TopStep offers a unique pathway for traders to prove their skills and earn real trading capital through its simulated environment, the Topstep Combine. Successful traders here can advance to real-world trading with the TopStep express funded account, a step that translates virtual success into actual market engagement.
Beyond just funding, TopStepTrader supports traders with education, risk management, and mentorship, emphasizing learning and development. This platform is especially recommended for its broad compatibility with 14 trading platforms and its comprehensive approach, making it a top pick for those looking to improve and test their trading strategies in a risk-controlled environment.
Keep reading as I explain the express funded account, as well as the benefits and drawbacks of choosing TopStep as your prop trading partner.
TopStep Pros And Cons Explained
Pros:
- No Initial Capital Required: TopStep finances real trading accounts, removing the need for personal investment in trading.
- Educational Resources: The platform provides extensive training materials and free group coaching to enhance your trading skills.
- Support Availability: Multiple methods are available to contact the support team, although they operate only during specific hours on weekdays.
- Compatibility: TopStep supports various popular trading platforms like NinjaTrader, TradeStation, and MetaTrader 4.
- Low-Barrier Entry: With an account opening fee as low as $49 and a two-week trial, TopStep makes it relatively easy to start.
- Referral Program: An opportunity to earn extra income through their referral system.
Cons:
- Limited Features: No bonuses, automated trading, or passive income opportunities are offered.
- Membership Fees: High monthly fees are required to access the funded account, which can be a deterrent if you’re struggling to pass the evaluation stages.
- High Bar for Funding: Only about 10% of participants successfully navigate through the entire evaluation process to get funded.
- Restricted Support Hours: The support service is not available 24/7, which might be inconvenient for traders in different time zones.
TopStep Trading Combine Rules
In 2012, Michael Patak brought TopStep into the world, introducing a new twist to the proprietary trading firm scene with the Trading Combine® program. This innovative setup is designed to allow traders to dive into futures trading in a simulated environment, where they can showcase their skills without the upfront financial burden.
The essence of the Trading Combine® revolves around one crucial element: sticking to the Maximum Loss Limit. Traders are put to the test, tasked with turning a profit using paper money across at least two trading days. The main goal is clear: reach your Profit Target without crossing the Maximum Loss Limit line.
The program is quite flexible, offering three different account sizes – $50k, $100k, and $150k. Each comes with its own set of limits and targets, providing a range of scenarios for traders to prove their mettle.
Now, the rules of the game are straightforward but strict:
- Avoid net losses after factoring in commissions.
- Keep within the maximum allowed contract size.
- Sidestep trading during risky times like overnight sessions, weekends, holidays, and major news events.
- Stay away from unrealistic trading strategies, such as using super tight stops, which don’t reflect real-world trading.
- Always trade the most active contract, typically the one with the highest volume.
During the initial phase, you need to trade for a minimum of five days, but this changes to three days in the second phase. Additionally, in Phase 2, you’ll need to maintain a level of consistency where your best trading day doesn’t make up more than 40% of your total profits.
For those who reach the funded account status, the general principles remain, minus the phase-specific rules. Yet, you’ll still need to adhere to the drawdown and contract size limits and continue trading the most active contracts.
Although TopStep presents more rules than some other programs, this structure is in place to mold disciplined traders who can navigate the ebb and flow of the futures markets successfully.
TopStep Express Funded Account Explained
After successfully navigating through the Trading Combine, traders advance to the TopStep express funded account, which serves as an intermediate phase before reaching the live funded account.
Typically, you should expect to receive your express funded account credentials within one to two business days after completing all necessary steps, including submitting your contract and covering a one-time Activation Fee of $149. Notably, this express account eliminates the monthly subscription fee associated with the Trading Combine.
In terms of rules, the express funded account maintains simplicity: your main objective is to avoid reaching or exceeding the Maximum Loss Limit. Other goals include achieving five profitable days with earnings over $200 each and adhering to a specific Scaling Plan.
However, unlike in the Trading Combine, there’s no Consistency Target or Profit Target to meet here, and importantly, there’s no option for a reset if you breach the rules.
The express funded account operates in a simulated environment but it’s designed to reflect real trading conditions more closely. This setup not only hastens your journey to actual earnings but also allows TopStep to efficiently manage risk.
In this phase, while you trade virtually, the outcomes of your trades contribute to TopStep’s live prop firm activities, creating a unique situation where both you and TopStep can generate real profits from simulated trades.
If a trader infringes the Maximum Loss Limit, the express funded account will be lost, but they can re-enter the Trading Combine for another attempt at success. Successful traders in the express funded phase, demonstrating consistent profitability, will be invited to transition to a Live Funded Account, with the total balance from the express account transferred as the starting balance in the live account.
This step marks the final transition into actual market trading with TopStep.
I hope I was able to clearly explain the TopStep Express funded account to you. If it sounds like a challenge you think you are cut out for, Click Here to get started or learn more.