Topstep is a proprietary trading firm that provides traders with the opportunity to trade firm capital after proving their skills in a structured evaluation process. Unlike traditional brokers, Topstep does not require traders to risk their own money, making it an appealing option for those looking to scale their trading without significant financial exposure.
Founded in 2012, the Chicago-based company focuses on futures trading, offering a professional trading environment with strict risk management rules. By removing financial barriers, Topstep enables traders to focus on strategy and execution rather than capital constraints.
Topstep Trading Combine
Topstep’s evaluation process, known as the Trading Combine, is a two-step challenge where traders must meet specific profit targets while adhering to risk management rules. Success in the Combine grants access to a funded account, where traders can earn a share of their profits.
The programme is designed to identify disciplined traders who can demonstrate consistent performance. While the Trading Combine requires an entry fee, this cost is significantly lower than the capital needed to trade independently at scale.
Funded Accounts & Fees
After passing the Trading Combine, traders gain access to a funded account where they can trade with real capital. Profit splits ensure traders are rewarded for their success, with payouts structured to benefit those who maintain consistency and risk discipline.
Topstep’s fee structure is designed to accommodate traders at various levels, with costs associated with both the Trading Combine and the transition to a funded account. The Trading Combine offers three account sizes: a 50K account at $49 per month, a 100K account at $99 per month, and a 150K account at $149 per month. These monthly fees recur until the trader successfully completes the Trading Combine or decides to cancel the subscription. Upon passing the Trading Combine, traders are required to pay a one-time Activation Fee of $149 to initiate their Express Funded Account, regardless of the account size. This Activation Fee is mandatory for each Express Funded Account earned.
Risk Management & Structure
Topstep’s rules encourage sustainable trading practices, including daily loss limits and position size restrictions, preventing traders from overextending themselves.
The Maximum Loss Limit, also known as the trailing drawdown, sets a minimum account balance that adjusts upward as profits are made. For example, in a $50,000 account with a $2,000 maximum loss limit, if the account balance rises to $52,500, the maximum loss limit moves up to $50,500. However, it does not decrease with losses, thereby preserving a portion of accrued profits. Breaching this limit results in account liquidation for the remainder of the trading day.
Additionally, Topstep’s platform, TopstepX, incorporates features such as the Lockout button, Trade Limits, Daily Risk Lock, and Trade Clock to help traders manage their risk effectively. These tools are designed to support traders in maintaining discipline and adhering to their trading strategies.
These structured risk parameters ensure that traders cannot incur losses exceeding 3% of their account balance, promoting sustainable trading habits and safeguarding both the trader’s and firm’s capital.
While Topstep offers a distinctive pathway for aspiring traders, success necessitates a solid strategy and strict adherence to these risk controls. It is not a shortcut to easy profits; however, for those with the requisite skills and mindset, it provides an opportunity to trade substantial capital without personal financial risk.
Educational Support & Community
Topstep provides a suite of educational resources, including coaching sessions, live webinars, and market insights. The firm fosters a strong trading community, offering guidance from experienced professionals and fellow traders. This support system is particularly valuable for those still refining their strategies.
Frequently Asked Questions
What’s the difference between CFDs and Futures?
CFDs (Contracts for Difference) and futures are both financial derivatives, but they differ in how they operate and where they’re traded. CFDs are typically traded over-the-counter (OTC), meaning they aren’t standardised or traded on an exchange. This offers greater flexibility, but also exposes you to counterparty risk, as you’re essentially betting against a broker or provider. Futures, however, are standardised contracts traded on regulated exchanges like the Chicago Mercantile Exchange. These are binding agreements to buy or sell an asset at a predetermined price on a set date in the future. Futures offer greater transparency and lower counterparty risk, but they also come with more rigid rules compared to CFDs.
Can I lose more than what is in my account?
Yes, it’s possible to lose more than your initial deposit, especially in leveraged futures trading. Leverage allows you to control larger positions than what your capital alone would support, but it also means your losses can exceed your account balance. Topstep’s strict risk management rules, such as the daily loss limits, are in place to help prevent this scenario, but it’s crucial to remember that any leveraged trading carries the potential for substantial losses.
What trading platforms are compatible with Topstep?
Topstep supports several popular trading platforms, giving traders the freedom to choose the one that best suits their style. Platforms like NinjaTrader, TradingView, and TSTrader are all supported, each offering its unique set of features.
How does Topstep manage payouts for funded traders?
Once you’ve passed the Trading Combine and are in your funded account, Topstep has a clear payout process. You can request a payout after hitting five profitable days, with a minimum of $200 per day. The maximum payout per request is $5,000 or 50% of your account balance. After each payout, you must have another five profitable days before being eligible for the next one. This system ensures a steady approach to payouts and rewards consistent, profitable trading habits.
Are there any restrictions on trading strategies at Topstep?
Yes, Topstep has specific rules regarding trading strategies to ensure fair play and adherence to their risk management policies. Certain strategies, such as those that involve excessive risk-taking or are deemed to be against the spirit of the programme, are not allowed. For example, high-frequency trading strategies, over-leveraging, or any attempts to game the system could result in disqualification.