The prop trading interview process: What to expect and how to prepare

Types of interviews

The interview process for prospective proprietary traders is a rigorous one and involves multiple stages in different formats. A large part of the hiring process is done online, particularly in the post-COVID world where most communication is done remotely. Let’s look at the stages of the interview:

• 1

  Phone Interview: Once an application has been submitted, and before meeting face-to-face, the candidate should be interviewed remotely. This is done either over the phone, or via an online call platform such as Skype or Zoom. The questions will be relatively surface level, asking about relevant experience, education, and other questions related to the role.

• 2

  In-person Interview: If a candidate makes it through the first screening stage, they’ll be invited to meet face-to-face. Again, if this is a remote position, this stage might be carried out online, though the firm might prefer to get a physical impression. The second stage of the interview is typically conducted by a panel of the firm’s traders and employees. Technical questions are usually asked in this stage. Candidates might be asked to make on-the-spot hypothetical trading decisions and go into more detail about why they’d be suitable for this role. Behavioral assessment is also usually done in this stage.

• 3

  Technical Assessment: Once the candidate has proven themselves to be a suitable fit, some firms will require them to prove their trading abilities in a trading simulation or using case studies. This allows the firm to gauge their trading skills and decision-making abilities.

• 4

  Final Round: At this stage, the job is essentially in the bag. The final rounds might involve meeting senior traders, managers and partners, for them to assess a candidate’s career prospects, their fit within the company, and their general personality. It’s mainly about seeing how well the candidate integrates with the firm.

The prop trading interview process, especially for large firms, is notorious for its meticulousness and uniqueness of the questions asked. The high standards have led to the creation of contests called prop trading challenges. Read our article on how prop trading challenges work.

What prop trading firms look for in candidates

Proprietary firms are not short on candidates to select from, which allows them to be more scrupulous in their hiring process compared to recruiters in other industries. The bar is set high for prospective prop traders. Prop firms will generally look for these attributes in candidates:

• Technical Skills: Knowledge of financial markets is a given. Candidates should be well-versed in how various markets work, and know the technical jargon used by traders. They should be aware of trading strategies, preferably knowing how to apply each one. A common skill amongst prop traders is technical analysis , which means knowing how to forecast the movements of finance instruments, using data, charts, and statistics.

• Problem-Solving Skills: Being able to think critically is a key skill for prop traders. Being able to assess technical data and make decisions on how to best execute trades is vital. The ability to do this in a fast-paced environment, where prices are constantly moving and market news is flooding in, is also crucial.

• Communication Skills: The ability to communicate, both with fellow traders and superiors, is integral to succeeding within a prop firm. Traders must be able to work well with a team to engage in better trades, brainstorm ideas, and come up with the best strategies for optimal results.

• Work Ethic: Working at a prop trade firm is no walk in the park. Candidates are expected to have a great work ethic and a high degree of self-motivation. The desire to improve and perform well is a key part of achieving consistently positive results, which in turn is vital for succeeding in prop trading. They must also be willing to put in long hours, potentially even working up to 14 hours in a single day.

• Emotional Regulation: Trading can already be stressful enough. When trading with a firm’s capital, an extra layer of pressure is added. With a prop trader’s position at a firm relying on their performance, the work environment tends to be more stressful than independent trading. Having emotional discipline is an integral part of succeeding as a prop trader, not to mention a key part of trading successfully overall.

• Mathematical Skills: Interview questions at prop trading firms tend to involve mathematics, probability, and estimation. As candidates with an education in math, computer science, physics, and statistics are prioritized, they will be given questions requiring the use of quick mental math.

Whether you feel you perfectly match these qualities, or feel intimidated by them, you should know what a proprietary trading career looks like. See Traders Union’s article discussing the benefits and challenges of a prop trading career.

How to prepare for a prop trading interview

As with any job interview, it’s crucial to be well prepared. In a recruitment process as competitive as the one for prop traders however, this is doubly so. These steps should be followed before beginning the arduous application process for prop trading firms:

• 1

  Research the Firm: Learn everything there is to know about the firm. Not only will this be helpful in the interview, showing enthusiasm for the role, but it helps you to decide whether you’re a good fit. Research their markets, how they trade, and how they present themselves (their brand). Find out whether the firm is reputable, using reviews on sites like GlassDoor and TrustPilot.

• 2

  Practice: Practice answering generic interview questions. This increases confidence and allows you to better expand on your answers and use the limited interview time more wisely (less overthinking or hesitation). Conduct online research on unusual questions that might pop up. Q&A sites like Quora and Reddit can be a good source for this.

• 3

  Dress Professionally: Research shows that it takes less than one second for a person to form an opinion about someone based on their physical appearance. Dressing your best is the most efficient way to nail that first impression. A professionally dressed candidate shows the interviewer they are serious about the role, while demonstrating attention to detail and self-worth.

For a more detailed breakdown of the prop trader interview process, see our 9 top tips for a successful prop trading interview.

Best Prop Trading Firms

1

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$1

Review

Topstep is a leading proprietary trading firm offering traders the opportunity to trade futures contracts. With a unique two-step evaluation process, traders can prove their skills on a simulated account before potentially receiving funding for live trading.
Topstep offers three account sizes: $50,000, $100,000, and $150,000. Regular pricing starts from $165/month, with frequent discounts available. Traders can leverage up to 1:100 and access diverse futures markets, including stocks, commodities, crypto, bonds, and metals. Commissions and fees charged on the Trading Combine (simulation account) align with those on a live funded account, helping traders develop skills for real markets.
Topstep supports traders with educational resources, including free group coaching, to enhance their chances of success.

Pros/Cons

•Real trading accounts are financed by a broker, there is no need to invest your funds in trading.

•The company provides a wide range of free training materials, including free group coaching.

•You can contact the support team using several convenient methods.

•The broker offers a referral program for extra income.

•The company doesn’t offer bonuses, automated trading, or other passive income options.

•The support service works only on weekdays during set hours.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

€155

Review

FTMO is a prop trading firm offering experienced traders the chance to manage a funded account of up to $200,000 with a wide range of instruments including Forex, stocks, indices, commodities, and cryptocurrencies. To qualify, traders must pass a two-step evaluation process.
Beginners may start with a Free Trial account which has the same trading conditions as the challenge ones. Long-term traders are free to use a Swing Account that has no restrictions on holding positions over the weekend or trading during macroeconomic releases. The company offers trading with the most popular platforms – MT 4/5, cTrader, and DXtrade. The leverage is up to 1:100.
Additionally, FTMO is recognized for its educational resources and continuous support.

Pros/Cons

•Quite low testing cost is €155.

•Classic platforms such as MT4, MT5, and Ctrader are familiar to many traders. For these platforms, hundreds of indicators, scripts, and advisers have been developed.

•The starting reward is 80%.

•Diversification of tariff plans. Candidates can choose a demo deposit from 10 thousand to 200 thousand US dollars. There are tariff plans that span from standard to aggressive trading.

•Leverage is up to 1:100.

•Strict requirements for the test period. The allowable maximum loss is 10% of the deposit amount. The target profit is 10%, for which 1 month is provided.

•There is no information about how the company is funded.

Study Review

Additional tips

On top of knowing what to expect in the interview, here are some additional tips you can employ to increase your chances of succeeding in a prop trading job interview:

• 1

  Be yourself: The interviewer wants to see the real you. Recruiters and interviewers interview countless amounts of candidates, so they can see when somebody’s being ingenuine. Being your authentic self also takes off some of the pressure and allows you to better connect with the person conducting the interview.

• 2

  Ask Questions: Although the focus on the interview is on you, asking questions about the role, the firm, and their business practices shows enthusiasm and interest in the opportunity. As a bonus, it also allows the focus to be momentarily taken off of you.

• 3

  Practice Math: It’s almost impossible to know what questions will be asked, but it’s almost a certainty that some questions will involve quick mental math. Practice quick trader mental math on websites like TraderMath or OpenQuant.