Best prop trading firms for crypto
The best crypto prop trading firm is Fidelcrest
Top crypto prop trading firms are:
Fidelcrest - leverage up to 1:100 for crypto trading;
FTMO - best for a unique evaluation process and capital up to $400,000;
SurgeTrader - support for over 200 crypto crosses;
The Funded Trader - best for unbeatable profit splits, supportive community for crypto.
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Cryptocurrency trading has experienced exponential growth in recent years, attracting a surge of individuals looking to capitalize on the lucrative digital asset market. In this fast-paced industry, crypto trading prop firms have emerged as powerful entities that provide aspiring traders with the tools, resources, and opportunities to thrive. These firms offer a unique proposition, combining the benefits of a prop trading environment with the dynamic nature of cryptocurrencies, empowering traders to unlock their full potential and achieve financial success in the ever-evolving world of digital currencies. So, in this article, the experts at TU will delve into the world of crypto trading prop firms and explore the key factors that make them stand out in the cryptocurrency landscape.
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How much funding can I get from a prop firm?
Funding amounts vary between firms, typically $5,000 up to $400,000 or more depending on experience and trading performance. The best firms offer over $1 million in funding.
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What skills do I need to join a prop firm?
Prop firms require applicants to demonstrate relevant trading experience, a proven profitable strategy, extensive market knowledge, and strong risk management abilities.
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How is profit shared between traders and prop firms?
Usually the split is 70-80% for traders and 20-30% for the firm, but structures can vary - some offer traders up to 90% of profits.
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How long does it take to get funded after applying?
Evaluation periods vary and can take 4-8 weeks on average, depending on the prop firm's screening processes and demands. The top traders might get funded within 1-3 weeks.
What are crypto prop trading firms?
Crypto prop trading firms have emerged as facilitators that offer talented traders a pathway to navigate the dynamic cryptocurrency markets. These firms provide traders with an attractive proposition - the opportunity to amplify their profits while minimizing personal risk. In exchange, prop trading firms receive a portion of the earnings generated from trades executed on their platforms.
Becoming a trader at a crypto prop trading firm usually requires a background in cryptocurrencies or other financial instruments, along with a proven track record of profitability. Additionally, prospective traders may be subject to an evaluation process designed to assess their skills and aptitude for trading within the firm's framework. This ensures that the selected traders possess the necessary expertise to navigate the intricacies of the cryptocurrency market.
By partnering with a crypto prop trading firm, traders gain access to a range of benefits and resources that enhance their trading endeavors. These may include advanced trading platforms, cutting-edge technology, comprehensive market research, and expert guidance from seasoned professionals. Such support equips traders with a competitive edge, enabling them to optimize their trading strategies and capitalize on profitable opportunities.
However, it is important to note that while prop trading firms provide funding and resources, traders still retain a significant level of autonomy and control over their trading decisions. This allows them to leverage their expertise while benefiting from the resources and support offered by the firm.
Best crypto prop trading firms in 2024
1 Fidelcrest
Fidelcrest caters to traders with varying capital requirements by offering different account sizes and subscription fees. They support a wide range of tradable assets, including Forex, cryptocurrencies, indices, gold and silver, commodities, and shares. After passing assessment and verification, traders receive US dollars for trading via the FXCH Forex broker with leverage of up to 1:100. Fidelcrest offers cryptocurrency trading for Litecoin (LTC), Basic Attention Token (BAT), Ethereum (ETH), and Tether (USDT).
2 FTMO
FTMO is renowned for its excellence in prop trading, primarily in Forex. With a unique 2-step evaluation process, they provide traders with educational resources, account analysis, and performance coaching. Successful traders can access balances of up to $400,000. They offer a variety of cryptocurrencies for trading, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Polkadot (DOT), and Dogecoin (DOGE). All of these cryptocurrencies are against USD.
3 SurgeTrader
SurgeTrader is an ideal choice for crypto traders seeking substantial capital. They offer starting balances up to $1,000,000 after passing the evaluation. Traders benefit from a 75% profit split (90% with add-on purchase) and the ability to trade news, hold positions overnight, and utilize strategies like EA and hedging. SurgeTrader supports over 200 cryptocurrency crosses with major world currencies on MetaTrader 4, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and more.
4 The Funded Trader
Known for unbeatable profit splits and prompt payouts, The Funded Trader offers scaling plans and growth opportunities. Traders can engage in monthly competitions and join an active community through their Discord channel. With simple trading rules and leverage of up to 1:2 for crypto, they provide a supportive environment. The Funded Trader offers trading opportunities for cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH).
How to choose a crypto prop trading firm?
When selecting a crypto prop trading firm, it is crucial to consider several key factors that can significantly impact your trading journey. Doing so can make an informed decision and choose the prop trading firm that best aligns with your goals and preferences. So, here are some essential considerations as suggested by experts:
Reputation and track record:
Conduct thorough research on the firm's reputation and track record. Look for a prop trading firm with a positive reputation and a history of successful trading. This information can provide valuable insights into the firm's credibility and reliability
Profitability:
Evaluate the profit share offered by the firm. Different prop trading firms may provide varying profit splits. It is important to choose a firm that offers a fair and competitive profit share to ensure that you are adequately rewarded for your trading performance
Risk management tools:
Assess the risk management tools and strategies provided by the firm. Effective risk management is crucial in trading, and a reputable prop trading firm should offer practical tools and resources to help you mitigate risks and protect your capital. Consider the firm's approach to risk management and whether it aligns with your trading style
Resources and support:
Examine the educational resources, trading tools, and support offered by the firm. A reliable prop trading firm should provide comprehensive educational materials, access to advanced trading tools, and ongoing support to enhance your trading skills and strategies. Look for firms that invest in the growth and development of their traders
Profit split:
Consider the profit split structure offered by the crypto prop trading firm. The profit split refers to the division of trading profits between the trader and the firm. Different firms may have varying profit split arrangements, with some offering higher percentages to traders
Profit targets:
Evaluate the profit targets set by the prop trading firm. Different firms may have varying profit expectations or performance goals that traders are expected to achieve. It is essential to understand and assess these profit targets to ensure they align with your trading strategy and objectives
Evaluation process:
Understand the firm's evaluation process for accepting traders. Some prop trading firms may require you to pass skill-based assessments or evaluations before offering full-time trading opportunities. Consider the evaluation process and ensure that it aligns with your skills, experience, and trading goals
Capital funding:
Take into account the amount of capital funding the firm can provide. Different prop trading firms offer varying maximum funding amounts, and this can significantly impact your trading capacity. Assess your trading goals and the amount of capital you require to ensure that the firm can accommodate your needs
Specialization:
Consider the firm's specialization in terms of assets and markets. Some prop trading firms specialize in specific assets like cryptocurrencies, while others offer a broader range of trading options. Choose a firm that aligns with your trading preferences, expertise, and the markets you are interested in
Is crypto proprietary trading legal?
The legality of crypto proprietary trading is a subject that requires careful consideration, as it can vary depending on the jurisdiction in which you operate. While crypto proprietary trading is generally considered legal in many countries, it is crucial to be aware of the specific regulations and laws governing cryptocurrency trading in your region.
Pros and cons of crypto prop trading firms
👍 Pros
• Access to funding:
One of the primary benefits of joining a crypto prop trading firm is gaining access to funding for trading activities. This enables traders to leverage larger positions and potentially maximize their profits without risking personal capital
• Educational resources and tools:
Prop trading firms often provide educational resources and trading tools to enhance traders' skills and strategies. These resources can include market analysis, trading courses, mentorship programs, and access to advanced trading platforms
• Networking and community:
Joining a prop trading firm fosters a sense of community and facilitates networking opportunities with other traders. Engaging with a community of like-minded individuals can provide valuable insights, support, and opportunities for collaboration
• Growth opportunities:
Successful traders at prop trading firms may have avenues for growth within the firm. This can include access to higher funding levels, increased profit shares, and potential career advancement options, creating a pathway for professional development
👎 Cons
• Evaluation process:
Many prop trading firms have a rigorous evaluation process that traders must pass to become funded traders. This evaluation may assess traders' skills, profitability, and risk management abilities. Meeting the firm's evaluation criteria can be challenging and requires traders to demonstrate their competence
• Profit sharing:
Prop trading firms typically have a profit sharing arrangement where a portion of the trader's earnings goes to the firm. Traders receive a percentage of their profits, while the remaining portion is retained by the firm. The specific profit sharing structure can vary between firms
• Costs and fees:
Some prop trading firms may impose fees or require traders to cover certain costs, such as data fees or platform fees. It is essential for traders to carefully review the fee structure and understand the associated costs of trading with a particular firm
• Market volatility:
Trading cryptocurrencies inherently involves market volatility, which can result in potential losses. While prop trading firms provide funding, traders are still exposed to market risks and should have a thorough understanding of the risks associated with trading cryptocurrencies
How to get into a crypto prop trading firm?
To join a crypto prop trading firm, follow these steps:
Research and identity firms:
Conduct thorough research to identify crypto prop trading firms that align with your trading goals. Consider factors such as reputation, profitability, educational resources, and community engagement to find the right fit
Understand the evaluation process:
Familiarize yourself with the specific evaluation process of each firm you're interested in. Gain a clear understanding of how they assess trading skills and profitability. This may involve simulated trading challenges or other skill-based assessments
Develop and showcase your skills:
Focus on developing and demonstrating your trading skills to increase your chances of being accepted. Backtest strategies, analyze market trends, and maintain a profitable track record to showcase your abilities
Apply and submit your application:
Once you feel prepared, submit your application to the prop trading firms you've selected. Follow the application instructions provided by each firm, which may include sharing your trading history, performance metrics, and requested documentation
Prepare for interviews and assessments:
If your application is successful, you may be invited for interviews or additional assessments. Prepare by researching the firm, understanding their trading strategies and risk management approaches. Be ready to discuss your trading experience and goals during the interviews
Expert Opinion
Cryptocurrencies remain a relatively rare asset for prop trading firms. TU has analyzed the trading conditions of several companies that are not afraid to experiment with new assets. The opportunity to earn and profit with minimal personal risks attracts many traders, especially those lacking sufficient starting capital but with experience and knowledge. When choosing, it is recommended to pay attention to a good reputation and reviews from real clients, a favorable profit distribution model, qualified support, and education. The ranking includes companies that meet these criteria and offer beneficial conditions.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).