Trade The Pool

Trade The Pool: The First Prop Firm Dedicated Exclusively to U.S. Stocks

Trade The Pool (TTP) is a revolutionary prop trading firm that has carved a unique niche for itself by focusing exclusively on the U.S. stock market. Launched in September 2022, it is operated by Five Percent Online Ltd.—the same team behind the respected Forex prop firm The5ers—and is led by CEO Michael Katz, a trading veteran with over 17 years of experience. TTP is widely considered the first and only major proprietary trading platform built from the ground up for equity traders, offering access to a massive universe of over 12,000 U.S. stocks, ETFs, and penny stocks. Despite being relatively new, the firm has quickly built a solid reputation, holding a Trustpilot rating of 4.4/5, with over 80% of reviews being five stars, and has received a CLEARTM certification after independent stress testing.

The Evaluation Process: A Flexible Single-Step Challenge

Trade The Pool’s standout feature is its use of a simple, one-step evaluation process. There are no multi-phase challenges. After paying a one-time fee starting from as low as $47, traders are given a simulated account and must meet a profit target while adhering to the firm’s loss and consistency rules.

To accommodate different trading styles and risk appetites, TTP offers four main account programs:

• Day Trade MAX: A plan for day traders with a 60-day evaluation window. The profit target is a 6% gain. Available buying power ranges from $50,000to$50,000to200,000, with fees starting at $230.
• Day Trade FLEX: A day trading plan with no time limit. The profit target is also a 6% gain. Available buying power ranges from $5,000to$5,000to200,000, with fees starting from just $59.
• Swing Trade MAX: A swing trading plan with a 100-day evaluation window. The profit target is a 15% gain. Available buying power is lower, from $2,000to$2,000to40,000, with fees starting at $69.
• Swing Trade FLEX: A swing trading plan with no time limit. The profit target is a 15% gain. Available buying power ranges from $2,000to$2,000to40,000, with fees starting at $87.

Key Rules and Guidelines

To succeed in the evaluation, traders must follow a clear set of rules designed to promote disciplined trading:

• Profit Targets: 6% for all day trading plans, and 15% for all swing trading plans.
• Consistency Rule: Your best trading day cannot account for more than 50% of the total profit on FLEX plans, or more than 30% of the total profit on MAX plans.
• Minimum Trade Requirement: A minimum of 30 trades must be placed during an evaluation.
• Minimum Trade Duration: Each trade must be held for a minimum of one minute.
• Daily Loss Limits: Limits vary based on account type, but are typically in the range of 2-4%.

Trading Conditions and Platform: Built for Stock Traders

Once a trader successfully passes the evaluation, they are given a funded account to trade with the firm’s real capital. One of the most significant advantages of Trade The Pool is its integration with Interactive Brokers (IBKR), one of the world’s largest and most reputable brokerage firms. This partnership allows TTP to offer a truly unique and beneficial trading environment for its users:

• Access to a Vast Universe of Stocks: Trade over 12,000 U.S. stocks, ETFs, and penny stocks.
• No PDT Rule: TTP does not enforce the Pattern Day Trader (PDT) rule, meaning traders can execute as many day trades as they want without being restricted by minimum account equity requirements.
• Short Selling Without Locate Fees: The firm covers the cost of locating hard-to-borrow shares, allowing traders to short-sell stocks without incurring additional fees.
• Pre- and Post-Market Trading: TTP permits trading during extended hours sessions, providing additional flexibility.
• Professional-Grade Platform: All trading is conducted on the “Trader Evolution” platform, which includes professional tools like Level II market data, time and sales, customizable watchlists, multiple charting capabilities, and an integrated news feed. The platform is accessible via desktop and mobile devices, and fast order execution is provided through Interactive Brokers’ infrastructure.

Payouts and Profit Split

Funded traders at Trade The Pool can request payouts bi-weekly (every 14 days) once they have generated a minimum profit of $300. Payments are processed within 1-2 business days via bank wire transfer or cryptocurrency. The standard profit split is:

• 70% Trader / 30% Firm for most standard accounts.

It’s worth noting that while a 70% profit share is standard for stock-focused prop firms, it is generally lower than the 80-90% splits offered by many Forex prop firms.

Strengths and Weaknesses

Here is a quick summary of the key advantages and disadvantages of choosing Trade The Pool:

👍 Pros

• Specialized Stock Focus: A unique firm built specifically for U.S. stock and ETF traders.
• No PDT Rule: Traders are free to day trade without restrictions.
• Short Selling Advantages: No locate fees for short selling, even on penny stocks.
• Extended Hours Trading: Access to pre-market and after-hours trading sessions.
• Low Entry Barrier: Challenge fees start as low as $47, making it accessible to a wide range of traders.
• Simple Evaluation: A single-step evaluation process is straightforward and less time-consuming than multi-phase challenges.

👎 Cons

• Lower Profit Split: The standard 70/30 split is lower than what many Forex prop firms offer.
• No Asset Diversification: TTP is restricted to stocks and ETFs; Forex, crypto, and futures are not supported.
• Strict Trading Rules: The platform has specific rules regarding consistency and minimum trade duration, which may not suit all trading styles, such as scalping.
• Platform Limitation: The Trader Evolution platform does not natively support macOS.
• Inconsistent Support: Some users have reported variable response times from customer support.

Final Verdict

Trade The Pool has successfully established itself as a premier destination for traders who want to focus on the U.S. stock market without the hassles of the PDT rule or the costs of locating shares for short selling. Its unique proposition, combined with a solid business backing from The5ers and a clear, fair evaluation process, makes it a highly reputable choice in the prop trading space. While the 70% profit split may not be the most competitive in the industry, the immense benefits for dedicated equity traders often outweigh this drawback. Trade The Pool is an excellent option for both new and experienced stock traders looking to trade real shares with a firm that truly understands their needs.