TopstepTrader Review

In this post I will be reviewing TopstepTrader where aspiring traders can learn to trade and get a funded account should they prove to be successful. Topstep is located in Chicago and was founded in 2010 by current CEO and former Dow futures contracts floor trader, Michael Patak. Want to learn more about the program? Please read on to see what it is and how it works. Hopefully this will help you to decide if TopstepTrader is something you could benefit from.

What is TopstepTrader?

TopstepTrader is a trading service that evaluates trader’s performance in real time on simulated accounts and recruits those who are successful.

Traders who pass the company’s evaluation earn a funded trading account and trade Forex and futures contracts in the financial markets using the firm’s capital. TopstepTrader’s funding process consists of three steps. The first step is an evaluation of the trader’s profitability, the second step proves the trader’s risk management, and the last step is the funded trading account

According to the Omaha World Herald, the name TopstepTrader was chosen because the best traders within each trading pit stand on the top step, where they have the best view and could theoretically receive the best market prices.

The Topstep financial technology firm is based in Chicago and evaluates day traders’ performance in real-time simulated accounts. The company started as TopstepTrader, and TopstepFX, before merging under the name Topstep in 2020. The firm generates revenue both from their funded traders (20% of profits) and by charging monthly fees for access to their practice platform.

TopstepTrader enables resource traders to develop and learn in the trading industry without risking personal trading capital. Its product portfolio includes “Trading Combine”, an evaluation program that allows traders to prove their skills, while trading on a real-time simulated account using a preferred platform.

Traders who meet the objective of “Trading Combine” can earn a funded trading account with no personal capital contribution.

For those who are not ready for their performance to be evaluated in the “Trading Combine”, TopstepTrader University offers comprehensive trading education services. It also provides traders with the skills necessary to complete the “Trading Combine” or increase profitability in their personal trading account.

Traders enrolled in TopstepTrader University and the “Trading Combine” account also have access to daily radio broadcasts and 24-hour chat rooms. The radio broadcast provides listeners with up-to-the-minute market updates, professional trader interviews and segments, weekly webinars, and more. Through the chat community, users can interact with other traders, discuss the markets, and ask questions from on-air experts.

How to use TopstepTrader?

The first step to becoming a funded trader with TopstepTrader is to subscribe to the platform on a monthly basis. The minimum fee for this is $150 but it can go up to $375 depending on the option that you choose.

If you pass this stage by meeting the firm’s performance criteria, you will then be able to trade using Topsteps own capital.

TopstepTrader Accounts
TopstepTrader Accounts

Traders on the simulation can trade any CME Group product, while funded traders also have access to EUREX products.

It is woth mentioning that if you blow up your trading account during the simulation phase, TopstepTrader can charge you a few to reset the account. There may also be transaction fees for the trades you place via the platform.

How to get funded at TopstepTrader?

As mentioned above, there are certain criteria you must reach during the initial phase in order to become a funded Topstep trader. The first thing is to hit a profit target and show you can do so without taking lots of unnecessary risks. This can include not holding positions into economic releases, and staying within a weekly loss limit.

TopstepTrader Parameters
TopstepTrader Parameters

TopstepTrader have very strict requirements to get a funded account which is fair enough in my opinion. I don’t blame them for not giving away accounts to traders who are most likely going to blow them. What’s more, if you are one of those skilled traders lucky enough to get funded, you will need to keep up the performance or be put back on the simulation platform.

How does TopstepTrader make money?

Topstep earns a revenue from the 20% profit share of funded trader account and also from the monthly fees that they charge to access their practice platform.

How much does it cost?

There are four different TopstepTrader plans to choose from, each of which have the same features just with different account parameters such as profit target and maximum drawdown.

TopstepTrader Platform

TopstepTrader uses the Tradovate platform. Tradovate is a futures brokerage that employs a subscription-based commission model.

TopstepTrader Charts

There are multiple ways in which the charts display data, this includes candlesticks, bars, line, bid/ask volume, heiken ashi, renko, and point & figure. These charts also give you the opportunity to display bars according to time periods, ticks, volume, range, and momentum range.  The platform also includes a newsfeed and position analysis screen.

TopstepTrader Charts
TopstepTrader Charts

Market Replay

There is a market replay feature implemented by TopstepTrader within the Tradovate platform. It allows you to choose the start date, start time, start balance and speed. This can be a great way to practice improving your trading strategy and to learn from any mistakes.

TopstepTrader Market Replay
TopstepTrader Market Replay

TopstepTrader Conclusion

TopstepTrader is a good idea from my perspective. It benefits both traders and Topstep themselves, giving a chance for traders with little capital to trade full-time whilst forcing you to have high standards for your trading.

The program is designed to help you manage risk, hone strategies, and become consistently profitable. It rewards sound risk management and helps build productive habits.

It does seem like the majority of the companies’ earnings may be coming from the monthly simulation fee due to the lack of traders who manage to pass this stage.

If you are considering a service such as TopstepTrader, you could spend plenty of time practising your trading strategy on another trading platform such as MetaTrader 4 (MT4). You could do this until you are extremely confident that you will be able to reach the minimum requirements to get a funded account. That way, you increase your chances of not wasting the monthly fee required for a simulation account.

Regardless, TopstepTrader can be a great way to see if you are a profitable trader and to challenge yourself to reach the goals that they set. If you are one of the few who manage to successfully pass the simulation stage, you can get a funded account to trade on behalf of the firm.

TopstepTrader

$150
7

Features

7.0/10

Usefulness

7.0/10

Value

7.0/10

Pros

  • Practice trading
  • Funded account
  • Simulation trading
  • Analysis tools
  • Various instruments
  • Multiple asset classes
  • Competitive fees
  • Good customer support

Cons

  • Quite complex to setup
  • Requires some user initiative
  • Not ideal for beginners