TopStepTrader: The Most Popular Funding Option for Traders

There are many talented traders around the world that know how to operate, carrying out different strategies and coming with new methods that are designed entirely by them, in order to get profit out of exchange markets. However, in many cases while the potential is there, usually the lack of capital merge the possibility to work, and this is where TopStepTrader comes to the table as an important and most popular funding option.

Defining TopStepTrader: What is it?

In definition, TopStepTrader is a funding company for traders from all over the world, who will be able to run and trade actual accounts with available capital and run operations in exchange markets, after passing a demanding evaluation procedure. Once the appliers´ skills are proven and verified with the trial period, sort of speak, trading operations will be ready to be carried in exchange of a cut of the profit margin.

Among the characteristics of this trading funding company in comparison to other similar ones, there are features that are worthy of being highlighted: the possibility to trade with futures and other assets and even including FOREX, EUREX exchange available with an apart data base but perfect for DAX traders, and the chance to perform Swing operations, only available with micro assets, though.

With a two-phase evaluation process, this company offers the possibility for traders worldwide to manage and trade with a demo account, to verify the traders´ skills in terms of risk management, profitability and consistency in the trading strategy. Once these capacities are proved with actual results, a real account with funds will be given for further operation.

TopStepTrader: How does it work?

TopStepTrader offers the possibility for traders to be evaluated by choosing two different types of accounts, depending on their trading approach and how they work. These are:

Day Trading Combines: this type of account is the most traditional one, with operations that are closed at specific times and cannot be performed between sessions. There are up to four account sizes available: 30.000$, 50.000$, 100.000$ and 150.000$. All of the accounts involve profit target, maximum position size or contracts, daily and weekly loss limit and trailing maximum drawdown.
Swing Trading Combines: the best type of account for traders that operate with micro assets and have the trading approach of leaving operations opened during sessions. Now, there is only one type of swing account that involve: profit target, weekly loss limit, maximum drawdown, MNQ, MYM and MES product allowed and 5 micro lots.

Depending on the selected type of account during the evaluation, traders must pay a monthly fee that in the case of Day Trading Combines accounts starts a 150$ and rise all the way up to 375$, while the only Swing Trading Combines account available costs 110$ per month.

Trading Rules that Apply when Evaluating with TopStepTrader

Like any other trading funding company, while appliers carry out the evaluation process so they later can manage a real account with funds, there is a set of rules that must be met mandatorily that help to assess the trader´s skills respecting risk management, consistency and profitability.

Actually, the evaluation process is divided into two sections regardless of the selected type of account: the first one that focuses on profitability and starts immediately after the account is chosen, and the second one addresses the capacity of performing risk management strategies. These two stages have their own set of rules according to the specific goals mentioned before. Let´s see:

Rules of the Phase 1

Rules in the first stage of the evaluation process are designed to assess and prove the reliability of the trading strategy, as actually one that allows earning more money than the one invested. Rules are:

Mandatorily reach the profit target, which depends on the selected account.
Trade for at least 5 days, opening and closing session. These business days do not need to be in a row.
Never reach the daily loss limit.
Never reach the maximum trailing max drawdown. It is evaluated at the end of the day.
Operate allowed assets only.
Operate only on active allowed schedules.

Rules of the Phase 2

Once the profit target is reached and the other goals achieved, automatically the phase two of the evaluation starts. At this one, rules of the first stage must be met, along with others that might be considered more demanding that focus on risk management, such as:

Trade for at least 10 days, opening and closing session. These business days do not need to be in a row.
Never reach the weekly loss limit under any circumstance. It includes commissions and is evaluated at the end of the day.
Trading during news is not possible. All operations must be closed at least one minute before they start.
Contract escalation must be considered (all contracts cannot be used at once, especially if operations were carried out the day before)

Unlike other funding platforms, TopStepTrader is very strict about the rules. In fact, breaking at least one of them will result in the cancelation of the evaluation process, stopping every operation. In case the trader wants to start from scratch or have access to their account, a reset is required.

Withdraws Respecting TopStepTrader

From the point when the trader manages to obtain their funded account, money can be withdrawn at any given moment. A mail must be send requesting the amount and should be in the trader´s account a few days later. a check can be requested too.

Two things must be considered though: under 500$ withdraws outside the United States will include a commission of 50$, but if it surpasses 500$ commission will not be charged. The second thing is that the first 5.000$ withdrawn will belong to the trader. After that, resources will be splitted 20/80 between TopStepTrader and the trader.

Available Platforms to Carry out TopStepTrader Evaluations

There are three platforms to perform the evaluation process at TopStepTrader: TSTrader, TradeStation and NinjaTrader. However, the most recommended one is TSTrader since is the official one offered by TopStepTrader, and this means that is free for traders carrying out the evaluation and after that, commission and fee free.

It is important to point out that while platform licensing is free using TSTrader with funded accounts coming from TopStepTrader, this does not operations are free of charge. Exchange fees and data fees are still present and must be paid when operations are performed in real funded accounts.