5 Steps To Find A Job In Prop Trading

How do I get a job in prop trading?

Prop traders are given access to massive amounts of capital, allowing them to execute much larger trades. They have the privilege of using advanced trading software and cutting-edge technology that’s often exclusive to prop trading firms. Prop traders also usually receive continuous education and training, while working flexible hours. To top it all off, they are given the opportunity to advance through a career that pays significantly more than your average 9 to 5 job.

If a job with a prop trading firm sounds appealing, you may be wondering – “How can I find a job as a prop trader?”. There are 5 steps you can take that will increase your chances of landing a prop trading job, which we will examine in more detail. You should:

• 1

  Develop the right skills and experience

• 2

  Research prop trading firms

• 3

  Apply for jobs

• 4

  Prepare for interviews

• 5

  Follow up after interviews

Step 1: Develop the right skills and experience

One of the key factors assessed in the hiring process for prop traders is their educational background and their proven ability to successfully trade, which is best demonstrated through actual experience. Prospective prop traders should aim to have:

• Education: A university degree is very important, though occasionally may be overlooked with the right experience. Degrees in computer science, math, physics, and statistics are typically prioritized, though qualifications from specialized technical programs such as engineering will also work in a prop trader’s favor.

• Experience: Having experience either in prop trading or working with public financial markets goes a long way. Undertaking an internship with a financial firm is a great way to get hands-on experience for climbing the career ladder, while also networking with others in various financial industries.

• Trading History: Overall returns should be considerably higher than losses and the record should show active trading for at least four to seven months. Prop firms considering a trader’s track record would want to see their trading history, number of trades executed, trade sizes, drawdowns, trade durations, and the P/L ratio. It should be noted that for a track record to make a difference, most prop firms expect extremely high returns exceeding as much as 70% in a single year.

• Quantitative Skills: Quantitative trading is the process of using quantitative analysis involving mathematical computations, automated trading models, and comprehensive financial databases to identify trade opportunities. It’s typically used by financial institutions and hedge funds, though is becoming more common amongst individual traders.

Step 2: Research prop trading firms

Firms of varying sizes will operate in different financial markets using a number of trading styles, so you should aim for a firm that suits your experience, skills, and style. Make sure to research each firm rigorously when seeking employment. Factors you should consider about the firms include their:

• Trading Style: Search for a firm that matches your trading style. Some firms will specialize in day trading for example, while others might opt for swing trading. Finding a firm that prioritizes trading styles which align with yours will increase your odds of succeeding in the application process.

• Reputation: Keep an eye out for positive trader experiences and try to determine how their treatment of traders is reported on. Examine the firm’s past performance to see whether they have seen consistent growth, and how they have achieved their success, if any. Take into consideration how many years they have been operating for, as their experience and status (or lack of it) can be an indicator of their legitimacy.

• Support: Look for firms that offer educational support and training. Access to educational resources, webinars, and mentorship programs can enhance your trading skills. Make sure to select a firm that is invested in the success and development of its traders.

• Technological Edge: The more legitimate firms will offer access to cutting-edge technology that gives traders an advantage over most independent traders. Real-time market data, rapid trade execution, and advanced charting tools all packed into state-of-the-art trading platforms give prop traders a competitive advantage. Check if the technology used by your chosen prop firm matches your preferred trading tools or software.

• Payout Structure: One of the most important considerations for many prop traders is of course the amount of money they can make. Most legitimate firms will offer a salary ranging anywhere from $144,000 to $250,000 per year (according to talent.com), with a percentage of generated profits also paid to traders, ranging from 20% to as much as 90%.

For a more detailed look at how to choose a prop trading firm, read Traders Union’s article How To Find a Prop Trading Firm.

Step 3: Apply for jobs

Next, you’ll want to apply for a job at your chosen firm. There are different ways to get into a prop trading firm, depending on the type of firm it is. If you’re looking to qualify for a funded account, where you trade remotely, you may be able to do so by completing a prop trading challenge. Otherwise, if going for an onsite role, take these steps to apply:

• 1

  Prepare Your Resume: Create a specifically tailored resume that showcases your relevant experience, education, and skills in trading, finance, or other related fields. Highlight any quantitative skills, programming languages, or certifications you have.

• 2

  Write a Cover Letter: Writing a compelling cover letter allows you to stand out from the possibly hundreds of other applicants. Make sure to emphasize your passion for financial markets, elaborate on your trading approach, and suggest why you might be a good fit for the firm based on your previous research on them.

• 3

  Collate Track Record: If you have a trading track record, gather your performance metrics, such as returns, drawdowns, and risk management strategies to present to the firm. This data can be crucial in demonstrating your capabilities.

• 4

  Apply Online: Visit the websites of your targeted prop trading firms and look for their career or recruitment sections. Follow their application instructions and submit your resume, cover letter, and any other required documents.

Step 4: Prepare for interviews

You’ll be assessed based on your experience, education, and personality, as is often the case in all job interviews. However, you may also need to demonstrate your abilities with math, take part in simulated trade scenarios, or even meet the trading team. To prepare for these stages you can:

• Practice Common Questions: Practice answering regular interview questions, such as listing your strengths and weaknesses, detailing work challenges you’ve faced, and justifying why you want to work with the firm.

• Test Mental Math: Prop trading interviews are notorious for presenting interviewees with challenging and unpredictable math questions and aptitude tests to see whether they can retain their focus and accuracy under pressure.

• Be Yourself: Often in prop trading firm interviews, if a candidate passes the initial stages, they may have a group interview or meet their potential colleagues. Firms want to see if you’d be a good fit for the team, based on how you interact with them. The best advice here is to just be yourself.

Prop trading firm interviews are extremely competitive to the point of sometimes being anxiety-inducing. To ensure your maximum potential for success and prepare yourself as best as you can, read our Top 9 Tips for a Successful Prop Trading Interview.

Step 5: Follow up after interviews

Once the interview is done, there’s not much you can do other than play the (very tense) waiting game. To demonstrate your continued interest and professionalism, however, you could send a follow-up email within 24-48 hours of the interview.

You might consider emailing each person who interviewed you to thank them and reaffirm your interest. Show gratitude for their time and restate your enthusiasm for the position at the firm, briefly mentioning specific parts of the interview which stood out to you that highlight your suitability. You could declare your availability to clarify any information further, and politely inquire about an expected timeline for the decision-making process and next steps, unless it was specifically mentioned in the interview.

Tips for those looking for a job at a prop trading firm

If you’re searching for a job at a prop trading firm, here are some additional tips to make your search a little less daunting.

• Networking: Developing relationships with professionals such as managers of a proprietary trading firms, traders, analysts opens up opportunities and expands your knowledge. You could network using social media platforms such as LinkedIn and Twitter, engaging with content from prominent figures and others related to prop trading or attend events related to the prop trading industry.

• Persistence: It can be difficult to stay optimistic after failing an interview, but as the famous saying goes, “success is built on failure”. If you don’t succeed in your first prop trading job interview, there are plenty more opportunities available. In fact, the year-on-year search for prop traders has increased by 900% from 2022, meaning there is no shortage of prop firm jobs.

• Your Fit: The work culture of a prop trading firm office is not for everyone. Though some traders will appreciate the decreased formality, lack of office politics, and flattened hierarchical structure of a prop firm compared to somewhere like a hedge fund or investment bank, there are also drawbacks.

If working for a prop trading firm sounds right for you, see our article on the best prop trading firms for 2023.

Best Prop trading firms

1

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$1

Review

Topstep is an international proprietary trading company registered in the USA. The company has been providing financial services since 2012 and offers exclusive trading terms for clients from different countries. Topstep provides financing of real trading accounts of its clients if they prove the skill to make trades and manage risks on a simulation account. Traders can trade CME Group futures. Trading on real accounts is carried out through the ECN broker Equiti Capital.

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 an international proprietary trading company created in the Czech Republic in 2014. The platform brings traders into its fold and after traders successfully pass a two-step testing regime, FTMO transfers 400 thousand dollars to the trader’s account. Transactions are monitored by FTMO to grow the deposit. There is a payment of 80% at the first stage of real trading. The 90% Profit Split is available only to those FTMO Traders that have reached Scaling Plan. The company works in full accordance with European financial legislation and is under the local regulator.

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

3

9.1/10

Go to broker

Your capital is at risk.

Minimum deposit:

$119

Review

Funded Trading Plus clients trade CFDs on currency pairs, indices, precious metals, energies, and cryptocurrencies. There are 18 programs with one- and two-phase challenges, or without evaluation. These programs also differ in initial fees, profit targets, maximum total drawdown, and other criteria. Traders can receive from $5,000 to $200,000 under management upon successfully passing the challenge or immediately if they choose the program without evaluation. Scaling up to $2,500,000 is available. The profit split is 80%/20% at the start and 90%/10% or even 100%/0% later. Traders work on MetaTrader 4 and MetaTrader 5. Leverage is up to 1:30.

Pros/Cons

•Wide choice of programs with universal parameters and acceptable requirements;

•One-time initial fee, refundable for programs with one- and two-phase challenges. No monthly subscription;

•Simple and understandable conditions, no hidden obligations, and profitable trading split;

•The prop firm partners with Eightcap and ThinkMarkets. It offers spreads from 0 pips and low trading fees;

•A demo account with $100,000 in virtual funds is available for exploring the trading process and instruments;

•24/7 technical support is provided via four communication channels;

•Deposits and withdrawals are made with Visa, Mastercard, bank transfers, and crypto wallets without fees.

•The Master program without evaluation is very expensive — a non-refundable initial fee of $4,500 is required for the balance of $100,000;

•Funded Trading Plus offers only CFDs without real assets or futures;

•The firm’s website contains much information, but some important nuances, like the reset fee, are not provided.

Study Review