Topstep Company

Topstep Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

Topstep was founded in July 2012 by Michael Patak, a former floor trader at the Chicago Board of Trade. The company initially operated under the name "TopstepTrader" before rebranding to "Topstep" in 2020 following a merger. The firm's mission is to help traders develop their skills and discipline while providing them with access to real capital without risking their own funds.

Parent Company/Ownership Structure

Topstep operates as a private limited liability company (LLC). Its ownership structure is primarily held by its founder and CEO, Michael Patak, along with other stakeholders involved in the trading and financial technology sectors.

Headquarters Location

The company is headquartered in Chicago, Illinois, a significant financial hub in the United States, which allows it to remain closely connected to the trading community and industry innovations.

Global Business Scope

Topstep serves a global clientele, providing trading opportunities for individuals from various countries. The firm focuses primarily on futures trading but has also expanded its offerings to include forex trading. It has funded thousands of traders worldwide and continues to grow its international presence.

Main Regulatory Bodies

While Topstep itself is not regulated by any specific financial authority, it operates through Equiti Capital, a regulated broker in the UK. This means that the actual trading on funded accounts is subject to oversight by the Financial Conduct Authority (FCA) and other regulatory bodies that govern Equiti Capital.

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2. Company History and Development

Key Milestones

• 2012: Topstep was founded, beginning its mission to provide funding opportunities for retail traders.
• 2016: The company was recognized as a finalist in the Chicago Innovation Awards.
• 2020: Rebranding from TopstepTrader to Topstep, reflecting its broader focus on trader development and community support.
• 2021: Topstep funded over 6,000 accounts, demonstrating significant growth in its trader base.

Business Expansion Journey

Initially focused on futures trading, Topstep has expanded its offerings to include forex trading, allowing traders to diversify their trading strategies. The company has continuously improved its platform and services, responding to the needs of its growing customer base.

Customer Base Growth

Topstep has seen substantial growth in its customer base, with more than 10,000 traders funded and over 81,177 payouts processed in 2024 alone. The firm's focus on education and trader support has attracted a diverse group of traders, from beginners to experienced professionals.

Platform Development History

Topstep has developed its proprietary trading platform, which includes features tailored for prop firm traders. The platform supports various trading tools and resources, enhancing the trading experience for its users. Notable platforms used include NinjaTrader and Quantower.

Important Awards or Recognitions Received

Topstep has received several accolades, including being named one of the "Best and Brightest Companies to Work For" in 2016 and ranking on the Inc. 5000 list of Americas fastest-growing private companies.

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3. Trading Services Offered

Forex Trading Options

Topstep provides access to a limited range of forex trading options, primarily focusing on major currency pairs. The exact number of currency pairs varies, but traders can typically access popular pairs such as EUR/USD, GBP/USD, and USD/JPY.

Stock Trading Options

Currently, Topstep does not offer direct stock trading. Its primary focus remains on futures and forex trading, allowing traders to speculate on price movements in these markets.

CFD Trading Products

Topstep does not provide Contracts for Difference (CFDs) as part of its trading offerings. The firm emphasizes futures trading, which aligns with its business model.

Other Financial Instruments

Topstep specializes in futures trading, offering contracts related to commodities, indices, and other financial instruments. However, it does not support trading in cryptocurrencies or options.

Special Services or Unique Advantages

Topstep's unique advantage lies in its structured evaluation program known as the Trading Combine®, which allows traders to demonstrate their skills in a simulated environment before receiving a funded account. The firm also offers educational resources, coaching, and a supportive trader community.

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4. Regulatory and Legal Background

Detailed Regulatory Information

Topstep is not directly regulated by any financial authority, as it operates as a proprietary trading firm. However, it partners with Equiti Capital, which is regulated by the FCA in the UK. This arrangement provides a level of oversight for the trading activities conducted through funded accounts.

Legal Entity Structure by Region

Topstep is registered in the United States as Topstep LLC. It operates primarily in the U.S. but serves traders globally, adapting its services to meet the needs of various markets.

Client Fund Protection Measures

Since Topstep does not hold client funds in the traditional sense, as traders are funded by the firm itself, there are different protection measures in place. The actual trading is conducted through a regulated broker, which offers a layer of security for traders' activities.

Countries/Regions Served

Topstep serves a global audience, with a significant presence in the United States, Canada, Australia, and various other countries. However, it does not accept traders from certain regions, including Afghanistan, Cuba, and several Eastern European countries.

Compliance History

Topstep has maintained a positive compliance history, focusing on ethical trading practices and providing a transparent environment for its traders. The firm's operations are designed to adhere to industry standards and best practices.

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5. Competitive Landscape

3-5 Main Competitors

Topstep competes with several other proprietary trading firms, including:

• FTMO: A well-known prop trading firm offering similar funding opportunities.
• The Funded Trader: Another competitor focusing on providing traders with capital and support.
• Earn2Trade: Offers educational resources and funding opportunities for traders.
• Fidelcrest: Focuses on forex and futures trading with a similar evaluation model.

Positioning in the Industry

Topstep positions itself as a leader in the proprietary trading sector, particularly in futures trading. Its unique evaluation process and emphasis on trader development differentiate it from other firms.

Market Differentiation Factors

Topstep's key differentiators include:

• The Trading Combine®: A rigorous evaluation process that allows traders to prove their skills before receiving funding.
• Comprehensive Educational Resources: Access to coaching, community support, and various educational materials.
• Payout Flexibility: Funded traders can take payouts up to four times a month, which is attractive for active traders.

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In conclusion, Topstep has established itself as a prominent player in the proprietary trading landscape, providing traders with unique opportunities and resources to succeed in the financial markets. Through its structured evaluation process and commitment to trader development, Topstep continues to support a diverse and growing community of traders worldwide.

For more information about Topstep and its offerings, learn more here.