Top Prop Trading Firms In USA
The best prop trading firm in the United States is Topstep
Top prop trading firms in the United States are:
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Topstep - best for active traders of any trading experience
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SurgeTrader - Lenient rules, up to 90% profit split, versatile trading
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FTMO - Transparent Challenge, 80%-90% profit, Forex and crypto specialization
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Funded Next - 15% challenge profit share, no time limits, low commissions
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My Forex Funds - Diverse trading assets, scalable accounts, and varied profit splits
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1
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5.7
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2
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5.28
/10
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3
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6.68
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Prop firms provide an unparalleled opportunity to take your skills to the next level. By granting access to larger accounts backed by real capital, these innovative companies supercharge your ability to spot opportunities in various markets.
But rather than jumping in blindly, it pays to select an established partner with a transparent evaluation process. Their specialized exams test your discipline under pressure and provide valuable feedback to sharpen your strategy. With the right fit, you gain insight from veteran traders as well as powerful risk tools rarely afforded to retail investors.
With prop firms transforming the game, independent traders now hold the keys to turning their analytical prowess into a full-fledged career. This guide breaks down the top five options in the United States to help you take that crucial first step towards the high-stakes world of professional trading.
Best prop trading firms in the US in 2024
The following table summarizes the comparison between the above mentioned prop trading firms:
| Firm | Minimum Deposit | Instruments | Additional Features |
|---|---|---|---|
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$1 |
Futures of the CME group: for stocks, commodities, bonds, and metals |
Trading in mini, micro, and standard lots is available |
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$250 |
Currency pairs, cryptocurrencies, commodity market assets, stock assets |
Profit split of up to 90%, No minimum trading days requirement |
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From €155 |
Currency pairs, stocks, stock indices, commodities, cryptocurrencies |
Transparent Challenge rules and Verification process |
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$99 |
Currencies, indices, and commodities |
15% Profit Sharing from Challenge Phase, No Time Limit on Challenge Phase, Balance-Based Drawdown, Raw Spreads & Lowest Commissions |
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$49 |
Forex, CFDs, commodities, metals, indices, stocks, cryptos |
Account sizes up to $300,000, Scalable to $2,000,000 |
1 Topstep
With its brand power and reputation as an industry innovator and one of Inc 5000’s fastest-growing companies, Topstep has earned the trust of many traders. To participate in the funded account program, all traders begin with the Trading Combine. You can open a real-time simulated futures account with $150K, $200K, or $300K buying power.
During the Trading Combine, you can earn a funded trading account if you demonstrate consistent profitability and manage risk appropriately. Using Topstep's capital, you can trade in real time without personal financial risk, with funds provided by Topstep.
As quickly as within eight trading days, traders can qualify to receive a funded account (the amount of funding provided is determined by the Trading Combine plan).
The first $5,000 in profits you make can be withdrawn in full, and 90% of profits exceeding that amount can be withdrawn.
With Topstep, payout requests are processed on a daily basis (payout requests made prior to 10 a.m. CT are processed on the same day).
Topstep’s trader development services include instruction from professional traders, tools, and daily live videos, along with personalized analytics on performance and bonuses for traders.
Trading platforms supported include TSTrader, TradingView, NinjaTrader, Sierra Chart, MultiCharts, R|Trader Pro, and many more.
For a $50k account, Topstep pricing starts at $165 per month. $100k accounts cost $325 per month, and $150k accounts cost $375. Free trials are also available for 14 days.
2 SurgeTrader – lenient rules, up to 90% profit split, versatile trading
SurgeTrader, a collaborative endeavor among institutional traders, venture capitalist, and Forex traders, strives for streamlined trader funding and trading rules. Offering up to 90% profit splits, SurgeTrader supports a broad spectrum of trading instruments beyond stocks, imposes no minimum trading days requirement, and accommodates various trading strategies. Uniform trading conditions—such as a 5% daily loss limit, 8% maximum drawdown, and 10% profit target—apply across account levels. The platform caters to diverse trading techniques and features a comprehensive range of trading instruments.
3 FTMO – transparent Challenge, 80%-90% profit, Forex and crypto specialization
FTMO serves as a notable proprietary trading firm for Forex traders, known for its transparent FTMO Challenge rules and Verification process. The firm seeks to unearth trading talents by providing successful Forex traders with funded accounts, entailing profit payouts of 80%-90%. The FTMO Challenge is particularly advantageous for undercapitalized traders seeking access to larger accounts without personal capital risk. Notably, FTMO Challenge participation fees are reimbursed with the first profit split, rendering it virtually risk-free. FTMO's specialization includes 44 tradable currency pairs and cryptocurrency CFDs, encompassing Bitcoin, Dash, Ethereum, and Litecoin.
4 Funded Next – 15% challenge profit share, no time limits, low commissions
Funded Next sets itself apart by offering a 15% profit sharing from challenge phase profits, coupled with a lack of time constraints during challenges. The firm calculates maximum daily drawdown based on balance, ensuring a more dependable approach to monitoring trading performance. Additionally, Funded Next showcases competitive raw spreads and the lowest commissions, maintaining its commitment to favorable prop trading conditions.
5 My Forex Funds – diverse trading assets, scalable accounts, and varied profit splits
My Forex Funds specializes in Forex and CFD trading, offering a diverse range of trading instruments such as minor and major currency pairs, indices, precious metals, commodities, and cryptocurrencies. Account sizes vary from $2,000 to $300,000, with potential scaling to $2,000,000 contingent on performance. Leverage ratios depend on the instrument category, with Forex pairs, metals, commodities, and indices operating at 1:100, and cryptocurrencies at 1:5. Profit splits diverge per product, with Rapid providing a 12% split, Evaluation presenting a progressive scale from 75% to 85% over three months, and Accelerated entailing a 50% split.
Is joining a prop firm a good idea in the USA?
Proprietary trading firms, also known as prop firms, allow aspiring traders to amplify their trading activities by giving them a chance to get funded. These US-based prop firms have funded accounts that are available to traders, through which they can then engage in trading activities in a way that independent traders can not. These accounts give a trader the potential to book enhanced profits, thereby boosting their profit margins. Learn more about the best funded trader programs in the USA in the TU article.
One of the best features of these prop firms is that they have the provision of a professional trading environment. Within these firms, traders are exposed to experienced and seasoned traders who offer them valuable insights and guidance. Furthermore, traders are exposed to cutting-edge trading tools that assist them in analyzing market trends and help them to make strategic decisions during adverse market conditions. These combinations of features then create an ecosystem wherein traders can flourish by honing and developing their skills, making profitable traders, and seizing challenging opportunities in the financial markets.
Against this backdrop, the prospect of joining a prop firm in the USA is very lucrative and emerges as a promising avenue for those traders who are seeking capital backing, mentorship, and a chance to prove themselves in the trading community.
Pros and cons of joining a prop firm in the USA
Joining a prop firm in the USA has its own set of pros and cons. Here are some of the key pros and cons that you should keep in mind before joining a prop firm.
👍 Pros
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Amplified trading power
One of the key benefits of joining a prop firm in the United States is the substantial increase in trading power available to traders. These firms provide traders with the opportunity to use leverage as high as 100:1 or 200:1 and empower them to engage in larger market positions with much-reduced capital. It is important to note that although the use of leverage can lead to greater profits, it can also lead to substantial losses. So, it is advisable to deploy proper risk management strategies in place
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Capital accessibility
Joining a Forex prop firm opens the door to higher capital accessibility. These firms typically have different funded accounts with varying sizes to help you select the one that aligns with your trading needs and preferences. This feature is particularly favorable for those traders who are newcomers but lack capital for good trading opportunities.
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Nurturing professional atmosphere
US-based prop firms cultivate a professional trading environment for all traders that are selected for their programs. Within these firms, traders are often exposed to experienced traders who readily share their trading strategies and give other traders much-needed valuable insight. Moreover, these firms provide traders access to state-of-the-art software and tools, which in turn helps them to refine their trading strategies and gain higher profitability.
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Performance-based earnings
A significant benefit for prop trading firms is their performance-based compensation model. This structure ensures that traders are compensated based on their trading accomplishments. This approach also motivates traders to deliver good performances, as their earnings are directly proportional to their trading activities and outcomes. This structure often outperforms conventional structures involving fixed salaries or commission-based compensation.
👎 Cons
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High loss exposure
While superior trading power and access to a larger capital are advantageous, they also lead to heightened risk exposure. Staying in leveraged positions renders traders to be more vulnerable to losses if the market moves against their stipulated trading strategy. This is perilous for traders, especially those new to the markets and lacking proficiency in effectively managing risk.
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Intensive pressure environment
Prop firms often have an environment wherein traders are asked to achieve maximum profits. This resultant pressure can lead to traders taking larger risks in a bid to outperform their peers, or they might even have to push themselves to achieve the requisite profit levels that are put forth by the prop firms. This dynamic trading environment might lead to impulsive and unsound trading decisions.
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Less flexibility
Joining a US-based prop firm may impede a trader’s flexibility to follow his own trading strategies. A trader might be instructed to follow a firm’s trading strategies and might also face mandates regarding specific markets or instruments, narrowing their range of trading possibilities.
How to get into a US-based prop trading firm?
Embarking on a prop trading career with a US-based prop firm can be challenging, however, these expert guidelines might help you in your journey:
Educational background
The first step to joining a prop firm in the USA is getting an educational background with a core understanding of the financial markets. You can also do online courses to have a fundamental understanding of the markets that you want to trade in and the ones which the prop firm offers. This knowledge can significantly improve your chances of getting into a good prop firm.
Application to proprietary trading firm
Once you have the requisite background, it is essential that you select a prop firm and then apply to it. In the application procedure, you may have to submit details regarding your background, your email address and your contact number, and some additional details to verify your identity.
Passing the evaluation stage
You transition into the evaluation phase after successfully traversing the application process and gaining acceptance into the firm. Spanning a period typically ranging from 30 to 60 days, this phase tasks you with demonstrating your adeptness in generating profits and adhering to the firm's prerequisites. Your performance throughout this interval is crucial in determining your progression to the subsequent level.
Formulating a trading strategy
Developing a robust trading strategy is central to your success as a prop trader. This strategy is your guiding framework, outlining your approach to market analysis, risk management, and execution. A well-structured and adaptable strategy is important to effectively navigate the complexities of the trading landscape.
Start trading
After you have formulated your own trading strategy and have passed the evaluation test, you can start trading once the firm has approved you as a funded trader.
How to find the best prop trading firm in the USA?
To find the best prop trading firm in the USA according to your requirements, you may follow these steps:
Assess the monthly fee
A critical aspect to consider when assessing prop trading firms is the monthly fee structure. Recognizing the inherent risk in allowing traders access to their capital, these firms often levy a monthly fee to mitigate their exposure. Typically ranging from $100 to $150, this fee encompasses access to trading platforms and real-time data. Additionally, some platforms incorporate a one-time payment ranging from $100 to $1000.
Evaluate the profit split
A key aspect of a prop firm is its profit-split ratio. Across the industry, the standard profit split stands at 50%-50%. However, certain firms extend a more favorable 75% share for traders. Selecting a funded trading account with an optimal profit split percentage can significantly influence your earnings trajectory.
Analyze trading guidelines and risk management
Prop trading firms in the USA have distinct trading guidelines and strict risk management rules. Parameters such as daily drawdown limits, overall drawdown thresholds, maximum daily transactions, profit targets, and asset-specific trade restrictions warrant meticulous examination. Experienced traders should ensure alignment between their strategy and the firm's guidelines, while novice traders can seek insights from peers to ascertain feasibility.
Trading fees
Navigating the prop trading landscape entails due consideration of trading fees and costs. For day traders executing multiple transactions, trading fees can substantially impact profitability. Acquire a comprehensive understanding of platform fees, market-specific trading costs, and potential hidden charges like withdrawal fees. Enquiring about rebate trading programs can also offer potential cost-saving avenues.
Understand the scaling plan
Prop trading firms often offer a scaling plan, enabling traders to expand their account size based on performance. This entails initiating with an initial account size, such as $50,000, and progressing to larger balances upon successful evaluation. Mastering the nuances of the scaling plan empowers traders to chart a growth trajectory aligned with their achievements.
Monthly salary (if applicable)
Certain prop trading firms extend a basic monthly salary, though this can impact profit-sharing arrangements. While rare in remote setups, this base salary covers basic expenses, facilitating focused trading. However, such provisions are more prevalent in larger, office-based prop trading firms.
Validate credibility
An important consideration when selecting a prop trading firm is its credibility. Research the firm's track record, delve into online reviews, and engage with existing traders to glean insights into its reputation and reliability. Opting for a well-established, reputable firm ensures a secure and conducive trading environment.
Are international prop firms legal in the USA?
Yes, international prop firms are legal in the United States, but their operations are subject to rules and regulations that are, in turn, contingent upon their specific location. In the context of the USA, prop trading firms fall under the scrutiny of regulatory bodies such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), alongside other relevant overseers. These entities function as custodians of financial integrity, ensuring that prop firms adhere to prescribed legal frameworks and contribute to the stability of financial markets.
It is important to do your due diligence while selecting a prop firm in the USA and to select one that is reputed and regulated by the above-mentioned financial bodies.
FAQs
What is the best prop firm for trading?
There is no one best prop firm for trading. It depends on trader’s individual needs and preferences.
Is prop trading legal in the USA?
Yes, prop firms are legal in the USA. However, it is advisable to do your own due diligence before selecting a prop firm.
What are the largest trading firms in the US?
Charles Schwab and Fidelity Investments are some of the largest trading firms in the USA.
Who are the competitors of FTMO?
My Forex Funds and SurgeTrader are some of the competitors of FTMO.
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.
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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).