Best Free Resources to Learn Prop Trading

Prop trading lets you trade with a firm's capital instead of your own, offering profit splits of 70%-90% while limiting your risk to the evaluation fee. To succeed, you need strong risk management, discipline, and consistent practice. Here are 8 free resources to help you prepare:

• For Traders: Offers guides, risk management tutorials, and a no-login paper trading simulator with $100,000 virtual funds.
• BabyPips School of Pipsology: Features 414 lessons, a "Prop Trading Firms 101" module, and practical evaluation tips.
• IG Academy: Short courses with quizzes, demo accounts, and risk-reward strategies (e.g., 1:3 ratio).
• FOREX.com Learning Center: Beginner-to-advanced lessons, live sessions, and a demo account with realistic market conditions.
• AvaTrade Academy: Over 150 lessons, weekly webinars, and a 60-day demo account.
• TradingView Paper Trading Simulator: Practice strategies with $100,000 virtual funds and customizable settings.
• Elite Trader Community Forum: Peer-reviewed discussions, free training, and prop firm insights.
• Topstep Free Webinars: Daily live streams, coaching sessions, and futures trading fundamentals.

Pro Tip: Start with educational courses like BabyPips or IG Academy, then practice in simulators like TradingView. Engage in forums like Elite Trader for advice and insights. Consistent practice builds the skills needed to pass evaluations and manage funded accounts.

Ultimate Prop Trading Guide - Start Here Beginner Prop Traders (FULL GUIDE)

1. For Traders

For Traders provides a library of free guides tailored for those new to prop trading. These guides break down the essentials, including the fundamentals of prop trading, evaluation strategies, and effective account management practices. Once you’ve got the basics, the guides delve deeper into advanced strategies and risk management techniques.

One standout resource is the Prop Firm Trading Guide, which outlines trading strategies and the steps needed to become a funded trader. The platform also offers detailed tutorials on risk management, covering professional techniques like position sizing, methods for protecting against drawdowns (both trailing and static), and setting daily loss limits.

To put theory into practice, For Traders includes a browser-based paper trading simulator. This simulator doesn’t require a login and gives users instant access to $100,000 in virtual capital. You can test strategies across forex, stocks, indices, crypto, and commodities in an environment that mirrors live market conditions.

2. BabyPips School of Pipsology

The School of Pipsology provides a comprehensive learning experience with 414 free lessons spread across 11 grade levels, covering everything from the basics to advanced trading strategies. While the curriculum primarily focuses on forex trading, it culminates with a "Graduation" course that includes a dedicated "Prop Trading Firms 101" module. This section dives into the prop trading industry, exploring its ecosystem, business models, and strategies to successfully pass firm evaluations. It also lays the groundwork for mastering risk management and strategic trading habits.

One of the standout lessons in this module is its focus on evaluation strategies. It addresses a critical challenge: fewer than 10% of traders pass Phase 1 of prop firm challenges, and only about 1–2% manage to achieve consistent payouts. To improve these odds, the course emphasizes adopting a mindset of being a "risk manager first, trader second". For instance, you'll learn to limit risk to just 0.5–1% per trade during challenges, which helps you navigate losing streaks more effectively.

The course also features a "Prop Firm Challenge Survival Checklist." This practical guide advises avoiding trades during high-impact news events, such as CPI or NFP releases, and sticking to 2–3 high-quality setups per day. Additionally, it introduces the Expectancy Formula, a tool that reinforces the idea that trading success is based on mathematical probability rather than having a high win rate.

"Passing a prop firm challenge isn't about hitting lucky trades or chasing every market move…it's about surviving long enough to let your edge play out." - BabyPips

Before committing to a paid challenge, the School of Pipsology strongly recommends practicing on demo accounts for 3–6 months to establish consistent profitability. By creating a free account, you can track your progress through the entire curriculum, unlocking markers across all 414 lessons.

3. IG Academy Courses and Quizzes

IG Academy offers a well-structured approach to learning the essentials of trading through short, focused courses. Each course is paired with a 10-question quiz to reinforce your understanding. For instance, you can begin with "Introducing the Financial Markets" (about 85 minutes) and then move on to topics like "Basics of Technical Analysis" (55 minutes) or "Trading Psychology" (35 minutes). These courses combine videos, interactive exercises, and real-world scenarios to help you build practical trading skills.

The risk management modules stand out for their focus on SMART trading goals and adopting a risk-reward ratio of at least 1:3. This means that for every dollar you risk, you're aiming for a potential profit of three dollars. The technical analysis course dives into identifying support and resistance levels, interpreting candlestick patterns, and using indicators like the Relative Strength Index (RSI). For reference, RSI values above 70 indicate overbought conditions, while values below 30 suggest oversold conditions.

"Many traders aim for a risk-reward ratio of 1:3 or higher. This means the potential profit you can make on a trade will be at least triple the potential loss." - IG Academy

The quizzes are designed around practical applications, testing skills like recognizing overbought RSI levels, calculating risk-reward ratios, and choosing order types such as trailing stop-losses. The "Trading Psychology" section highlights the importance of discipline, underscoring that 68% of retail investor accounts lose money trading spread bets and CFDs.

IG Academy also complements its courses with a free demo account. This account comes with $20,000 in virtual funds and access to over 17,000 markets. To make the most of this tool, it’s suggested to adjust the demo account balance to match what you would realistically trade in a live account, rather than relying on the full $20,000. Additionally, keeping a trading journal is encouraged to track not just your trades but also the emotional and psychological factors influencing your decisions.

4. FOREX.com Learning Center

The FOREX.com Learning Center offers a solid foundation for anyone looking to enhance their trading knowledge, starting with a self-assessment quiz to match lessons to your skill level. Lessons are neatly categorized into Beginner, Intermediate, and Advanced levels, covering everything from calculating pip values to crafting a full trading plan. This structured approach ensures you're ready for the practical exercises that follow.

The centerpiece of the Learning Center is the six-part "Trader's Course", alongside tutorials for MetaTrader 5 and TradingView. These resources teach you how to spot market opportunities, set alerts, execute trades with a single click, and manage trailing stops - key skills for tackling prop trading challenges.

Interactive livestreams add another layer of practical learning. For instance, the "Forex Price Action" session, held every Tuesday from 11:00 AM to 12:00 PM ET, features strategist James Stanley walking you through trading plans based on macro market trends. Meanwhile, the monthly "Live NFP Coverage" session, on the first Friday of each month from 8:00 AM to 9:00 AM ET, dives into U.S. Non-Farm Payroll reports and their effects on currency volatility.

"FOREX.com's demo account is a core element of our educational effort. A demo account is intended to familiarize you with the tools and features of FOREX.com's trading platforms and to facilitate the testing of forex trading strategies in a risk-free environment using virtual funds." – FOREX.com

The demo account is a standout feature, simulating live market conditions with the same rate feed. It allows users to test trading strategies in a risk-free setting while working with personalized capital limits, strict drawdown rules, and historical data for backtesting. For perspective, the forex market sees over $9.6 trillion in daily trades, with major pairs like EUR/USD making up about 28% of all activity.

5. AvaTrade Academy Lessons and Webinars

AvaTrade Academy offers a wealth of free educational resources tailored to traders of all skill levels. With 57 courses and over 150 lessons, all taught by seasoned market experts, the platform has already trained more than 100,000 traders. These courses range from quick 15-minute strategy sessions to comprehensive 205-minute tutorials, some of which include up to 21 individual lessons.

One standout course, "Trading Safely: Risk Management" (51 minutes), focuses on capital preservation strategies like stop-loss orders and position sizing. Meanwhile, the "Trading Platforms Crash-Course" (205 minutes) dives deep into MetaTrader 4 and MetaTrader 5, featuring 27 lectures designed to build platform proficiency.

"I knew the basics of trading, but I didn't understand the importance of things like technical analysis, Stop-Loss and Take Profit orders. AvaAcademy, you have given me the gift of knowledge." – Carol Schwartz, Student

The academy’s technical analysis training covers tools like RSI, MACD, Fibonacci levels, Bollinger Bands, Ichimoku Clouds, and Elliott Wave Theory. To reinforce learning, the lessons are paired with articles, over 50 interactive quizzes, and weekly live webinars where professionals demonstrate how to apply these indicators to real-time market scenarios.

To practice risk-free, AvaTrade provides a 60-day demo account loaded with $10,000 in virtual funds, making it an excellent complement to the academy’s resources. AvaTrade’s reputation is bolstered by a 4.8/5 Trustpilot rating from 11,887 reviews and a 4.4/5 rating for its mobile app on both Google Play and the Apple App Store.

6. TradingView Paper Trading Simulator

TradingView's Paper Trading Simulator provides a safe space to test trading strategies with a virtual balance of $100,000 by default. Fully integrated into TradingView's charting platform - which attracts over 50 million users each month - it allows you to place trades directly within the tool, eliminating the need to juggle multiple platforms.

The simulator supports various order types, including Market, Limit, Stop, and Stop-Limit. You can also adjust leverage depending on the asset class: 50:1 for Forex, 20:1 for Futures, 10:1 for Crypto, and 1:1 for Stocks. Additionally, broker commission settings can be customized to reflect real-world conditions.

"Paper trading inside TradingView is super, super simple to set up and can save you from costly mistakes." – Mind Math Money

One standout feature is the ability to create multiple paper trading accounts, enabling you to test different strategies at the same time. The platform keeps tabs on your realized and unrealized profits and losses, account margin, and equity. Plus, you can export this data as a CSV file for deeper analysis.

To make the most of the simulator, treat your virtual $100,000 as if it were real money. Use the built-in trading journal to log your reasoning behind each trade, and always set Take-Profit and Stop-Loss levels to strengthen your risk management skills. For added excitement, TradingView hosts a virtual trading competition called "The Leap", where participants can win real-money prizes of up to $10,000 - all without risking any actual funds. These features make TradingView's simulator an excellent stepping stone for transitioning from practice to live trading.

7. Elite Trader Community Forum

Once you've honed your skills with trading simulators, consider joining community forums to gain valuable insights and connect with peers. Elite Trader is a standout platform, offering 475 peer-reviewed resources across 23 categories. Notably, it includes a "Prop Firms" section with threads that have been viewed over 77,000 times.

The forum's "Educational Resources" section is a treasure trove, featuring over 250 pages of discussions dating back to 2005. A highlight is the free Elite Trader School, which provides a comprehensive six-part curriculum. It covers topics like Economics, Indicators, Microstructure, Corporate Finance, Portfolio Management, and Factors, aiming to replicate the training programs used by investment banks.

"Trading is hard and it is even harder when the web is filled with inaccurate or misleading information on markets and trading." – longandshort, Professional Trader and Portfolio Manager

Members frequently share threads on free proprietary trading training and actively discuss real-time issues with prop firms - such as payout rejections and sudden rule changes - helping newcomers steer clear of potential pitfalls.

To make the most of Elite Trader, search for threads like "Free Proprietary Trading Training", where you can pick up tips on strategy and risk management from seasoned traders. You can also dive into the "Tools of the Trade" section for recommendations on free backtesting platforms such as NinjaTrader. Best of all, registration is free, giving you access to decades of collective experience. By engaging with this forum, you'll deepen your knowledge of proprietary trading and enhance your technical skills through shared expertise and practical advice.

8. Topstep Free Webinars

Topstep offers free webinars designed to help you improve your futures trading skills. One standout feature is TopstepTV, a daily live stream where experienced coaches analyze current market conditions, walk through specific strategies, and even execute trades in real time.

For beginners, the Trading Foundations Series is a 16-part video course that lays the groundwork for thinking like a trader. It covers topics like the history of futures, leverage, platform mechanics, and the "Cardinal Rules of Trading." It also dives into trader psychology, helping you develop the discipline necessary for long-term success. Weekly sessions complement this series, reinforcing the core principles.

"This foundation will allow you to approach the markets confidently and start 'thinking like a trader.'" – Topstep

To help you prepare for the week ahead, John Hoagland hosts Weekly Kickoff sessions. These sessions provide critical market insights and key price levels to guide your trading strategy. Additionally, Coach's Playbook segments focus on building consistency and managing risk effectively. These group coaching sessions are available for free and are led by seasoned traders.

You can access these resources through Topstep's website, YouTube channel, or their active Discord community. The Discord platform offers real-time alerts and opportunities to interact directly with coaches.

Topstep prides itself on offering free, high-quality coaching and educational materials, all created by veteran traders. Whether you're leveraging the Trading Foundations curriculum, tuning into Weekly Kickoff sessions, or engaging with the Discord community, these tools are designed to help you build a solid foundation for prop trading success.

Conclusion

These eight free resources can help beginners build the skills needed to become confident prop traders. How it works is clear: start with foundational courses like those from BabyPips or IG Academy to grasp market basics. Once you understand the mechanics, move on to simulation trading using tools like TradingView's paper trading feature. Practice in this risk-free environment until your strategy shows consistent results. This approach lays a solid groundwork for disciplined and practical trading.

Consistency is key. Regular paper trading not only refines your strategy but also prepares you mentally for the challenges of managing a funded account. The psychological resilience gained through steady practice can make a significant difference when handling the pressures of trading real money.

In addition to practice, connecting with trading communities - such as the Elite Trader Community Forum or active Discord groups - is invaluable. These spaces provide peer support, accountability, and independent insights about prop firms that you won’t always find on their websites. Being part of such communities enhances your knowledge and offers a support system for your trading journey.

"The system only works when you choose how and when to follow it."

As Iman, Founder of ImanTrading.org, points out, no indicator can replace the intuition and judgment that come from consistent practice and active community participation.

Take the first step today by picking one resource from this list - whether it’s a course, a paper trading tool, or a community discussion. Starting has never been more accessible. For example, with just a $77 evaluation fee, you could gain access to a $50,000 account. Losing $77 is far less risky than making a $2,000 personal deposit. These free tools give you everything you need to prepare for that opportunity.

FAQs

How do I pick the right prop firm challenge for my style?

To pick the right prop firm challenge, start by examining the rules, profit targets, and risk management criteria. Make sure the challenge aligns with your trading style - think about factors like profit percentage goals or drawdown limits. Pay attention to the structure of the evaluation process, whether it's a one-step or two-step process, and consider any fees involved. Also, check for any trading restrictions, such as specific hours or styles, to ensure they fit your approach. Finally, take advantage of free tools like simulators to practice and identify challenges that suit your skills and trading discipline.

What risk rules should I practice before paying an evaluation fee?

Before paying an evaluation fee, focus on managing your risks carefully. Set clear daily and maximum loss limits, aim for profit targets while staying within your risk boundaries, and work on developing disciplined trading habits. These practices can help you approach the evaluation process responsibly and with confidence.

How long should I paper trade before attempting a funded account?

The time spent on paper trading depends on your personal progress and the specific requirements of the proprietary firm you're working with. For most traders, dedicating a few weeks to a couple of months to disciplined practice helps build consistency, improve risk management, and boost confidence. The key is to focus on achieving steady profitability and adhering strictly to your trading rules before moving forward. Additionally, some firms might have specific criteria for trading history, making it essential to refine and master your strategy during this period.

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