India continues to embrace trading, primarily Forex and equity trading, rapidly expanding its trader base while implementing cutting-edge technology and advancements in FinTech. India has a tremendous potential trader base and a largely untapped market. Naturally, prop trading has popped on the radar of many Indian traders. Yet, how can you ensure you are trading with one of the reputable prop firms in India?
Many Indian traders lack the capital to turn their trading strategies into life-changing careers, which is why prop trading appeals to Indian traders. Choosing the best prop firms in India is essential, as they determine who, if, and when anyone qualifies for a payout. The Indian financial regulator SEBI is eyeing proposals to rein in retail prop trading, posing a potential hurdle for Indian prop traders. It is unclear how it will impact offshore prop firms, as the sector remains unregulated globally. Regrettably, many scams exist in retail prop trading, as demand is sky-high for a share of real money from demo trading.
My in-depth review covers all aspects Indian prop traders should consider before paying for an evaluation challenge. Learn about the pros and cons and how to choose a prop trading account in India.
Top Prop Trading Firms with INR Accounts
- Rocket21, A community of 50M+ traders with payouts of $4M+.
- fundedprime, Portfolio scaling up to a maximum of $800,000 per trader.
- Lionheart Funding, A three-phase evaluation with a 6%-5%-4% profit target.
- Profitex, A generous 7% daily loss limit with a 10% maximum drawdown.
- Sabiotrade, daily trading signals on the Quadcode platform and full-year mentorship.
| | | | | |
Year Established | 2022 | 2023 | 2023 | 2023 | 2023 |
Trading Platform(s) | DX Trade | DX Trade | DX Trade | DX Trade | Proprietary platform |
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Rocket21
In Summary A community of 50M+ traders with payouts of $4M+With an impressive community of 50M+ prop traders, maximum leverage of 1:100, and payouts of $4M+, Rocket21 ranks among the best prop firms in India. All evaluation and trading accounts are in partnership with Eightcap. All funded accounts are demo accounts, and Rocket21 allows prop traders to scale their portfolio after three consecutive profitable months with an upper limit of $2M.
The maximum profit share is up to 90%, and prop traders benefit from competitive Eightcap trading conditions, including Forex commissions of $7.00 per 1.0 standard round lot, $3 for metals, and commission-free costs for indices, cryptocurrencies, and oil.
Pros & Cons
- Innovative product offering including its Revive feature, Scaling plan and various add-on options
- There is no time limit during the evaluation process.
- A reasonable minimum evaluation fee of $59
- Maximum profit share up to 90%
- Limited operational history
fundedprime
In Summary Portfolio scaling up to a maximum of $800,000 per traderFundedprime provides prop traders with the competitive trading conditions of Eightcap, including deep liquidity, fast order execution, low fees, and a well-balanced asset selection exceeding 800 trading instruments. Prop traders get a maximum leverage of 1:50 and can manage up to $800,000. It places Fundedprime among the best prop firms in India.
The maximum profit share is 80%, and prop traders must trade for at least three days during the challenge per evaluation stage without an upper limit. The maximum daily drawdown is 5%, with a maximum drawdown of 10%. The two-step verification process has a 10%-5% profit target.
Pros & Cons
- Cryptocurrency withdrawals
- There is no time limit during the evaluation process.
- Maximum profit share up to 80%
- Trading via the platforms of trusted Australian brokerage Eightcap
- Limited operational history
Lionheart Funding
In Summary A three-phase evaluation with a 6%-5%-4% profit targetI rank Lionheart among the best prop firms in India as it maintains one of the most competitive evaluation conditions and the lowest fees. There are no minimum or maximum trading day requirements. The lowest profit target is 6%, with a 4% daily drawdown limit and an 8% maximum drawdown. All evaluation and funded accounts are with Eightcap, and prop traders can choose among four challenges.
Prop traders get an edge with a balanced asset selection and maximum leverage of 1:100. Lionheart allows algorithmic trading in its Roar challenge but not for funded accounts, while news trading is permitted.
Pros & Cons
- Trading via the platforms of trusted Australian brokerage Eightcap
- Low minimum evaluation fee
- Fast payouts, usually within 24 hours
- Profit share of 90%
- Limited operational history
Profitex
In Summary A generous 7% daily loss limit with a 10% maximum drawdownProfitex has 100K+ funded traders and allows prop traders to manage a maximum of $200,000. Prop traders must pass a one-step verification and trade for at least three days. The profit target is 10%, with a 5% daily drawdown limit and a 10% maximum drawdown. Profitex requires traders to trade at least ten days to qualify for a profit split, which is 80%. Therefore, I rank Profitex among the best prop firms in India for conservative traders.
All challenge and funded accounts are with Eightcap, which includes competitive spreads, low commissions, deep liquidity, and fast order execution.
Pros & Cons
- Offers trusted Australian broker, Eightcap's trading platform
- Cryptocurrency withdrawals
- There is no time limit during the evaluation process
- Maximum profit share up to 80%
- Limited operational history
Sabiotrade
In Summary daily trading signals on the Quadcode platform and full-year mentorshipI rank SabioTrade among the best prop firms in India as it offers a free evaluation challenge. It also allows micro lot trading from 0.001 lots or 100 currency units. SabioTrade has $300M+ in funded accounts, offers raw spreads from 0.0 pips, and the asset selection exceeds 250 trading instruments. The maximum leverage is 1:30, and prop traders can scale their accounts up to $2M.
SabioTrade has five funded accounts, from $20,000 for an evaluation fee of $119. It also has a Pro 3 and a Pro 12 bundle, allowing prop traders to take three and twelve challenges, respectively.
Pros & Cons
- Dashboard-integrated trading platform by QuadCode Markets
- Quick 1-step assessment
- Funded accounts $10,000-$200,000
- Profit share between 70% and 90%
- No weekend positions
How Prop Firms Operate and Make Money
Retail prop firms charge a one-time evaluation fee or a monthly, recurring subscription. They have excellent marketing teams and mostly rely on the previously mentioned fees rather than on their traders’ strategies as a source of income.
Most retail prop trading is in demo accounts, and this gamification of trading is a core issue that regulators struggle to tackle. Technically, no trading occurs, and financial regulators have no jurisdiction despite regulated brokers participating, since their participation remains limited to providing demo accounts. Therefore, retail prop firms are service providers, and traders pay a fee or subscription, like for a magazine or a gaming platform. No money changes hands, no trading occurs, and no trading income exists.
Here is an example of how many retail prop firms operate and make money:
It is important to note that and retail prop firms have strict rules designed for mass failure. 75% to 90%+ of retail traders lose money, while less than 2% trade for a living. In the following example, we will therefore assume that 2% of traders pass the evaluation, with 0.9% qualifying for a payout.
- Assume 100,000 traders pay an average one-time evaluation fee of $119
- Retail traders “game” in a demo account, but the prop firm earns $11,900,000 in revenue
- 2,000 traders pass the evaluation and become funded traders with an average portfolio of $25,000 (please remember the $25,000 is in a demo account)
- 35,000 traders who failed their challenge give it another chance, pay $119, and the prop firm earns $4,165,500 in revenue (1,000 pass the challenge the second time)
- 2,500 of the 3,000 funded traders violate the strict trading rules and lose their account
- 2,000 traders who lost their account give it another chance, pay $119, and the prop firm earns $238,000 in revenue
- The retail prop firm has generated $16,303,000 in revenues with $0 payouts
- 900 traders qualify for a payout (the highest average payout industry-wide is less than $4,000, and I will use $3,500 in this example)
- The prop firm pays out $3,150,000 to 900 traders and has a $13,153,000 gross profit (the most substantial expense for retail prop firms is marketing, followed by technology)
- No trading occurred
Noteworthy:
- Some retail prop firms copy trades from their prop traders into live portfolios managed by professionals to earn additional revenues
- Few retail prop traders offer their traders a path to become a contract-based professional prop trader with a salary and performance bonus
Is Forex Prop Trading a Good Idea in India?
Every prop trader must decide if prop trading is a good idea in India based on their skill set and strategy. When evaluating the best Forex prop firms in India, prop traders must ensure that the trading restrictions and parameters are compatible with their preferred trading strategy. Non-US prop firms offer a low-cost solution, as they lack recurring monthly costs. All funded trading accounts in India have strict risk management rules, and some add consistency rules. Therefore, Indian prop traders must choose a prop firm that supports their trading style.
Tips for Passing Evaluation Challenges
Most retail prop firms do not pressure potential prop traders into completing challenges within a time limit. It is one of the most essential advantages for retail prop traders.
Here are my tips for passing evaluation challenges:
- Understand the trading rules before you start
- Focus on one or two currency pairs unless you are using algorithmic trading software
- Trader smaller lot sizes, which will take longer to reach the profit target but makes violating daily loss limits and maximum drawdowns less likely
- Use strict risk management, keep each trade to a maximum risk of 0.33% of the portfolio, and reverse calculate how many lots you can trade based on your stop-loss level
- Do not trade the news, which is a 50-50 gamble
- Only trade a strategy that you have developed, are familiar with, and trust
- Never place a trade for the sake of showing trading activity
- Patience and discipline are core requirements
Pros and Cons of Forex Prop Trading in India
Before paying for an evaluation or subscribing to a monthly fee, even with the best Forex prop trading in India, prop traders should consider the pros and cons of prop trading in India.
The Pros of Prop Trading
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with trusted brokers
The Cons of Prop Trading
- Unregulated business
- Tight risk management rules
- Some consistency rules make select trading strategies uncompetitive
- Not all prop firms allow algorithmic trading
- Performance pressure
How to Choose a Prop Trading Account in India
The best prop firms in India offer similar core trading conditions to ensure prop traders have a competitive edge.
Prop traders should ensure their prop firms excel in the following aspects:
1. Reputation - Since prop firms are unregulated but duly registered businesses, I recommend traders avoid newly established prop firms. Reading reviews may help, but traders should approach them with caution and avoid reviewers without a history.
2. Trading Costs - US-based prop firms charge monthly subscription fees, and traders should consider these recurring costs. Non-US prop firms have one-time evaluation fees, making them significantly more cost-effective. The trading costs are reasonable, but they differ between prop firms. Trading fees depend on the prop firm’s partner brokers, which transparent firms provide.
3. Trading Platform - The best prop firms in India offer MT4, MT5, TradeLocker, and DXtrade. Some offer proprietary trading platforms or alternative third-party providers.
4. Profit Share - I recommend traders ignore all prop firms with a profit split below 80% and favor 90%+.
5. Asset Selection - The asset selection depends on the prop firm and their partner broker. Prop traders must check if their prop firm offers the assets they require.
6. Trading Strategies - Traders must verify that their prop firms allow the trading style they wish to execute. Some prop firms have no restrictions, while others restrict or prefer select strategies.
7. Support - I only recommend prop firms with fast, responsive customer support available 24/5, as trading with legitimate prop firms involves a contract and receiving payouts.
8. Payouts - The best prop firms in India allow cryptocurrency transactions with fast internal processing times and low minimum payout amounts, but bank wires remain the go-to payment processor.
Does The SEBI Oversee Forex Prop Trading Companies in India?
The SEBI does not oversee prop trading companies in India. Prop trading is an unregulated business, but the best prop firms in India are duly registered companies. SEBI has warned traders that prop trading firms violate local securities market laws but did not ban their operations.
Risk Management Strategies Specific to Prop Trading
Risk management is paramount to ensure successful trading, but prop traders should consider some modifications to avoid violating restrictive conditions.
Here are my tips on risk management strategies specific to prop trading:
- Use algorithmic trading solutions
- Develop adaptive risk management
- Restrict each trade to a maximum loss of 0.33% of your portfolio
- Stop trading if you lose 1% of your portfolio during one trading session
- Limit trading to one or two currency pairs
- Trade smaller lot sizes
- Pause trading during economic press releases
- Never keep overnight or weekend positions
- Don’t hedge your intra-day positions and keep trading simple
What Can You Trade with a Prop Firm in India?
Asset selection at the best prop firms in India depends on the prop firms and their partner broker. Their selection usually consists of Forex, cryptocurrencies, commodities, metals, equities, ETFs, and futures.
What Trading Platforms are Available in India for Forex Prop Trading?
The best prop firms in India offer MT4 and MT5, as they support algorithmic trading. Some add TradeLocker and DXtrade, and a few prop firms feature alternative third-party providers or deploy proprietary solutions.
How Do Payments Work with Prop Accounts?
Prop firms decide which payment processors to accept, and the best prop firms in India support cryptocurrency deposits and withdrawals. Prop traders must have an account with a supported payment processor. They should also check the minimum withdrawal amounts and consider third-party follow-on costs.
Bottom Line
Trading with the best prop firms in India can offer a critical boost to traders with a profitable trading strategy and insufficient capital, but only if the trading conditions support the trader and sustained profitability. Most prop firms present themselves as an excellent choice, but prop traders must understand the trading rules and restrictions, which can curb the successful execution of trading strategies.
Another fact to consider is that despite the best marketing offers, most funded trading accounts rely on evaluation fees or monthly subscriptions for their income and not on trading. The high failure rate of traders and the restrictive risk management create a highly profitable business model for prop firms but not for traders. Therefore, Indian prop traders must carefully evaluate prop firms before paying the evaluation fee.
