Prop firms have suffered over the last couple of months. Capping payouts is one way to make the model sustainable.
Topstep
Topstep Brokerage is the first introducing broker to allow individual brokerage accounts to be funded through the direct transfer of payouts earned from its retail proprietary trading programs, the company stated.
Plus500’s US entity has already been working with Topstep since at least the start of this year.
TopStep was already working with Plus500. This appears to be an extension of the two firms’ existing partnership.
Documents seen by TradeInformer show that prop firm Topstep grew 6x in four years, with top line revenues in excess of $25m in 2021.
Plus500 is providing synthetic execution to Topstep via its US-regulated entity. The company can also be used to trade Topstep’s live accounts.