Best Prop Trading Firms in Mexico

Proprietary trading has become a staple of financial trading lately, caused by the strong attractiveness of funded accounts for Forex and other financial traders. Prop firms in Mexico are becoming increasingly popular, reflecting the wider global trend. As a result, plenty of prop firms are operating in or attracting clients from Mexico, offering unparalleled opportunities and almost risk-free trading. Let’s overview the prop trading industry in Mexico and list some of the best prop trading firms accepting traders from the country.

Understanding Prop Trading

Proprietary trading firms, or prop firms, in short, are financial companies that generate revenue from direct financial trading using their own capital. Because of this unique nature, they are not typically regulated heavily like brokers do, as they are not managing client funds or giving them investment advice. Prop firms try to attract profitable traders by offering funded account challenges where they charge a small fee to onboard traders and whoever passes the evaluation gets access to a funded account with the firm’s capital. Funded accounts are incredibly attractive for FX traders as they offer large trading balances, often varying between 5000 USD and 100,000 USD or even higher. Many prop firms also offer scaling plans for Mexican financial traders to allow them to increase the base funding amount slowly as they progress and become better traders. To protect their capital from irresponsible trading, prop firms impose certain rules including daily risk limits, maximum drawdown, and prohibiting traders from certain practices such as news trading, or holding positions overnight and over the weekends. These rules can vary from firm to firm, but the daily risk limit and maximum drawdown are universal, together with a certain profit target.

Our top rated prop

Trader5

Our rating

Licences:

N/A

Currencies:

EUR

Trading Platforms:

Custom

Year founded:

2024

Promo Code:

N/A

Min Account size:

10,000 EUR

Trader5 Forex is a relatively new reliable firm with a 90% profit split and fast payouts. Enjoy 78-day payouts and starting fee of less than 100 EUR.

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Recommended

Blue Guardian

Our rating

Licences:

N/A

Currencies:

USD

Trading Platforms:

MT4

Year founded:

2019

Promo Code:

N/A

Min Account size:

10,000 USD

Blue Guardian offers $0 withdrawal fees, access to MetaTrader 4, no profit target after the audition, up to 85% profit split, and very low fees starting from $87.

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Funded Trading Plus

Our rating

Licences:

N/A

Currencies:

USD

Trading Platforms:

MT4, MT5

Year founded:

2013

Promo Code:

N/A

Min Account size:

5,000 USD (229 USD on Instant funded account)

Funded Trading Plus Forex prop firm is a solid player in the space. The firm offers funding for Forex trading from 5,000 to 250,000 USD and a scaling plan up to 2,500,000 USD.

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Advantages of using a Funded Account in Mexico

Prop trading in Mexico can be incredibly lucrative when you have a profitable trading strategy. Opting for a funded account enables traders to take advantage of several key benefits:

• Access to large capital — Prop firms offer access to considerably more capital than the average financial trader can afford in Mexico and the rest of the world.
• Risk-free trading — Prop traders are not liable for losses incurred in prop trading, which is a huge advantage over traditional trading.
• Access to advanced technologies and training — Many top prop firms in Mexico offer advanced training courses, mentoring, and coaching to develop successful traders for long-term relationships.
• Professional development — Prop traders can use a scaling plan to increase their funding gradually as they perfect their skills and increase their risk tolerance.
• High profit-split percentages — Prop firms in Mexico, just like anywhere else, offer up to 90% profit split, meaning traders can withdraw up to 90% of profits made on a funded account.

With these advantages, prop trading has become super popular among financial traders and more and more traders are trying to get funded and manage huge capital for increased profits without investing their own money apart from a tiny fee.

Top Prop Trading Firms in Mexico

After researching the Mexican prop trading industry and overviewing countless prop firms, we have selected the best prop trading firms in Mexico. Below is the list containing the top five firms currently operating in the country.

The Mexican Prop Trading Landscape

Prop trading is legal and allowed in Mexico, with many reliable firms operating in the country. The activities of financial trading and financial institutions are regulated by the Comisión Nacional Bancaria y de Valores (CNBV), Mexico’s primary financial regulatory body. Prop traders in Mexico are subject to the country’s tax laws, and they must pay capital gains tax on their profits generated on funded accounts. Profits from trading are considered taxable income and must be reported to the Servicio de Administración Tributaria (SAT), Mexico’s tax authority. For Mexican FX prop traders, it is therefore necessary to know these regulatory details and ensure they are compliant with local tax authorities. Despite taxes and regulations, the prop trading industry is still fast-growing in Mexico, which is mainly caused by the popularity of funded accounts. As technology advances and accessibility increases, many prop firms are offering more and more competitive products, attracting thousands of financial traders to their premise of large trading capital and risk-free trading possibilities.

Criteria for Evaluating Prop Trading Firms

When evaluating a prop trading firm, there are several key factors to weigh in. The most important is surely safety but prop traders can not ignore other important factors such as assets, funding options, rules, assets, support, and more. Let’s explain each of them for Mexican Forex traders who want to evaluate or select the most suitable prop firm.

Safety and Reliability

The first and most important factor is the reliability of the prop trading firm. Since prop firms are not heavily regulated like brokers do, it is fairly difficult to find a reliable firm and time and effort are necessary to assess the firm’s safety. This is typically done by researching the trader’s feedback online regarding the firm’s services and checking its reviews. The longer the firm has been around, the safer it is. Scams rarely make it past 2–3 years of existence, and if the firm has 3 or more years of experience, it is a fairly good sign of its reliability. Another key indicator of safety is if the firm offers trading services through a regulated partner broker to avoid price manipulation and ensure traders have access to advanced trading platforms.

Funding Options and Scaling Plan

After safety, funding options and diversity are very important. For beginners, lower funded amounts of 5k or even lower are more appealing, while experienced traders prefer higher funded options such as 100,000 USD or more. Some firms might be oriented to acquiring professional traders and won’t offer lower accounts than 25k, while others offer lower funded options but lack higher than 100k funding. The most appealing ones are with a wide range of funding options ranging from 5k to 100k and higher. A scaling plan is another important aspect of prop trading, as it allows successful traders to gradually increase their maximum funding, gives them motivation to develop their skills further, and makes the firm more attractive among professional traders.

Trading Rules

After this comes the most important part of the prop trading firm selection and evaluation process, prop firm trading rules. Ensuring the firm does not have hidden rules is critical. Daily risk limits and overall drawdown limits are very important to define how realistic it is to achieve a profit target in a reasonable time without breaching these risk limits. The general range for daily risk limit is 3-5%, and it is possible to hit the profit target in a reasonable time and maintain this risk limit. The most popular overall drawdown limits vary across firms and are generally between 6-8%, while the profit target often is given between 8-10%.

Other Important Factors

After the rules comes the availability of trading assets and trading platforms. Asset diversity is very important to attract a diverse base of financial traders. The most popular asset classes covered by the best prop firms in Mexico include Forex, commodities, indices, cryptos, and stocks. There are also firms focusing on futures and bonds. Advanced trading platforms such as MT4, MT5, and cTrader enable traders to conduct a full technical analysis without compromises, and reliable prop firms need to offer any of those platforms. Other important factors include challenge account fees and trading costs such as spreads and commissions. Low spreads allow traders to use scalping strategies which are known for high win rates, allowing prop traders to easily reach profit targets while maintaining risks under control. When it comes to educational resources, beginner traders need to have access to advanced materials and courses. Customer support is also critical, as traders might need to quickly resolve challenges or get answers to their questions.

How to Pass an Evaluation from Mexico

Passing an evaluation challenge when the best prop firm in Mexico has already been selected is a straightforward process. Traders need to have clear financial goals and develop a trading strategy that is compliant with the prop firm rules. Trading strategy has to be tested on both historical data and live market conditions, backtesting, and forward testing. One good method for forward testing when aiming for prop trading is to use the firm’s free trial to test your trading strategy’s capabilities before purchasing the funded account. This way, traders in Mexico can evaluate the effectiveness of their strategy and only then start real prop trading.

Future of Prop Trading in Mexico

With the ongoing developments and rising popularity of prop trading across the globe, the future for the Mexican prop trading industry seems bright. The industry is just in its beginning stages and if its popularity continues to rise in its current speed, we might see prop trading to become a major financial trading sector globally and in Mexico as well. The current landscape is very trader-oriented and regulations are not harsh, which is always good for both traders and prop firms. Since we got the list of the most reliable prop firms, the only thing remaining is to develop a viable trading strategy. There is a growing awareness of prop trading, and the Mexican prop trading industry can benefit from this global trend as well.

FAQs on the Best Prop Trading Firms in Mexico