans
• Legends Trading

Frequently asked questions about prop firms

Short answers about funded futures trading, sim-funded accounts, live-funded trading, copy trading and the most common misunderstandings.