Introduction

Have you ever wondered how traders get the funds to make big trades? That’s where prop trading firms come in. These companies allow traders to use their money and keep a share of the profits. For many traders, it’s a way to grow their skills without risking their own savings.

In this article, we’ll examine the six oldest prop firms, how they were founded, and why they’re important in the trading world.

Topstep (2010)

Topstep is a trailblazer in the world of prop trading. It started in 2010 and was the first prop firm to focus on futures trading. The founder, Michael Patak, is a former floor trader who worked at the Chicago Mercantile Exchange. Michael faced huge losses early in his career and “blew out” three trading accounts. This forced him to rethink his strategies and practice on trading simulators to improve.

In 2012, Topstep officially launched as a platform to help traders learn, practice, and trade without risking their own money. It quickly gained popularity for its challenge-based model, where traders prove their skills to earn funding.

What makes Topstep unique?

• First-ever futures-focused prop firm
• Offers traders a risk-free way to trade
• Strong focus on learning and risk management

Audacity Capital (2012)

Audacity Capital was founded in 2012 by Karim Yousfi. Unlike other firms, Audacity Capital made it easier for experienced traders to get funding without long evaluation periods. Karim saw that many skilled traders just needed quick access to funds, and he built his firm to meet this need.

The model was simple: if you could prove your trading skills, Audacity Capital would provide the capital right away. This straightforward approach made the firm stand out among others.

Why traders love Audacity Capital:

• No lengthy evaluations
• Perfect for traders with proven skills

FTMO (2015)

FTMO began in 2015, but its story started earlier. Two friends, Otakar Šuffner and Marek Vašíček, were frustrated with the limits of small trading accounts. They wanted to create a company that gave traders access to bigger funds. The idea started in 2013, and they launched FTMO in Prague under a local name, Ziskejucet.cz.

By 2017, the company rebranded as FTMO to serve traders around the world. FTMO became famous for its evaluation process, where traders pass a test to earn funding. It grew rapidly and is now one of the most recognized prop firms globally.

Why FTMO stands out:

• First evaluation-based funding model
• Offers a wide range of markets to trade
• Trusted by traders worldwide

The5ers (2016)

The5ers started in 2016 and is the brainchild of Gil Ben Hur and Snir Achiel. As forex day traders, they struggled with limited funds to grow their profits. This inspired them to create a prop firm that would give traders access to capital and focus on education.

The5ers is also the first prop firm to offer stock trading, which made it a trailblazer. The company focuses heavily on helping traders succeed, not just by providing funds but by building a community of support.

What makes The5ers different:

• First prop firm to include stocks
• Strong focus on forex trading
• Emphasis on trader growth and education

Earn2Trade (2017)

Earn2Trade joined the industry in 2017 as the second futures-focused prop firm, following Topstep. The company aimed to give aspiring traders the tools and funds they needed to succeed.

Francis Nahoczky played a key role in shaping Earn2Trade’s success. By 2020, he took full ownership of the company and expanded its offerings. Earn2Trade focuses on combining education with funding, helping traders learn and earn at the same time.

Why Earn2Trade is special:

• Focuses on education and mentorship
• Easy-to-understand evaluation process
• Aims to support traders from beginner to expert

City Traders Imperium (2018)

City Traders Imperium (CTI) was founded in 2018 by Daniel Martin and Martin Najat. Both had struggled to achieve consistent trading success early in their careers. They wanted to create a firm that focused not just on trading but also on building the right mindset.

They were later joined by Simone Nateri, who helped the firm grow quickly. CTI is known for teaching traders the psychology of trading, making it a favorite for those who want to develop both skill and discipline.

What sets CTI apart:

• Focus on trading psychology and mindset
• Offers strong educational resources
• Helps traders build consistency

Comparison of the Six Firms

How These Firms Shaped Prop Trading

These firms have transformed how traders access capital, shifting the focus from personal risk to skill development. They’ve opened the doors for traders of all levels and have shown that with the right resources, anyone can trade like a pro.

Conclusion

The six oldest prop firms—Topstep, Audacity Capital, FTMO, The5ers, Earn2Trade, and City Traders Imperium—are the foundation of modern prop trading. They’ve not only helped traders grow but have also shaped the entire trading industry. Aspiring traders can learn a lot from their stories and use their platforms to build successful careers.