What is Topstep? Topstep (formerly known as TopstepTrader) is a Chicago-based proprietary trading firm founded in 2012 that has revolutionized how retail traders access institutional-grade futures capital. Headquartered in the heart of topsteptrader chicago, the company has grown into one of the most trusted names in the prop firm industry, funding over 10,000 traders worldwide and distributing more than $100 million in payouts since inception.
Unlike traditional brokerages that require traders to risk their own capital, Topstep operates on a unique evaluation model. Traders first prove their skills by passing a Trading Combine — a simulated trading environment that mirrors real market conditions. Once traders demonstrate consistent profitability while adhering to strict risk management rules, they are awarded a funded account where they can trade real capital and keep up to 90% of the profits they generate.
The concept of what is topstep trading has evolved significantly since the company’s founding. What began as a simple futures evaluation platform has transformed into a comprehensive ecosystem supporting multiple trading platforms including Tradovate, Topstep X (formerly TopstepX), and Quantower Project X. This evolution has made topstep one of the most versatile and accessible prop firms in the industry.
💡 Why Traders Choose Topstep
Topstep stands out because of its transparent rules, consistent payout schedule, regulated partner brokers, and industry-leading scaling plan. Traders who pass prop firm challenge evaluations with Topstep gain access to accounts ranging from $50,000 to $300,000, with the ability to scale further through consistent performance.
The question what is top step (note the common misspelling) is frequently searched by beginners entering the prop firm space. The answer is simple: Topstep is a legitimate, established prop firm that provides capital to skilled traders who can demonstrate consistent profitability through their evaluation process. The company is not a broker itself but partners with regulated Futures Commission Merchants (FCMs) such as RJO (R.J. O’Brien) and AMP Futures to execute trades on regulated exchanges like the CME, CBOT, NYMEX, and COMEX.
For traders searching topstep sign up, the process is straightforward: create an account, select a Trading Combine size ($50K, $100K, or $150K), choose your preferred platform, and begin trading. The evaluation typically requires reaching a profit target while staying within daily loss limits and maximum drawdown thresholds. Our prop firm passing service can help you navigate this process with an 86.3% success rate.
The History and Evolution of Topstep
Topstep was founded in 2012 by Brian Shannon and a team of experienced futures traders who recognized a fundamental problem in the trading industry: talented traders lacked access to capital, while capital providers lacked access to talented traders. The company’s original name, TopstepTrader, reflected its initial focus on providing a platform for traders to prove their skills.
Over the years, topstep llc has undergone significant transformations. In 2020, the company rebranded from TopstepTrader to simply “Topstep” to reflect its broader mission beyond just being a trading platform. The introduction of the Express Account in 2021 revolutionized the evaluation process by eliminating the two-phase system that many competitors still use today.
Today, topstep company employs over 100 people across its Chicago headquarters and remote teams worldwide. The firm has paid out more than $100 million to funded traders and continues to grow at an impressive rate, adding thousands of new traders every month. This growth trajectory makes Topstep one of the most stable and reliable prop firms in an industry that has seen many competitors come and go.
Is Topstep Regulated? Understanding the Legal Framework
One of the most common questions traders ask is topstep regulated? The answer requires nuance. Topstep itself is not regulated as a broker-dealer by the CFTC or NFA because it does not accept customer deposits or execute trades directly. Instead, Topstep operates as a proprietary trading firm that provides evaluation services and funded accounts.
However, the trades executed on Topstep funded accounts are routed through regulated Futures Commission Merchants (FCMs). These FCMs are fully regulated by the Commodity Futures Trading Commission (CFTC) and are members of the National Futures Association (NFA). This means that while Topstep itself is not a regulated broker, the actual trade execution happens on regulated infrastructure, providing traders with an additional layer of protection.
This regulatory structure is actually advantageous for traders because it means their funds are held at regulated institutions, trade execution occurs on regulated exchanges, and there is oversight of the entire trading process. For traders concerned about legit prop firm passing service options, Topstep’s regulatory framework provides significant peace of mind compared to unregulated offshore prop firms.