How Topstep Works in 2025 and Whether It’s Still Worth Joining

Understanding how Topstep works is essential before you commit to its evaluation program. This guide breaks down the entire Topstep process in a simple, practical way—from the Trading Combine all the way to receiving your first payout. If you’ve ever wondered whether Topstep is worth it in 2025, this overview will give you the clarity you need.

1. What Is Topstep?

Topstep is one of the most recognized proprietary trading firms in the futures industry. Founded in Chicago in 2012, the company’s mission is to help traders grow without risking their own savings. Instead of trading with real money upfront, you begin in a simulated environment where you must prove discipline, consistency, and risk control.

What is Topstep

Once you pass the evaluation, Topstep provides access to real capital through its funded accounts, giving traders from over 140 countries a chance to trade professionally without financial exposure.

The firm prioritizes smart risk-taking, accountability, and steady performance—qualities that have helped over 10,000 traders go live with funded capital.

2. How Does Topstep Make Money?

Topstep’s business model is simple and transparent. The company primarily earns revenue from two sources:

Monthly Subscription Fees

Traders pay for access to the Trading Combine, which renews every 30 days unless canceled:

• $50K Combine – $49/month

• $100K Combine – $99/month

• $150K Combine – $149/month

These fees continue until you pass or choose to walk away.

Activation Fee

After passing the evaluation, traders pay a $149 one-time activation fee to unlock the Express Funded Account.

Profit Sharing

Traders keep:

• 100% of their first $10,000 in payouts

• 90% of profits afterward

This structure ensures Topstep only makes money when traders succeed.

3. How Topstep Works (3 Phases)

If you search for “how Topstep works” or “Topstep tutorial”, it all boils down to three clear stages:

1. Evaluation Phase (Trading Combine)

2. Express Funded Account (bridging stage)

3. Live Funded Account (real payouts)

Let’s break these down.

3.1 Step 1 — Trading Combine (Evaluation Phase)

Every trader starts in the Trading Combine, a simulated environment built to measure skill and discipline. You’ll use TopstepX, the firm’s exclusive trading platform designed to enforce rules and remove emotional bias.

Each account size comes with:

• A profit target

• A maximum loss limit

• A daily loss limit

• A contract cap

Your job is to hit the profit target without breaking any rules.
Fail a rule → restart.
Maintain discipline → funding advance.

The Combine continues month-to-month until you pass or cancel.

3.2 Step 2 — Express Funded Account (XFA)

Once you pass, you move into the Express Funded Account—a transitional stage between practice and real payouts. This phase still uses simulated fills, but payouts here are real.

Benefits include:

• Up to $5,000 payout cap

• Up to 5 funded accounts

• No financial risk for traders

• Focus on emotional discipline and consistency

The XFA tests whether you can perform with real payout pressure before moving into live capital.

3.3 Step 3 — Live Funded Account (Real Capital + Real Payouts)

The Live Funded Account is where Topstep puts real money behind your trading decisions. You gain access to up to $150,000 in capital, depending on your evaluation choice.

The final stage is the Live Funded Account

Payout structure:

• Your first $10,000 → 100% yours

• After that → 90/10 split (you keep 90%)

Withdrawals are flexible—you can request weekly payouts and unlock daily payouts once you’ve demonstrated consistent profitability.

Topstep bears all financial risk here, while you focus on scaling your strategy responsibly.

4. Key Rules You Must Follow

To keep traders disciplined and protect firm capital, Topstep enforces several rules across all stages. Breaking any of these ends the account.

Important rules include:

• Trailing Drawdown: Moves with your account's high-water mark.

• Daily Loss Limit: Applies on platforms like NinjaTrader and Tradovate.

• Profit Target: Typically 6% of the starting balance.

• Consistency Rule: One day’s gains cannot exceed 50% of total profits.

• Minimum Trading Days: At least two active trading sessions.

• No Overnight Positions

• Restricted News Trading

• Platform Updates: Since July 2025, all new Combines and resets run exclusively on TopstepX.

Following these rules is the key to reaching payout eligibility.

5. Costs and Fees You Should Expect

Before joining, here are the essential fees traders must prepare for:

• Trading Combine: $49–$149 per month

• Reset Fee: Equal to your Combine subscription

• Activation Fee: $149 (one-time)

• Market Data Fees: From $133/month per exchange (CME data can reach $540)

These costs support Topstep’s evaluation system, real-time market feeds, and platform access.

6. How Topstep Payouts Work

Topstep uses a payout model designed to reward discipline and consistency.

• In the Express Funded Account (XFA), you can withdraw up to $5,000.

• In the Live Funded Account, you receive:

  • 100% of the first $10K

  • 90% of everything after

Traders can request weekly withdrawals, and once they show consistent positive performance for 30 days, daily payouts become available.

The payout process is fast, straightforward, and built to encourage responsible trading habits.

Read full guide: https://h2tfunding.com/how-does-topstep-work/

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