Introduction: The Evolution of Prop Trading in Canada (2025 Overview)

In 2025, prop trading has grown increasingly adopted all across Canada. This is due to retail traders seeking prop firms for easier access to capital, flexibility, and career advancements in the financial markets. Canadian traders are shifting away from traditional brokerages, which have become overbearing due to high costs and limitations. Traders can now seek better options to enhance their skills without having to spend their own money.

What Is Prop Trading?

Prop trading or prop trading involves trading the financial markets using the firm's capital instead of your own. Traders often undergo some sort of an evaluation process (or pay for instant access) and after meeting certain risk and profit thresholds, they are given a funded account. Here, traders receive a predetermined percentage of the profit, often 80% to 95%.

Why Prop Trading is Gaining Popularity in Canada

The increase in activity for prop trading among Canadian traders in 2025 can be attributed to the following reasons:

• Low Capital Barrier: Instead of risking their hard earned savings, traders can access company money starting from challenge fees of $50 to $100 CAD.
• Flexible Work Model: Trading from home is now available for those in Ontario, Alberta, and British Columbia, as Remote Prop Trading aligns with post-COVID flexible work trends.
• Access to Global Markets: With prop firms, traders can access forex, commodities, indices, stocks, and even crypto from one interface.
• Performance-Based Scaling: Account scaling is an appreciated strategy among Canadian traders, and many prop firms proudly offer consistency rewards with scaling up to $500K, and even up to $2M over time.

Regulatory Compliance for Prop Firms in Canada (2025 Update)

Although prop trading is not illegal in Canada, propelled traders should be mindful of where they access funded programs as prop firms are not considered brokers and thus do not fall under regulation by IIROC or OSC. This is what Canadian traders need to know in 2025:

• Unregulated entities can offer funded models as long as they do not pose as Canadian brokers or misrepresent themselves.  
• Canadian residents filing taxes must declare income from prop firms either as self-employment or as capital gains.
• Firms that payout in crypto or through Wise/Deel are popular because these platforms enable fast cross-border payments.
• Pro tip: If you are based in Canada, always select prop firms with verified payouts and clear terms, as well as good Trustpilot reviews.

Best Prop Trading Firms for Canadian Traders (2025)

1. FundedNext

About the Prop Firm:

FundedNext was started in March 2022 with its head office in the UAE. Recently, the funded next firm has gained popularity due to its trader oriented model of doing business which includes flexible funding options and transparency. FundedNext currently holds a 4.6/5 Trustpilot rating based on over 29,000 testimonials.

FundedNext Challenge Types and Fees:

FundedNext currently provides 1-step, 2-step, and express evaluation models, with fee variations for each. FundedNext’s fees for the 1-Step Stellar Challenge begins from $129 for a 15k financed account.

Payout Method:

FundedNext guarantees payout offers within a day. For several regions, FundedNext offers numerous Local Payment options like PayPal, Skrill, Apple Pay, Google Pay, Crypto, and others.

Trading Platforms:

FundedNext supports trading through MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader platforms.

Best Known For:

FundedNext is highly known for it’s profit splits reaching up to 95%, no deadline for completing challenges, and a 15% profit share while in the challenge phase.

2. FTMO

About the Prop Firm:

Established in 2015 in Prague, Czech Republic, FTMO is now one of the major players in prop trading. As their name suggests, they are known for their thorough evaluation and professional evaluation. Due to its dependability and fulfilling demands, FTMO has become one of the prominent prop firms in the world in 2025, boasting a Trustpilot rating of 4.8/5 from over 21,000 reviews.

Types and Fees Challenges: 

FTMO operates a two-phase evaluation system with challenge fees between $155 to $1,080 based on the account size. 

Method of Payout

FTMO splits the profit by up to 90% and processes payments within 1-2 business days. 

Platforms of Trading: 

FTMO is supported by almost all reliable trading platforms. These include MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader and DXtrade. 

Best Relied on For

FTMO has become a well-known name due to their structured evaluation process, and a ramping plan that raises account size and profit split with time.

3. The5ers

 

About the Prop Firm: 

The5ers has a Trustpilot score of 4.9/5 from over 17,000 reviews. Headquartered in Israel, this company is operational since 2016 and provides several funding programs and plans to align with various trading preferences for better flexibility and trader development. 
 

Types and Challenges Fees:

The5ers has models of evaluation suited for any trader. Their 2-step evaluation starts with challenge fees as low as $39 for a 5k funded account. The challenge fees are fully refunded upon passing the evaluation.

Method of Payout: 

The5ers offers profit splits up to 100%, and all payouts are done through Rise, hub credits, or even cryptocurrency.

Trading Platforms:  

The 5ers employ the MetaTrader 5 (MT5) and Match-Trader platforms.  

Best Known For:  

Everyone knows The5ers for their flexible evaluation programs, generous scaling plans starting from $4 million, and diverse trading style options including swing and news trading.  

4. Breakout Prop

About the Prop Firm:  

Breakout Prop is a transparency-oriented crypto prop trading firm that focuses on the advanced trading of 100+ crypto assets.  

Challenge Types:  

Following the 1 Step and 2 Step evaluation programs, Breakout Prop has varying challenge fees between $55 to $800 based on account size.  

Payout Method:  

Breakout Prop pays out on a daily basis in USDC to ERC-20 wallets.  

Trading Platforms:  

The trading platform of Breakout Prop, Breakout Terminal, features TradingView charting integration.  

Best Known For:  

Breakout Prop is a crypto prop firm popular for its transparency on evaluation success rates and payouts, and user-friendly interface.

How to Check If a Prop Firm Accepts Canadian Traders (2025 Guide)

You think you found a prop firm and then, bam, you remember you’re Canadian and wonder if they accept Canadian traders. It would be unfortunate to clear a challenge only to be thwarted at the location-locked payout stage. Unfortunately, this story is all too common. Here’s how to make sure it’s safe prior to paying for any challenge:

1. Look At Terms or FAQ Sections, The Firm May Have Country Restrictions
 

Most reputable prop firms will have a section listing restricted countries. Usually, you’ll see something like the following:

“We do not accept clients from Canada, North Korea, or OFAC-restricted countries.”

If you do not see Canada listed, it’s likely safe, but don’t stop there. Continue verifying.

2. Ask Support Directly (Only Takes A Minute)
 

Reach out via chat, email, or Discord with the burning question:

“Can I sign up from Canada?”
“Do you issue Canadian ID KYC support?”
“Will Canadian banks recognize payout USDT, or is USD the only option?”

If you get beat around the bush, that’s your hint to no longer entertain the firm.

3. Be On The Look Out For The Country Drop-down During Sign Up

For the registration step, check whether “Canada” appears in the country field. If you are able to select it and move forward without any issues, that is a good sign. Still check payout options before finalizing.

4. Check That Pay Out Methods Are Canada Friendly

It's awesome if you can receive funds, but does the company pay out in Canada? Look for companies with the following payment options:

• Wise (formerly TransferWise)
• USDT or BTC withdrawals
• Bank wires (SWIFT transfers in CAD/USD)
• Skrill or PayPal (where available)

Be careful with companies that only offer ACH, Payoneer, or other restricted services. Those are often inaccessible to Canadians.

Look Out for Red Flags
 

Every firm has their traps laid out. Steer clear from these platforms:

• Not performing KYC checks (it is a warrant a FINTRAC KYC check)
• Concealed Legal and Payout Policies
• Claim Payments through unclear third-party payment platforms
   

What do Canadian Traders Look for in a Prop Firm (2025 Guide)

Canadian traders grapple with a unique blend of payment obstacles, regulatory grey areas, and limited access to payouts. Here’s what most look for in a solid prop firm in 2025:

1. Prop Firms That Actually Accept Canadians

Sounds basic, but many popular firms don’t. For example:

• Permitted: Topstep, E8 Markets, City Traders Imperium
• Previously Blocked: FTMO, The 5%ers

Check The Trusted Prop trader's reviews for Canada-specific info before you buy.

2. Payout Options Compatible with Canada

Wise remains the top choice for its low-fee, quick CAD withdrawal reputation. Also favored:

• Cryptocurrency (USDT, BTC, ETH)
• SWIFT international transfers to Canadian bank accounts
• Avoid firms that rely solely on Payoneer or US ACH region locked methods.

3. Flexible Challenge Models

Canadians are not shy about expressing the aspects of flexibility that they enjoy the most. Here are the highlights:

• One-step or instant funding options.
• Unlimited time limits (no rush pressure).
• Static or trailing drawdowns which are clearly explained.
• Reasonable targets (about 8-10%).

Many traders will confirm that these are the conditions offered by BrightFunded, Funded Trading Plus, and Alpha Capital Group.

4. Platform Compatibility

We cannot deny that MetaTrader reigns supreme for now, but Canadian traders find value in cTrader and TradingView integrations as well. Seek for the following:

• MT4/MT5
• cTrader
• TradingView plug-ins or web traders

Businesses like E8 Markets and Alpha Capital Group are Canadian friendly and offer working platforms of choice.

5. Scaling & High Profit Splits

Canadians appreciate features that include:

• 80-90% profit splits.
• Capital scaling beyond $500K.
• Weekly and bi-weekly pay periods.
• Performance/loyalty incentives.

Traders can appreciate that these features do not compromise funding longevity.

6. Firm Transparency & Trust Signals

Canadian policies might not mandate prop firms to register with FINTRAC, but traders still value:

• Unequivocal disclosure of liquidity providers.
• Public payout records or active moderators on Discord.
• Broker-backed models with clear fee disclosures.
• In summary, too much confidentiality is not ideal.

Final Tip: Apply The Trusted Prop as a filter to find out which firms accept Canadian traders. We organise everything by country, platform, and payout type to prevent you from losing money on the wrong fit.

Pros and Cons of Prop Trading in Canada (Forecast for 2025)  

Prop trading is developing extremely quickly in Canada, and for valid reasons. Traders seeking more than what conventional brokers give are being catered to globally because of accessible capital and opportunities, which are now being unlocked for trade due to Canada’s fast-growing bond markets. But like every other opportunity, prop traders still face trade-offs that most other traders don’t face.  

Advantages of Prop Trading in Canada  

1. Considerable Payouts without Personal Investment Risk  

Canadian traders can now take advantage of prop trading accounts valued at $200K and above, and can be accessed for a few-dollar evaluation. Scaling has been made more efficient with no personal funds at risk for prop traders to lose.  

2. Underserved Global Market By Canadian Brokers  

Canadian Forex traders, Crypto traders, Indices traders and US Commodities traders face considerable challenges due to the lack of resources that are provided by most Canadian brokerages. This gap is fulfilled by prop firms providing traders with tools for the international marketplace like MT5, cTrader and TradingView.  

3. Settlements with Wise, Crypto, and SWIFT  

Leading Prop trading companies have started using advanced payment options that are friendly to Canada. Wise accounts and crypto wallets such as USDT permit withdrawal of CAD spending for crypto with immediate access. Permitting access to your funds usually takes 2 to 5 working days.

Disadvantages of Prop Trading in Canada

1. An Undefined Regulatory System

For the majority of prop firms, which work on demo accounts, are registered abroad. Because of this, they bypass IIROC or CSA jurisdiction. This is fine from a legal standpoint, however, traders now do not get the same protections that would come with a domestically based broker.

2. A Non-Straightforward Foreign Income Tax

Payments made to traders by prop firms are considered self-employment income for dine outside the country and, thus, must be declared to CRA. Add to that crypto withdrawal or earnings in USD and you have a complicated tax filing unless you maintain proper documentation and utilize the services of an experienced accountant.

3. No Safety Net if the firm closes down

There are no protective investors’ insurance or government overseeing these prop firms. If a firm goes off and goes off the radar or changes its rules at whim, Canadian traders have no way to respond to such developments.

How Prop Firms Impact Traders in Canada
 

In the year 2025 prop trading firms are set to not only offer trading capital, but also shift the whole mindset of trading in Canada.

Canadian traders are no longer shackled by the limited offerings of small brokerages. Now, anyone with an internet connection has access to the tools prop firms provide, helping them build portfolios across crypto and forex, even pursuing 80% profit splits or participating in 1-step evaluations.

Most importantly, discipline, risk management, and strategy-based growth - skills that are crucial in professional trading - are being taught by these firms, allowing Canadians to mourn their former hobbyist selves.

⚠️ Tip for Canadian Traders: Make sure to check if the firm accepts Canadian clients, pays out in CAD, and has a clear tax and withdrawal policy.

Conclusion: Is Prop Trading Worth It for Canadian Traders in 2025?
 

In a landscape where traditional brokers can feel limiting and capital requirements keep many traders stuck, prop trading is giving Canadians a fresh path forward.

With access to larger trading accounts, global markets like Forex and Crypto, and flexible challenge models, prop firms are helping Canadian traders grow faster, without risking their life savings. That said, it’s not without challenges. Tax complexities, lack of regulatory protection, and eligibility issues still exist.

But with the right research and the right platform (like checking reviews on The Trusted Prop), Canadian traders can now trade globally.