TradeDay VS Topstep

TradeDay VS Topstep - Comparison Funded Frogram

Overview

In this review, we’ll be taking a detailed look at two leading prop trading firms, TradeDay and Topstep, to help you decide which one suits your trading needs better. Both firms provide opportunities for traders to demonstrate their abilities and potentially receive funding, but in doing so cater to different preferences and levels of experience.

Topstep, located in the US, is an incredibly popular futures prop firm boasting more than a decade’s experience in the field. Working with NinjaTrader, Tradovate, and TradingView as platforms and for brokerage services, Topstep also has its own recently introduced platform, TopstepX™. Created by leading traders and software designers, the pioneering platform is designed to provide Topstep’s users with an unparalleled trading experience, helpfully bringing together all of the firm’s offerings in one thoughtfully designed space.

Another unique feature of Topstep is TopstepTV™, a live broadcast from the firm’s HQ in which skilled professionals trade live, discuss market trends and economic news, and present incentives for the community’s top performing traders.

Topstep account sizes start at an intermediate point ($50,000) and rise to $150,000. Profit targets go up in line with account size (from $3,000 to $9,000), as do maximum drawdowns ($2,000, $3,000, or $4,500). Traders can trade CME Equity Futures (for example the E-mini S&P 500 and Micro E-mini versions of major indices such as the S&P, NASDAQ 100, and Russell 2000.), and forex futures traders have access to currencies like the Australian Dollar (6A), Euro FX (6E), and Japanese Yen (6J).

TradeDay, also US-based, is a futures prop firm that was established four years ago by James Thorpe and Steve Miley. Compatible with several prominent trading platforms like TradingView, Jigsaw, NinjaTrader and Tradovate, the firm works with the CME Group for their brokerage services. TradeDay accounts begin from a low $10,000 and reach as high as $250,000, so whether you’re just starting out in your trading career of you’ve got lots of experience and are looking for substantial levels of capital, you’ll find an account for you.

TradeDay’s evaluation is straightforward, with a single phase to it, and they also offer a two-week free trial – an unusual and very useful draw. Profit targets change according to which challenge you choose, starting at $1,000 and rising to $12,000. Maximum total drawdowns follow a similar pattern, going from $500 to $4,000. Traders partnering with the firm will have access to futures on exchanges like CME, CBOT, NYMEX, and COMEX. What’s more, you’ll be able trade in simulated markets with no limitations, at the same time as taking advantage of the impressive range of educational resources on offer.

Screenshot 165 TradeDay VS Topstep
Screenshot 164 TradeDay VS Topstep
TradeDay is Best for: Topstep is Best for:
Traders who like clear, straightforward rules. Newcomers looking to establish a strong knowledgebase.
Those who will benefit from lots of different educational resources. Futures traders after a realistic trading simulation.
Traders wanted to trade a variety of instruments. Those who value educational resources and live sessions.
Users who value access to multiple funding platforms. Traders preferring stricter risk management rules to help them maintain discipline.
Traders looking for a substantial profit share. Those requiring support for a number of different leading trading platforms.

Topstep vs. TradeDay: A Comparative Table & Rules

TradeDay and Topstep both have solid reputations and impressive features designed to help you reach your full potential and provide risk-free access to markets. The table below looks at their main similarities and differences.

Feature TradeDay Topstep
Instruments Instruments Futures contracts (Equity, Forex, Agricultural, Energy, Interest Rate, Metals) Futures contracts (Equity, Forex, Agricultural, Energy, Interest Rate, Metals)
Challenge Types One-Step 1-Step/1-Rule
Challenge Account Sizes $10,000, $25,000,$50,000, $100,000, $150,000, $250,000 $50,000, $100,000, $150,000
Challenge Cost $99 - $750/month $125 - $650/month
Minimum Trading Days 10 days 2 days
Max Daily Loss Varies by program $2,000 up to $4,500
Max Drawdown $1,000 to $5,000 Varies by program
Payout Split 80/20 (trader/firm) 90/10 (trader/firm) Keep 100% on first $10,000 profits
Profit Target $1,000 to $5,000 $3,000 to $9,000

Additional Points:

Topstep:

  • Topstep’s sole rule is a maximum loss limit, calculated using your end-of-day balance (rather than using intraday unrealised profits). Breaching the MML does count as a rule violation.
  • The firm’s Performance Coaching Plan is an invaluable resource costing $395/month (free with funded accounts). Traders using it will benefit from a one-off starter session as well as daily meetings, a one-to-one coaching tutorial each week tailored to your own unique goals and requirements, and access to an exclusive chat with fellow Topstep traders where you can discuss strategies and learn from each other’s successes and failures.

Deeper Dive into TradeDay vs. Topstep Trader

Next up is a table placing the rules of each firm side-by-side so you can compare the two.

Rule Category TradeDay Topstep
Allowed Instruments Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy Futures, Interest Rate Futures, Metals Futures. Equity Futures, Foreign Exchange Futures, Agricultural Futures, Energy Futures, Interest Rate Futures, Metals Futures.
Scalping Allowed Allowed
Day Trading Allowed Allowed
Swing Trading Not Allowed Allowed
Holding Positions Overnight Not Allowed Not Allowed
Holding Positions Over Weekends Not Allowed Not Allowed
News Trading Allowed Allowed

Maximum Daily Loss:

  • Topstep: In order to ensure all Topstep traders have sufficient discipline and risk management abilities to responsibly trade the firm’s capital, they have a maximum loss limit policy, calculated from the previous day’s account balance, and varying according to account size as follows:
    • $50,000 Trading Combine: $1,000
    • $100,000 Trading Combine: $2,000
    • $150,000 Trading Combine: $3,000

Do bear in mind that beaching this limit will end your Trading Combine.

  • TradeDay: TradeDay concentrates on maximum drawdown rather than maximum daily loss limits.

Maximum Drawdown:

  • Topstep: The firm focuses on maximum daily loss, as detailed earlier, instead of maximum drawdown.
  • TradeDay: TradeDay’s trailing maximum drawdown (TMD) stipulates the maximum loss allowed each day, and differs according to which program you choose. It adjusts as your account grows, so as you generate profits your limit will increase. It won’t change if you incur losses: it is maintained at the highest balance your account reaches.
  • Breaching the TMD while you have an open position will cause your positions to be liquidated. You won’t be able to continue trading, and you’ll either fail the evaluation or lose your funded account.

Withdrawals:

  • Topstep:
    • Topstep payouts are contingent on trading for a set number of “winning days” on which you generate profits of at least $200. To withdraw half of your account balance, you need five such days, or to withdraw the whole thing you need 30. The days don’t have to be consecutive. Withdrawals are processed by Topstep in seven hours after you request them, and you’ll receive them one to two working days later.
  • TradeDay:
    • There are no limits on withdrawals from either funded simulated or funded live accounts. No set trailing maximum drawdown is enforced when funds are transferred from simulated to live accounts; instead, the drawdown is just the funds that you transfer.
    • Once you’ve accumulated $5,000 in profits, encompassing all your earnings including withdrawals, your account will transition to a funded live account. Only net profits (in other words, gross profits less withdrawals) will be transferred to your funded live account. Do note that TradeDay might adjust your risk limits to reflect your withdrawals and losses.

Leverage:

Leverage Futures Topstep TradeDay
Futures 1:1 1:1

Topstep vs. TradeDay: Pros and Cons

Topstep:

Pros

Cons

TradeDay:

Pros

Cons

Conclusion

TradeDay and Topstep both offer traders a range of attractive features, as well of course the crucial access to capital. TradeDay’s straightforward Evaluation Challenge provides a direct pathway to funding, as well as a good range of educational materials, while Topstep offers the outstanding Trading Combine, compatibility with a number of different platforms, and steadfast commitment to the development of its traders through its dynamic and supportive community.

In other words, Topstep is probably the best option for traders who find inspiration and confidence from learning and engaging with peers. Those favouring a simple, standardised approach may want to go with TradeDay. At the end of the day the choice comes down to your individual needs and ambitions – so use this review as your starting point but make sure to look into both prop firms further to find the right one for you.

TradeDay VS Topstep - Comparison Funded Frogram
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