Prop Firms for Swing Traders

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Prop firms can attract many different types of traders and can offer them a good opportunity to trade with a sizeable capital without risking the traders' own money. But prop trading is not suitable for every type of trader equally. In particular, swing traders may find it difficult to discover a prop firm that is suitable for them as limitations and restrictions that prop firms tend to have can make longer-term trading unviable. This guide explains why prop trading may be inconvenient for swing traders, what qualifications a prop firm should have to be viable for swing trading, and also provides a list of prop firms that swing traders may find suitable for their style of trading. But first, let us talks about definitions.

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What is prop trading and what are prop firms?

Proprietary firms (or prop firms for short) are firms that give traders access to the firm's capital in exchange for a share of profits that the traders' profits. Traders are considered contractors, not employees, therefore they do not receive a fixed wage, therefore profits they make from trading are their only source of income, at least as the prop firm is concerned. The vast majority of prop firms have an evaluation process that traders have to pass to prove to the firm that they can make consistent profits and to get funded. There is a small number of prop firms that allow bypassing the evaluation stage, but they demand much bigger fees for the exchange. Prop firms also have requirements and limitations for funded traders.

Prop trading is an act of trading with the prop firm's capital, not the traders' own. The advantage here is that it allows traders to get access to much bigger capital than an average trade can muster and to not risk the traders' own money. The drawback is that the prop firms' rules can limit strategies and styles of trading traders can employ. How restrictive those rules are, depends on the specific firm as each firm has its own set of rules.

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Who are swing traders?

Forex traders are often divided into two major categories: day traders and swing traders. Here is a short description of what they are:

• Day trader — tries to catch small price moves during one trading session. Trades on short time frames and prefers to close positions before the session ends. Successful traders typically have a large number of small profits. Usually demands a very large amount of time and attention. It normally uses only technical analysis as the fundamental analysis does not help in such short-term trading.
• Swing trader — holds positions for several days or even weeks, hoping to catch a big move. Successful swing traders typically have a small number of big profits. Is relatively less stressful as it does not require making frequent trades. Swing traders prefer to use technical analysis, though they can supplement it with fundamental analysis, especially if they want to catch a long-term trend.

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What qualities make a prop firm good of bad for swing traders?

As is evident from the description above, swing traders need to have the ability to hold their position open for a relatively long time. The problem is that the rules of many prop firms do not allow this. Some such firms demand to close positions by the weekend, while others can demand to close positions by the end of each trading session. Another frequent requirement is to close positions ahead of some major event, such as a central bank's monetary policy announcement or a release of an important macroeconomic report. Obviously, such limitations prevent holding positions open for a prolonged period, thus prop firms with such rules are unsuitable for swing traders.

The logical conclusion is that for a prop firm to be considered favorable to swing trading it should not have the aforementioned limitations. It should allow holding positions overnight and over the weekend. It should also allow news trading. Additionally, it should not have a restriction on how long a position can remain open as well as a requirement of a minimum number of trades.

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The list of prop firms for swing traders

Here is the list of prop firms that have rules allowing swing trading. The list contains fees, requirements, conditions, and other details about the firms. The conclusion portion for each firm explains how good the firm is for swing traders specifically.

1. PipFarm

PipFarm offers a large number of choices, consisting of three different funding programs, each of which can have several trading modes and several challenge formats. While this gives a trader a higher chance of finding an option that suits their specific trading style, the large number of options can be somewhat confusing and make it hard to decide what option to choose. PipFarm's restrictions on trading are rather lax compared to other proprietary trading firms. Their challenge is just a simple 1-stage evaluation (though there is an option to divide the challenge into two stages) with a maximum duration of 360 days. You can trade through news and weekends as well as to keep positions overnight.

Funding programs

PipFarm provides the choice of three funding programs:

• Standard - a standard trading challenge with the choice of three trading modes and three challenge formats.
• Pay with Profits - a program that has a smaller entrance fee and an additional payment from the first payout after you complete the challenge (the exact amount depends on your performance during the challenge).
• Instant - a program that allows you to bypass the challenge and get funding immediately, with three different models for calculating the maximum loss allowed.

Standard program

Standard program offers three challenge modes that differ by the trading requirement and the minimum payout you can request after being funded:

For the sake of challenge, the trading requirements are defined as follows:

• Trading day - a day with at least one position closed.
• Profitable trading day - a trading day that closes with at least 0.5% net profit.
• Consistency score - your most profitable day divided by total profit and multiplied by 100. Should not exceed the listed number.

Standard challenge program has three challenge formats available: 1-stage with static max loss, 1-stage with trailing max loss, and 2-stage with static max loss. For the most part, the profit target and max loss allowed do not depend on trading mode, with the exception of the 2-stage challenge format.

Pricing depends on the Account Size and whether the challenge mode is Classic/Endurance/Consistency:

• $5,000: $35/$30/$25
• $10,000: $60/$50/$40
• $20,000: $110/$90/$70
• $50,000: $260/$220/$160
• $100,000: $490/$420/$280
• $150,000: $720/$590/$420

PipFarm provides additional options, called add-ons, with the prices being a percentage of the default value determined by the challenge mode and format:

• Payout Interval - allows you to reduce the default interval for requesting the payout:
• 30 days - +0%
• 14 days - +15%
• 7 days - +30%

Time limit - determines how long you have to pass each challenge stage or to receive a payout on a funded account:

• 90 days - +0%
• 180 days - +5%
• 360 days - +10%

Miscellaneous add-ons:

• Challenge Fee Refund - +10%
• Swap Free - +10%
• First Payout on Demand - +10%
• +1% Max Loss - +15%
• +1% Daily Loss - +10%
• +10% Profit Share - +15%

Pay with Profits program

Pay with Profits program allows you to pay a smaller entrance fee and pay the rest from the first payout after you complete the challenge. The rest of the first payout is then divided according to the profit split. Payouts after the first one are performed as usual.

This program offers two challenge modes that differ by the trading requirement and the minimum payout you can request after being funded:

For the sake of challenge, the trading requirements are defined as follows:

• Profitable trading day - a trading day that closes with at least 0.5% net profit.
• Consistency score - your most profitable day divided by total profit and multiplied by 100. Should not exceed the listed number.

Pay with Profits challenge program has two challenge formats available: 1-stage with static max loss and 2-stage with static max loss.

Limits on max loss and max risk are the same regardless of the challenge mode:

After finishing the challenge, the Simulated Funded Account is assigned a Risk Tier. The Tier is determined by the worst of two parameters: Max Loss and Max Risk (the percentage of realized and unrealized loss compared to your reference account balance). After you finish your challenge and are assigned a Risk Tier, you can choose to select a higher Risk Tier, but not a lower one. This is a one-time choice, and once the Risk Tier is determined, it is locked and cannot be changed anymore. Your risk Tier determines the fee you have to pay from your first payout (as a percentage of the initial account balance), your max loss and max risk, and Profit Share:

Pricing depends on the Account Size, whether the challenge mode is Endurance or Consistency, and whether it is a one- or two-step challenge format:

PipFarm provides additional options, called add-ons, with the prices being a percentage of the default value determined by the challenge mode and format:

• Payout Interval - allows you to reduce the default interval for requesting the payout:
• 30 days - +0%
• 14 days - +20%
• 7 days - +40%

Time limit - determines how long you have to pass each challenge stage or to receive a payout on a funded account:

• 90 days - +0%
• 180 days - +10%
• 360 days - +20%

Miscellaneous add-ons:

• Swap Free - +20%
• First Payout on Demand - +10%

Instant program

Instant program allows you to skip the challenge stage and get a funded account immediately. In exchange, it has a higher initial fee and somewhat stricter rules. The Instant program has only one mode:

In this mode, the trading requirements are defined as follows:

• Winning day - a trading day with two conditions fulfilled: a) the day closes with at least +0.25 in profit compared with the start of the day, b) at the end of the day the account balance is above the initial account balance.
• Consistency score - your most profitable day divided by total profit and multiplied by 100. Should not exceed the listed number.

Instant program has three formats available: EOD (End of Day) Trailing, Payout Trailing, and Equity Trailing. For the most part, the trading requirements are the same across all the formats, with the only exception being the maximum loss allowed and how it is calculated:

The rest of the trading conditions for an Instant Funded Account remain the same regardless of the format:

Pricing depends on the Account Size and whether the challenge mode is Classic/Endurance/Consistency:

• 2,500: $50
• $5,000: $100
• $10,000: $150
• $20,000: $250
• $50,000: $500
• $100,000: $750
• $150,000: $950

PipFarm provides additional options, called add-ons, with the prices being a percentage of the default value determined by the challenge mode and format:

Time limit - determines how long you have to pass each challenge stage or to receive a payout on a funded account:

• 90 days - +0%
• 180 days - +10%
• 360 days - +20%

Miscellaneous add-ons:

• +1% Max Loss - +15%
• +10% Profit Share - +20%

Pip Protector

Pip Protector is an automatic system that is employed when you break above the Max Risk Limit. Instead, every time the breach occurs, a strike is recorded. Once it happens, all your open positions are automatically closed, your max risk allowed is reduced, and other consequences may happen. Once a third Strike is registered, your account is closed. Strikes are permanent and cannot be removed.

Take note that the three-strike system is applied only to accounts that passed the challenge. For accounts with instant funding, no strikes are registered. Instead, once you break the Max Risk Limit, a breach is immediately registered, and the account is closed.

Strikes result in the following consequences:

1. Strike 1: Max Risk Limit halved.
2. Strike 2: Max Risk Limit halved again, Profit Share permanently cut in half.
3. Strike 3: A Breach is registered, and the account is closed.

Payout caps

PipFarm employs payout caps, which determine how much you can withdraw in a single payout. The cap is calculated as a percentage of your account balance. Additionally, there is a hard cap of $5,000.

For funded accounts that passed a challenge, the caps are calculated in the following manner:

1. 1st payout: 6%.
2. 2nd payout: 8%.
3. 3rd payout: 10%.
4. 4th payout onwards: 12% (maximum).

For accounts with instant funding, caps are lower:

1. 1st payout: 3%.
2. 2nd payout: 4%.
3. 3rd payout: 5%.
4. 4th payout onwards: 6% (maximum).

Scaling program

PipFarm lets you participate in a scaling program that allows you to increase your account balance each time you hit the scaling target. All funded accounts that passed the challenge and were registered after 9th April, 2026 are participating in the new Simple Scaling Program. Accounts with instant funding do not participate in the scaling program.

To scale your account, you need to either receive four payouts or reach the 12% scaling target. When your account reaches the scaling target, all open positions are closed, your account will be automatically closed, and you receive a new funded account. All rewards and penalties received on the previous account will be transferred to the new account. The size of the new account balance is calculated according to the following formula:

New Balance = Previous Balance + (Initial Balance * Scaling Increment)

The Scaling Increment depends on your rank in the Experience Program (Rank * 10%). For example, accounts with Rank 6 have a Scaling Increment of 60%.

The maximum account size you can reach with the Scaling Program is $1,750,000.

Experience program

PipFarm offers an Experience Program that lets you gain various benefits by gaining Ranks. You can gain a Rank by earning Experience Points (XP). You earn XP by achieving XP milestones, completing Quests, and referring friends (both you and your friend receive 3 XP each if they are a new customer or a 10% cashback coupon depending on the price of their first challenge purchase). You can spend XP to get a discount on the price of challenges and add-ons. Be warned that spending XP in this manner reduces your XP balance and lowers your Rank if your XP balance is below the Rank threshold.

XP Ranks provide the following benefits:

Rank 6 requires 300 XP and grants a 60% scaling increment.

PipFarm prop firm parameters

FTMO

The 5%ers

The 5%ers offer three schemes to choose from:

1. Hyper Growth Program with three balance options. All options support up to $4M growth with an extended 10% profit target, 1:30 leverage, no time limit for evaluation, and payout split up to 100%/0% after funding:

2. High-Stakes Challenge — a high-risk high-reward scaling program with 2-step evaluation:

3. 100K Bootcamp — three challenges with 6% profit target, 5% max loss, 1:10 leverage, and no time limit. Stop-loss risking no more than 2% of account balance required in all positions and orders.

Account size/Cost: $20,000/Free; $100,000/$95; $250,000/$225.

City Traders Imperium

City Traders Imperium has three main trading programs: 2-Step Challenge Funding Program, 1-Step Funded Trader Program, and No-Evaluation Funding Program. Besides the number of evaluation steps (or the absence of evaluation in case of the No-Evaluation program), the programs differ in application fees, available account sizes, and scaling plans. The No-Evaluation program also has lower maximum leverage for Forex traders. The company also provides educational courses as well as the option for 1-to-1 mentoring.

1. 2-Step Challenge Funding Program — a program with the cheapest entry fee, the largest possible account size, and the best initial profit split, but also the hardest to get funded:

2. 1-Step Funded Trader Program — a program with a higher entry fee, a smaller maximum account size, and worse initial profit split, but with easier to pass evaluation:

3. No-Evaluation Funding Program — a program with the highest entry fee, the smallest number of available account sizes, worst initial profit split, and smaller leverage for Forex traders, but with immediate funding:

City Traders Imperium has following features regardless of the chose program:

Lux Trading Firm

All traders funded by Lux Trading Firm can potentially grow their account size to $10,000,000. The number of stages it will take as well as the registration fee depends on the starting account size:

Lux Trading Firm also offers Lux Elite Traders packages that can grow their account size to $10,000,000+ and include additional benefits, such as educational videos, one-on-one mentoring, etc. The registration fee depends on the starting account size:

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Final thoughts

Prop firms can be appealing to many different types of traders. But they are especially attractive for swing traders who rely on the size of a profit from each trade due to the low frequency of trades. But rules and limitations imposed by prop firms can make swing trading hard or even impossible. Be certain to check the terms and conditions of a prop firm before attempting to join it as a prop trader. The list above can help you in choosing a prop firm.

If you want to share your opinion, observations, and conclusions, or simply ask questions about prop firms for swing traders, feel free to join a discussion on our forum.