Topstep Prop Firm: All That Traders Need to Know

Topstep (formerly TopstepTrader) is a Chicago-based proprietary trading firm that funds futures traders who prove their skills. Founded in 2012, Topstep's mission is to help traders build discipline and consistency through a structured evaluation program called the Trading Combine. Traders pay a monthly subscription to trade simulated capital; those who meet profit targets and risk rules earn a funded futures account. Topstep emphasizes real-market practice and support – the founder, Michael Patak, notes that "at Topstep, you are never required to deposit funds… we maintain a very generous profit split, where you keep 80% of the profits you realize" (currently first $10K at 100%, then 90% afterward). In short, Topstep offers a pathway to trade live futures capital without risking your own money, keeping most of the gains.

Overview: Topstep Prop Firm

Program Tiers and Pricing

Topstep's Trading Combine comes in three tiers of buying power: $50,000, $100,000, and $150,000. Monthly fees are $49, $99, and $149 respectively (USD), with a one-time $149 activation fee once you pass and go live. These costs are lower than many older reviews suggest, making Topstep relatively affordable for a funded account program. (For comparison, third-party reviews still list older fees of ~$165–$375 per month, but Topstep's own pricing is as above.)

Each account tier has clear profit targets and drawdowns: e.g. the $50K account requires a $3,000 profit target with a $2,000 maximum loss; the $100K and $150K tiers require $6,000 and $9,000 profit targets with $3,000 and $4,500 max losses, respectively. Maximum position sizes (5, 10, or 15 contracts) scale by account size. These rules are displayed up front on Topstep's site, so traders always know what they must achieve and how much drawdown they can incur. An official Trading Combine overview summarizes: "exceeding [the max-loss] limit is a violation of our program rules".

Once you pass the Combine, you earn a Funded Account. Topstep actually offers two types: an Express Funded Account (XFA) on its proprietary platform (TopstepX) and a Live Funded Account that connects to brokerage software. The goal is to trade real futures capital profitably. Topstep's payout policy is particularly trader-friendly: you can withdraw as soon as you have five separate profitable days with at least $150 in total profit, and Topstep processes payouts daily. You keep 100% of your first $10,000 in profits and 90% of any profits beyond that. (By contrast, most prop firms pay out 70–80% or require longer waiting.) In practice, this means top traders can accumulate earnings quickly and take them home. Patak emphasizes this generosity: "we maintain a very generous profit split".

Evaluation Process and Trading Rules

Topstep's evaluation – the Trading Combine – is a single-stage program (though Topstep staff sometimes call it two-phase, with a verification step). The Combine enforces strict risk-management rules to instill discipline. For example, traders must achieve at least two profitable days, and no single day's profit can exceed 50% of your accumulated gains. Overnight or weekend positions are prohibited, meaning all trades must close each day. These policies reinforce consistency: you can't blow your balance on one big swing. In addition, Topstep's drawdown limits are calculated end-of-day, not intraday. (This is relatively generous: as one review noted, Topstep's 4% max loss is computed on your daily net P/L rather than using a running "high-water mark" during the day.)

A key rule – Topstep's "one rule" – is the Maximum Loss Limit (MLL). If your end-of-day balance ever falls below the set threshold (for example, dropping $2,000 in the $50K Combine), you fail the evaluation. This encourages conservative sizing. There is also a Daily Loss Limit, typically 1–2% of the account (e.g. about $1,000 on a $50K account) to stop large one-day drawdowns. Some accounts (like Topstep's newer "Swing" rules) use weekly loss limits instead, but all Combine accounts enforce daily and total drawdown caps.

Topstep's published rules forbid risky behaviors: hedging, VPNs/VPS, news-spiking strategies (e.g. Martingale), and third-party automated systems are banned. (Personal EAs are allowed, but shared or secretive "mystery" algorithms are not.) TradingFinder's review stresses the fairness: "Trading must be done from a personal device…Manipulative trades or coordinated hedging…are strictly forbidden". On the upside, news trading is allowed, though Topstep warns that volatility can trigger slippage. In short, the Combine stresses discipline. As founder Michael Patak advises traders, "never move your stops" and keep your position sizes aligned with your skill level – the Combine enforces exactly that mindset.

Platforms and Asset Classes

Topstep focuses exclusively on U.S. futures markets. CME equity indexes (like E-mini S&P 500, NASDAQ, Russell 2000), energy (crude oil, natural gas), metals (gold, silver), interest rates (e.g. 10-year notes), agriculture, and currency futures (Euro, Yen, etc.) are all available. Notably, spot Forex trading is NOT offered – Topstep discourages FX in favor of trading exchange-traded FX futures for better transparency. Micro contracts (Micro Gold, Micro Oil, Micro Bitcoin) are also supported on Topstep's platform. There is no crypto spot or broad equities: if your strategy requires stocks or FX spot, Topstep won't suit you.

Topstep provides a choice of more than a dozen trading platforms. Its own proprietary TopstepX platform is the default, offering a modern interface with TradingView charts, a built-in "Tilt" indicator to gauge intraday momentum, commission-free trading, and its own data feed. (The TopstepX platform was custom-built for the firm's simulation.) But funded traders can also use popular platforms via partnered brokers. Supported software includes NinjaTrader, Tradovate, Quantower, TradingView, and others. Many data sources come free – e.g. TopstepX, TradingView, R | Trader and T4 have no extra fee. Platform fees vary, however. Futures commissions on Topstep can be as low as $0.24 per round turn (per contract) on TopstepX, though trading via an external broker may incur typical CME exchange fees and data fees (roughly $116–$132/mo for full CME data).

In summary, a Topstep-funded account can be run on robust platforms with professional futures data. You get nearly all the same trading tools as a private trader, with the key exception that only futures products are available. This is great for futures traders, but means "no spot Forex, no stocks, no crypto" to keep things simple.

Pros and Cons (Trader's Perspective)

Topstep's model has several clear advantages for diligent traders:

High Profit Split & Payouts: Topstep offers industry-leading payout terms. You keep all of your first $10,000 in profits, and then 90% of every dollar beyond. (As the founder notes, the firm provides a "very generous profit split".) Once you meet the five-winning-day requirement, Topstep processes payouts daily, much faster than many competitors.

Structured Discipline: The Combine's strict rules help traders build good habits. Many funded traders report that following Topstep's guidelines made them more consistent. For example, one analysis notes that traders "develop better habits through learning by doing" in the Combine, and real users credit the rules for improving their trading skills.

Low (Now) Fees: Compared to some firms, Topstep's subscription is relatively affordable. (Notably, Topstep reduced fees in recent years – current monthly charges are just $49–$149, less than the $165–$375 listed in older reviews.) There are no hidden re-buy fees if you make a mistake; you simply maintain your subscription and try again.

Rich Support Resources: Topstep shines in community and education. Funded traders get free access to live coaching, webinars, an active Discord, and TopstepTV (a trading news/analysis video series). This support network is something many prop firms lack, and it can help traders solve problems and stay motivated.

"Stay Funded" Policy: Unlike some firms that kick you out after a blow-up, Topstep lets you hold your funded account indefinitely as long as you don't break rules. Patak emphasizes this longevity: "you can stay in your Funded Account® for as long as you want… We have traders who have held onto their accounts for many years". The "Back2Funded" option also lets you reactivate a lost account up to twice (before first payout) to avoid dropping out on one bad day.

Transparent and Reputable: Topstep is one of the oldest prop firms, with thousands of funded accounts worldwide. It has been featured in outlets like Forbes and Barron's. The firm publishes clear rules and many testimonials, which boosts trust. (One review notes that Topstep operates "outside traditional regulatory oversight" but has a "solid reputation, backed by transparency and a decade-long track record".)

On the other hand, several drawbacks are worth noting:

Futures-Only Focus: Topstep trades only CME futures. Traders who want spot forex, stocks or crypto cannot use it. This exclusivity can be a downside if your strategy relies on other markets. In fact, reviews list "futures trading only" as a con, and tradingfinder bluntly labels it "limited to futures trading".

Strict Rules May Frustrate: Topstep's conservative rules (no hedging, limited overnight, strict drawdowns) can trip up traders who are used to more flexible conditions. Many users fail the Combine simply due to small rule violations. A common complaint is that "many traders may struggle to pass the Trading Combine". There are no do-overs without paying a reset fee (about $99) – though small resets are allowed.

Additional Costs: Beyond the subscription, funded traders face costs. CME exchange and data fees (~$100–$130/month) are passed through. If you use a third-party platform (NinjaTrader, etc.) you may owe that platform's fees. The activation fee ($149) and any reset fees should also be budgeted. Some users have noted that Topstep's pricing, while now lower, still requires a steady cash outlay each month.

Limited Trading Tools: While TopstepX is powerful, some traders prefer other environments. (For example, TradingView integration is new and a benefit, but the older trading panel was limited.) Also, TopstepX does not support automated strategies or EAs aside from manual ones. If you rely on algo trading, Topstep is not a fit.

Payout Mechanics: You must hit five separate winning days to unlock any payout. This means even if you're profitable overall, you cannot withdraw until that condition is met. Some traders see the first-dollar-keep limit ($125 min withdrawal) and daily wire processing as minor inconveniences compared to firms with instant or debit-card payouts.

In summary, Topstep Pros: high profit split, fast payouts, solid training/community, transparent programs, long-term support. Topstep Cons: futures-only, strict rules, ongoing fees, and some operational hassles like data costs. Most experts agree that Topstep is great for disciplined futures traders, but less attractive for those needing other markets or trading styles.

Platform Support and Tradable Instruments

TopstepX (its proprietary platform) comes standard for Express Funded Accounts. On TopstepX you get advanced charting (via TradingView), technical indicators, and built-in order entry. It's free with your funded account. You can also choose Tradovate, NinjaTrader, Quantower, or TradeStation (depending on the account type) if you prefer those interfaces. By default, you trade commission-free on TopstepX for CME markets. (If using external software, typical commission rates apply; Topstep advertises rates as low as $0.24 per round-turn.)

As for instruments, Topstep's futures coverage is broad but not all-encompassing. You can trade any CME-listed futures on their supported exchanges: equity indexes (e.g. E-mini S&P 500), interest-rate (T-notes), metals (Gold, Silver), energy (Crude Oil, Gasoline), agriculture (Corn, Wheat, Livestock), and foreign currency futures (Euro FX, Yen, etc.). Topstep even offers micro futures (e.g. Micro Gold, Micro Bitcoin) for smaller position sizing. However, no stocks, FX spot, or crypto markets are available – if you trade MetaTrader forex or stock CFDs, you must switch to futures contracts to use Topstep.

In practice, this asset focus means Topstep tends to attract futures traders. The native platform features (TopstepX) are geared toward order entry and risk-management in futures; it even includes CME Level II data. The firm recommends forex traders transition by using CME FX futures (like Euro FX contracts).

Expert Insights

Industry veterans highlight both the potential and pitfalls of prop firms like Topstep. Michael Patak – a former CME floor trader and Topstep's founder – emphasizes prudence. He often advises, "never move your stops", underscoring Topstep's focus on risk control. In fact, he notes that Topstep's structure lets traders keep more of their winnings without adding capital: "You are never required to deposit funds" and you keep a large share of profits. These principles reflect Topstep's aim to support sustainable trading careers.

Another Topstep coach, Dan Hodgman (now a performance coach and former veteran trader), has pointed out that Topstep's Combine is designed to mimic real-market pressure in a safe way. By trading simulated capital under strict rules, new traders learn discipline before they risk anything. (This approach aligns with general trading wisdom: one well-known trading maxim is "if you can't trade small, you can't trade big", which encapsulates Topstep's philosophy of scaling from controlled practice.)

According to market analysts, the main advantage of Topstep is its transparent rules and support. As one review notes, the firm "delivers a clear path to funding" and sets conservative risk limits so that traders learn good habits. Topstep's daily payout cycle and high profit split (100% of the first $10K, then 90%) are seen as especially trader-friendly incentives. On the downside, experts warn that cost vs. likelihood of success should be weighed: subscribing each month adds up, and many applicants fail the Combine initially. Traders with shorter time horizons or who need more immediate returns might compare Topstep to other firms (like FTMO or MyFundedFutures) that have different cost/fee structures.

Overall, specialists conclude that Topstep is best suited to serious futures traders who value discipline and long-term mentorship. As Patak puts it, Topstep's mission is "to keep you in the game for the long haul". This reflects the firm's philosophy: if you abide by the rules and demonstrate consistency, Topstep provides an ongoing funded account and lets you grow your trading as far as you can go.

Real-World User Experience

Real Topstep users often praise the firm's community and educational support. Many funded traders highlight Topstep's coaching programs, active live shows, and peer chatrooms. For example, the Limit Up! podcast hosts (from Topstep) emphasize how the platform grew "with a community focus" to help traders feel they're not alone. An analysis of trader feedback notes that Topstep's Discord (4,000+ members) is a "safe place" where experienced and new traders share strategies. The free TopstepTV market updates and twice-weekly group coaching sessions also add value.

On performance, Topstep publishes its own success stories: reportedly, over 10,000 accounts were funded by Topstep by 2024, and traders withdrew millions in profits (millions in 2021 alone, per Topstep's blog). According to the firm, some traders remain funded for years – Patak cites cases of accounts "held onto for many years". This suggests Topstep can indeed create real careers, not just one-off challenges.

However, user reports also cite pain points. The combine can be frustratingly hard for those not accustomed to strict risk management. Many forum threads note that even small mistakes (like one too-big loss or holding one minute too long) can knock you out. Customer service is mostly online (chat/email), and some traders wish for more live support. A few users have critiqued Topstep's refund policy or time they spent in evaluation before passing. Nevertheless, most reviews accept that with Topstep's low initial investment (the subscription fee), the main price is simply time and effort, not a large upfront deposit.

In our review of hundreds of trader comments (from forums, Trustpilot, etc.), Topstep's reputation remains solid: it is widely regarded as legitimate (not a scam), with payments that do happen when you hit the rules. One industry blog notes that "Topstep stands out among prop firms" for its combination of fast payouts and profit splits. In other words, in the prop world, Topstep is often the firm that many traders try first, especially if they come from a stock or forex background and want to transition into futures.

Conclusion

For futures traders seeking funded capital, Topstep Prop Firm offers a proven, structured path. Its tiered accounts and clear pricing mean you know exactly what goals to hit each month. The Trading Combine and Topstep's rules impose a disciplined regimen – often a welcome contrast to trying your own account with no risk management. Topstep's strengths lie in its supportive ecosystem: high profit splits (especially on the first $10K), quick daily payouts, and a focus on education and community help traders build skill as they build capital. On the flip side, Topstep demands that traders follow conservative rules and cover ongoing fees. Only dedicated futures traders will tolerate the rigidity. Those willing to put in the practice often find the trade-off worth it: as CEO Michael Patak says, Topstep is designed "to keep you in the game for the long haul".

In short, Topstep Prop Firm can be an excellent fit for traders who want a real funded account and are eager to learn. Understanding its program tiers, evaluation requirements, and platform details is key to deciding if it matches your trading style. If you appreciate clear rules and strong support – and don't mind trading futures only – Topstep remains a top choice in 2025.

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