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If you’ve heard of TopStepTrader before, chances are, the idea of becoming a “funded trader” intrigued you. After all, who wouldn’t want to make money using someone else’s capital!? Of course, if something sounds too good to be true, it probably is. Does TopStepTrader just give out free money?
Not exactly, but becoming a Funded Trader is a real opportunity: you just have to know how to earn it! In this TopStepTrader review, we’ll be covering everything you’ll need to know before beginning your journey on TopStepTrader.
TopStepTrader is a business. As such, they don’t just give money out and let you keep the entirety of the profits you make investing.
Actually, the “Funded Trader” status needs to be earned by new investors, which is done via TopStepTrader’s simulated trading feature.
Once an investor has proven themselves via the simulated trading program, then they can become a Funded Trader. Unfortunately, your reputation won’t precede you here: everyone has to go through simulated futures trading, meeting specific metrics decided by TopStepTrader.
The main takeaway from this TopStepTrader review is this: the platform primarily offers virtual simulated investing (Trading Combine®) with the potential to become a Funded Trader. Technically, any investor can become a Funded Trader, but you’ll need to purchase a membership plan and pass the Trading Combine® first. The specific requirements you’ll have to meet can change at any time, making it important to read the requirements before purchasing a plan.
Those who do manage to prove themselves through the Trading Combine become Funded Traders. As the name implies, TopStepTrader gives these traders company funds to invest with. Consistent performance is key here, as repeated poor performance can cause one to lose their “Funded Trader” status. However, if you manage to stay consistent, this is the point where you’ll start to earn real money!
Participating in the Trading Combine® requires purchasing a membership, but it’s a necessary step if you want to become a Funded Trader. There are currently three membership plans available, and each one provides you with a different level of virtual funding. Higher-tier plans also give you more room for error (such as increasing your daily loss limit). It’s important to consider these plan limitations, which are the metrics you’ll need to meet if you want to become a Funded Trader. The current plans are:
- $50k of virtual funding for $165 per month
- $100k of virtual funding for $325 per month
- $150k of virtual funding for $375 per month
Each plan occurs in two stages: “Prove Profitability” and “Manage Risk.” If you fail to pass a stage, you’ll need to restart that stage before continuing onward. This process is known as a “Reset” and will cost you $100 for each reset.
The first step to becoming a Funded Trader is choosing a membership plan, which enrolls you in the Trading Combine®. Different membership plans offer different funding levels (as shown above). However, it’s important to note that virtual funds are very different from “real funds,” and they exist only virtually: they don’t have any actual value!
By providing virtual funds, TopStepTrader enables investors to hone in on their investing skills and strategies without risking real capital. The obvious downside is that you can’t make any money during this stage, but you won’t lose any either (beyond membership fees).
The amount of money you’ll spend to become a Funded Trader will vary from person to person. Beyond your ability to stay within the portfolio performance requirements, your success will also be limited by the market itself. TopStepTrader claims that you can receive funding in as little as eight training days. However, most users seem to think a minimum of two months is a bit more realistic.
Realistically, you’ll need to be skilled at trading options if you want to prove yourself and become a Funded Trader. But what if you’re not an experienced trader? Well, TopStepTrader offers a small variety of educational resources for you to learn from! You can watch trading professionals invest in real-time, receive 1-on-1 training, attend live training classes, and more. Some services are offered for free, but you’ll need to pay $400/month if you want personalized coaching via the Professional Coaching Plan. Thanks to these various resources, even those with little experience can find success on TopStepTrader.
TopStepTrader is great as an educational tool for beginners, and offers money-making potential to more experienced investors. Although the company doesn’t allow you to keep all of your profits, you can keep 100% for the first $5,000. After that, you’ll still receive 90% of the profits, which we think is an excellent payout (especially when considering that they fund your trades!).
Nonetheless, TopStepTrader isn’t the easy “road to success” that some might want you to think. It will take a lot of time and effort to become a Funded Trader, but the payoff should be worth it in the end. If you’re feeling up to the challenge, why not give TopStepTrader a try? Click here to redeem your 14-day free trial!