Best Prop Firms for Swing Traders
Swing trading, characterized by holding positions over several days to weeks, demands specific conditions that many day-trading-focused prop firms may not provide. This article provides a detailed overview of prop firms that cater best to swing traders, listing their fees, requirements, conditions, and other crucial details. Each firm is evaluated based on its suitability for swing traders.
What are the best Prop Firms for Swing Traders?
1. FTMO (The Best for Swing Trading, but also expensive)
FTMO is one of the most recognized prop firms globally. It offers a special Swing account that removes restrictions typically unfavorable to swing traders, making it a highly flexible option.
Key Features
| Account Type | Fee | Max Daily Loss | Max Total Loss | Profit Target | Leverage | Profit Share |
|---|---|---|---|---|---|---|
| Swing | €155 | 5% | 10% | 10% | 1:30 | 80% to 90% |
| Aggressive | €155 | 5% | 10% | 10% | 1:100 | 80% to 90% |
- Free Trial: Yes
- Trading Platforms: MetaTrader 4, MetaTrader 5, cTrader
- Trading Instruments: Forex, Commodities, Indices, Cryptocurrencies, Stocks, Bonds
- Account Currencies: USD, GBP, EUR, CZK, CAD, AUD, CHF
- Payment Options: Skrill, Credit/Debit Cards
- Other Features: Mentorship, performance coach, account balance scaling, swing accounts available for holding trades overnight and over weekends.
Conclusion: FTMO is a well-established firm with a global reputation. The Swing account option makes it particularly suitable for swing traders, despite the lower leverage. Its broad range of trading instruments and robust support system are additional perks.
Rating: ⭐⭐⭐⭐⭐ (5/5)
2. PipFarm (Low Cost Prop Firm, good for Beginning Swing Traders)
PipFarm Forex Prop Trading Firm is highly regarded for its swing trader-friendly policies. The firm offers flexible evaluation periods, with challenges capped at 1 year, making it an excellent option for both medium and long-term swing traders.
Key Features
| Starting Capital | Price | Profit Target | Maximum Funding | Leverage | Profit Share |
|---|---|---|---|---|---|
| $5,000 | $60 | $600 | $12,500 | Up to 1:30 | 70%-90% |
| $10,000 | $110 | $1,200 | $25,000 | Up to 1:30 | 70%-90% |
| $20,000 | $210 | $2,400 | $50,000 | Up to 1:30 | 70%-90% |
| $50,000 | $350 | $6,000 | $125,000 | Up to 1:30 | 70%-90% |
| $100,000 | $550 | $12,000 | $250,000 | Up to 1:30 | 70%-90% |
- Daily Drawdown: 3%
- Max Drawdown: 12% from maximum equity or 6% from starting equity
- Minimum Trading Days: 3
- Trading Platforms: cTrader
- Account Currency: USD
- Trading Instruments: Forex, Commodities, Indices, Cryptocurrencies
- Commission: $6/lot round trip
- Payment Options: PayPal, Cryptocurrencies, Bank Transfer, and more
- Other Features: Over-weekend, overnight trades allowed, news trading allowed, expert advisors allowed, dynamic leverage.
Conclusion: PipFarm is an excellent choice for swing traders due to its flexible conditions, high profit potential, and minimal restrictions on trading strategies. The firm’s generous profit split and large account sizes further enhance its appeal.
Rating: ⭐⭐⭐⭐⭐ (5/5)
3. The 5%ers
The 5%ers offers two distinct funding schemes, catering to different risk appetites and trading styles. This flexibility is beneficial for swing traders who need more time to hit their profit targets.
Key Features
| Account Type | Start Capital | Profit Target | Max Loss | Leverage | Profit Share | Fee | Max Time |
|---|---|---|---|---|---|---|---|
| Low Risk | $6K-$20K | 6%-7% | 1.5% | 1:10 | 50%-80% | €235-€745 | 180 days |
| Aggressive | $6K-$20K | 12% | 1.5% | 1:30 | 50%-80% | €235-€745 | 60 days |
| Bootcamp | $25K-$75K | 6% per stage | 5% | 1:10 | 50%-80% | €85 | 12 months total |
- Free Trial: No
- Trading Platforms: MetaTrader 5
- Trading Instruments: Forex, Gold & Silver, Indices
- Account Currency: USD
- Payment Options: Bank Transfer, Credit/Debit Cards, giropay, EPS
- Other Features: Long-term trading, news trading, webinars, psychological coaching.
Conclusion: The 5%ers is an ideal prop firm for swing traders due to its long evaluation periods and flexible account types. While the profit split starts lower, it scales up significantly as you progress.
Rating: ⭐⭐⭐⭐ (4/5)
4. City Traders Imperium
City Traders Imperium (CTI) offers multiple trading programs, including options for traders to skip evaluations altogether. It’s particularly appealing for swing traders who require generous time limits to meet profit targets.
Key Features
| Program | Account Size | Profit Target | Drawdown | Leverage | Fee | Evaluation Time |
|---|---|---|---|---|---|---|
| Standard | $10K-$70K | 9% | 5% | 1:10 | £119-£659 | 6 months |
| Classic | $10K-$70K | 7% | 5% | 1:10 | £109-£649 | 12 months |
| Direct Funding | $20K-$70K | 10% | 5% | 1:10 | £999-£3,099 | N/A |
| Daily Trading | $10K-$50K | 10% | 4% | 1:33 | £109-£289 | 45 days per stage |
- Payout Rate: 60%-100% based on performance
- Trading Platforms: MetaTrader 5
- Trading Instruments: Forex, Gold, Indices
- Payment Options: Credit/Debit Card, Cryptocurrencies (fees only), Bank Wire
- Other Features: News, overnight, weekend trading allowed, KYC required, trade copying allowed, expert advisors allowed with some exceptions.
Conclusion: CTI offers great flexibility for swing traders, particularly with the Standard and Classic programs. However, the restriction on high-impact news events might be a challenge for some swing traders.
Rating: ⭐⭐⭐⭐ (4/5)
5. Lux Trading Firm
Lux Trading Firm offers an attractive opportunity for traders looking to grow their accounts up to $2.5 million, with no time limit on evaluations, making it highly favorable for swing traders.
Key Features
| Starting Capital | Fee | Profit Target | Max Drawdown | Leverage | Payout Rate | Stages |
|---|---|---|---|---|---|---|
| $5,000 | £329 | 6%-10% | 4% | 1:10 | 75% up to $200K | 7 |
| $10,000 | £439 | 6%-10% | 4% | 1:10 | 75% up to $200K | 6 |
| $15,000 | £549 | 6%-10% | 4% | 1:10 | 75% up to $200K | 5 |
- Trading Platforms: MetaTrader 5, TradingView, others upon request
- Trading Instruments: Forex, Indices, Commodities, Equities, Cryptocurrencies, Bonds, ETFs
- Account Currency: USD, GBP, EUR
- Payment Options: Bank Transfer, PayPal
- Other Features: Fund scaling, news trading allowed, weekend and overnight trading allowed.
Conclusion: Lux Trading Firm is suitable for swing traders aiming for substantial account growth. The lack of time limits on evaluations and a wide range of instruments make it a strong contender, though the high fees and complex scaling process might be a drawback.
Rating: ⭐⭐⭐⭐ (4/5)
What Swing Traders Specifically Look for in a Prop Firm
Swing traders have unique needs that differ significantly from those of day traders. When selecting a prop firm, swing traders prioritize certain features to ensure their trading strategies can be executed effectively and profitably. Here are the key factors swing traders typically seek in a prop firm:
Low Swap Costs
- Why It Matters: Swap costs, also known as rollover or overnight fees, are charges incurred when holding positions overnight. For swing traders, who often hold trades for several days to weeks, high swap costs can significantly erode profits.
- What Swing Traders Want: You want to look for prop firms that offer low or even zero swap fees, allowing you to hold positions without worrying about substantial fees eating into their gains. Transparent and competitive swap rates are crucial in maintaining the profitability of longer-term trades.
No Time Cap on Challenges or Evaluations
- Why It Matters: Swing trading requires patience and a longer time horizon to allow trades to develop fully. Strict time limits on reaching profit targets can pressure traders to close trades prematurely, potentially leading to suboptimal decisions and missed opportunities.
- What Swing Traders Want: You want to prefer prop firms that offer unlimited or very generous timeframes for meeting evaluation criteria. This flexibility allows you to operate without the stress of deadlines, focusing on the quality of your trades rather than the speed of your performance.
Ability to Hold Positions Over the Weekend and During News Events
- Why It Matters: Market conditions can change dramatically over weekends and during major news events, and swing traders often strategically plan to hold positions through these periods to capitalize on potential market moves.
- What Swing Traders Want: Prop firms that allow positions to be held over weekends and during high-impact news events are highly desirable. This freedom ensures that you can stick to your strategies without being forced to close positions prematurely, thus aligning better with your trading style.
No or Large Daily Max Loss Limits
- Why It Matters: Swing traders typically take fewer trades than day traders but may hold larger positions for longer periods. A strict daily max loss limit can be restrictive, especially when market volatility results in temporary drawdowns that do not necessarily reflect poor trading decisions.
- What Swing Traders Want: Prop firms with no daily max loss limits or significantly larger limits provide the necessary breathing room for your trades. This allows you to manage trades based on their broader strategy and the longer-term picture, rather than being constrained by short-term fluctuations.
Conclusion on the Best Prop Firm for Swing Traders
When choosing a prop firm as a swing trader, it’s essential to consider the firm’s flexibility in terms of holding positions overnight, over the weekend, and during news events. Firms like PipFarm and FTMO stand out for their swing trading-friendly conditions, whereas others like The 5%ers and Lux Trading Firm provide more niche advantages.
Ultimately, the right choice will depend on your specific trading style, risk tolerance, and long-term goals. If you want to know the “7 Reasons to choose swing trading for daytrading in prop trading” read this article about it.