Topstep: An In-Depth Review - Payouts, Rules, Guide, and Discount

Overview

Navigating the world of futures prop firms can be challenging, with various options promising funding for talented traders. Topstep stands out as a well-known name in the industry, offering traders a structured path to access funded accounts.  This review delves into the Topstep program, covering their evaluation rules, account options, payout policy, and the overall framework to help you determine if it’s the right trading prop firm for your aspirations.

Why Choose Topstep?

Topstep aims to empower traders by providing capital and a supportive environment.  They emphasize a journey that begins with skill demonstration and responsible risk management in their Trading Combine®.  Key advantages highlighted by Topstep include:

• Best Payout Policy in the Industry: Topstep boasts a trader-friendly payout policy, allowing for weekly payouts and the potential to access up to 100% of profits in a Live Funded Account.
• Trader-Centric Approach: Built by traders, for traders, Topstep states they actively incorporate feedback to improve their programs.
• Open Door Policy: They understand that learning takes time and are willing to work with traders as long as they are committed to learning and responsible trading.
• Established Reputation: As one of the first in the industry, Topstep has nearly a decade of experience in funding traders.
• Comprehensive Support: Traders gain access to a Trader Support Team, educational resources, group coaching, and a community to help them succeed.

How the Topstep Program Works

Topstep provides a clear progression for traders to earn funding:

1. Trading Combine®: This is the evaluation stage.  Traders subscribe to an account size ($50K, $100K, or $150K) and must meet specific objectives, including a profit target and adherence to trading rules like the Maximum Loss Limit, without a fixed time limit.  Resets are available if rules are broken. ‍
2. Express Funded Account™ (XFA): Upon successfully passing the Trading Combine, traders move to an Express Funded Account after paying a one-time activation fee.  This is a simulated account where traders can earn real payouts based on their performance, following funded account rules and a payout policy.  Traders can have up to five Express Funded Accounts active simultaneously. ‍
3. Live Funded Account™: Consistently successful traders in the Express Funded Account may be invited by Topstep's risk managers to move to a Live Funded Account.  This involves trading real capital provided by Topstep.  Specific conditions, such as taking five payouts in a single Express Funded Account, can trigger a review for a Live Account.  When moving to Live, all open Express Funded Accounts are closed, and the Live Funded Account starting balance is determined by the total balance of Express Funded Accounts (capped at the largest XFA size) or the largest XFA size, whichever is lower.

Topstep Account Options

Topstep's evaluation, the Trading Combine®, is offered in three account sizes. Successful completion leads to an Express Funded Account of the same size, which then has a path to a Live Funded Account. The account rules and objectives vary slightly across these stages.

Below are the primary parameters for the Trading Combine® evaluation:

Rules of the Topstep Program

Adherence to Topstep's trading rules and objectives is paramount for success in both the Trading Combine® and funded accounts. Key parameters include:

• Maximum Loss Limit (MLL): This is the minimum account balance your account can reach. It trails your account balance high at the end of the trading day.  Once the MLL reaches the initial starting balance of the account, it does not trail any further for the remainder of that account's duration.  Hitting or exceeding the MLL is a hard rule break. ‍
• Daily Loss Limit (DLL): This is an objective that limits the maximum net P&L loss within a single trading day (5:00 PM CT - 3:10 PM CT).  If hit, the account is auto-liquidated for the day, but it does not count as a rule violation that makes the account ineligible for funding. Trading can resume the next trading day.  Note: For new or reset TopstepX™ accounts (Trading Combines and Express Funded Accounts only) activated from August 25th, 2024, the Daily Loss Limit will no longer apply. This change is specific to the TopstepX™ platform. ‍
• Consistency Target (Trading Combine® Objective): To pass the Trading Combine®, your best trading day (largest winning day) must be no more than 50% of your total profit earned towards the profit target.  If your best day exceeds this, you'll need to accumulate more profit to bring this percentage below 50%.  This objective is not present in the Express Funded Account or Live Funded Account. ‍
• Maximum Position Size / Scaling Plan:
  
  • Trading Combine®: There's a fixed Maximum Position Size based on account size (e.g., 5 lots for 50K, 10 lots for 100K, 15 lots for 150K). ‍
  • Express Funded Account™ & Live Funded Account™: These accounts utilize a Scaling Plan.  As your account equity grows, your buying power (maximum allowed position size) increases according to predefined levels.  This is designed to help traders manage risk appropriately as they build their accounts.  Micros count as full-sized lots for scaling purposes (except on TopstepX where they are calculated differently). ‍
• Permitted Trading Times: Positions must be closed daily before 3:10:00 PM CT, Monday through Friday. Trading can resume at 5:00 PM CT Sunday through Thursday.  Holding positions overnight or over the weekend is not allowed. ‍
• Permitted Products: Topstep allows trading in a range of CME Group futures contracts, including equity futures, foreign exchange, agricultural, NYMEX, and COMEX products. ‍
• Prohibited Conduct: Topstep has a list of prohibited trading strategies and behaviors, such as account stacking, using exploitative strategies, or unprofessional behavior.  Violations are handled on a case-by-case basis and can lead to warnings, trade deletion, or account closure.

Best Practices to Pass Your Topstep Evaluation

While Topstep provides the framework, success in the Trading Combine® largely depends on the trader's approach. Consider these best practices:

• Thoroughly Understand the Rules: Internalize all trading rules and objectives, especially the Maximum Loss Limit, Daily Loss Limit (if applicable), Consistency Target, and permitted trading hours/products.
• Implement Disciplined Risk Management: This is crucial. Avoid hitting the Maximum Loss Limit by defining your risk per trade and respecting the Daily Loss Limit to prevent significant single-day setbacks.
• Focus on Consistency: Aim for steady, repeatable profits rather than trying to hit the profit target in one or two large trades. This aligns with the Consistency Target objective. ‍
• Adhere to a Trading Plan: Develop and stick to a well-defined trading strategy. Avoid emotional decision-making and impulse trades. ‍
• Master Your Trading Platform: Become proficient with the chosen trading platform (e.g., TopstepX, NinjaTrader, Tradovate) to ensure efficient trade execution and management. ‍
• Be Patient: There is no maximum time limit to pass the Trading Combine, though it is a monthly subscription.  Focus on making quality trades according to your plan rather than rushing the process.

Payout Structure and Profit Sharing

Topstep offers a competitive payout policy designed to reward successful traders.

• Profit Split: Traders keep 100% of the first $10,000 in profits withdrawn.  After this initial $10,000, the profit split becomes 90/10, with the trader receiving 90% and Topstep retaining 10%.  This policy is per trader, cumulative across all their funded accounts. ‍
• Payout Eligibility (Express Funded Account™):‍
  
  • Traders can request a payout after accumulating five winning trading days. A winning day is defined as a day with a Net PNL of $200 or more. These days do not need to be consecutive.
  • The maximum payout request is up to $5,000 OR 50% of the account balance, whichever is lower.
  • After a payout is processed, another five winning trading days must be accumulated before the next payout request. ‍
• Payout Eligibility (Live Funded Account™):‍
  
  • Initially, traders can request payouts up to 50% of their account balance after accumulating five winning trading days (Net PNL $200+).  The $5,000 cap per payout only applies to the Express Funded Account. ‍
  • Daily Payouts Unlocked: Once a Live Funded Trader accumulates 30 total non-consecutive winning trading days (across both Express and Live Funded Accounts), they unlock Daily Payouts.  This allows them to request payouts once per day for any amount up to 100% of their account balance. ‍
• Minimum Payout Request: The minimum amount for any payout request is $125.00. ‍
• Payout Methods & Processing:‍
  
  • Payouts are requested via a form in the Topstep app/dashboard.
  • Processing by Topstep may take 1-3 business days.  Once approved and all forms are submitted, funds are typically received within 10 business days, depending on the method.
  • Available methods include Wise (1-3 business days), ACH (1-3 business days), and Wire/SWIFT (3-10 business days). ‍
• Impact of Payouts on Account Parameters:‍
  
  • After the first payout, the Maximum Loss Limit will be set to $0 (the account's starting balance).
  • Payouts can affect your Scaling Plan level if the withdrawal reduces your account balance to a lower tier.
  • Trading while a payout is processing is possible, but if losses cause the account to fail or fall below minimums before processing, the payout may be denied.

Final Thoughts

Topstep presents a structured and popular route for traders aiming to secure funding in the futures prop firm space. Their one-step Trading Combine® evaluation, clear payout rules, and attractive profit split (especially the first $10,000 at 100%) are significant draws.  The path to a Live Funded Account with the potential for daily, uncapped payouts offers a compelling long-term incentive.

However, traders must be diligent in understanding and adhering to all account rules, particularly the Maximum Loss Limit and objectives like the Daily Loss Limit and Consistency Target during evaluation. The monthly subscription for the Trading Combine® continues until passed or canceled.  The transition to Live involves additional costs like professional data fees and platform fees if not using a free option.

Overall, Topstep provides a well-defined framework for disciplined traders to prove their skills and access significant trading capital with a favorable payout policy.

Is Your Trading Strategy Ready for Prop Firm Rules?

Passing evaluations and managing funded accounts consistently often requires discipline, precise execution, and adherence to strict risk parameters. Manual trading under pressure can lead to emotional decisions and costly mistakes, jeopardizing your funded account.

This is where automation tools like Lune Trading's suite can provide a significant edge:

• Lune Indicators Suite: Gain deeper market insights with premium, AI-powered, non-repainting indicators for TradingView. Utilize institutional-grade tools for analyzing the market, trend, automate technical analysis, and receive real-time alerts to make more informed entry and exit decisions, saving valuable analysis time.
• Lune Automated Strategies: Access premium, AI-powered, deeply backtested strategies designed for TradingView. These strategies come with built-in risk management, non-repainting signals, and are highly customizable. They are developed by experts  and designed with prop firm rules in mind. Find profitable settings quickly with the built-in Auto Backtester. Say goodbye to guesswork and emotional trading.
• Lune Auto Trader: If you already have a winning TradingView strategy, Lune Auto Trader provides the crucial bridge for instant, reliable execution on platforms like NinjaTrader and Tradovate. Eliminate manual errors and latency. Manage unlimited accounts, utilize robust risk features, and ensure compatibility with prop firm accounts. Execute your strategy flawlessly, 24/7, even around news or holidays with configurable filters.
• Lune AI Signals: For traders seeking reliable, data-driven opportunities without extensive analysis time, receive real-time, AI-generated trading signals with specific entry, take-profit, and stop-loss levels. Eliminate emotional bias and leverage rigorously backtested algorithms for consistent trading ideas.

Stop letting manual execution errors or emotional decisions hold back your trading potential. Explore how Lune Trading's advanced, reliable automation tools can help you conquer prop firm challenges and achieve consistent results.

Get Started Today!