Proprietary trading involves the use of a company's own funds to trade stocks, commodities, currencies, cryptocurrencies, and forex.

This approach allows the company to generate profits directly from its trading activities rather than relying on commissions from clients, thereby enabling them to retain a larger share of the profits.

Trading futures can be both expensive and complex due to their high volatility, but they also offer the potential for substantial profits when executed skilfully.

Futures proprietary trading firms provide traders with small accounts access to the requisite capital needed to engage in futures trading. These firms offer several benefits, including:

  • Enabling you to trade without risking your personal capital
  • Providing substantial funding to prevent overleveraging and gambling
  • Enforcing risk management policies
  • Offering a wealth of educational tools and resources to support traders’ development

To be eligible for a fully funded trading account, traders must typically pass an evaluation or challenge, which entails achieving a specific profit target within a stated timeframe without exceeding a maximum loss.

The challenge often requires a fee and is done using a demo account.

Once successfully completed, traders gain access to funds and a live account.

Depending on the proprietary trading firm, traders can retain a significant portion of their profits, ranging from 70% to 90%, with the potential for increased funding following sustained success.

The Four Main Types of Futures Proprietary Trading Firms

  • Event-driven trading firms focus on trading opportunities arising from economic or corporate events like elections, bankruptcies, and mergers.
  • Multi-strategy trading firms employ various short and long-term trading strategies.
  • High-frequency trading firms use algorithms, financial data, and electronic tools to execute high-speed trades with high order-to-trade ratios and high turnover rates.
  • Quantitative trading firms use mathematical and statistical models to identify and execute trading opportunities.

Selecting the right futures proprietary trading firm depends on your trading style and strategies.

How to Pick Futures Trading Prop Firms?

Given the number of funded futures trading firms out there, choosing the right one can be a daunting task. When looking at your options, consider the following steps:

  1. Assets available

The world of trading and investing offers a vast array of opportunities, encompassing numerous assets and strategies. As you choose, consider whether you wish to specialise exclusively in futures prop trading or whether you would like to maintain the flexibility to broaden your trading portfolio.

Certain traders advocate mastering a single asset, whereas others argue that a diverse portfolio is the key to achieving success.

  1. Reputation

The most reputable futures trading prop firms are those that have built a longstanding track record of reliability and trustworthiness. In today’s market, there is an abundance of companies touting get-rich-quick schemes or enticingly low fees that often turn out to be fraudulent. Unfortunately, identifying these fake firms is not always straightforward. When in doubt, it is advisable to stick with well-established prop firms, even if this entails paying slightly higher fees.

  1. Resources and support

If you believe you could benefit from additional assistance, seek out firms that provide educational materials and mentorship. Given the constant evolution of technology, markets, and challenges, there is always room for learning, even for seasoned traders. The top-tier futures proprietary firms recognise this and offer high-quality educational resources.

  1. Trading styles

Different proprietary firms have varying focuses, with some specialising in high-frequency trading, while others, such as Apex Trader Funding and Topstep, adopt a more flexible approach, allowing individual traders to define their strategies. Prior to making a commitment, it is essential to ascertain which trading strategies are allowed on your funded futures account and what data and tools you will be able to access.

  1. Fees and costs

Each firm will have its own payment structure. Naturally, the most enticing options appear to be those with low upfront payments and substantial profit-sharing arrangements. However, such firms may not provide the best tools and resources. Evaluating which firm offers the best value for money entails a comprehensive assessment of fees, profit-sharing terms, features, and support. Given the variability of individual budgets, what constitutes “good value” will inevitably differ from one trader to another.

Final Thoughts

Futures proprietary trading firms can be a lucrative avenue for skilled traders, but they come with inherent risks due to market volatility. It’s therefore essential to thoroughly research which prop firm you choose, considering factors like reputation, fees, and available resources.

Always remember that trading involves risk, and it’s crucial to use available tools and never invest more than you can afford to lose.



What are the top 5 future prop firms? ›

The top futures prop firms are TopStepTrader, Jane Street, FTMO, 3Red Partners and The Trading Pit. Jane Street and 3Red Partners are very secretive about their fees and profit splits but they do offer some of the best technology and high-frequency trading.

What are futures prop firms? ›

Prop trading firms typically offer a range of futures contracts including commodities (like crude oil and gold), financial indices (such as the S&P 500 and Dow Jones), currencies, and interest rate products (like treasury bonds and Eurodollar futures).

How do prop firms get funded? ›

How do prop firms make money? Most revenues generated by a prop firm come from the profits generated by the prop traders. Firms have a profit-sharing arrangement in place with their traders.

How many people fail prop firms? ›

Historically, retail prop firm challenges have been designed to set traders up to fail. They're given harsh targets, limited time, no support, and huge leverage – a perfect storm! It's not surprising that 95% of traders fail their challenges!

What is the best funding prop firm in 2024? ›

Conclusion. In the world of prop trading, these five firms - SabioTrade, The5ers, T4TCapital, Topstep, and Fidelcrest - stand out as pioneers, each contributing to the ecosystem in its unique way.

Is funded Next trustworthy? ›

Fundednext is one of leading and trusted funding prop firms in the world, if you are looking to start trading a huge capital up to $300,000. Having tested it, I highly recommend you go ahead and sign up with Fundednext.

Which is the most trusted prop firm? ›

The most popular prop trading firms and funded programmes
  • Axi Select.
  • FTMO.
  • The Forex Funder.
  • E8 Markets.
  • True Forex Funds.
  • The 5%ers.
  • Funded Next.

Which is the cheapest prop firm? ›

Best cheap forex prop firms
  • FTMO: evaluations starting at $399.
  • TopStepTrader: Challenges starting at $375.
  • T4tCapital: Flexible evaluation options starting at $299.
  • Funded Trading Plus: Starting at $25.
  • Earn2Trade: $99 Mini challenge.
  • True Trading Group: $49 evaluation with a $25,000 virtual account.
Feb 27, 2024

Do prop firms give you real money? ›

Sure, the firm may replicate successful trades of the funded traders on the firm's real account. But, again, those are trades made by the firm itself with its own capital. And in general, prop firms insist that they are not financial institutions and do not provide financial services.

Which prop firm offers instant funding? ›

FTUK is a reputable prop firm with instant funding accounts, which attracts seasoned traders who want to access large trading capital without a lengthy evaluation process. The funding range is from 14k to 5 million USD with a profit share of 80% and maximum leverage of 1:100.

How is prop firm income taxed? ›

You cannot classify as capital gains on trading at a prop firm as you are independent contractor and thus it is self employed income, meaning there is sales tax to be paid when you make declaration of your yearly tax income.

Is Prop firm worth it? ›

There are many unique advantages that make working with a prop firm worth it. These include access to unique software and information, trading with the firm's capital, and cashing in a large portion of your winnings.

What is the pass rate for funded account? ›

Around 10% pass

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

Is it hard to pass funded challenge? ›

You must be profitable and fulfill certain trading objectives which makes it even harder. Less than 1% of traders who attempt the challenge pass and get funded. It's best to invest in a few challenges. Instead of purchasing a 200K FTMO Challenge, take five smaller 10K challenges.

Is it hard to get funded by a prop firm? ›

Conclusion. It is incredibly challenging to become a funded trader, and the data discussed in this guide proves this. Prop firms want to do business only with the best of the best, and the vast majority of traders do not cut it. That does not mean you cannot try to join the select few traders funded by prop firms.

What is the best prop firm for futures trading? ›

Quick Look: Best Prop Trading Firms
  • Best for Beginner Futures Traders: Apex Trader Funding.
  • Best for Experienced Traders: FXIFY.
  • Best for Stock Traders: Trade the Pool.
  • Best for Experienced and Beginner Forex, Indices and Metal Traders: The 5ers.
  • Best for All Futures Traders: BluSky.

What is the most rated prop firm? ›

Best Prop Trading Firms 2024 - Reviewed by Experts
  1. Topstep: A Leader in Trading Innovation. ...
  2. The 5%ers: Forex Trading with a Twist. ...
  3. Earn2Trade: Empowering Aspiring Traders. ...
  4. SurgeTrader: A Gateway to Diverse Trading Assets. ...
  5. FTMO: Stringent Yet Rewarding. ...
  6. E8 Funding: Innovative and Flexible.
Feb 2, 2024

What is the most trusted prop firm in the world? ›

Funder Trading stands first in our list of the top prop trading firms in 2024 due to multiple reasons but notably it is the only prop trading firm that offers options funding and includes coaching for every trader signed up.

Which prop firm is the most trusted? ›

FTMO lets you trade just about any financial instrument out there, and with more than 10,000 traders worldwide, they are probably the most reputable, successful prop trading firm in the world.

Top Articles
Latest Posts
Article information

Author: Amb. Frankie Simonis

Last Updated:

Views: 5777

Rating: 4.6 / 5 (76 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Amb. Frankie Simonis

Birthday: 1998-02-19

Address: 64841 Delmar Isle, North Wiley, OR 74073

Phone: +17844167847676

Job: Forward IT Agent

Hobby: LARPing, Kitesurfing, Sewing, Digital arts, Sand art, Gardening, Dance

Introduction: My name is Amb. Frankie Simonis, I am a hilarious, enchanting, energetic, cooperative, innocent, cute, joyous person who loves writing and wants to share my knowledge and understanding with you.