Topstep has long been considered one of the biggest names in the proprietary trading firm industry, with its glossy marketing promising aspiring traders a path to professional trading careers. However, beneath the surface lies a complex reality that potential traders need to understand before investing their time and money.
The Big Name That May Not Deliver
Topstep’s reputation as an industry leader comes with significant marketing spend and high visibility. They promise:
- Access to substantial trading capital
- Professional-grade trading platforms
- Comprehensive trader support
- A clear path to becoming a funded trader
But the reality of becoming a successful Topstep trader often differs dramatically from these polished promises.
The Real Cost of “Opportunity”
Breaking Down the Fees
Topstep’s fee structure is substantial:
- Monthly subscription fees ranging from $165 to $375
- Different account size options with escalating costs
- Additional platform fees and data charges
- Reset fees for failed attempts
- Profit split arrangements that favor the company
The Success Rate Problem
The most concerning aspect of Topstep’s model is the extremely low success rate:
- Less than 10% of traders pass the initial Trading Combine
- Of those who pass, many fail to maintain funded status
- Most funded traders struggle to achieve consistent profitability
- The majority of revenue comes from subscription fees, not trader success
Hidden Costs Add Up
Traders often overlook additional expenses:
- Market data fees
- Platform maintenance charges
- Account reset costs after failures
- Increased fees for larger account sizes
- Subscription fees during inactive periods
Why Traders Are Leaving
The exodus of traders from Topstep can be attributed to several key factors:
Withdrawal Hurdles
Funded traders face numerous obstacles when attempting to withdraw their profits:
- Complex profit threshold requirements
- Rolling drawdown calculations that reset progress
- Trailing maximum drawdown rules
- Minimum trading day requirements
- Strict adherence to trading rules that can invalidate profits
Rule Changes and Complications
Traders report frequent frustrations with:
- Sudden changes in trading parameters
- New restrictions implemented without notice
- Increasingly complex compliance requirements
- Shifting profit split arrangements
- Additional verification steps for withdrawals
Support System Issues
Customer service complaints are common:
- Delayed responses to urgent trading issues
- Inconsistent rule interpretations
- Limited weekend support
- Communication gaps during critical moments
- Complex dispute resolution processes
Better Alternatives Exist
The prop firm industry has evolved, and several competitors now offer more trader-friendly options:
What to Look For
Focus on firms that provide:
- Lower monthly fees
- Higher profit splits
- Clearer trading rules
- Better support systems
- Proven track record of payouts
Key Competitors Worth Considering
While specific recommendations can vary, look for firms offering:
- One-time evaluation fees instead of subscriptions
- More realistic profit targets
- Transparent withdrawal processes
- Documented success stories
- Regular payouts to funded traders
Should You Risk It With Topstep?
After thorough analysis, the decision to join Topstep requires careful consideration.
The Pros
- Established brand with long history
- Professional-grade trading platform
- Comprehensive educational resources
- Active trading community
- Regular webinars and training sessions
The Cons
- High monthly subscription costs
- Very low success rate
- Complex withdrawal requirements
- Frequent rule changes
- Profit splits favor the company
Making an Informed Decision
Before committing to Topstep, consider:
Your Trading Experience
- Are you consistently profitable in demo trading?
- Do you have a proven trading strategy?
- Can you handle strict trading rules?
- Are you prepared for the psychological pressure?
- Do you have the capital to sustain multiple attempts?
Financial Considerations
Calculate the total potential cost:
- Monthly subscription fees
- Market data charges
- Platform fees
- Potential reset costs
- Time investment value
Alternative Paths
Consider these options before committing:
- Trading with a small personal account
- Using a demo account to build consistency
- Exploring other prop firms with better terms
- Building trading skills through education first
- Joining trading communities for support
Final Verdict
While Topstep has helped some traders achieve success, the odds are stacked against most participants. The combination of high fees, low success rates, and complex withdrawal requirements makes it a challenging path to profitable trading.
Recommendations
- For Beginners:
- Focus on education and skill development first
- Practice with demo accounts
- Build a track record of consistent profitability
- Save subscription fees for actual trading capital
- For Experienced Traders:
- Compare multiple prop firm options
- Calculate total costs versus potential benefits
- Consider direct market access with personal capital
- Look for firms with better profit splits
- Verify withdrawal processes before committing
- For Current Topstep Traders:
- Track your progress and costs carefully
- Set clear exit criteria if not meeting goals
- Document all trading activity and communications
- Consider alternative prop firms if struggling
- Focus on consistent, sustainable trading
The path to becoming a professional trader is challenging enough without adding unnecessary obstacles. While Topstep may work for some, most traders would be better served by either trading their own capital or finding prop firms with more favorable terms and higher success rates.
Remember: Your trading journey should focus on skill development and consistent profitability, not just passing evaluations. Choose a path that aligns with your long-term trading goals and financial capabilities.
