Breaking into the trading market is a tricky task for aspiring traders. When they don’t have sufficient funds to make independent trades, they need to connect with a prop firm and use their funded accounts. However, finding the cheapest one-step challenge prop firm also has many reservations, as the newbies are afraid of being scammed. Strict rules and hidden charges mostly make the new traders anxious about this path.
In this article, we shall discuss the cheapest one-step challenge firms and guide new traders in finding the right prop firms for themselves.
Understanding Prop Firms with One step Challenges
Proprietary firms, or prop firms, are unique companies that provide capital to traders and let them profit from it. In a way, they allow new traders to enter the trading world without using their funds. However, before providing these traders access to funded accounts, they assess their trading capabilities through an evaluation test. These tests come with a fee that the traders need to pay before the trial begins.
Now you must be thinking, when the trader can’t afford to enter the trading market by putting bets on personal finance, how will he pay for the test?
These firms charge relatively low fees, as the evaluations are single-step and not time-consuming. Owing to their low cost, they surely work in favor of traders with very few resources stacked up in their bank accounts while they dream of playing a big game in the trading market.
If you need clarification and help selecting the best Cheapest One Step Challenge firm for yourself, here is a complete guide that will help you make the right decision. Follow these tips, and you will surely be on the right side of the spectrum.
Look For The Right Firms
Different firms are known for various reasons. As a new trader, you must look for only those prop trading firms that offer the one-step challenges at the lowest possible cost. Once you compare the evaluation charges of numerous firms, you will better understand the upfront cost you might have to pay to enter the market.
Look for websites that review these firms and rank them according to their features. You will find abundant trading forums online, making your search easier. The more you extend your research, the better your final decision will be.
Beware Of The Possible Hidden Charges
New traders looking for low-cost firms often get very high prices through hidden charges. To be safe, ask the firms personally if there are more charges besides the fee you may need to pay. The FAQs section of the prop trading firm’s website will also give you a good idea of the overall charge sheet.
Online trader communities are also a great way to check out the reviews of prop training firms. You can dig into Telegram or Reddit forums related to online trading, and they will give you great information regarding these firms. The experienced traders will also give you advice through these forums that will greatly help you.
On these online platforms, you will also get comparison calculators that compare the prop firms’ fees and the profit split ratio they follow. This will make it easier for you to understand the value each trading firm offers you as a new trader trying to enter the market.
Check Out Their Trading Rules
Prop trading firms have different rules for traders regarding their evaluations. Some firms have restrictive rules, while others have elementary ones for aspiring traders. If you use varied trading strategies, your ideal trading firm would be the one that offers an excellent level of flexibility.
One way to analyze this is by checking the success rate of previous traders who opted for particular firms for evaluations. A higher success rate would mean the company does not have stringent rules and is easy to work with. This also predicts your success in the evaluation test.
Understand The Profit Split Ratio
The profit split ratio offered by the prop funds is mainly in the favour of traders. However, looking for firms that provide as much as 70 to 90% of profit sharing is always a good idea. Once you shortlist the Best Prop Firms, compare the profit split ratios and choose the firm that works in your favor.
Final Thoughts
The best way to enter the market as a newbie is by choosing a cheap prop trading firm and passing its evaluation test. Once you get through this trial with flying colors, you will be eligible for a funded account to leverage the trading capital. However, that depends on choosing the right proprietary firm for yourself. Simply follow the tips in this guide, and you can narrow down on the best prop trading firm for yourself.