Is Topstep a legitimate prop firm?

Topstep is a proprietary trading firm, not a regulated broker. Prop firms sell simulated-capital challenges — you trade with the firm's capital (real or demo) after paying an evaluation fee. Legitimacy depends on payout track record, transparency, and clear rules, not on financial regulation.

What is Topstep's trust score?

Topstep currently scores 40/100 on Brokers Watch. The score is a composite of regulation, complaint history, user reviews, transparency, and operational track record — it refreshes as new data lands.

Does Topstep have user reviews?

No user reviews have been published for Topstep yet. If you've traded with them, submit a verified review to help other users.

⚠ Simulation Trading Notice

This firm offers an evaluation/simulation service, not regulated brokerage. You are not trading real market assets unless explicitly stated. Industry data shows the majority of evaluation participants do not receive a payout. Read the firm's terms carefully before paying any fee.

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Topstep

Poor

Prop Firm

Featured

US-based futures prop firm pioneer offering the Trading Combine evaluation on NinjaTrader, TSTrader and other futures platforms.

Founded 2012 Chicago, USA www.topstep.com N/A

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Additional Information

Refundable FeeNo

Min Trading Days5

Evaluation Models1-step

Max Overall Drawdown$2,000–$6,000

Profit Split100% first $10k then 90/10

Asset Classfutures

Payout FrequencyOn-demand

Payout Methodswire, deel

Trustpilot Rating4.6

Profit Target Phase 1$3,000–$9,000

Account Sizes$50k, $100k, $150k

Starting Fee$49 (subscription)

Max Daily Drawdown$1,000–$3,000

Regulatory Status

Regulatory status of proprietary trading firms

Proprietary ("prop") trading firms that sell evaluation challenges to the public typically operate outside the scope of traditional financial regulation. In most jurisdictions, simulated-account challenges and profit-split arrangements are not classified as regulated investment services, so firms in this category are usually not licensed or supervised by financial conduct authorities such as the FCA, ASIC, CySEC, SEC or CFTC.

90–95%

failure rate

Internal industry data suggests a 90% to 95% failure rate for evaluation-based challenges. Challenge fees should be categorized as a High-Risk Speculative Expense, not an investment.

This is general information about the prop-trading industry and is not a statement about any specific company.

Prop Firm vs Regular Broker

Feature	Prop Firm (the "Game")	Regular Broker (the "Account")
Ownership	You own nothing — you are a contractor	You own 100% of the assets and equity
Regulation	Generally unregulated; no statutory safety net	Regulated by FCA / ASIC / SEC and equivalents
Withdrawals	"Profit Targets." You can only withdraw after hitting a specific % or after a "waiting period."	Anytime — it is your money
Rules - The "Catch"	Hidden Traps: consistency rules, lot limits, max drawdown, time limits	None imposed by the broker — trade your way
Your Loss - Risk	Lose 100% of the challenge fee if drawdown rules are breached. One mistake ends everything.	You only lose what the market takes from your capital. You control your stop-loss.
Protection	No investor compensation scheme; firm can cease operating	Often covered by SIPC (US, up to $500k) / FSCS (UK, up to £85k) / equivalent
Profit Split	60–90%. The firm keeps a "commission" for letting you trade.	100%. You keep every cent of profit you generate.
The "Buffer" Trap	Required balance — many firms require you to leave a "buffer" in the account before you can withdraw.	Zero buffer. You can withdraw down to your last cent at any time.
Tax Treatment	Self-employed income — taxed as a service provided to the firm (standard income tax).	Capital gains — often eligible for lower tax rates or tax-free status (e.g. Spread Betting in the UK).
Compounding	Limited. You are capped by the account size the firm gives you.	Infinite. You can leave profits in to increase your buying power and grow exponentially.

Ownership

Prop Firm (the "Game")

You own nothing — you are a contractor