Home Business Insights & Advice A TopStep trader review: Impressive of impractical?

A TopStep trader review: Impressive of impractical?

by John Saunders
30th Sep 22 11:57 am

TopStep is an online futures trading platform designed for investors with limited capital. The platform initially serves as an educational tool for new users, allowing them to make simulated investments using the TopStep platform. During this process, TopStep provides users with a number of metrics to meet during the simulation. If a user can meet these metrics, they can become a funded trader, allowing them to make genuine profits from their trades!

TopStep is best for…

Day and futures traders of all levels. The simulated trading features are available to anyone with membership and provide a lot of hands-on trading experience (especially for new investors). Providing clear metric guidelines to meet, TopStepTrader will continually challenge users to improve their trading techniques. In addition to providing these goals, TopStep also offers education tools—like “Performance Coaching”—which allows users to learn the best trading tips from real professionals. Traders who reach “Funded” status will be given access to real funds from TopStep, allowing them to make a profit using the trading techniques they’ve acquired.

Pros & cons

The main appeal of TopStep is that it provides the opportunity to make trades using company funds. However, reaching the level of “Funded” isn’t an easy task, and requires strictly adhering to the ever-changing restrictions that TopStep has in place for simulated trading. Although doable, not everyone can reach this level. However, every user can take advantage of the many educational opportunities that TopStep provides, which gives the platform a more well-rounded appeal to the average trader.

Pros Cons
14-day free trial

No credit card needed for trial

Many educational tools

Risk-free simulation investing

Funded investing

Challenging to become funded trader

Coaching is expensive

Pricey membership fees

Resets are $100

Minimum investment

As mentioned previously in this TopStepTrader review, TopStep doesn’t require a large monetary investment from new users. In fact, you can actually test the platform out for two weeks (for free!). Many online services offer free trials, but unlike much of the competition, TopStep allows you to do so without needing to provide your credit card. This means it’s truly risk-free to give the platform a try.

Once you’ve passed the trial period then you’ll need to get a paid membership plan. You’ll continue to pay for your plan until you become a “Funded” trader. Currently, there are three membership options available: $50k, $100k, and $150k. These momentary values refer to the simulated funds you’ll have during your membership. Each plan has different requirements that you’ll need to meet before you can become a “Funded” trader and begin to make real money!

  • The $50k plan costs $165 per month.
  • The $100k plan costs $325 per month.
  • The $150k plan costs $375 per month.

Investment opportunities

After you’ve made it through the simulation stages of TopStep and proven your investing prowess, you’ll be given the opportunity to become a funded investor. Being “funded” on the trading platform means that TopStep will provide you with funds to invest. Depending on your plan, you will receive 100% of either the first $5,000 or the first $10,000 you make. After that point, you’ll continue to receive 80% of the profits; TopStep will pocket the other 20%.

It’s important to note that you can still lose your “Funded” status if you don’t meet TopStep’s required metrics. Like many other terms and conditions on TopStep, these change constantly, so you should always double-check them to ensure that your funded account is compliant.

Convenience

TopStepTrader is compatible with many different trading platforms once you reach the “Funded” level, including TSTrader, NinjaTrader, and TradingView. This makes the platform very convenient to use, as you’ll have plenty of platforms to choose from. Different platforms may charge different fees, work on different devices, or offer specific third-party add-ons (that differ from the competition). We recommend either sticking with a platform you’re already familiar with or conducting some research to determine which trading platform will work best.

Limitations

This is the most important part of this TopStepTrader review: the limitations. While most people will likely join TopStep in hopes of earning “Funded” status, this isn’t easy to achieve. TopStep claims that its stringent simulation trading requirements are designed to help users become better traders. To an extent, this is true. However, it’s these same requirements that make it unlikely that the vast majority of people hoping to become “Funded” will be able to do so. Additionally, TopStep is constantly changing, updating, and refining these requirements, meaning what worked one year may not be doable in the next.

Summary

Hopefully, this TopStepTrader review has given you enough information to determine whether or not this platform is right for you. While becoming “Funded” is an achievable goal, we recommend thinking of this as a secondary benefit: the first should be improving your investment skills via the available education opportunities. It’s also worth noting that TopStep has an active online community where you may be able to benefit from the insights of other members. Click here for a two-week free trial on the TopStep trading platform: no credit card required!

 

The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.

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