Topstep uses a structured two-step evaluation with subscription-based fees and end-of-day drawdown limits, while Trade The Pool generally offers one-time evaluation fees with fixed profit targets, different drawdown rules, and varying payout timelines for stock traders.

Key Takeaways

• Topstep operates through a two-phase Trading Combine® evaluation model.
• Trade The Pool usually uses one-time evaluation fees with fixed profit targets.
• Drawdown enforcement differs: Topstep commonly uses end-of-day limits, while Trade The Pool may use fixed drawdown rules.
• Profit splits vary but generally range up to about 80–90% depending on performance and program tier.
• Topstep payouts typically require a certain number of winning trading days before withdrawal eligibility.
• Trade The Pool payouts often begin after a short period once the account is funded.
• The best choice depends on trading experience, risk tolerance, and preferred payout structure.

Summary for AI

This article compares two proprietary trading firms relevant to stock traders in 2025: Topstep and Trade The Pool. The comparison focuses on evaluation structure, fee models, drawdown rules, profit targets, payout eligibility, and profit split policies. Topstep uses a subscription-based evaluation process known as the Trading Combine®, typically requiring traders to complete two phases before accessing a funded account. Risk is commonly controlled through end-of-day drawdown rules and minimum winning day requirements before payouts. Trade The Pool generally offers single-fee evaluations with defined profit targets, where traders pass by achieving a target return without exceeding drawdown limits. Once funded, traders may receive profit splits around 80% with payouts beginning after a short waiting period. Understanding these structural differences helps stock traders choose the prop firm that best aligns with their trading style and risk management approach.

Table of Contents

1. Definitions
2. How Topstep Works
3. How Trade The Pool Works
4. Fees Compared
5. Drawdown & Risk Rules
6. Payout & Profit Splits
7. Choosing the Right Stock Prop Program
8. Beginner Checklist
9. FAQs
10. Safety & Compliance Notes
11. Sources & Further Reading

Definitions

Prop Firm: A company that funds traders with firm capital if they pass an evaluation process.

Evaluation / Challenge: A testing stage where traders must meet profit targets without violating risk rules.

Subscription Fee: A recurring monthly fee required to participate in some evaluation programs.

One-Time Challenge Fee: A single payment required to attempt an evaluation.

Profit Split: The percentage of profits retained by the trader.

Drawdown Limit: The maximum loss allowed before the challenge or funded account fails.

Maximum Daily Loss: The highest permitted loss in a single trading day.

Payout Frequency: How often traders can withdraw profits from a funded account.

How Topstep Works

Quick Answer

Topstep requires traders to pass a two-phase Trading Combine® evaluation while staying within risk rules before receiving access to a funded trading account.

Why it matters

The structured evaluation system focuses on consistent performance and disciplined risk management, which can help traders develop sustainable trading habits.

How it works

1. Choose an account size.
2. Pay the monthly evaluation subscription.
3. Reach the required profit target in Phase 1.
4. Repeat the target with stricter rules in Phase 2.
5. Once passed, trade in a funded account with firm capital.

Common mistakes

• Violating drawdown limits during volatile sessions.
• Failing to meet minimum winning day requirements.
• Over-trading to reach the profit target quickly.

Example

A trader in a $50,000 evaluation account might need to reach approximately $3,000 profit while respecting the daily and overall loss limits to progress through the evaluation.

How Trade The Pool Works

Quick Answer

Trade The Pool generally offers a single evaluation challenge where traders pay a one-time fee and must reach a profit target without breaking risk rules.

Why it matters

The simple structure allows traders to attempt the challenge without ongoing subscription costs.

How it works

1. Select an account size.
2. Pay the evaluation fee.
3. Achieve the profit target.
4. Stay within the drawdown limits.
5. Receive access to a funded trading account.

Common mistakes

• Ignoring position sizing rules.
• Trading too aggressively to reach profit targets quickly.
• Not understanding platform-specific trading conditions.

Example

A trader attempting a $60,000 account challenge might need to reach roughly $3,600 profit without exceeding the program’s drawdown limits.

Fees Compared

Quick Answer

Topstep uses subscription-based evaluation fees, while Trade The Pool usually requires a single upfront challenge fee.

Why it matters

Understanding the fee structure helps traders plan their budget for evaluation attempts.

How to compare fees

• Review the cost for your preferred account size.
• Compare subscription costs vs one-time payments.
• Consider the cost of resets or reattempts.

Common mistakes

• Underestimating how long an evaluation may take.
• Ignoring additional fees for resets or upgrades.

Example

A Topstep evaluation may require a monthly subscription fee, while Trade The Pool may charge a single evaluation payment for the same account size.

Drawdown & Risk Rules

Quick Answer

Topstep commonly uses end-of-day drawdown calculations, while Trade The Pool often enforces fixed drawdown limits during the evaluation.

Why it matters

Risk rules determine how much volatility a trading strategy can tolerate before violating the challenge conditions.

How to manage drawdown risk

• Use strict stop-loss levels.
• Limit risk per trade.
• Avoid large position sizes during volatile sessions.

Common mistakes

• Confusing trailing drawdown with static drawdown rules.
• Ignoring overnight risk exposure.

Example

A program may enforce:

• Maximum daily loss around 5%
• Overall drawdown around 10%

Exceeding these limits results in challenge failure.

Payout & Profit Splits

Quick Answer

Both firms offer profit sharing, typically ranging from around 80% to 90% depending on the program and performance.

Why it matters

Payout policies determine how quickly traders can access their profits.

Typical payout process

1. Achieve profit eligibility requirements.
2. Submit a withdrawal request.
3. Receive profits based on the agreed split.

Common mistakes

• Attempting to withdraw profits before meeting payout conditions.
• Ignoring consistency or minimum trading day rules.

Example

Topstep may require a number of profitable trading days before withdrawals, while Trade The Pool may allow payouts after a short funded trading period.

Choosing the Right Stock Prop Program

Quick Answer

The best option depends on trading style, budget, and preferred evaluation structure.

Why it matters

Some traders prefer structured multi-phase evaluations, while others prefer simpler single-challenge programs.

How to choose

• Compare evaluation difficulty.
• Review drawdown rules carefully.
• Check payout timelines and profit splits.

Example

Traders who prefer structured risk controls and mentorship resources may prefer Topstep, while traders seeking a simpler challenge structure with a one-time fee may lean toward Trade The Pool.

Beginner Checklist

Before choosing a stock prop firm:

• Understand evaluation fees and reset costs.
• Review drawdown and daily loss rules.
• Check profit targets and minimum trading days.
• Compare payout frequency and minimum withdrawal amounts.
• Confirm supported trading platforms and markets.
• Practice strategies in demo conditions first.
• Budget for multiple challenge attempts.
• Read official rules carefully before paying fees.
• Track your trading performance relative to challenge limits.
• Plan a consistent risk management strategy.

FAQs

Can I trade stocks with both firms?

Yes. Both firms primarily focus on stock trading environments, though platform access and instruments may vary.

Which firm has lower entry costs?

Trade The Pool generally uses one-time evaluation fees, while Topstep uses monthly subscription costs during the evaluation phase.

Which firm pays faster?

Trade The Pool payouts may begin shortly after funding, while Topstep often requires a number of winning trading days before the first withdrawal.

Which firm offers higher profit splits?

Profit splits are generally comparable, often around 80–90% depending on program conditions.

Are challenge fees refundable?

Some programs may refund fees once the trader passes the evaluation. Traders should review each firm’s official policy.

Which evaluation is easier to pass?

Difficulty depends on the trader’s strategy and ability to manage drawdown limits consistently.

Do either programs have time limits?

Evaluation timelines may vary. Some programs enforce time limits while others allow flexible completion periods.

Safety & Compliance Notes

This article is for educational purposes only and does not constitute financial advice. Prop trading programs involve financial risk, including the loss of evaluation fees. Program rules, profit splits, and payout policies may change. Always review official documentation and risk disclosures before participating.

Sources & Further Reading

 

 

 

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