Day traders working with prop firms typically hold positions for a few minutes to several hours, aiming to profit from intraday price movements without holding trades overnight. They rely heavily on technical analysis, intraday patterns, and key levels such as previous highs/lows or VWAP to make quick, informed decisions. Day traders often capitalize on market volatility during peak trading sessions, such as the London and New York opens.
Unlike other trading strategies (e.g. swing trading or scalping), day trading requires a balance of speed and discipline. Traders need to react quickly but avoid overtrading. It demands consistent focus throughout the trading day and is ideal for those who prefer a fast-paced environment while avoiding overnight risk.
- Timeframes: M15–H1
- Trades last minutes to hours
- You avoid overnight risk and swap fees
- You may use higher timeframes (H4, D1) to analyze the trend and lower ones to time your entries (top down analysis)
- Best for: Traders who want structure and daily progress without the stress of overnight exposure.
Prop Firm Rules for Day Trading:
Leverage & Flexibility
- Choose a prop firm that offers leverage between 1:30 and 1:100 – this gives you more flexibility with position sizing and trade setups.
- Choose a prop firm with minimal commission per trade because the small numbers will add up.
Risk Parameters
- Avoid firms with tight daily loss limits or low max drawdown – day trading requires room to manage multiple trades and intraday volatility.
- Look for firms with risk parameters that align with your strategy and allow for temporary drawdowns.
Challenge Duration
- Opt for a firm with a 30 to 60 day challenge period – this allows for gradual growth without forcing over leveraged trades or rushed decisions.
List of the Best Prop Firms for Day Traders:
Monevis Funding
| Pro’s | Con’s |
|---|---|
| ✔ Medium to high leverage trading (1:50) | ✘ Charges commission ($3 per round lot) |
| ✔ Daily static drawdown limit (5% on 2-step accounts) | – |
| ✔ Offers higher max drawdown (10% on 2-step accounts) | – |
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Fintokei
| Pro’s | Con’s |
|---|---|
| ✔ Offers higher leverage trading (1:100) | ✘ Charges commission ($6 per round lot) |
| ✔ Allow weekend holding (swap fees are applied) | – |
| ✔ Daily static drawdown limit (depending on the challenge)
0% on instant challenge 5% on all other challenges |
– |
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Quant Tekel
| Pro’s | Con’s |
|---|---|
| ✔ Offers higher leverage trading (1:100) | ✘ Charges commission ($4 per round lot) |
| – | ✘ Does not offer higher daily drawdown
1 step account daily drawdown: 3% 2 step account daily drawdown: 4% 3 step account daily drawdown: 6% |
| – | ✘ Does not offer higher max drawdown
1 step account max drawdown: 6% 2 step account max drawdown: 10% 3 step account max drawdown: 8% |
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Pipfarm
| Pro’s | Con’s |
|---|---|
| ✔ High leverage trading (1:100) | ✘ Does not offer higher max drawdown
1 Step Challenge (Maximum Drawdown): 5% Trailing 2 Step Challenge (Maximum Drawdown): 10% Static |
| ✔ Offer commission-free accounts ($0) | ✘ Does not offer higher daily drawdown
1 Step Challenge (Daily Drawdown): 4% 2 Step Challenge (Daily Drawdown): 5% |
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Funded Trading Plus
| Pro’s | Con’s |
|---|---|
| ✔ Medium leverage trading (1:30) | ✘ Charges commission on forex pairs & gold ($7 per round lot) |
| ✔ Offers higher max drawdown
2 Step Advanced Trader (Maximum Drawdown): 10% 2 Step Premium Trader (Maximum Drawdown): 8% |
✘ Does not offer higher daily drawdown
2 Step Advanced Trader (Daily Drawdown): 5% 2 Step Premium Trader (Daily Drawdown): 4% |
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Funding Traders
| Pro’s | Con’s |
|---|---|
| ✔ High leverage trading (1:100) | ✘ Does not offer higher max drawdown
1 Step Challenge (Maximum Drawdown): 5% Trailing 2 Step Challenge (Maximum Drawdown): 10% Static |
| ✔ Offers commission-free accounts ($0) | ✘ Does not offer higher daily drawdown
1 Step Challenge (Daily Drawdown): 4% 2 Step Challenge (Daily Drawdown): 5% |
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Advice for Day Traders
Now that you know what prop firm conditions to look out for and how to trade like a day trader, here are a few things you should do to improve your day trading game:
Choose one setup. Here’s an example using a breakout strategy:
- Focus on intraday timeframes (1-min, 5-min, or 15-min charts)
- Identify key intraday levels (e.g. previous day high/low, session open, VWAP)
- Wait for price to consolidate near a breakout point with low volume
- Enter when price breaks out with strong momentum and volume confirmation
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