Prop firm

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How to Choose a Prop Firm: 12-Point Checklist for South Africans

By Published 2 min read

With hundreds of prop firms competing for traders, the cheapest or most-advertised firm is rarely the best. Run every firm through these 12 checks before you pay.

Trust

1. Legal company and track record. Name the entity, where it’s registered and how long it has operated. Firms with several years of history have survived industry shake-ups.

2. Verifiable payouts. Look for independent evidence, not just screenshots on the firm’s own site.

3. Rule-change history. Frequent changes to funded-account rules are a warning sign.

4. Accepts South Africans. Confirm eligibility for South African residents before buying. See prop firms that accept South Africans.

Rules

5. Drawdown type. Static is more forgiving than trailing. 6. Daily loss calculation. Balance or equity? Initial or daily balance? 7. Consistency and minimum days. Know how they affect passing and payouts. 8. Banned strategies. Check EAs, scalping, news, hedging and copy trading against your style.

Money

9. True cost. Fee, resets, activation, subscriptions and add-ons. 10. Profit split conditions. Is the headline split the default or an upgrade? 11. Payout frequency, speed and fees, including methods that work well for South Africans.

Practicalities

12. Platform and support. Can you trade on the platform you know? Send a pre-sales question and judge the reply.

A simple scoring method

Score each point from 0 to 2 and total them. Anything below 16 out of 24 deserves a hard look, and a 0 on points 1 or 2 should rule a firm out. Our own scoring is explained in how we rate prop firms.

Match the firm to your trading style

If you… Prioritise Consider
Swing trade Static drawdown, weekend holding FTMO 2-Step, The5ers
Run EAs Clear automation rules, MetaTrader FTMO, FundedNext
Day trade futures End-of-day drawdown, platform Topstep, Apex
Want low cost Entry price, refunds The5ers, Funding Pips
Need fast payouts Frequency, guarantees FundedNext, Funding Pips, E8
Are still learning No time limit, education SabioTrade, The5ers

Common mistakes

  • Choosing on the biggest discount rather than the rules.
  • Ignoring how daily loss is calculated.
  • Assuming the headline split is the default.
  • Putting all funded capital with one firm.
  • Skipping the prohibited-strategies section of the terms.

Prop firms we currently recommend

  1. 1

    FTMO Best overall

    Max account
    $200,000 (more via scaling)
    Profit split
    80%, up to 90%
    Fee from
    €89 (≈ $10K account)
    Our rating
    4.6 out of 5
    Visit FTMO Read review
  2. 2

    FundedNext Best for MetaTrader users

    Max account
    $200,000 (up to $4M through scaling)
    Profit split
    80%, up to 95%
    Fee from
    $59.99 USD (confirm at checkout)
    Our rating
    4.4 out of 5
    Visit FundedNext Read review
  3. 3

    Funding Pips Best budget pick

    Max account
    $100,000 per account (scales to $2M)
    Profit split
    60–100% (depends on payout cycle)
    Fee from
    About $29–$36 USD ($5K)
    Our rating
    4.3 out of 5
    Visit Funding Pips Read review

FAQ

What is the most important factor when choosing a prop firm?

Payout reliability. Low fees and high splits mean nothing if a firm doesn’t pay.

Should I choose the cheapest prop firm?

Not automatically. Compare the total cost to get funded and the firm’s track record.

How can I check whether a prop firm pays?

Look for independent payout evidence, long-running community discussion and how the firm handles complaints. Request a small payout early.

Is static or trailing drawdown better?

Static drawdown is more forgiving for most traders because profits increase your buffer.