Ready for our TopstepTrader review? This funded trader program is an original concept that was started in 2012. And has since been copied by others trying to match Topstep’s model. Topstep is a great way to learn to trade better. If you’re a successful trader, you can actually make money after going through their simulated account funded “ trading combine” weeding process. You don’t have to be a U.S. citizen to trade with them. In fact, you can trade from any country. They aren’t for the casual trader of forex or futures.
Our TopStepTrader Review
- According to Topstep, “No matter your trading skills or status—we support your development without putting your own capital at risk. Our program is designed to help you manage risk, hone strategies, and become consistently profitable.” Our TopstepTrader review delves into this company, how it works, and what you’ll learn from them
The funded trader program is simple. Qualified traders trade with TopstepTraders capital with a funded futures trading account. These traders keep 100% of the first $5,000 in profits and 80% of the profits beyond that.
Becoming part of the funded trader program is done in a step-wise fashion. You can apply what you learned in coaching to your simulated account. That’s the best way to learn how to trade.
Step ½ (Optional)
The first step to the funded trader program starts with a 100% free 14 day $150,000 simulated trial account; which can be used to hone skills initially.
There is no credit card required to set up this account. However, there are 13 trading platforms supported; including their own TSTrader as well as TradeStation and NinjaTrader.
This first is optional. As a result, you can go on to the next step if you feel confident to do so. Our TopstepTrader Review wants you to understand the steps to take.
Step One (Mandatory)
What’s next in our TopstepTrader review? The next step starts with the minimum $150 monthly fee. You’ll have the time it takes to reach Tradestep’s goal.
That is if you’re trading by their rules. However, you must pay the monthly subscription from signup day until you meet the target or cancel.
You can choose to start with simulated funds from $30K($150/mo subscription) to $150K($375). This choice will determine your profit target, maximum position size, trailing maximum drawdown, daily, and weekly loss limits.
This choice will also determine your funded account balance once you complete the combine. You can use the simulated account to learn how an options strike price works.
The general outline for step one is as follows
- Trade for at least 5 days (don’t have to be in a row) without breaking the following rules (they also have some fine print)
- Meet the profit target of your chosen subscription (we’re showing the $50K subscription example. Another starting balance has different rules)
- Reach your profit target ($3,000)
- Use the correct maximum position size (max five simultaneous contracts or six if you fail)
- Do not surpass the daily loss limit calculated in real-time ($1000)
- Don’t allow your account balance to hit or exceed the trailing maximum drawdown ($2000 which is calculated at the end of day if >$2000 fail)
- If you reach your profit target and fulfill the other rules, you can move on to step two.
Step Two (Mandatory)
If you’ve been cleared by Topstep for Step two (via an email), everything begins again. You must trade for a total of 10 days.
In fact, those requirements are more extensive. Assuming the same $50K subscription (other levels have different goals):
- You have to reach the profit target ($3,000)
- Initial maximum of only two contracts growing on a scaling plan, with more funds in the account the lots increase (any more than the current place on the scale fails)
- Daily loss limit $1,000, fall below at any time, you failed
- The trailing maximum drawdown is $2,000 at the end of a trading day during the challenge failed.
- Now have a weekly loss limit (equivalent to Daily Loss Limit, factored based on the sum of week’s total net P&L)
- No trading during major economic releases
- You can reset the challenge any time for a fee of $99
Is TopstepTrader Legitimate?
- We’re doing this TopstepTrader review because they are a legitimate company. They do require more from their members then say TradingSim. So if you’re looking for something cheaper, then you should keep looking. A company like ThinkorSwim will be of help.
TopstepTrader Review of Funded Accounts
If you passed the Trading Combine, you’ll be funded and able to trade with real money. In fact, you can keep the first $5,000 in profits and 80 % of further profits with no risk to you.
Make sure to understand all details before starting; if not, you might fail.
With a Funded Account, there are different general conditions:
- You can trade CME and products listed with EUREX, CBOT, NYMEX, and COMEX but must pay for the real-time data feed fee cost charged by the exchange as follows:
- CME $105
- CBOT $105
- NYMEX $105
- COMEX $105
- The trading platform TSTrader can be used without a monthly platform fee, but other platforms are subject to a charge.
- Commissions and exchange fees of the trading platform used will apply and can affect profitability.
- Funded account rules differ(break any rule, and you are back to the combine):
- maximum drawdown rule monitored in real-time
- Withdrawals allowed at any time, taking seven days if the payout is under $500($50 fee) if higher no fee
- Trading can be done with the in-house trading platform TSTrader or with TradeStation, NinjaTrader, T4, Jigsaw Daytradr, MultiCharts, R|Trader Pro, VolFix, Trade Navigator, ATAS OrderFlow Trading, MotiveWave, Bookmap, and Investor/RT. Some are free to use, and some not (with limitations as well). The TSTrader is probably best, depending on your needs.
- A free no credit card needed 14-day simulated trial account with $150,000 starting balance
- No fee TSTrader platform
- Education and coaching at different levels, from free to paid depending on needs
- Free items include:
- Daily live trading classes
- Watching professionals trade live
- Trading performance coaching in real-time
- Lessons dealing with trading psychology
- Interactive chat-room
Performance Coaching is free for funded traders and paid during the combine. A monthly one-on-one-session with your Coach.
Your coach is there to improve your skills by identifying your strengths, and neutralizing bad habits through analyzing trades, and offering advice and guidance.
- Zero personal risk funded trading using TopstepTrader’s money keeping 100% of first $5,000 profits and 80 % after that
- High Trustpilot score (4.6 out of 5 with 944 reviews)
- During combine the coaching costs $395/mo
- Total expenses hard to calculate
- Higher monthly fixed costs because of exchange data fees
- Success transparency is hard to obtain from TopstepTrader, especially about their Combine traders versus the success of funded traders (we know over 1900 funded accounts were created in 2019, but how many tried? 15 days was the fastest to get funded status, but what is the average and how many/what percent drop out?)
- Only available for futures and forex trading
If Topstep sounds like the place for you, you can undoubtedly learn and potentially earn a lot and don’t need much capital to begin with. Good luck with all your trades
TopstepTrader Review Final Thoughts
Our TopstepTrader review is here to look at what this company is and how they work. If you’ve followed us for any period of time then you know how important we think paper trading is. As a result, find a platform that lets you practice. You’ll be a better trader for it.