Best Prop Firms for Stocks - Online Prop Firm (2024)

Prop firms are companies that provide traders with capital for trading, in return for a percentage of the profit generated. While there are many prop firms for forex trading, prop firms for stock trading are far less prevalent.

Prop firms for stocks allow traders to trade stocks, without risking their own capital. Once traders prove their skills, firms grant them buying power in order to continue their trading journey.

In this article, we will delve into the top five best prop firms for stocks. So, let’s dive right in…

Is There a Prop Firm for Stocks?

Currently on the market, there are only a handful of prop firms specifically for stocks. The leading one is Trade The Pool. Trade The Pool was founded in 2022 by Michael Katz, who recognized a gap in the market when it came to stock trading.

Trade The Pool is a sister company of reputable prop firm, The5ers.

Best Prop Firms For Stocks

Trade the Pool

Trade The Pool is the only stock prop firm on the market, offering traders an impressive array of over 12,000 stocks and ETFs available to trade. They allow swing trading and provide the opportunity to short any penny stock.

FTMO

FTMO is one of the most prestigious prop firms amongst forex traders. However, in addition to forex, they also offer traders the chance to trade indices, crypto, commodities, and a small number of popular stocks such as Apple (AAPL) and Tesla (TSLA).

Fidelcrest

Fidelcrest is a reputable prop firm with a large user base in the forex industry. They not only cater to forex traders but also extend their funding opportunities to stock traders. Fidelcrest offers a few dozen stock CFDs for traders.

SMB Capital

SMB Capital is an in-person trading desk located in Manhattan. Traders are hired by the firm and are given the infrastructure and the resources to become profitable traders.

Surgetrader

Surgetrader is a popular prop firm in the forex industry and extends its funding opportunities to stock traders as well.

Why Use a Prop Firm for Stocks

A prop firm provides traders with a unique opportunity to enhance their trading careers by offering access to advanced trading platforms, invaluable educational resources, capital funding, and a supportive community of experienced professionals. Here we will delve into the reasons why working with a prop firm for stocks can be a game-changer for both aspiring and experienced traders.

Access to Capital/Buying Power

The main advantage of using a prop firm for stocks is the access to the firm’s capital. Traders generally must prove that they are profitable traders, and in return are given capital to trade with from the firm. This also means that since the traders’ own capital is not at risk, they can afford to make moves that they might not have otherwise.

Education and Resources

Prop firms often offer high-quality resources and other educational materials in order to improve their traders’ skills. These are things like webinars, live events, social media content, etc. Good, beneficial content is a green flag for a prop firm as it proves that they are dedicated to their traders’ success.

Scaling Program

Most stock trading prop firms provide a scaling program to reward successful traders. As traders achieve certain profit milestones, these firms typically increase the amount of capital they manage on their behalf. Consequently, traders can enjoy larger profits from the market and access them more quickly compared to solely compounding their trading accounts with brokers.

Low Entry Cost

Generally, online stock trading brokers ask for a substantial deposit from traders to finance their accounts, often exceeding $10,000. However, this can pose difficulties for new traders with limited capital. Prop firms provide trading challenges at a significantly lower cost, typically only a few hundred dollars, making trading more accessible and affordable.

What to Look For in a Prop Firm For Stocks

Not all prop firms are created equal. Here is a list of a few things to take into consideration when choosing a prop firm for your stock trading.

Reputation

The reputation of a stock prop firm is very important, as the experiences of other traders will likely resemble your own. To ensure unbiased feedback, we recommend checking out platforms such as Trustpilot to research other traders’ reviews. This will help weed out untrustworthy firms.

Buying Power

When choosing a prop firm for your stock trading, buying power is super important. You’ll need a significant amount of buying power in order to make a decent profit from your trading.

Scaling Program

A scaling program allows traders to be rewarded for successful trading. Choose a firm that offers a good scaling plan so you can maximize your profits. All firms offer different scaling plans, so be sure to check out the website of each firm individually.

Support

Good customer support is vital for a prop firm, as it can have detrimental effects on your trading. Look for a firm that has quick customer support and offers lots of useful tools that will boost your trading. These can be things like webinars, live events, discord etc.

check out our full article on Benefits of Using a Prop Firm

Or our article about Best Prop Firms

Conclusion

To conclude, stock trading prop firms provide stock traders with a means to access substantial capital and achieve significantly higher profits in the markets without assuming any additional risks. There are multiple prop firms that offer a selection of stock to trade, but their focus is generally forex trading. If you’re interested in using a prop firm for your stock trading it is absolutely worth taking a look at Trade The Pool.

For 10% off Trade The Pool accounts, click here

Follow us on:TwitterFacebookInstagramTiktok