Introduction
Becoming a prop trader is often chosen by people with good trading skills but limitations in the capital. Some prop firms already provide futures trading to their prop traders. However, in selecting a futures prop firm, you cannot be arbitrary because there are many factors that you must consider. Through this article, we will discuss in detail the best futures prop firms that you can use as a reference before making a choice.
What is The Best Futures Prop Firm?
When choosing a futures prop firm, consider your specific needs and conduct thorough research. We provide recommendations to aid in your decision-making process.
1. TradeDay
TradeDaystands out in the U.S. futures prop trading scene with its innovative approach. The firm supports traders through a variety of platforms such as Tradovate, NinjaTrader, TradingView, and Jigsaw, backed by the reputable CME Group. Catering to a broad spectrum of traders with account sizes from $10,000 to $250,000, TradeDay simplifies the path to trading success with a single-step evaluation process and offers unmatched flexibility.
What sets TradeDay apart is its industry-leading withdrawal policies, offering fewer restrictions than any other futures prop firm. It boasts the best profit target to total maximum drawdown (TMD) ratios, making it easier for traders to succeed in challenges. With the addition of end-of-day (EoD) TMD adjustments, TradeDay ensures a balanced and equitable opportunity for all traders.
TradeDay enriches its traders with an abundance of institutional-grade research, educational content, daily webinars, and one-on-one mentoring, positioning itself as a premier choice for those seeking comprehensive support in the competitive world of futures trading. With a Trust Pilot rating of 4.5, TradeDay demonstrates its commitment to quality service and client satisfaction, making it a highly recommended firm for both novice and experienced traders.
In summary, TradeDay offers a unique blend of flexibility, advanced tools, and trader-focused services, making it a strong contender for those seeking a reliable futures prop firm. Whether you are just starting or are a seasoned trader, TradeDay provides the resources and support needed to thrive in the competitive world of futures trading.
2. The Trading Pit
The Trading Pit is a proprietary trading firm that offers a range of resources to help you navigate the global markets. With a focus on providing cutting-edge technology and a robust infrastructure, the platform offers you a unique proprietary trading experience.
The company’s vision is to create a financial industry where companies and you can work together for mutual benefit. Their mission is to help you build a successful trading career by providing a community of successful traders and a range of resources, including exceptional trading conditions, live webinars, a live squawk box, resource tools, direct market access, exclusive events with professional traders, and an unrivaled affiliate program.
To achieve their goals, The Trading Pit provides funding for futures, forex, and combo accounts, with cryptocurrencies and stocks coming soon. Each type of account has different challenge durations and profit targets, with the Lite, Standard, Executive, and VIP accounts having balances of $10,000, $60,000, $150,000, and $150,000, respectively. Before getting funded, you must go through some challenges first to become a funded trader in The Trading Pit and pay a one-time fee. The Trading Pit is the best futures prop firm that aims to equip you with the knowledge and tools you need to succeed in the financial markets.
3. My Funded Futures
My Funded Futures, steered by CEO Matthew Leech, is a relatively new but rapidly growing United States-based proprietary trading firm. Since its inception in November 2023, the firm has been offering advanced trading platforms such as NinjaTrader, Rithmic, and Tradovate. My Funded Futures distinguishes itself by catering to traders who are ready to commit a moderate to high level of capital, with account sizes ranging from $50,000 to $150,000.
The mission of My Funded Futures is to streamline the process for traders to gain funding, utilizing a single-step evaluation process. This approach simplifies the journey for traders to become funded professionals. The firm sets clear and attainable profit targets at various levels – $3,000, $6,000, $8,000, $9,000, and $12,000. These targets provide traders with specific goals to strive for. Additionally, maximum total drawdown limits are set at $2,000, $3,000, and $4,500, which are scaled according to the account size.
A notable feature of My Funded Futures is its wide range of instruments across different exchanges such as CME, CBOT, COMEX, and NYMEX. This variety offers traders the flexibility to trade in their preferred markets. The leverage options at My Funded Futures are tailored to fit various trading strategies:
- Currency pairs: High leverage of 1:100
- Indices: Leverage up to 1:20
- Metals: Leverage of 1:80 for Gold (XAU) and 1:25 for Silver (XAG)
- Oil: Leverage of 1:40
- Cryptocurrency: Leverage of 1:2
The firm has garnered a Trust Pilot rating of 4.9, indicating a high level of trader satisfaction and confidence in its services.
In summary, My Funded Futures presents itself as a promising option for traders looking for a firm that offers a blend of substantial account sizes, a straightforward funding process, diverse trading instruments, and flexible leverage options. With its commitment to facilitating trader success and its comprehensive range of services, My Funded Futures is poised to become a significant player in the futures prop trading world.
4.TopStep
Topstep is a prop firm that offers a unique opportunity for traders to develop their skills and trade live capital without risking their savings. The company has a strong track record of success, having funded thousands of traders and paying millions in withdrawals.
Topstep’s Trading Combine evaluation stage is designed to help traders learn proven risk management techniques created by experienced traders. The three types of accounts offer different levels of buying power and come with set profit targets, daily loss limits and trailing max drawdowns. With monthly subscription fees ranging from $165 to $375. While participating in the program, you must pay simulated fees per contract or round turn. Overall, Topstep’s funding program provides a unique opportunity to develop your skills and earn profit while minimizing risk.
5. Earn2Trade
Earn2Trade is a futures prop firm that offers a trading education and evaluation program and aims to help aspiring traders become successful professionals. They provide resources such as mentorship sessions, webinars, and individualized instruction to assist traders in learning and to improve their skills.
The program offers two main options for traders, the Gauntlet Mini and the Trader Career Path, which allow traders to test their skills and potentially receive funding for a trading account. The Gauntlet Mini is a test for intraday futures trading, and if completed, traders can receive funds from the program’s proprietary trading firm. On the other hand, the Trader Career Path is a direct route into the trading industry, with an examination designed to gauge trading expertise, promote risk management, and instill discipline.
For the Gauntlet Mini, the cost depends on the monthly balance of your account and ranges from $136 per month for a $50,000 balance to $280 per month for a $150,000 balance. Two options for the Trader Career Path are available: a $25,000 starting balance for $152 per month or a $50,000 starting balance for $152 per month.
The Gauntlet Mini, click on this link to get a 20% discount.
Trader Career Path, click on this link to get a 20% discount.
6. Elite Trader Funding
Elite Trader Funding, operating in the United States, is a notable prop firm established by Kanwal Singh, Eric Ho, and Clint Chaney in February 2022. The firm offers access to platforms such as NinjaTrader, Tradovate, TradingView, and Rithmic. With account sizes ranging from $10,000 to $300,000, Elite Trader Funding caters to a diverse array of traders, from novices to those with significant capital.
The firm’s one-step evaluation process simplifies the path to funding, and it sets profit targets ranging from $1,250 to $20,000. The maximum total drawdown limits vary from $625 to $7,500. Additionally, Elite Trader Funding supports markets including CBOT, COMEX, CME Group, and NYMEX, with a wide range of trading instruments.
A key feature of Elite Trader Funding is the profit split, where traders keep 90% of their profits. This aspect, coupled with the firm’s diverse market support and flexible account sizes, makes Elite Trader Funding an attractive option for traders aiming for success in futures trading.
In summary, Elite Trader Funding emerges as a versatile and accommodating option for traders of all levels. With its wide range of account sizes, simplified funding process, diverse trading instruments, and strong leadership, the firm is well-positioned to support traders in their journey towards success in the futures market.
What is Futures Prop Trading?
Futures prop trading involves proprietary trading firms engaging in futures contracts trading. These firms use their own capital and strategies to trade assets set for future delivery. This trading type requires a deep understanding of market dynamics and futures contracts. It’s a specialized field within the financial industry, where expertise in market analysis and risk management is crucial for success.
For a deeper understanding of lot sizes in futures trading, which is a fundamental concept, check out the video below “Understanding Lot Size in Futures Trading.” This video offers valuable insights and detailed explanations that are crucial for both new and experienced traders in navigating the futures markets.
Advantages of Futures Prop Trading
- Higher Leverage: Compared to others, futures prop trading offers higher leverage. So, you can make big profits even with small capital and price movements.
- Flexibility: Futures prop trading is very flexible because of the various futures contracts you can trade, such as currencies, cryptocurrencies, commodities, and indices. So, you have many opportunities for diversification and minimizing risks.
- Control Over Trading Decisions: Usually, prop firms give you the freedom to determine your trading strategy and decision-making. So, you can have complete control over your trading even when using capital provided by the prop firm.
Disadvantages of Futures Prop Trading
- Financial Risk: As a futures prop trader, you are trading using the capital the prop firm provides. So, make sure that you have good risk management.
- Restrictions: Each futures prop firm has its rules, so you must comply with every applicable regulation. This can be not easy if your futures prop firm prohibits some strategies that you are used to using.
- High-Stress Environment: Futures prop firms usually have challenges or profit targets you must meet. This will undoubtedly put you under pressure, primarily if you are used to trading relaxedly. Moreover, if you are experiencing losses, trading activities will become emotionally draining work.
How to Choose a Futures Prop Firm
When choosing a futures prop firm, you cannot be careless because there are several factors that you need to consider. These factors include:
Reputation: Choose a futures prop firm with a good reputation and track record. The easiest way to know the reputation of a prop firm is by reading prop firm reviews.
Funding Program: Each futures prop firm has different types of funding programs. Usually, the prop firm applies several challenges that you must pass before you are allowed to become a prop trader. This is intended so that the prop firm can know your trading ability and risk management.
Fees and Commissions: Each futures prop firm applies different costs according to its funding program. Of course, you will also get a profit split if you become a futures prop trader in a prop firm. However, the percentage of profit split varies according to the policy applied by the prop firm.
Support and Education: A good futures prop firm must provide ongoing support so that you will be clear if you experience any problems. A good prop firm also usually provides insight, coaching, and access to educational resources to develop the knowledge and skills of its prop traders.
In Conclusion
Futures proprietary trading is an excellent option for you with good trading skills but limited capital. By using money provided by a proprietary firm, you can benefit from higher leverage, flexibility, and control over trading decisions.
However, it is essential to consider the risks involved, including financial and potential for a high-stress environment. When choosing a futures prop firm, you should consider factors such as reputation, funding program, fees and commissions, and support and education. By selecting the best futures prop firm, you can access capital and resources to help you succeed in futures trading.
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