TopStep is a Chicago-based proprietary trading firm founded in 2010. It lets retail traders prove their skill in a paid evaluation called the Combine. Traders who pass the Combine receive a funded account using TopStep's capital and split profits with the firm. The model removes the need for traders to risk their own large capital while still allowing them to trade meaningful position sizes.

Yes. TopStep has been operating since 2010, has paid millions in trader payouts (publicly verified), maintains an A+ Better Business Bureau rating, and is one of the most established names in futures prop trading. The company has its share of frustrated traders (most who fail blame the firm) but the operational legitimacy is not in question.

TopStep is best for traders who already have a tested futures-trading strategy, sufficient capital to subsidize the monthly Combine fee while learning, and discipline to follow strict risk rules. It is not for absolute beginners, traders without a strategy, or traders who cannot afford to lose the Combine subscription cost while developing their approach. Beginners should paper-trade first.

How does TopStep differ from a regular brokerage?

At a brokerage, you trade your own money with no profit split — but you also need to put up the full margin requirement for each contract. At TopStep, you trade the firm's capital — but you split profits, follow specific risk rules (daily loss limit, trailing drawdown), and pay a monthly evaluation fee until you pass. TopStep is leverage-on-skill: you trade more capital than you'd otherwise control, in exchange for the profit split and the rule constraints.

What Is TopStep? Complete Beginner's Explainer (2026)

Q: How does TopStep work?

You subscribe to a Combine ($165-$375/month depending on size). You trade futures in a simulated environment for as long as needed to hit a profit target without violating risk rules (daily loss limit, trailing drawdown). Once you pass, you receive a funded Express Funded Account with TopStep's capital and 100% of the first $10,000 in profits, then 90/10 split going forward. You withdraw real cash via ACH or wire.

Q: How much does TopStep cost?

Combine subscriptions start at $165/month for the 50K, $325/month for the 100K, and $375/month for the 150K. Promo codes regularly reduce these by 25-50%. There are no hidden fees once you pass — the funded account is free to use. Reset fees apply if you violate a rule and need to restart the Combine.

Updated: May 8, 2026•9 min read

TopStep is the largest and longest-running futures-trading proprietary firm in retail. Founded in Chicago in 2010, it pioneered the modern "evaluation-then-funded-account" model that the rest of the industry has since copied. If you've heard the phrase "prop firm" in the context of futures trading, TopStep is the firm being referenced more often than not.

This guide explains exactly what TopStep is, how it works, what it costs, who it suits, and how it differs from a regular brokerage. The goal: by the end you should be able to decide whether TopStep is a fit for your situation, or whether you'd be better off paper-trading or going with a different firm.

                One-sentence answer: TopStep is a Chicago-based proprietary trading firm that lets you prove your futures-trading skill in a paid evaluation, and if you pass, gives you a funded account using their capital — and you split the profits.
            

The Core Idea Behind TopStep

TopStep solves a specific problem: most retail traders have skill but not enough capital. A trader who can consistently make 1% per month on a $5,000 account is making $50/month — not enough to live on. The same trader operating a $150,000 account would make $1,500/month — meaningful income.

TopStep's bet: instead of forcing the trader to slowly grow their own capital over years, give them larger capital immediately in exchange for a profit split and disciplined rules. TopStep takes the catastrophic-risk side; the trader takes the skill side.

It works because:

TopStep can identify skilled traders cheaply (via the paid Combine evaluation).
Skilled traders can generate consistent returns on larger capital than they personally control.
The profit split means TopStep makes money on every winning trader, and Combine fees subsidize the losers.

How TopStep Works (Step by Step)

Step 1: Subscribe to a Combine

You pick an account size — 50K, 100K, or 150K — and pay a monthly subscription fee ($165, $325, or $375 respectively at full price; usually 25-40% less with promo codes). The Combine is a simulated trading environment using real market data. You trade futures contracts (ES, NQ, CL, GC, etc.) and your performance is tracked.

Step 2: Hit the profit target without violating rules

Each Combine has a profit target (typically 6% of account size — $3,000 on the 50K, $6,000 on the 100K, $9,000 on the 150K). You hit it as fast or as slow as you want. There's no time limit. The catch: you must not violate the daily loss limit or the trailing drawdown threshold while doing it.

Step 3: Pass and receive an Express Funded Account

Once you hit the profit target, the next business day you receive an Express Funded Account at the same size. This is real capital — TopStep's money — and your trades go to the live market. You're now a "TopStep Trader."

Step 4: Trade the funded account, withdraw earnings

The first $10,000 in profits is 100% yours. Beyond that, you keep 90% and TopStep keeps 10%. You withdraw via ACH (free) or wire ($25 fee), with weekly cycles. Funds typically arrive 2-5 business days after request.

What TopStep Costs (Real Numbers)

Account Size	Profit Target	Max Drawdown	Daily Loss Limit	Monthly Sub
50K	$3,000	$2,000	$1,000	$165
100K	$6,000	$3,000	$2,000	$325
150K	$9,000	$4,500	$3,000	$375

Costs to factor in:

Monthly Combine subscription: until you pass.
Reset fee: if you violate a rule, you can pay a reset fee (typically $50-$100) to restart the Combine without losing the original month.
Wire fees: $25 per wire withdrawal. ACH is free.

Once you pass and graduate to a funded account, there are no monthly fees. You can hold the funded account for years and only pay if you violate a rule (which kills the account) or want to scale into a larger account.

The Two Hard Rules That Kill Most Traders

Daily Loss Limit

You cannot lose more than the daily loss limit in a single trading day. On the 50K account, that's $1,000. Hit it and your account is locked for the day, and on the funded account, hitting it ends the funded account permanently.

Trailing Drawdown (also called Trailing Threshold)

This is the rule that catches the most traders. Your account has a "drawdown line" that trails behind your peak balance. If you reach a new high of $52,500 on the 50K account, the drawdown line moves up by the same amount you went up. If you then draw back down to a balance equal to or below that line, the account is dead.

The trailing drawdown freezes once your account hits the original starting balance plus the drawdown amount (e.g., $52,000 on the 50K). After that, the drawdown line stays fixed and you have permanent breathing room. But until then, every dollar you make tightens the drawdown line.

This is the number-one killer: traders make money, the drawdown trails up, then they have a normal losing day and the drawdown wipes them out. Understanding trailing drawdown before you start the Combine is critical. We have a dedicated guide.

Who TopStep Is For

TopStep makes sense for:

Traders with a tested strategy who can consistently make money in paper trading or small live accounts.
Traders with capital to subsidize 2-3 months of Combine fees while passing (worst case).
Traders with discipline to follow strict risk rules even when emotions push otherwise.
Traders who want to access larger position sizes than their own capital allows.

Who TopStep Is Not For

TopStep is wrong for:

Absolute beginners — you'll lose money learning. Paper-trade first.
Traders without a tested strategy — TopStep won't teach you to trade.
Traders who can't afford to lose the Combine subscription fee while learning.
Traders with poor risk discipline — the rules are non-negotiable and unforgiving.
Traders who want to hold positions overnight — most TopStep accounts are intraday only.

TopStep vs a Normal Brokerage

Aspect	TopStep (Funded)	Normal Brokerage
Capital source	TopStep's capital	Your capital
Profit split	100% to $10K, then 90/10	100% to you
Monthly fee	$0 once funded	$0 typically
Risk rules	Strict (daily/trailing)	None (besides margin)
Account size accessible	$50K-$150K immediately	What you put in
Maximum loss	Limited to TopStep's capital	Your full account
Position sizing freedom	Capped per account size	Limited by your margin only

Is TopStep Legit?

Yes. TopStep has been operating since 2010, the longest in the futures-prop space. It maintains an A+ Better Business Bureau rating. It has paid out millions to funded traders (verified through public filings and trader testimonials). The CEO and operations team are publicly identified and have been with the firm for years.

Most of the negative chatter about TopStep online comes from traders who failed and blame the firm. The reality: the rules are well-defined and consistent; whether you pass is determined by your skill and discipline, not by TopStep manipulating outcomes.

What TopStep Doesn't Do

It's worth being clear on what TopStep is not:

Not a free lunch. You pay monthly until you pass, and most traders never pass.
Not a teaching service. They don't teach you to trade. You bring the strategy.
Not a brokerage. You can't deposit money and trade your own funds. It's a funded-account model only.
Not stock or options trading. TopStep funds futures only — ES, NQ, CL, GC, ZB, and major futures contracts.
Not a get-rich path. The funded payouts are real but require ongoing discipline — most funded accounts get killed within 3-6 months.

Common Beginner Mistakes

Buying the Combine without a strategy. You will fail. The Combine costs money for as many months as it takes you to pass. Don't start without a tested approach.
Sizing too large in the Combine. Beginners trade max contracts trying to hit the profit target fast and blow through the daily loss limit. Trade small. Pass slowly.
Ignoring trailing drawdown. Make money, lose money, account dies because the trailing drawdown ratcheted up. Most common death.
Treating the funded account like a casino. Once funded, traders take huge swings going for fast withdrawals. The account dies. The same discipline that passed the Combine has to continue.
Not having a backup plan after first reset. When the first Combine fails, traders get emotional and either quit or rage-trade the second eval. Plan for the reset before it happens.

What's the Profit Potential?

Realistic numbers for a disciplined funded TopStep trader:

Conservative: $500-$1,500/month on a 50K funded account.
Average disciplined: $1,500-$4,000/month on the 100K.
Skilled: $4,000-$10,000/month on the 150K.
Top performers: $10,000+/month, often via the scaling plan into multiple accounts.

These numbers assume the trader survives. The hard truth: 70-80% of funded TopStep traders lose their funded account within 3-6 months because rule discipline is harder than passing the Combine.

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FAQ

What is TopStep?

A Chicago-based futures prop firm founded in 2010. Lets traders prove their skill in a paid Combine evaluation and receive a funded account if they pass.

How does TopStep work?

Pay monthly for a Combine, hit the profit target without violating risk rules, get a funded account, split profits 90/10 with TopStep after the first $10K.

How much does TopStep cost?

$165-$375/month for Combines depending on size. Promo codes drop this 25-50%. No fees once you're funded.

Is TopStep legit?

Yes — operating since 2010, A+ BBB rating, millions in verified payouts.

Who is TopStep for?

Traders with a tested strategy, capital to subsidize 2-3 months of fees, and rule discipline. Not for beginners.

How is TopStep different from a brokerage?

You trade TopStep's capital instead of your own, in exchange for a profit split and strict risk rules. Capital access is greater; full ownership is less.

Bottom Line

TopStep is the most established futures prop firm and a legitimate path to trading larger capital than you personally control. The trade-off is real: you pay monthly until you pass, you split profits, and you operate under strict risk rules that kill the account if violated. For traders with a tested strategy and discipline, TopStep can be a meaningful income source. For everyone else, it's an expensive lesson.

The decision shouldn't be "should I try TopStep?" — it should be "do I have a tested strategy and the discipline to follow rules?" If yes, TopStep is excellent. If no, paper-trade for 3-6 months first. The Combine fee is the wrong place to develop your strategy.

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