Best Prop Trading Firms In The USA
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If you're too busy to read the entire article and want a quick answer, the best prop trading firm in the USA is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- A wide range of tools
- Fast execution speed
Top prop trading firms in the United States are:
- Hola Prime - A prop trading firm licensed by the FSC of Mauritius that provides funding up to $500,000 with the potential to scale accounts to $4 million
- SabioTrade - Best for those who want to work as non-staff traders with up to 90% of profit
- Instant Funding - Prop firm offering instant funding with account sizes up to $80,000
- GoatFundedTrader - A proprietary trading firm registered in Saint Lucia and Hong Kong, offering simulated capital of up to $400,000 for Forex and CFD trading.
- Earn2Trade - Convinient scaling plans (relatively low profit goal, account upgrades after withdrawing first profit target)
Proprietary trading firms offer a unique platform to enhance your trading skills by providing access to significant, real-capital accounts. These firms enable traders to confidently explore opportunities across various markets, backed by greater resources and support.
Achieving success in proprietary trading demands more than enthusiasm — it requires selecting a trustworthy and well-established firm. Leading firms are characterized by transparent evaluation processes that rigorously test your discipline, decision-making, and ability to perform under pressure. These assessments not only help refine your strategies but also provide valuable feedback to foster growth. Partnering with a prop firm often grants traders access to expert guidance from seasoned professionals and advanced risk management tools that are typically unavailable to independent traders.
As proprietary trading firms continue to shape the financial landscape, independent traders are presented with an opportunity to turn their analytical abilities into a successful career. This guide explores top prop trading firms in the United States to help you embark on a dynamic and rewarding trading journey.
Best prop trading firms in the US for 2025
The following table summarizes the comparison between the above mentioned prop trading firms:
| Available in the USA | Funding Up To, $ | Profit split up to, % | Min Trade Days | Trading period | Max. Leverage | Open an account | |
|---|---|---|---|---|---|---|---|
| Yes | 4 000 000 | 95 | 2 | Unlimited | 1:100 | Open an account Your capital is at risk.
|
|
| Yes | 200 000 | 90 | No time limits | Unlimited | 1:30 | Open an account Your capital is at risk.
|
|
| Yes | 2 500 000 | 90 | 3 | Unlimited | 1:100 | Open an account Your capital is at risk.
|
|
| Yes | 2 000 000 | 95 | 3 | Unlimited | 1:100 | Open an account Your capital is at risk.
|
|
| Yes | 400 000 | 80 | 10 | Unlimited | 1:30 | Open an account Your capital is at risk. |
Rules and regulation
Regulation
Proprietary trading firms are not directly licensed by U.S. regulatory bodies since they do not serve external clients. However, their activities are indirectly regulated through several channels:
Brokerage oversight. Regulators influence prop firms by overseeing the brokers they utilize. Brokers operating under U.S. regulatory license are preferred, ensuring compliance with established financial standards.
Partnership scrutiny. Collaborations with third-party entities, such as software providers and payment processors, are monitored to ensure that prop firms adhere to regulatory expectations.
Additionally, the Volcker Rule, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, imposes restrictions on proprietary trading by banking entities, aiming to prevent excessive risk-taking that could affect the financial system.
Investor protection
Traders who feel their rights have been violated can bring their concerns to U.S. regulatory bodies. A significant ongoing case is the CFTC lawsuit against My Forex Funds, in which the regulator alleges that the firm defrauded traders and misappropriated over $300 million from approximately 135,000 traders within a two-year period. If the case succeeds, it may pave the way for affected traders to receive compensation.
Taxation
Proprietary traders in the U.S. are subject to taxation based on the nature and duration of their trades:
Short-term capital gains. Profits from assets held for one year or less are taxed as ordinary income, with rates ranging from 10% to 37%, depending on the individual's tax bracket.
Long-term capital gains. Profits from assets held for more than one year are taxed at reduced rates, typically 0%, 15%, or 20%, based on taxable income.
It's essential for traders to maintain accurate records and consult with tax professionals to ensure compliance with federal and state tax laws.
Is joining a prop firm a good idea in the USA?
Joining a prop firm in the USA can be a good idea, depending on your trading goals, skills, and the specific terms offered by the firm. Prop firms can provide opportunities for traders who may lack substantial capital but have the skills and discipline to trade successfully. Here’s a breakdown of why it might be a good or less ideal choice:
- Pros
- Cons
Access to capital. Prop firms allow traders to manage large capital accounts, which can significantly amplify their potential returns without risking their personal savings.
Risk management. Many firms have strict risk management rules in place, which can help you develop disciplined trading habits and avoid catastrophic losses.
Training and mentorship. Some prop firms offer training programs, courses, and mentorship, which can be invaluable for traders looking to improve their skills.
No personal financial risk. If you trade with the firm's capital, you won’t typically lose your personal money beyond the initial evaluation fees.
Networking opportunities. Joining a prop firm can connect you with a community of traders, fostering shared knowledge and strategies.
Evaluation process. Most firms require traders to pass a challenging evaluation process to demonstrate profitability and risk management, which can be stressful and expensive.
Fees. Many prop firms charge upfront fees for evaluation or access to their programs. If you fail the evaluation, these fees may not be refunded.
Profit splits. While profit sharing is beneficial, you won’t retain 100% of the earnings, unlike trading independently.
Strict rules. Prop firms impose strict guidelines, including daily loss limits and maximum drawdowns, which may not suit traders who prefer more flexibility.
Psychological pressure. Trading someone else’s capital can create additional stress, especially when faced with profit targets or drawdown limits.
How to join a US-based prop trading firm
Joining a US-based proprietary (prop) trading firm involves several steps, from understanding the requirements to successfully passing the evaluation process. Here's a detailed guide:
Step 1: Research and choose a prop firm
Start by identifying reputable US-based prop trading firms that align with your trading style, goals, and capital needs. Look for factors such as:
Reputation and reviews: Firms like Topstep, SMB Capital, and Maverick Trading are popular and well-established.
Profit split: Typical splits range from 70%-90% in favor of the trader.
Evaluation process: Understand the difficulty, cost, and rules of their evaluation phase.
Fees: Ensure the fees for evaluations, access, or training are reasonable.
Support: Check if they provide mentorship, training programs, or access to advanced tools.
Step 2: Meet basic requirements
Most US-based prop firms have the following prerequisites:
Trading experience: While some firms accept beginners, most require prior trading experience or a proven strategy.
Risk management skills: Firms assess your ability to manage drawdowns and losses.
Technical setup: A strong internet connection and a reliable computer are essential for remote prop firms.
Market focus: Be clear on whether you want to trade Forex, stocks, futures, or options, as firms specialize in different markets.
Step 3: Apply to the prop firm
Submit an application through the firm's website. You may need to provide:
Your trading experience and track record (if available).
A brief description of your trading strategy and risk management plan.
Personal information, including proof of identity.
Step 4: Pass the evaluation process
Most prop firms require candidates to pass an evaluation to prove their trading skills. This typically involves:
Simulated trading:
You'll trade on a demo account with predefined capital and rules (e.g., profit targets, drawdown limits).
The firm assesses your profitability and adherence to risk management rules.
Evaluation fees:
Expect to pay fees ranging from $100 to $500+ for the evaluation phase.
These fees are usually non-refundable if you fail.
Time constraints:
Many firms set a limited period for you to meet their profit and risk targets, such as 30 or 60 days.
Step 5: Trade on the live account
Once you pass the evaluation, you'll gain access to a live funded account. This comes with conditions such as:
Profit split: Understand the percentage of profits you’ll retain (e.g., 80% for traders, 20% for the firm).
Risk limits: Respect the daily loss limits, maximum drawdowns, and other trading restrictions.
Scaling plans: Many firms increase your capital allocation as you demonstrate consistent profitability.
Step 6: Adhere to rules and perform consistently
To maintain your account and scale up, you must:
Follow the firm's rules strictly.
Avoid exceeding risk or loss limits.
Aim for consistent, steady profits rather than taking excessive risks.
Step 7: Withdraw profits
Most firms allow regular profit withdrawals, either weekly or monthly. Make sure you understand:
The withdrawal process and any associated fees.
Minimum withdrawal thresholds, if any.
Payout schedules.
Additional tips
Study the contract: Ensure you fully understand the terms, including profit splits, rules, and consequences of breaches.
Risk management: Develop and adhere to a solid risk management plan to ensure you don’t lose your funded account.
Mentorship programs: Leverage any training or support offered by the firm to enhance your trading skills.
Look for a firm that aligns with your specific needs
When choosing a proprietary trading firm in the USA, it’s essential to focus on how well it matches your trading style and market preferences. Look for a firm that aligns with your specific needs — whether you’re into scalping, swing trading, or algorithmic strategies. Some firms provide platforms that allow customization, which is especially beneficial if you use advanced trading techniques. Make sure the firm offers access to the markets you’re comfortable trading, whether it’s Forex, stocks, or crypto, and ensure they have the liquidity needed to support your trades.
Pay attention to the firm’s risk management policies, as these can either support or limit your growth. If you’re someone who takes calculated risks, avoid firms with overly strict drawdown limits that might interfere with your strategies. Additionally, some firms go beyond just monitoring your performance by offering mentorship and constructive feedback. This kind of personalized guidance can help you refine your skills and grow faster as a trader. Ultimately, the best prop firm is one that not only provides capital but also invests in your development and long-term success.
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:
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Trader testimonials and reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
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Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
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Challenges and evaluation process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
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Profit split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
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Trading conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
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Platform and technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
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Education and support. Quality and availability of training materials, webinars, and one-on-one coaching.
Conclusion
The leading prop trading firms in the USA cater to diverse trading preferences and provide opportunities for traders to access the capital and markets they need to thrive. By offering a mix of evaluation programs, educational resources, and flexible trading conditions, these firms empower traders to achieve success. To choose the right firm, traders should align their personal trading style and goals with the firm’s offerings.
FAQs
What is the best prop firm for trading?
The best firm depends on your individual trading style and objectives. Whether you trade futures, Forex, options, or equities, look for a firm that offers robust evaluation processes, fair payout structures, and access to your preferred markets.
Is prop trading legal in the USA?
Yes, proprietary trading is legal in the USA. However, firms must adhere to regulatory standards set by authorities such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Ensure you choose a reputable firm that complies with these regulations.
What are the largest trading firms in the US?
The largest trading firms in the US are typically leaders in quantitative and algorithmic trading and may not operate in the same way as traditional proprietary trading firms. These organizations often set industry benchmarks in innovation and market impact.
Who are the competitors in the prop trading space?
In the prop trading industry, there are many firms with unique funding models and trading approaches, offering alternatives that cater to traders globally. Each firm has distinct strengths, so traders should compare features such as capital availability, evaluation requirements, and supported trading instruments to find the best fit.
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Team that worked on the article
Rinat Gismatullin is an entrepreneur and a business expert with 9 years of experience in trading. He focuses on long-term investing, but also uses intraday trading. He is a private consultant on investing in digital assets and personal finance. Rinat holds two degrees in Economy and Linguistics.
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.
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).
