I believe stock trading in the prop firm industry is still largely untapped and it is really difficult to choose a prop firm that allows stocks trading with good conditions and structure. Choosing a prop firm for stocks is more nuanced than it appears, especially when it comes to understanding whether you are trading real stocks or stock CFDs. In my experience only a small number of firms offer real equities, while most operate using CFDs, a distinction that is easy to miss but important in practice.
To make this decision easier, we did the heavy lifting for you and tested over 20 prop firms offering stock trading and spent over 120 hours evaluating them under real trading conditions. Many firms look similar at first glance, but meaningful differences emerge once you start trading, particularly around payout reliability, drawdown rules, and execution quality.
While evaluating, I mainly focused on how these firms perform in practice, assessing payout speed, rule enforcement during live trades, platform stability during active market hours, and the quality of support when real issues arise, rather than relying on marketing claims. Since every trader has different goals and styles, there is no single best option for everyone. Instead, we grouped and ranked firms based on their strengths, helping traders choose what truly fits their trading approach.
When I first started in prop trading, the hardest part was figuring out which firms were actually trustworthy. Many firms looked solid on paper and had big marketing claims, but it was difficult to know how they performed once real trading and payouts were involved.
To make that decision easier, we purchased challenges ourselves and tested each firm under real trading conditions, from onboarding and platform performance to how payouts are handled. We then benchmarked them against industry standards, rating each firm based on trust, payout reliability, trading rules, costs, platform stability, and long term viability.
| Firm Name | Trust & Rating | Challenges | Lowest Entry Price | Platforms | Profit Split | Assets | Payout Frequency | US Traders | Max Allocation |
| Trade the Pool | 4.7 Excellent | 1-step | $47 | Trader Evolution | 80–90% | Forex, Indices, Crypto, Commodities | Bi-weekly | Yes | Up to $450K |
| FTMO |
4.6 Excellent |
2-step | ~$103 | MT4, MT5, cTrader, DXTrade | 80–90% | Forex, Indices, Commodities, Crypto | Bi-weekly | Yes | Up to $400K |
| FXIFY |
4.2 Good |
Instant, 1-step, 2-step, 3-step | $39 | DXTrade, MT4, MT5, TradingView | 70–90% | Forex, Indices, Commodities, Crypto | On Demand/Biweekly | Yes | Up to $800K |
In my view, Trade The Pool is one of the most reliable prop firms for stock trading because it is built specifically for equities and offers access to real stocks rather than CFDs. It provides more than 12,000 instruments, including stocks, ETFs, ETNs, ETPs, and warrants, and supports both day and swing traders through Flexible and Disciplined challenge formats.
When I tested Trade The Pool, I focused on real trading conditions, payout reliability, and long term scaling. Traders have buying power ranging from $5,000 to $200,000 for day trading and $2,000 to $40,000 for swing trading. The firm uses the Trader Evolution platform, which is designed for stock execution and handled news driven and swing strategies smoothly when I traded with it. Risk rules are clearly defined, consistency is enforced, drawdowns are transparent, and guidelines are upfront, which makes trading more predictable and helps avoid unpleasant surprises.
When I first started out, prop trading almost felt synonymous with FTMO, which shows how much influence it has had on the industry. Although FTMO is primarily known as a forex focused prop firm, it also offers access to more than 20 stock CFDs and remains one of the most trusted names. It supports multiple platforms, including MT4, MT5, cTrader, and DXTrade, with stock leverage set at 1:3.33, which makes it a familiar and reliable option for many traders.
What stands out to me with FTMO is its clear structure and consistency. It runs a straightforward two step evaluation model, and the rules around Expert Advisors, copy trading, news trading, and overnight or weekend holding are clearly explained upfront, which allows you to focus on execution and risk management without worrying about hidden constraints or sudden rule changes.
We all want big scaling potential, and that’s why FXIFY made into our list , it offers stock CFDs and gives traders a lot of flexibility, both in how they trade and which platforms they use. With support for MT4, MT5, DXTrade, and TradingView, it’s easy to pick a setup that matches your trading style.
The scaling plan is straightforward and performance driven. Hit a 10% profit within three months and your account becomes eligible to grow, with balances doubling over time up to $4 million. This applies to most challenge accounts, though Instant Funding and Lightning accounts are unfortunately excluded.
FXIFY provides around 28 stock CFD symbols with 1:2 leverage. From our experience, it works well for different approaches, whether you’re day trading, swing trading, trading news, or scalping, without feeling overly restrictive.
Most prop firms offer stock trading through CFDs, while Trade The Pool is one of the few that focus on real stock trading. The key point is that one is not inherently better than the other. The right choice depends on context, trading style, and individual needs.
Trading real stocks means you are dealing with actual equities, whereas stock CFDs simply track the price of the underlying stock without ownership. In prop firms, both models allow leverage and short selling, which adds flexibility but also introduces higher risk, margin requirements, overnight fees, and potential slippage. From experience, these differences matter more in practice than on paper, and understanding how each structure works helps traders choose what aligns best with their strategy rather than assuming one approach is superior.
Choosing between real stocks and stock CFDs really depends on how you trade. From what i know, testing different prop firms, this decision can affect everything from costs and risk to access and growth potential. Here’s what matters most:
Trading Strategy: As we noticed in the prop firm industry, especially in stocks, long-term holding works best with real stocks, as there are no overnight charges. CFDs normally are just tracking the stock prices and might charge the overnight holding fees.
Rules Complexity: Real stock trading comes with a slightly different set of rules that traders need to understand upfront. These often include minimum holding times, minimum profit requirements, and different buying power for intraday, overnight, and weekend positions. None of these are inherently negative, but they do add an extra layer of structure that can take time to get used to.
Stock CFDs, on the other hand, tend to feel more familiar, especially for traders coming from forex. The mechanics are simpler, leverage is usually lower, and position management follows a more straightforward model. The key is not which approach is better, but understanding these differences early so you can choose the structure that best fits how you trade.
Market Access: What’s interesting is that most prop firms offering stocks provide only limited access to a small selection of symbols. In contrast, stock focused firms like Trade The Pool offer a much broader universe of stocks. I know that this wider access makes a meaningful difference for traders who rely on stock selection, sector rotation, or specific equity setups.
In most cases, prop firms that offer stock CFDs limit traders to just a handful of major names like AAPL, MSFT, or TSLA. In contrast, stock dedicated firms such as Trade The Pool provide access to a much broader universe, with more than 12,000 stocks and ETFs.
There is nothing more frustrating to me than buying a challenge and then realizing you cannot trade the instruments your strategy is built around. Missing a key U.S. equity, ETF, or large cap stock can throw off your plan, slow your progress, and impact performance. That is why I would recommend checking instrument availability first. Making sure a firm supports the exact stocks your strategy depends on, so you can freely trade.
As a trader, your strategy needs to be robust and capable of avoiding deep drawdowns, especially since prop firms operate under strict rules around risk, earnings volatility, and overnight gaps. A strategy may look profitable in backtests or personal accounts, but it still has to function within prop firm constraints and real market conditions.
As we see, firms handle these risks very differently. Some allow larger drawdowns, others keep them tight. Some use static drawdowns, while others apply trailing models. Certain firms allow holding positions through news and earnings, while others restrict exposure or impose stricter limits. That is why carefully reviewing the detailed rules is essential before choosing a firm, to ensure your strategy can realistically operate without breaching drawdowns or running into unexpected restrictions.
If you are a swing trader who holds positions overnight, you need to be especially careful, as not all prop firms support this style easily. Based on our assessment and testing, many firms reduce exposure or restrict overnight holding altogether. In the case of stock CFDs, overnight holding fees are often applied as well. From a trader’s perspective, it is important to understand these costs, restrictions, and exposure limits upfront so your strategy is not negatively affected once you are live.
If you are a short seller looking to profit from downside moves, there might be some restrictions, but in prop firms trading is usually done in a simulated environment or through stock CFDs. This generally makes short selling much easier, since it is not limited by share availability or borrowing requirements, and gives traders more flexibility when executing short strategies. That said, it is still important to confirm with the firm that there are no additional restrictions, so you can trade with confidence rather than running into issues later.
Trading costs can feel insignificant at first, but over hundreds of trades, small differences add up quickly and can have a real impact on profitability. As a trader, it is important to understand the full cost structure, including spreads, stock commissions, HTB fees and overnight holding costs (CFDs), and to choose a firm that offers conditions aligned with your strategy.
With real stock trading, overnight holding fees are typically not charged, while stock CFDs often include overnight swaps that can become costly for swing traders. From my review, stock dedicated firms like Trade The Pool avoid overnight fees and do not charge HTB fees either which is a great benefit to traders. Ultimately, understanding which structure a firm uses and how costs are applied helps you choose an environment that fits your trading style.
It is very important to understand whether a firm uses a static or trailing drawdown, especially in volatile markets. With a trailing drawdown, your floating P&L can push the drawdown level higher, and if the market reverses, the remaining drawdown allowance can shrink quickly. This often catches traders off guard.
You should always look for and prioritize firms that use a static drawdown, as it offers a clear advantage. This is because it is calculated from the initial balance and remains fixed, rather than tightening as your equity fluctuates.A static drawdown gives you more room to trade with confidence, allowing you to execute your strategy without worrying about a shrinking risk limit as your equity fluctuates.
As we know, trade execution could be make or break for many traders, and that’s why platforms play an important role in stock prop trading. Stock dedicated firms like Trade The Pool typically use advanced platforms such as Trader Evolution, which are built specifically for stock execution. In contrast, firms offering stock CFDs usually rely on more traditional CFD platforms like MetaTrader, cTrader, or Match Trader.
What I think is, the key is not just the platform type, but how stable its execution is under pressure. During volatile market conditions, especially around opens, news, or earnings, you want your orders to be filled as intended so it’s important to make sure the platform you use can handle fast markets reliably, which is essential for avoiding missed trades and unnecessary slippage.
As we see most prop firms offer a standard profit split in the 70% to 80% range. Stock dedicated firms like Trade The Pool start at a 70% split, which is slightly on the lower side, but this is balanced by access to real stocks and a stock focused trading environment. On the other hand, firms offering stock CFDs typically start around 80% and may increase the split further through scaling plans.
As a prop trader, profit share matters to me just as much as trading conditions. That is why it is important to check the profit split structure upfront and understand how it evolves over time, so you know exactly how much of your performance you get to keep.
Nothing is more frustrating than building momentum with a strategy only to hit a capital ceiling that forces you to slow down or change your approach. Stock dedicated propfirm Trade The Pool offers a reasonable scaling structure where each time a trader makes 10% on the initial account, buying power increases by 5%, and the daily pause expands by 10%.
Firms offering stock CFDs, like FTMO, usually follow the traditional scaling models, increasing capital and profit splits as performance targets are met. As scaling can vary a lot between firms, it is always worth reviewing the FAQs and scaling terms carefully to make sure the growth potential matches your long term trading goals.
Ebube Jones began his career in finance writing in 2019, focusing on forex, stocks, and market analysis. He has produced in-depth articles on trading strategies, broker reviews, and investment vehicles,.
Leveraging years of hands-on experience, Soban provides in-depth reviews of proprietary trading firms, carefully evaluating their models, rules, and impact on traders.
Leveraging years of hands-on experience, Soban provides in-depth reviews of proprietary trading firms, carefully evaluating their models, rules, and impact on traders.
At FXEmpire, we strive to provide unbiased, thorough and accurate prop firms reviews by industry experts to help our users make smarter financial decisions.