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Topstep Review
Topstep is a major proprietary futures trading firm, founded over a decade ago. The firm enables traders to earn funding in secure environment at the same time as honing their abilities in the areas of discipline, trade execution and risk management. The Trading Combine, Topstep’s funding program, is built for traders of all experience levels, from beginners through to qualified professionals. Partnering with such a prop firm means that successful traders can earn a significant profit share without risking their own capital. Trading Combine provides a place for you improve your skills and become a futures funded trader without having to pay the full price for any mistakes you make. You keep all of the profit of the first $10,000 you earn, and thereafter the profit share is 90%. Since 2020, Topstep’s clients have withdrawn more than $9 million in profit. Our review looks at how Topstep functions, what you need to do to succeed in the 1-Step, 1 Rule evaluation program (Trading Combine), what fees the firm charges, and its available instruments and trading platforms.
To acquire a funded account and qualify for payouts, Topstep requires you demonstrate an ability to trade profitably and consistently, using a simulated account: The Trading Combine. This program for futures traders offers practical instruction and evaluation, enabling traders to improve their skills in simulated markets and earn funding once they meet specified trading objectives and have shown they can adhere to Topstep’s rules. Traders from beginners through to experienced professionals’ benefit from Trading Combine’s discipline and the habits it helps you build.
There are a variety of funded accounts, each with different starting balances, numbers of open positions allowed, and daily and total loss limits dependent on the buying power with which you choose to get funded. Traders should be aware that the balance of the simulated account you begin with will be the size of the funded account and plan to pay going forward once you qualify as a funded trader.
Topstep has one straightforward program – The Trading Combine. This has three different account sizes, the monthly price of which varies depending on the size of the simulated account. The cheapest, which has a starting balance of $50,000, costs $165 per month, compared to the most expensive which with a starting balance of €150,000 costs $375 per month.
Topstep offers a two-week free trial, and a discount of 20% on your first Trading Combine, although trades made during the free trial do not count towards your upgrade to a funded account.
Once you have successfully completed Trading Combine, the one-step evaluation stage, you can earn funding. To do so, traders need to achieve the Topstep profit target while also meeting the firm’s trading objectives. These are tried and tested risk management tools, designed by professional traders; following them will help you to become a more methodical trader.
Trading is testing and only around 22% of traders succeed in becoming funded. Those who do, though, can earn well partnering with Topstep – funded traders keep all of the profit of the first $10,000 they earn, and thereafter the profit share is 90%. Traders should be aware that even after becoming funded, there are still regulations and fees. The monthly simulation fee is stopped but traders still must pay exchange fees, from $116 per month per exchange.
1 Step. 1 Rule à The Trading Combine
In order to qualify for a funded account, traders have to show they can trade profitably and without losing capital.
The 1 Rule
Topstep appears to prioritise teaching traders risk management and discipline. Their one rule can be seen as a risk management tool, preparing traders for lasting success and profitability in the markets.
- The only rule is to never hit or exceed your Maximum Loss Limit.
- The Maximum Loss Limit is the most a trader can lose, dependent on the realised profits made in the trader’s account and updated at the end of every trading day. This enables traders to retain their profits and encourages them not to return too much to the markets.
- Exceeding the Maximum Loss Limit means you have broken the rule, and you will not qualify for funding.
- The Maximum Loss Limit is crucial to risk management and lasting success in the markets; traders should go by the maxim “always trade for tomorrow”.
- The Maximum Loss Limit is dependent on your end of day balance and is built to give you more room to trade.
Trading Plan Objectives
Topstep also asks traders to meet the following series of objectives that are part of the Trading Plan. Failing to meet them, though, does not mean you have broken rules or will be ineligible for funding.
- Consistency Target
Best Day below 50% of total profits made.
- Profit Target
Reach and maintain the $3,000 profit target.
- Daily Loss Limit
Do not reach or exceed the Daily Loss Limit; if you do then your account is deactivated for that trading day.
Earn Funding in 2 Days
Topstep’s 1-Step, 1-Rule Trading Combine gives traders the possibility of becoming funded in as few as four days, meaning it offers some of the fastest funding access in the prop trading industry. Nonetheless, the firm is keen to ensure that traders do not overlook discipline and risk management.
- Topstep’s 1-Step, 1-Rule Trading Combine gives you access to funding after just two days
- This is the fastest program available in the industry
- The company is keen to reward diligent, disciplined traders immediately with the capital funding they merit
- Funded traders can pay themselves as many as four times monthly, meaning Topstep has one of the best payout policies in the industry
Traders who respect these guidelines and can reach and sustain the profit and consistency targets will be promoted to the Express Funded Account. The Topstep Help Centre provides further information about the firm’s objectives and rules.
Trading Hours
Traders cannot hold positions on trading days between 15.10 and 17.00 Central Time on Trading Combine accounts. Some futures markets shut before 15.10 Central Time. If you are trading one of these products, you must leave that market before the daily close of the products. Traders also need to be aware of which days are holidays according to the CME Protocol.
Topstep’s website (www.topstep.com) provides more information about their rules and trading hours.
You have a choice of trading software packages when you first register with Topstep. Whatever you choose, you will be committed to using this when you qualify for funding too. There are several built-in trading platforms traders can use both during their simulations and for their funded account. TSTrader, powered by Tradovate, is the most frequently chosen platform. It has an accessible interface and a range of helpful features, such as the ability to set hotkeys, plot trendlines and retracements and buy and sell straight from the charts. It also provides a basic stock news ticker page, which enables you to keep track of your profit and loss throughout the simulation period.
TSTrader has a replay function, meaning you can evaluate an executed trader to determine how successful it was, but as it does not enable you to fast-forward to a specific time or choose a specific asset class to replay, its usefulness is limited.
The platform gives traders access to futures markets through a straightforward but powerful interface and even has a mobile version.
Group Coaching:
Group Coaching enables you to connect with Topstep’s trading specialists. Every Monday and Wednesday at 13.00 CST there is a live session with futures trading expert John Hoagland, discussing current market trends and news, and answering any questions you may have.
(NEW!) One-on-One Coaching:
Topstep is currently creating a new, complimentary service for all active traders to check-in with a specialist to talk about their trading approach, risk management and what they need to do obtain funding and earn profits. To find out when openings are available, join their waiting list.
Digital Coaching with Coach T:
Another feature of Topstep’s trading dashboard is Coach T, a digital performance coach offering tools and personalised trading statistics to help you in becoming a savvier, more disciplined trader. Each time you sit down to trade, Coach T moves you closer to the goal of becoming a funded trader.
Topstep is among the best – if not the best – in the industry with regards to its payout policy. Traders can take weekly payouts which means that Topstep Funded Traders™ can pay themselves up to 4 times a month and after accruing 30 winning trading days, they get to take 100% of their profit.
Once traders have accrued five winning trading days per payout request, you are also able to request a payout of as high as 50% of your account balance. (A winning trading day is considered as such when its NET PNL is €200 or higher).
Traders who have accrued 30 winning trading days are given access to 100% of their balance and can request up to 100% of their balance with each payout request. However, it’s worth bearing in mind that if an 100% payout is requested, the Funded Account will be closed as the balance will reach the Maximum Loss Limit. Traders can then request payouts at any time, for any amount up to 100%.
- Proprietary trading firm with a first-rate reputation and more than a decade’s experience in the industry
- Funded traders can keep their first $10,000 in profit and then 90% of profit going forward
- Complimentary Coaching Program enabling to you to become a Topstep Funded Trader™
- 1 Step Evaluation to unlock a Funded Account in as little as two days
- Simulation account trains you to minimise risk and maintain good trading habits
- 20% discount offer(no code required) on the purchase of your first Trading Combine
- First-class Trader Support team, offering support via phone, email, chat and screen sharing
- Topstep Funded Traders can pay themselves up to 4 times a month.
- 14-day Free Trial
- Only offers futures trading
- Sales are infrequent
In conclusion, we believe that Topstep is the ideal prop firm for those passionate about trading and in need of trading capital to build their career. Traders can pass the Trading Combine and unlock a Funded Account in as little as 2 days. We would also recommend Topstep to anyone having difficulty in trading consistently. The Trading Combine offers valuable in-house educational tools that helps traders build better skills, discipline, and habits, as they are evaluated for funding. The futures prop firm also provides access to a wide range of trading platforms including their own (TSTrader) and a stimulating environment for traders with all levels of experience. We do, however, suggest that traders with limited experience make use of Topstep’s 14-day free-trial and the 20% discount on their first Trading Combine.
ABOUT THE AUTHOR
Romain is an independent trader and investor specializing in financial market analysis and trading systems. He worked as a professional long/short equity trader for a trading firm in New York and has a passion for building mechanical trading strategies. He has been in the industry since 2008.
DISCLAIMER
This post expresses the opinions of the writer and is for information, entertainment purposes only. Romain is not a registered financial advisor or certified analyst. The reader agrees to assume all risk resulting from the application of any of the information provided. Past performance is not a reliable indicator of future returns and financial trading is full of risk.) Please read the Full Disclaimer