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Eduardo Montero

Author: Eduardo Montero

Last Updated on April 2, 2024

In recent times, especially due to increased competence, the trading rules of prop firms have become more and more flexible and easier to comply with, both in terms of passing the challenge or evaluation phase and in terms of managing a funded account. The trend seems clear to continue in this process of simplification, although one of the points that is still being resisted is precisely the use of EAs or Expert Advisors or, in other words, the use of automatic trading systems to execute operations.

It is still common to find proprietary trading firms that deny the use of these algorithmic systems. For the prop firms that allow EAs, some impose many restrictions on the type of EAs that the trader can use, others require manual approval of the EA you want to use and others are not very transparent about their policy on the use of Expert Advisors and you may get an unpleasant surprise if you use one and find that your account is cancelled for this reason.

In the following comparison table you can see what I consider the best prop firms that allow EAs and next to their main features you can quickly see what type of EAs they allow or restrict so you can find the one that best fits with your strategy:

Which are the best prop firms that allow the use of EAs?

Prop Firm Initial Balance Expert Advisors Rules  
50k bp for $165 $49/month
100k bp for $325 $99/month
150k bp for $375 $149/month

bp=buying power


Topstep allows the use of EAs (Expert Advisors) in any of its futures funded accounts.

According to Topstep’s rules it is not allowed to use any EA or software whose purpose is to abuse, manipulate or provide an unfair advantage such as high frequency trading, simultaneous entry into opposite positions, accounts connected or maintained by third parties,…
More info at https://www.topstep.com
60%
to
70%
OFF
Coupon

60% to 70% Off on Topstep

70% discount on $50k account
69% discount on $100k account
60% discount on $150k account

No code required. Discounts are already applied on the Topstep website.

 

More Less
50k balance for $289
100k balance for $489
200k balance for $939
300k balance for $1,399
400k balance for $1,869

Prices for Royal Challenge (More programs available)
This is the TFT‘s policy on the use of EAs depending on the type of challenge:

Standard Challenge: EAs allowed by purchasing Add-on.
Rapid Challenge: EAs not allowed.
Royal Challenge: EAs allowed.
Knight’s Challenge: EAs allowed.
Dragon Challenge: EAs allowed.

You can use expert advisors in any of the challenge types that allow it as long as they are not HFT (high-frequency trading) EAs. Be careful if you use third party or publicly available EAs: the parameters of your EA must be unique as, if they are not, the TFT systems might understand that you do copy operations and this is not allowed.
More info at https://thefundedtraderprogram.com
15%
OFF
Coupon

15% Off Coupon Code on The Funded Trader

More Less
$12,500 balance for $119
$25,000 balance for $199
$50,000 balance for $349
$100,000 balance for $499
$200,000 balance for $949

Prices for Experienced

Trader Program
(One-Phase
.
More programs available).
Funded Trading Plus is a prop firm that accepts the use of EAs, Algos or Bots on any of its accounts either during the evaluation process (1 or 2 step) or after the challenge has been passed. They are also allowed in the Master program without evaluation.

You can use any strategy except any practice considered as abuse of the live simulation environment such as arbitrage or grid trading.
More info at https://www.fundedtradingplus.com
10%
OFF
Coupon

1O% Off Coupon Code on all evaluation accounts of Funded Trading Plus (not available for instant funding program)

More Less
25k balance for $228
50k balance for $338
100k balance for $588
250k balance for $988

Prices for E8 Accounts
(More programs available).
With E8 Funding you are free to use Algo, EAs, Bots and Indicators.

There is no limitation to your trading style as long as the strategy is unique (not an exact copy of other traders with this prop firm) and no HFT (high frequency EAs) and/or abuse of the market feed.
More info at https://e8funding.com
10%
OFF
Coupon

10% Off Coupon Code on E8 Funding

More Less
$3,500 balance for $200
$10,000 balance for $550
$15,000 balance for $750
$22,500 balance for $1200

Scaling plan up to $5,760,000
FTUK allows the use of any EA for trading or risk management purposes as long as it is not based on these prohibited uses:

Martingale.
Tick scalping.
Hedge arbitrage trading.
Reverse arbitrage trading.
Latency arbitrage trading.
More info at https://www.ftuk.com
30%
OFF
Coupon

30% OFF SPECIAL OFFER on FTUK

More Less
Expires on: 04/27/2024
5%
OFF
Coupon

5% Off Coupon Code on FTUK

More Less
10k balance for $99
20k balance for $179
50k balance for $399
100k balance for $999


Scaling plan up to $5,000,000
The Trading Pit allows you to trade using any type of EA except the following activities which are not allowed:

Tick scalping.
Latency arbitrage trading.
Reverse arbitrage trading.
Hedge arbitrage trading.
Use emulators.
Copying third party trades.
More info at https://www.thetradingpit.com

Let’s see the most relevant features of these prop firms:

Prop Firm Balance / Fee Profit Split Profit Target Max. Drawdown Maximum Time Instruments Leverage Visit
50k balance for $165 $49/month
100k balance for $325 $99/month
150k balance for $375 $149/month
100% of the first $10,000 you generate and 90% from that amount.
6%
4% to 3% Maximum Loss Limit (the percentage varies depending on the account you choose).
No time limits.
Futures Markets: CME Exchange (22 instruments) NYMEX Exchange (7) COMEX Exchange (6) CBOT Exchange (14)
Up to 1:100
50k balance for $289
100k balance for $489
200k balance for $939
300k balance for $1,399
400k balance for $1,869

Prices for Royal Challenge
(More programs available)
80% (90% with scaling)
8% for Phase 1.
5% for Phase 2.
5% Max Daily Loss.
10% Max Loss.
No time limits.
Forex, Indices, Commodities, Metals and Cryptocurrencies
Up to 1:200
$12,500 balance for $119
$25,000 balance for $199
$50,000 balance for $349
$100,000 balance for $499
$200,000 balance for $949

Prices for Experienced
Trader Program (One-Phase.
More programs available)
80% from the start.
90% after making a profit of 20%.
100% after making a profit of 30%.
10%
4% Maximum Daily Loss.
6% Maximum Loss.
No time limits.
Forex, Indices, Commodities and Cryptocurrencies.
Up to 1:30
25k balance for $228
50k balance for $338
100k balance for $588
250k balance for $988

Prices for E8 Accounts
(More programs available).
80%
8% for Step 1.
5% for Step 2.
5% Daily Drawdown.
8% Overall Drawdown.
You can scale your overall drawdown up to 14%.
No time limits.
Forex, Commodities, Indices, Equities, and Cryptocurrencies.
FX Majors up to 1:100.
FX Exotics up to 1:50.
Commodities and Indices up to 1:50.
Cryptos up to 1:5.
$3,500 balance for $200
$10,000 balance for $550
$15,000 balance for $750
$22,500 balance for $1200

Scaling plan up to $5,760,000
50% (level 1) up to 80% (level 7)
10%
6% (of the balance of each level on scaling plan).
No time limits.
Forex, Indices, Commodities and Metals.
Up to 1:100
10k balance for $99
20k balance for $179
50k balance for $399
100k balance for $999

Scaling plan up to $5,000,000
50% to 80% (depending on the account chosen and the level of scaling plan).
8% or 10% (depending on the account chosen).
5% (Daily drawdown).
10% (Max trailing drawdown).
90 days.
Forex, Futures, CFDs, Indices, Commodities, Stocks and Crypto.
Up to 1:30.

I hope you find the above comparison table useful to find your prop trading firm for use with expert advisors. Here is some more information for you:

How to Choose the Best Prop Firms for EAs?

Choosing the right firm requires a bit of research. You should evaluate the firm’s reputation, the experience its users are having, and its track record in the industry. Make sure you understand all the trading rules, especially as they affect the use of EAs, and ask them any questions you have.

Prop firms can provide you with the capital you need to trade and executing your trades automatically with an expert advisor, either to pass the challenge or when trading with their capital in a funded account, can be the most appropriate way to improve performance, manage risk properly and maximise profits by identifying the best profitable opportunities and not miss them by entering the market automatically.

Using EAs when trading with your prop firm can also allow you to better diversify your strategy by trading multiple financial instruments simultaneously. Note that there are prop firms that specialise in certain instruments such as the following:

Best Prop Firms for Forex
Prop Firms for Futures
Crypto Prop Firms
Prop Firms for Stocks

Many of them allow EAs although I recommend that you check their respective websites for policies and restrictions on the use of these trading bots.

What is an EA?

An Expert Advisor (EA) is a software program that allows you to automate market analysis and automatically execute entry and exit trades based on a set of predefined parameters.

For example, a Forex EA can be programmed and installed on the platform you use with your prop firm (e.g. MetaTrader 4, MetaTrader 5, cTrader,…) and it is responsible for studying the currency market in real time using even different time frames to carry out all kinds of strategies, whether they are short term such as scalping or longer term such as swing trading.

In addition, EAs allow to a large extent emotional and psychological factors to be eliminated when making trading decisions. Because the software will only scrupulously follow a set of pre-defined rules, market entries and exits will not be affected by feelings such as greed or fear, which in many cases have a huge impact when trading manually.

If you are not satisfied with the results of your EA, you can always reprogram its parameters, do backtesting, study its performance with other instruments,…

Pros of using Prop Firms that enable EAs

  • Emotions are taken out of trading.
  • You do not put your capital at risk by trading with the money of the prop firm that allows EAs.
  • You don’t need to keep an eye on the market all the time.
  • You don’t need to use high leverage to trade with an appropriately sized account.

Cons of using Prop Firms that allow EAs

  • Some prop firms have complex trading rules and you should make sure that your EA will not breach any of them as this may result in the cancellation of your account.
  • Prop firms that impose restrictions on the use of EAs are common. There are some that directly prohibit their use, others require prior approval of the EA you are going to use, others apply restrictions on strategies such as high frequency trading, tick scalping, copy trading, arbitrage trading, hedging,…

Make sure you know what the rules are on the use of EAs in the prop firm you are going to work with so that you don’t get any unpleasant surprises.

On this page: Prop Firms Discounts you can find discount coupons and promotions from the main funded firms (like for example this promo code of The Funded Trader) and here you have a comparison of companies sorted by price: Cheapest Prop Firms.

I hope the information on this page will help you.


Eduardo Montero

Author: Eduardo Montero

I'm Eduardo Montero. Computer scientist by profession and passionate about online trading with more than 10 years of experience in the financial markets. I'm the author of hundreds of articles published in other websites about the online trading industry. Learn more about me here: About the author.


DISCLAIMER: All of 5bestproprietarytradingfirms.com contents posted on this web pages are based on "My" and "Our" opinions alone and are only for information purposes. You should not take any of this information as guidance for buying or selling any type of investment or security. "I","We" and "Us" are not a financial advisor and anything that have been posted here on this site should not be seen as financial advice. "I","We" and "Us" are only sharing biased opinion based off of speculation and personal experience. An individual trader's results may not be typical and may vary from person to person. It is important to keep in mind that there are risks associated with investing in the stock/forex market and that one can lose all of their investment. Thus, trades should not be based on the opinions and information of others that are put on the internet such as this page, but by your own research and due diligence. Any financial losses incurred will be at your own risks and the people behind this site will not be held responsible. The information about prop trading firms or Forex trading firms is indicative and has no contractual value and may be out of date or may not correspond to the current conditions of each company.