If you are swimming in trading waters, you have probably heard of a great new deal from Topstep Trader. This deal sounds quite nice: low-budget traders can get money from Topstep, but only if they can justify it with their knowledge and experience. In other words, they have to do the best they can, and they will be rewarded.
Because this kind of offer is rare, many say that it’s probably not real. Well, we have tested it in order to determine whether it’s as good as they advertised it, and if there are any secret catches to it.
In this article, we will talk about the Topstep Trader company first, then we’ll address their previously mentioned Funded Trader services.
About Topstep Trader
According to their website, Topstep is created for everyone to have financial independence and thus fulfill their dreams.
This statement comes from an interesting backstory: the founder of the company, Michael Patak, did not have a financial background up to when he was 24! When he was young, he thought that he would succeed just by saving money and investing it. However, because of his lack of skills, he lost all his money and regretted it. It was then he realized how important it was to be informed. After that, he slowly started building his fortune, and now he is a successful trader, to say the least.
Michael created Topstep Trader because he noticed that beginner traders don’t have many options. They have to ‘gamble’ and invest a lot of money in something they are not quite familiar yet. Their only other option is to splurge on trading courses, just to start somewhere.
That’s why Topstep created Funded Trader, a service that offers traders the opportunity to test their skills first.
Topstep Trader Services
As it was previously mentioned, Topstep Trader lets you start trading with simulated accounts.
There are two options – a free trial account that lasts 14 days and involves $150,000; or a contest to become a funded trader.
The simulation accounts are Topstep Trader’s Trading Combine® and the Funded Trader Preparation™. They allow you to start trading right away, in real-time, while being evaluated by experts. Then these experts decide if you are eligible to become a funded trader.
Now let’s explore the simulation accounts a bit further.
Topstep Trader’s Trading Combine®
This is the first step on the road to becoming a Topstep funded trader.
First of all, you have to pay a monthly subscription fee. This refers to the period from when you sign up for it, to the moment you’ve reached your goal or canceled the service.
Then you choose the simulated funds (from $30K to $150K). This affects your monthly subscription fee (for example, the $30K balance is $150, whereas the $150K is $375).
In case you want to start again and reset the rules and the balance, you have to pay $100.
The next step is to start trading. However, you have to follow these rules:
- You have to trade for 10 days minimum (but it doesn’t have to be 10 days in consecutive).
- Only the orders you place during permitted hours are considered valid and counted as a trading day.
- You cannot surpass the daily loss limit.
- You cannot surpass maximum trailing drawdown.
- Depending on the starting funds, you have to reach a certain goal (for example, the $30K starting funds require a profit target of $1,500)
- And again, you have to pay the monthly subscription fee regularly.
These rules should actually help you. The whole point is to show consistency in your performance.
So, after you’ve followed these rules and reached the profit target, you can move on to the next part – the Funded Trader Preparation™.
TopstepTrader’s Funded Trader Preparation™
This part is pretty much the same as the first one, with minor exceptions.
Resetting of the balance is now $200.
These are the rules:
- Again, you have to trade for a minimum of 10 days and only during permitted hours.
- You cannot surpass the daily loss limit or the maximum trailing drawdown.
- You have to follow the Topstep Trader scaling plan.
- When there are big economic releases, you must not possess any positions.
It’s the same as with the Trading Combine®: when you’ve reached the target and followed all the rules, then you move on to the next step.
In this case, the next step is your own long-awaited funded account.
Topstep Trader Funded Account
Now you can finally trade with some real money.
The first $5K that you earn will go to you. And in the future, 80% of profits will be yours.
There are many advantages to having the funded account:
- Besides the basic CME Group products, you can now trade with additional ones, such as EUREX and ICE.
- Anytime you want, you can economize by withdrawing. For at least $250, the wire cost is $0.
- The commissions are $0 per contract, one of the cheapest ever.
Topstep Trader Additional Services
What we didn’t mention earlier is that you get a Trading Coach during your whole trading experience at Topstep Trader. This Coach analyzes your performance, advises you and thus helps improve your skills. Now don’t feel awkward that you’re talking to them – they can seriously help you. And they have helped many traders that have struggled in the beginning but are now thriving. You can choose any of the coaching plans that they offer. You can see the list of these options on the Topstep Trader website.
Not only does Topstep Trader offer coaching when going through the whole trading process, but they also offer free trading education. You can attend live classes, watch experts trade live, hire a real-time coach, etc. This takes things a step further than courses like Textbook Trading and Tandem Trader which only offer online education.
Another interesting feature is the Squawk Radio. Eddie Horn hosts it, and in case you didn’t know, he’s a trader with more than 25 of years of experience in the field.
There’s one flaw that appears to annoy users – the fact that Topstep Trader isn’t adapted for mobile devices and WiFi. Although this may be true, Topstep acknowledged this and advised that you be careful when trading on mobile, since some unwanted delays can occur. The website platform, however, is impeccable, clean and simple. It’s a great starter program for new traders (think Motley Fool but for day trading).
To sum everything up, Topstep Trader certainly has the right idea. If you are a beginner trader that doesn’t know how to start, this is your way to go. It’s safe, risk-free and it has everything that you need.