Top 3 Prop Trading Firms in London
The best prop trading firm in London is The 5%ers
Top prop trading firms in London are:
The5ers - Diverse funding options for Forex and securities trading
City Traders Imperium - Scaling profits with flexible funding and direct funding options
Audacity Capital - Funding programs with no loss liability and instant funding for qualified traders
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5.7
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5.28
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6.68
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London, a global financial hub, is home to some of the best prop trading firms in the industry. These firms provide opportunities for professional traders to access funding, advanced trading tools, and specialized programs designed to enhance their trading success. With a focus on Forex and other financial instruments, these prop trading firms offer a range of benefits such as profit sharing arrangements, diverse funding options, and comprehensive training programs. In this article, the experts at TU will explore the top prop trading firms in London, highlighting their unique features, funding opportunities, and the advantages they offer to traders.
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What is the selection process at prop firms?
It usually involves submitting an application, taking an evaluation/entry test, undergoing interviews, providing past trading records etc. Firms evaluate skill, knowledge and suitability of candidates.
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What qualifications are preferred by prop firms?
While not mandatory, qualifications like CFA, CAIA etc. or a finance/economics degree are valued. Hands-on trading experience and a strong verifiable track record are equally if not more important.
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Is it difficult to get into top London prop firms?
Getting into top tier firms is competitive as they receive many applications. Candidates need extensive experience and excellence in strategies, risk management and profitability to stand out.
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How much can prop traders potentially earn?
With no cap on profits, successful traders can earn upwards of millions. But most struggle to even stay afloat. Earnings depend on skill, strategy, adequate risk management and market conditions.
What is prop trading?
In prop trading, firms provide traders with capital to execute trades and, in return, receive a share of the profits generated. By taking on all the risks involved, these firms offer traders the opportunity to leverage their expertise and trading strategies without needing to invest their own funds. However, it's important to note that traders are typically bound by specific guidelines imposed by the firm, which dictate the maximum trading limits and permissible trade types.
Prop trading firms not only provide traders with access to multiple trading platforms but also offer incentives such as rebates to enhance market liquidity. Moreover, they prioritize delivering exceptional customer support to ensure traders have a seamless experience. These firms go a step further by granting traders access to sophisticated trading tools, software, and a wide range of resources to enhance their trading capabilities. Additionally, prop trading firms offer invaluable mentorship, training, and ongoing support from seasoned traders, allowing individuals to further refine their skills and knowledge in the trading industry.
Best prop trading firms in London in 2024
The5%ers:
The5%ers is a reputable prop trading firm that specializes in Forex trading. Along with Forex, the platform supports trading with indices, cryptocurrencies, and precious metals. The firm stands out with its diverse funding account options, accommodating traders with different capital levels and risk preferences. Experienced traders can join the Hyper Growth program, where they can trade live from day one and double their account with every milestone achieved. The High-Stake program suits those with aggressive trading strategies, offering higher risks and rewards. Beginners can opt for the Bootcamp program, which provides a six-figure funded account and 100% profit upon completing the three-phase challenges. The5%ers ensures realistic trading requirements and access to better accounts without extra charges.
Audacity Capital:
Audacity Capital offers funding and additional trading tools to professional Forex traders. Traders can apply for positions, showcase their trading experience and strategies, and participate in face-to-face interviews in London. Once approved, traders can start earning money through trading. AudaCity Capital provides two programs: the Hidden Talents program and the Funded Trader Program, each with its own unique features. Accounts are upgraded as traders achieve 10% profit targets, and the company utilizes institutional liquidity providers. Traders benefit from a 50-50 profit split, with account sizes doubling for every 10% profit target reached. The company focuses solely on Forex trading and offers support through various platforms, including Android, desktop, and iOS apps.
City Traders Imperium:
City Traders Imperium offers excellent training, trading tools, and funding opportunities to traders. Traders can be funded up to $4 million and receive up to a 70% profit share. The firm supports trading in various instruments, including Forex, shares, gold, and indices. Traders are provided with four funding plans: Evaluation, Portfolio Manager, and Direct Funding Plans. They progress through the levels as they hit 10% profit targets, leading to higher funding limits. The Evaluation level allows traders to be evaluated for up to one year, with the potential to qualify for a 400% reward. The Portfolio Manager account has no trading rules and offers a 60% profit share. Traders have the flexibility to keep two Portfolio Manager accounts. City Traders Imperium allows news and weekend trading and permits overnight holds.
Is prop trading profitable?
Proprietary trading presents numerous advantages for both the trading firm and individual traders. From the perspective of the firm, prop trading offers a pathway to increased profitability. For traders, it provides access to the market, particularly benefiting those who may have limited capital. Moreover, prop trading holds the potential for substantial earnings, provided traders possess the necessary skill and discipline.
Prop traders have the opportunity to earn significant sums of money by leveraging their talent and adhering to a disciplined approach. Their compensation structure typically involves profit-sharing with the prop firm, which theoretically opens up unlimited profit potential. However, it is crucial for individuals considering prop trading to comprehensively understand the associated risks and conduct thorough due diligence before embarking on this venture.
While salaries in proprietary trading can vary, data from Zippia suggests that the average salary for proprietary traders in the United States falls within the range of $60,000 to $165,000 annually. Hourly rates for proprietary traders in the US typically span from $28 to $79 per hour. It's worth noting that specific compensation figures can vary depending on factors such as experience, skill level, and the firm with which a trader is affiliated.
Benefits of prop trading
Proprietary trading offers a range of benefits that make it an attractive option for traders seeking opportunities in the financial markets, particularly in London. These advantages contribute to the success and appeal of prop trading firms in the city:
Access to enhanced capital:
Prop trading firms provide traders with access to substantial trading capital that surpasses what is typically available in individual trading accounts. This heightened capital base enables traders to seize larger market opportunities and potentially achieve higher returns on their investments
Utilization of advanced trading technology:
Prop trading firms heavily invest in state-of-the-art trading platforms, tools, and technologies. These resources empower traders with the ability to execute trades swiftly, efficiently analyze market data, and implement advanced trading strategies. The utilization of cutting-edge technology enhances the overall trading experience and facilitates more informed decision-making
Robust risk management:
Trading inherently involves risks, and prop trading firms recognize the importance of effective risk management. These firms typically have dedicated risk management teams that work closely with traders to help them navigate the complexities of the markets. This support benefits both new and experienced traders by providing them with guidance and protection, safeguarding the interests of both the trader and the firm
Networking opportunities:
Joining a prop trading firm offers traders the opportunity to connect and network with like-minded professionals who share their passion for trading. Collaborating with other traders within the firm fosters the exchange of valuable insights, information, and strategies. These connections can lead to fruitful collaborations, knowledge sharing, and potential new business opportunities within the trading industry
How to get into a prop trading firm in London?
Entering a prop trading firm in London requires a systematic approach that involves education, careful selection, and the demonstration of trading expertise. Here's a step-by-step guide on how to embark on a career in prop trading:
Education and background:
While not strictly mandatory, earning a bachelor's degree in finance, economics, or a related field is the conventional path for aspiring prop traders. However, it's important to note that prop traders come from diverse educational backgrounds, and practical trading knowledge can also be acquired through alternative routes
Selecting a prop trading firm:
Research and identify reputable prop trading firms in London that align with your trading goals and preferences. Consider factors such as their trading strategies, available resources, mentorship programs, and track record in the industry. It's crucial to choose a firm that suits your trading style and offers the necessary support for your development as a trader
Demonstrating trading proficiency:
Many prop trading firms require applicants to showcase their trading skills and potential. This may involve passing a test or exam, which could be time-limited and may have specific profit targets to achieve. Additionally, some firms may request trading records that demonstrate successful trading performance. In certain cases, aspiring traders might go through an evaluation period, where they trade assets under observation to demonstrate their ability to generate profits
Consider paper trading:
For beginners or those looking to refine their trading strategies, engaging in paper trading or utilizing demo accounts can be highly beneficial. This approach allows you to practice trading without risking real money. Through paper trading, you can test various strategies, gain valuable experience, and develop essential skills in risk management. The insights and lessons learned from these simulated trading experiences can serve as valuable references during interviews with prop trading firms
Are prop firms in London legit?
Proprietary trading firms in London are legitimate entities operating within the financial industry. However, it is essential for individuals interested in prop trading to exercise due diligence when choosing a firm to ensure its legitimacy. Conducting thorough research, checking regulatory registrations, and reviewing the firm's reputation and track record are essential steps in verifying the legitimacy and credibility of a prop trading firm in London.
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).