Topstep

Overview of Topstep

Founded in 2012 as Patak Trading Partners, Topstep, now a prop trading powerhouse, has blazed a trail for aspiring futures traders. Driven by the mission to nurture talent, they introduced the game-changing Trading Combine® in 2013, the first program offering retail traders a chance to earn funded accounts without risking their own capital. Since then, Topstep has funded thousands, disbursing over $16 million in payouts. They’ve earned accolades like Inc. 5000’s fastest-growing companies and Crain’s 100 Best Places to Work, reflecting their commitment to both trader success and a positive work environment.

Topstep’s Key Features

• Capital Access: Provides up to $150,000 for futures trading.
• Profit Split: Offers a lucrative 90% profit share to the trader; the first $5,000 profits are 100% for the trader.
• Instruments: Focuses solely on futures trading, covering major futures markets like CME, COMEX, NYMEX, and CBOT.
• Education: Emphasizes trader education with a variety of resources including daily live trading classes, psychology lessons, and platform-specific training.
• Flexibility: The Trading Combine® program tailors to different trader needs with specific profit targets and loss limits across various account sizes.

Guide to Investing with Topstep

1. Visit Topstep’s Website: Start by creating an account on the Topstep website.
2. Select Trading Combine® Account: Choose the appropriate account size based on your trading style and risk tolerance.
3. Undergo the Evaluation: Participate in the two phases of the Trading Combine®, adhering to the set rules and targets.
4. Access Funded Account: Upon successful evaluation, gain access to the funded account with the chosen capital allocation.
5. Start Trading Real Futures: Implement your trading strategies in the real market, leveraging the capital provided by Topstep.
6. Profit and Withdrawal: Enjoy a favorable profit split and withdraw your earnings based on the agreed terms.

Topstep’s Trading Combine® Program

The Trading Combine® program is the cornerstone of Topstep’s offerings. It’s a multi-phase evaluation process that tests traders’ ability to profit and manage risk.

Process of Joining Topstep:

1. Registration: Sign up on the Topstep website to access the Trading Combine®.
2. Choose an Account Size: Options range from $30,000 to $150,000 in simulated capital.
3. Trading Combine® Phase 1: Achieve the set profit target without hitting the loss limit. This phase focuses on demonstrating profitability under controlled risk.
4. Trading Combine® Phase 2: Similar to Phase 1, but with additional emphasis on consistent trading strategy execution.
5. Funded Account Phase: Upon successful completion, traders gain access to a real funded account with capital up to $150,000.

Topstep’s Educational Resources

Topstep’s commitment to trader education is evident in its comprehensive offering of resources:

1. Live Trading Classes: These classes are held regularly, offering interactive, real-time insights into market dynamics. Traders get to learn practical strategies applicable to futures markets.
2. Trading Psychology Lessons: These sessions delve into the mental aspects of trading, teaching traders how to manage emotions, develop discipline, and maintain a strategic approach in different market conditions.
3. Platform-Specific Training: Topstep provides tutorials on how to efficiently use various trading platforms. This training is crucial for new traders unfamiliar with futures trading platforms.
4. Additional Resources: Topstep also offers webinars, articles, and videos covering a wide range of trading topics, from technical analysis to market trends and trading techniques.

1 Step 1 Rule Trading Combine

In the summer of 2023, Topstep introduced a significant change to their evaluation process for traders by launching the 1 Step 1 Rule Trading Combine. This innovative approach replaced the previous 2-Step system and marked a pivotal shift in Topstep’s method for assessing and preparing traders for the financial markets.

This new single-step evaluation not only simplifies the process but also accelerates the timeline for traders to access funded accounts. Because of the enthusiastic response from the trading community, Topstep momentarily paused new customer registrations to manage the influx, demonstrating the program’s popularity and effectiveness.

In-Depth Look at the 1 Step 1 Rule Trading Combine

The 1 Step 1 Rule Trading Combine focuses on a simulated trading environment that closely mimics real futures market conditions. This setup allows traders to demonstrate their skills without the risk of actual financial losses.

In this environment, traders engage in futures trading as if in real-time markets. However, they trade paper money instead of executing orders on live exchanges. Their performance hinges on their ability to generate simulated profits and manage risks effectively.

A key feature of the new Trading Combine is its minimal evaluation duration. The program requires traders to demonstrate their trading acumen within just two days. Successfully navigating this short yet intensive evaluation phase grants them access to a funded account, allowing them to trade with real money and start earning actual profits.

Pricing Structure and Account Options in the Trading Combine

Topstep offers three distinct account sizes for participants in the Trading Combine, each tailored to suit different trading strategies and experience levels:

1. The $50k account, priced at $165 per month, is designed for traders seeking a moderate level of capital exposure.
2. The $100k account, at $325 per month, offers a more significant trading capacity, suitable for experienced traders looking to leverage their strategies effectively.
3. The $150k account, the most substantial option at $375 per month, caters to seasoned traders aiming for higher stakes and returns.

These subscription fees recur monthly until the trader either opts to cancel their participation or successfully secures funding through the program. Recognizing the financial commitment involved, Topstep currently offers a substantial permanent discount of 70% on all account sizes. This discount significantly reduces the financial barrier to entry, making the program accessible to a broader range of aspiring traders. The discounted rates are as follows:

• $50k account: Reduced to $49
• $100k account: Reduced to $99
• $150k account: Reduced to $149

This pricing model not only makes the program more accessible but also reflects Topstep’s commitment to supporting traders in their journey toward professional trading.

Reset Fee and Free Trial Availability

Throughout the duration of the Trading Combine, participants have the option to reset their account balances. This feature is particularly useful for traders who might inadvertently breach the Combine’s rules and wish to restart their challenge. The reset fees are structured based on the account size:

• $49 for the $50k account
• $99 for the $100k account
• $149 for the $150k account

This reset mechanism ensures that traders have the opportunity to recalibrate their strategies and reattempt the Combine without having to start from scratch.

During the period when the 70% discount is available, the usual free trial offer is not provided. Instead, traders can begin their journey with the $50,000 Trading Combine for a reduced fee of $49. This approach allows new participants to experience the Combine at a significantly lower cost, encouraging more traders to test their skills and strategies in a risk-free environment.

Understanding Topstep’s Trading Combine Rules

Navigating the rules of the Trading Combine is crucial for traders aspiring to achieve funded status. Topstep has established a set of clear and straightforward rules to ensure that traders maintain discipline and focus during their evaluation:

1.      Adherence to the Maximum Loss Limit:

The primary rule in the Trading Combine is to never breach the maximum loss limit. This limit is dynamically calculated based on the account balance at the end of each trading day. Hitting this limit results in a rule violation, leading to a failure in the Combine. By structuring the maximum loss limit in this manner, Topstep encourages traders to manage their risk effectively and avoid significant drawdowns in their account.

2.      Profit Target Achievement:

Each account size within the Trading Combine has a predefined profit target that traders must reach to qualify for a funded account. The targets are set as follows: $3,000 for the 50K Combine, $6,000 for the 100K Combine, and $9,000 for the 150K Combine. Attaining these profit targets is a crucial step in demonstrating the trader’s ability to generate consistent returns.

3.      Consistency Target:

Consistency in trading is vital for long-term success. To ensure that traders are not overly reliant on a single high-profit trade, Topstep has implemented a consistency target. This rule stipulates that profits from a single trade should not exceed 50% of the overall profit target. For example, in a 50k Combine with a $3,000 profit target, a single trade yielding $2,000 in profit would not count towards the overall target. This rule encourages traders to build a portfolio of successful trades, promoting a balanced and sustainable trading approach.

4.      Daily Loss Limit:

Effective risk management is at the heart of successful trading. To reinforce this principle, Topstep imposes a daily loss limit for each account size. If a trader reaches this daily loss limit, their Trading Combine for that day is terminated. The daily loss limits are set at $1,000 for the 50K Combine, $2,000 for the 100K Combine, and $3,000 for the 150K Combine. Adhering to these limits helps traders maintain control over their trades and prevent significant losses.

Details on Funded Account Management and Withdrawals

After clearing the 1-step evaluation phase, traders are provided with a real funded account where they can trade with actual money. Consequently, orders in these accounts are sent to the futures exchanges, and traders can start to accumulate real profits. Initially, the first $10,000 in profits are fully withdrawable by the trader, and beyond that, 90% of the profits are allocated to the trader. This structure ensures that traders are adequately rewarded for their success, while also sharing a portion of the profits with Topstep.

Furthermore, to manage trading activities in the funded account, traders must cover real-time data feed costs charged by the exchange. These fees vary depending on the number of exchanges a trader is active on, typically ranging from $116 to $132 per month per exchange. Such costs reflect the professional trader status of funded account holders.

Trading Platform Fees and Commissions in Funded Accounts

In funded accounts, Topstep offers free use of platforms like Quantower and T4. However, other platforms may incur separate subscription fees, which remain the responsibility of the trader. Additionally, commissions in these accounts are a crucial factor, typically ranging between $2.46 and $4.30 per round turn depending on the traded product. These commissions are deducted from the account balance and significantly impact the trader’s net profitability.

Specific Rules for Funded Accounts and Scaling Plans

Funded accounts at Topstep operate under a distinct set of rules compared to those in the Trading Combine. For example, the maximum loss limit, which was calculated at the end of the day during the Trading Combine, is now computed intraday based on net profit and loss in live accounts. This change reflects the dynamic nature of real trading environments.

Moreover, traders looking to increase their trading capacity can contact Topstep to adjust their contract allowances. This flexibility allows traders to scale their operations in line with their growing skills and success.

Withdrawal Process and Criteria

To initiate a withdrawal from a funded account, traders must first achieve at least five winning days, each with a minimum profit of $200. These winning days do not need to be consecutive. After meeting this criterion, traders can withdraw up to 50% of their account balance. Furthermore, to access the full profits for withdrawal, a total of 30 winning days is required. Once a withdrawal request is made, the processing time is typically within seven hours, and the funds usually arrive in one to two business days.

Is Topstep Legit?

Yes, Topstep is a legitimate prop firm. It has been in operation since 2012, establishing a significant track record in the proprietary trading firm industry. This longevity in the market is a strong indicator of a reputable and stable company. So, based on its established history, transparent trading program, significant payouts to traders, and adherence to a structured trading approach, Topstep can be considered a legitimate firm in the proprietary trading sector.

What We Think About Topstep

Our impression of Topstep is generally positive, considering several aspects of its operation and offerings. The firm’s innovative Trading Combine program stands out as a robust evaluation tool, providing a fair and challenging environment for traders to demonstrate their abilities. This program not only assesses traders’ skills but also instills discipline and risk management practices, which are crucial for long-term success in trading.

Our view of Topstep is favorable, given its comprehensive training resources, flexible trading programs, and a commitment to fostering disciplined and skilled traders.

Our Rating

Final Words

Topstep is particularly suited for traders who are serious about futures trading and are looking for a platform that not only provides capital but also emphasizes skill development and disciplined trading. Its comprehensive educational resources and realistic simulation make it an ideal choice for both novice and experienced traders. However, those looking for diversification into other financial instruments may need to look elsewhere.

FAQs

1. How does the Topstep Trading Combine work?

• The Topstep Trading Combine is an evaluation program where traders demonstrate their ability to profitably trade futures in a simulated environment. Traders must meet specific profit targets and adhere to risk management rules without violating maximum loss limits. Successful completion of the Combine leads to a funded trading account.

2. What is the maximum capital I can access through Topstep?

• Topstep offers traders access to capital up to $150,000 for futures trading. The actual amount of capital allocated depends on the trader’s performance in the Trading Combine and the selected program level.

3. Can I trade any instruments with Topstep?

• Topstep focuses exclusively on futures trading, offering access to major futures markets such as CME, COMEX, NYMEX, and CBOT. Traders can choose from a variety of futures contracts within these exchanges.

4. What is the profit split with Topstep?

• Topstep offers a generous profit split to traders. You keep 100% of the first $5,000 in profits and 90% of the profits thereafter. This split is designed to reward successful trading while maintaining a partnership approach with Topstep.