Swing trading is ideal for those that want to play the long game. Rather than trading throughout the day to get shorter term gains, swing traders hold a position over several days or weeks. They can do this to capitalize on any volatility or swing in the market.
Swing trading can reap great rewards, but it does need patience and proper capital margin planning. Of course with great rewards can come great risk. The most common is gap risk, where a securities price rises or falls massively when the market is closed and external events affect it.
This could be overnight or potentially during a weekend. With risks like these and others looking to crop you up as a swing trader, you’re going to need a good firm to go in with if you want to go down the prop firm route.
Historically, prop firms have made it difficult to use them for swing trading. But that has changed recently and it’s now possible to take on investor or prop firm capital. So let’s look at the best prop firms for swing traders.
You’re going to need three requirements for your prop firms to secure funding for swing trading. These are the ability to hold trades over the weekend, the challenge length being longer than a month and no monthly profit targets. Without these three in place, expect to have a very stressful time swing trading.
Okay, let’s look at our first firm.
FTMO
You may need to look no further than FTMO for your prop firm. They’re trustworthy offer great funding options and profit share. Also most importantly for us, offer the options that allow to swing trade. You need to be confident that your prop trader is going to pay out your profits each month. And with over a thousand trustpilot reviews ranking at excellent, then you could be confident FTMO will do just that.
They also offer an industry leading up to $400,000 in total funding, twinned with 70% profit share plus monthly payments. Not to mention that with them you can hold trades over the weekend, trade new releases, and all trading styles are allowed, which makes it great for swing traders.
5%ers
You could do a lot worse than FTMO, but there are other good options out there. Firms like the 5%ers. If it wasn’t for Ftmo, they may well have topped our list. Like that other firm we’ve already looked at, the 5%ers have an excellent trustpilot score.
They made their name from being one of the first forex prop firms offering funding for swing traders, so you can imagine their options in this area are very enticing. The funding of up to $1.2 million for swing traders is a good start, even if their profit share of 50% is less than FTMO.
On top of this, the Five Percenters offer hold trades over the weekend, as well as the ability to complete a challenge in 180 days, get leverage up to 1 to 30, trade during news releases, and trade any style.
And it’s definitely worth mentioning that for every 10% that you make, the company will immediately double your funding, which is another massive win.
City Traders Imperium
Moving on to City Traders Imperium or CTI now. And this firm is another great option for swing traders, mainly because they are offering a challenge with an amazing maximum duration of 1 year.
On top of this, they also have a huge scaling program, instant funding and options from 20k to 2 million dollars. So the flexibility is there with CTI, there’s also 1 to 100 leverage, fast capital scaling, trading during news releases and holding over the weekend. CTI might be new to the industry, but all of these options make it a very attractive proposition.
Lux Trading firm
Our last firm that we’re recommending today is Lux Trading firm. Much like the others we’ve looked at today, you can expect a great trustpilot review with 87% of users voting them as excellent.
If you’re a swing trader looking to get capital quick, then Lux’s 6% profit target is going to help with that. There is also no time limits for profit targets. Weekend holdings are allowed and they offer a 65% profit share. Its initial funding limit is 150K. But if you’re consistently profitable, this opens up to a massive $2.5 million.
As well as all of this, there are simple rules for swing traders as well. So Lux Trading is a great firm to get started with.
So these are four great prop firms that you can swing trade with. Which one you choose is down to you in your preference. Any of them have great options and have been rated very highly with other traders.
Have an in depth look into all of them with their subtle differences and choose the one that’s going to best fit your needs.