At the time of writing the article, the prop firm industry is on a shamble, with prop firms being closed 1 after another. That is why choosing the best prop firms in South Africa is the first important step you need to take in order to succeed as a prop firm trader.
Proprietary trading firms, commonly known as “prop firms,” offer traders a unique opportunity to trade the markets using the firm’s capital, rather than their own. For traders in South Africa, this presents an excellent way to trade forex without the financial burden of large upfront investments.
What Is a Prop Firm?
Prop firms are similar to trading brokers but instead of depositing money, they give traders the capital they need to trade in all markets, including forex, stocks, commodities, and cryptocurrencies. Traders are responsible for managing the capital and generating profits. In return, the firm typically takes a share of the profits, leaving the trader with a significant cut.
These firms offer various benefits most giving an 80/20 profit split but most they fund you with domo accounts rather than real money.
Best Prop Firms In South Africa
Choosing a prop firm just because it’s cheap is one way to get scammed in this prop industry. These are major fundamentals to check for in a good reliable firm. Here are the most important things to look for.
| Prop Firm🏦 | Established Year🗓️ | Profit Share🤑 | Trading Platform📱 | Profit Target⚖️ | Overall Rating🏆 |
|---|---|---|---|---|---|
| 🥇FTMO | 2015 | 80% | MT5 | 10% Then 5% | 4.8/5 |
| 🥈The 5%ers | 2016 | 75% | MT5 | 8% Then 5% | 4.9/5 |
| 3️⃣E8 Markets | 2021 | 80% | MT5 | 8% Then 5% | 4.6/5 |
| 4️⃣FundedNext | 2022 | 90% | MT5 | 8% Then 5% | 4.5/5 |
| 5️⃣FundingPips | 2022 | 80% | cTrader | 8% Then 5% | 4.3/5 |
1. FTMO
FTMO has become a global name in proprietary trading and remains one of the top choices for traders in South Africa. Established in 2015, FTMO’s funding model allows traders to access large amounts of capital through its well-structured evaluation process, known as the FTMO Challenge.
FTMO’s high-profit split of 80% ensures that traders can keep a substantial portion of their earnings, making it an attractive choice for both new and experienced traders.
Key Features:
- Best Reputation
- Best Customer Support
- Good Trading Conditions
- Have the opportunity to get hired by a big firm
Why Choose FTMO?
FTMO’s well-established reputation, generous profit-sharing, and comprehensive evaluation process make it a great choice for South African traders looking to trade larger capital.
2. The 5%ers
The 5%ers is another popular proprietary trading firm, particularly for traders seeking low-risk, consistent trading opportunities. Known for its relatively conservative approach, this firm aims to develop long-term trading careers by encouraging low-risk strategies and providing capital at the early stages. The 5%ers emphasize slow and steady growth rather than high-risk, high-reward strategies.
Key Features:
- Instant funding: Unlike FTMO, The 5%ers offer instant funding, meaning traders do not need to pass a challenge to start trading with real capital.
- Low Prices
- Nice Reputation
Why Choose The 5%ers?
The 5%ers is ideal for South African traders looking for stability and a focus on risk management. With instant funding and a scaling program, it’s an excellent choice for traders looking to get funded quickly.
3. E8 Markets
E8 Markets is a newer prop firm that has quickly gained traction thanks to its innovative approach and commitment to creating an accessible trading environment. With competitive profit targets and a robust 80% profit share, this firm appeals to traders looking for an easy entry into proprietary trading.
Key Features:
- Flexible evaluation: E8 Markets offers an evaluation process similar to FTMO’s challenge but with more flexible trading conditions, making it easier for traders to adapt and succeed.
- High-profit share
- Advanced trading platforms
- Multiple markets
Why Choose E8 Markets?
E8 Markets is great for traders who want flexibility in their trading conditions while still benefiting from a high profit share. The firm’s user-friendly evaluation process and modern platform make it a solid choice for traders.
4. FundedNext
FundedNext is one of the most exciting new firms in the prop trading industry, offering a stunning 90% profit split. Established in 2022, this firm has quickly gained a reputation for being generous to its traders while maintaining a focus on sustainable growth and risk management.
Key Features:
- High-profit split: FundedNext stands out with its 90% profit split, one of the highest available in the industry, ensuring that traders keep most of their earnings.
- Monlty Trading Competition
- Mostly focused on African growth
Why Choose FundedNext?
FundedNext is an excellent option for traders looking to maximize their earnings through its industry-leading 90% profit share. With reasonable profit targets and extensive market access, it’s a top choice for South African traders who want to keep the most share of their profits.
5. FundingPips
FundingPips is another new player in prop trading, having been established in 2022. While it’s still building its reputation, the firm offers competitive profit splits and an easy-to-understand evaluation process. Unlike many firms, FundingPips offers the cTrader platform, which is preferred by some traders for its user-friendly interface and advanced trading features.
Key Features:
- The Biggest In Terms of Popularity
- cTrader platform: The use of cTrader sets FundingPips apart, as this platform offers a different experience compared to MT5, with advanced charting tools and intuitive order management systems.
- A high number of paid traders
Why Choose FundingPips?
FundingPips is a great option for traders who prefer the cTrader platform and want a competitive profit split. With clear targets and a straightforward evaluation process, it’s an appealing choice for traders looking to get funded quickly.
Prop Firm Most Asked Questions
Yes, all FTMO, The 5%ers, E8 Markets, FundedNext, and FundingPips accept traders from South Africa
Many prop firms offer access to a variety of markets, including forex, stocks, indices, and commodities, even cryptocurrency so you will be able to trade Nas100, Us30, Gold, BTCUSD basically most markets that are available on brokers.
Some firms allow traders to retake the challenge or evaluation process, sometimes at a reduced cost. It’s important to read the terms of each firm.
The 5%ers and E8 Markets are great for beginners due to their low-risk, trader-friendly approaches.
Most prop firms provide demo accounts even after you pass an evaluation or challenge. These demo accounts simulate real trading environments, but the profits you generate are treated as if they were real. Firms pay you based on your performance on the demo account
Final Thoughts
The proprietary trading model provides an excellent way for traders in South Africa to access large amounts of capital without having to risk their own funds. Each of the firms discussed in this article — FTMO, The 5%ers, E8 Markets, FundedNext, and FundingPips are the top 5 prop firms in South Africa.
They bring something unique to the table, from high-profit splits to flexible trading conditions. If you need capital to buy a prop firm account check out the best ways to earn money online.
