Topstep Review – Everything You Need to Know about the Platform
Topstep is one of those trading companies that you might stumble upon while performing a Google search for such firms. But as with everything, you may not trust this company from the get-go. You don’t know exactly how it works and what it can offer you. Even if the homepage of their site is only saying positive things regarding the trader, there’s no way to know the truth unless you actually try its services.
Well, that’s not entirely true, because a simple TopstepTrader review could reveal more than you think about the platform. So, check out our analysis that will tell you everything you need to know about the company before you become a member.
TopstepTrader is a trading firm – one that wants to recruit traders. The goal after recruiting them is to see how they perform with real-time simulated accounts. The person behind the company is Michael Patek, who established the business due to his passion for trading. Despite his interest in this area from his teenage years, he was unable to take action at the time, because he lived in a rural part of Nebraska. As such, he didn’t have any proper connection. This all changed when he moved to Chicago.
Patek had $90,000 for trades, and he lost all of the capital he had. Afterward, he managed to earn the chops using a simulated trading account, which is what served as an influence in the creation of TopstepTrader.
Today, the platform works pretty well and is able to make revenue from the monthly fees they charge for the practice platform access and from the funded traders.
In order to become a funded trader, one has to get a subscription to TopstepTrader’s monthly platform. You would have to pay a $150 minimum fee, which later turns into $375. You will have the opportunity to trade when you meet all the necessary performance criteria.
Who Is the Trading Platform for?
TopstepTrader is intended for people who are actually good traders and can be profitable. As a matter of fact, the platform allows you to test this. There are only 1,537 traders that were funded overall, and the weekly profit is usually around $549. Moreover, not all the traders are available all the time. The money the platform makes is in general from the subscriptions people are buying.
TopstepTrader is a bit harsh in the way they make selections for the funded traders, but while this is disappointing for newer traders, they are at least honest about what they do. Everything is pretty straightforward from the beginning.
Traders are charged in order to gain access to the simulation, and this is because most of them will not get any funding. Unless you are confident in your trading skills and you have what it takes to be a good trader, then you will not become a funded trader on the platform.
Now let’s see what features this company has to offer to its users.
Platform and Pricing
With TopstepTrader, you will use the Tradovate platform, and you will need a subscription for that. You have several subscriptions to choose from. With each of them, you can start with a certain balance, have a monthly price, have a weekly loss limit or none, and have a certain maximum position size. The starting balances available are $30k, $50k, $100k, and $150k.
If you are a trader on the simulation, you will be able to use any product from the CME group to trade. At the same, if you manage to become a funded trader, you will be able to use products from EUREX.
Market Replay Feature
One of the features available with the Tradovate platform is the market replay one. With this, you are able to make different settings. For example, you can set the speed, date, and time, as well as your first balance. While it’s beneficial and has many useful settings, it’s not as good as thinkOnDemand or TradingSim. These two have the same features as Tradovate, but also some additional ones that make trading a better experience overall.
There are also some very useful charts included, which have great features for trades. For instance, you will have bars, Renko, bid/ask volume, candlesticks, line, Heiken ashi and point & figure. On top of that, you benefit from several ways of displaying your bars. You can set up different volumes, ticks, periods, range, and momentum range, so you have a complete overview of your activity.
Overall, the charts work well, but they have their moments when they feel a bit outdated and have a less amazing performance. The main reason for this could be the fact that there is no auto-scaling.
On top of the prices you pay for the subscription, there may be some additional fees to deal with in certain situations. For example, in case you end up blowing an account while you are in the simulation phase, you will have to reset the account, which will cost you $100.
There are commission fees as well. You will be charged a transaction fee of $0.18 per contract. This is not very convenient to see, considering there are other companies such as MarketDelta and eSignal that do not charge it.
Other than that, there are some data fees as well. EUREX products cost $69.00, COMEX products are $105.00, NYMEX products are $105.00, CBOT products cost $105.00, and CME products will be $105.00.
How Can You Get Funded?
Most people who join TopstepTrader do it in order to become funded traders. This is very difficult, though, because you will have to meet some requirements to get there. One of them is proving that you are profitable as a trader. The other is proving that you can be profitable without taking too many risks.
However, people are not happy with some aspects related to the funded accounts situation. One of them is the fact that there were very few traders that were funded by the company. Historically, they only funded as much as 1,537 traders. So, the chances of getting there are very low.
Another thing people do not like is the fact that TopstepTrader says they will give you either $100,000 or $150,000 through funding. However, you can lose the trailing max drawdown, which is $2,000 for the $50,000 funded account. As such, you will only be able to have a max drawdown of as much as $2,000 of the equity of the account.
Pros and Cons
The good thing about TopstepTrader is that it makes you want to be serious with your trading. Also, it allows full-time trading for those with little capital.
On the bad side, there are very few chances for you to become a funded trader. Also, you might have to face high membership costs.
TopstepTrader can be a great platform that pushes you to strive for the best and raise your trading standards. However, if you are aiming to become a funded trader yet you don’t have the necessary skills, you most likely won’t become one. It might be an option for you only if you can prove you are profitable.